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Stockholders' Equity
 6 Months Ended
Dec. 31, 2014
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
Note 4.
Stockholders’ Equity
 
Stock Options
 
In December 2007, we established the 2007 Equity Compensation Plan (the “Plan”). The Plan was approved by our board of directors and stockholders. The purpose of the Plan is to grant stock and options to purchase our common stock to our employees, directors and key consultants. On November 15, 2012, and November 21, 2014, the maximum number of shares of common stock that may be issued pursuant to awards granted under the Plan increased from 1,500,000 to 3,000,000, and from 3,000,000 to 5,000,000, respectively, as approved by our board of directors and stockholders. Cancelled and forfeited stock options and stock awards may again become available for grant under the Plan. There were 2,347,137 shares available for grant under the Plan as of December 31, 2014. All stock option grants are made under the 2007 Equity Compensation Plan.
 
The majority of awards issued under the Plan vest immediately or over three years, with a one year cliff vesting period, and have a term of ten years. Stock-based compensation cost is measured at the grant date, based on the fair value of the awards that are ultimately expected to vest, and recognized on a straight-line basis over the requisite service period, which is generally the vesting period.
 
The following table summarizes vested and unvested stock option activity:
 
 
 
All Options
 
Vested Options
 
Unvested Options
 
 
 
 
Weighted
 
 
Weighted
 
 
Weighted
 
 
 
 
Average
 
 
Average
 
 
Average
 
 
 
 
 
Exercise
 
 
 
Exercise
 
 
 
Exercise
 
 
 
Shares
 
Price
 
Shares
 
Price
 
Shares
 
Price
 
Outstanding at June 30, 2014
 
 
1,888,851
 
 
1.27
 
 
1,526,130
 
 
1.21
 
 
362,721
 
 
1.53
 
Granted
 
 
65,650
 
 
0.76
 
 
15,000
 
 
0.77
 
 
50,650
 
 
0.76
 
Options vesting
 
 
-
 
 
-
 
 
156,912
 
 
1.54
 
 
(156,912)
 
 
1.54
 
Exercised
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Forfeited/Cancelled
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Outstanding at December 31, 2014
 
 
1,954,501
 
$
1.25
 
 
1,698,042
 
$
1.23
 
 
256,459
 
$
1.38
 
 
The weighted average remaining contractual life of all options outstanding as of December 31, 2014 was 6.10 years. The remaining contractual life for options vested and exercisable at December 31, 2014 was 5.74 years. Furthermore, the aggregate intrinsic value of all options outstanding as of December 31, 2014 was $5,334, and the aggregate intrinsic value of options vested and exercisable at December 31, 2014 was $1,050, in each case based on the fair value of the Company’s common stock on December 31, 2014. The total fair value of options vested during the six months ended December 31, 2014 was $122,896 and is included in selling, general and administrative expenses in the accompanying statement of operations.  As of December 31, 2014, the amount of unvested compensation related to these options was $228,622 which will be recorded as an expense in future periods as the options vest.
 
Additional information regarding stock options outstanding and exercisable as of December 31, 2014 is as follows:
 
Option
 
 
 
Remaining
 
 
 
 
Exercise
 
Options
 
Contractual
 
Options
 
Price
 
Outstanding
 
Life (in years)
 
Exercisable
 
$
0.65
 
 
6,150
 
 
9.86
 
 
-
 
 
0.77
 
 
59,500
 
 
9.64
 
 
15,000
 
 
1.00
 
 
347,000
 
 
4.41
 
 
347,000
 
 
1.02
 
 
287,000
 
 
5.58
 
 
287,000
 
 
1.07
 
 
53,898
 
 
7.79
 
 
48,898
 
 
1.15
 
 
278,000
 
 
8.11
 
 
235,333
 
 
1.20
 
 
31,414
 
 
9.39
 
 
-
 
 
1.25
 
 
32,000
 
 
8.13
 
 
21,333
 
 
1.30
 
 
263,000
 
 
7.18
 
 
263,000
 
 
1.50
 
 
380,000
 
 
3.06
 
 
380,000
 
 
1.75
 
 
1,067
 
 
9.08
 
 
-
 
 
1.80
 
 
190,050
 
 
8.73
 
 
86,004
 
 
1.85
 
 
24,000
 
 
8.39
 
 
14,000
 
 
1.97
 
 
1,422
 
 
8.90
 
 
474
 
 
Total
 
 
1,954,501
 
 
 
 
 
1,698,042
 
  
Warrants
 
The following table summarizes warrant activity:
 
 
 
 
Weighted
 
 
 
 
Average
 
 
 
Number of
 
Exercise
 
 
 
Warrants
 
Price
 
Outstanding, June 30, 2014
 
 
904,998
 
 
1.73
 
Granted
 
 
-
 
 
-
 
Exercised
 
 
-
 
 
-
 
Expired
 
 
(599,998)
 
 
1.97
 
Outstanding, December 31, 2014
 
 
305,000
 
$
1.26
 
Exercisable, June 30, 2014
 
 
904,998
 
$
1.73
 
Exercisable, December 31, 2014
 
 
305,000
 
$
1.26
 
 
There was no intrinsic value for all warrants outstanding as of December 31, 2014, based on the fair value of the Company’s common stock on December 31, 2014.
 
Additional information regarding warrants outstanding and exercisable as of December 31, 2014 is as follows:
 
 
 
 
 
Remaining
 
 
 
 
Warrant
 
Warrants
 
Contractual
 
Warrants
 
Exercise Price
 
Outstanding
 
Life (in years)
 
Exercisable
 
$
1.19
 
 
150,000
 
 
6.98
 
 
150,000
 
 
1.25
 
 
150,000
 
 
0.85
 
 
150,000
 
 
3.50
 
 
2,500
 
 
1.50
 
 
2,500
 
 
4.00
 
 
2,500
 
 
1.50
 
 
2,500
 
 
Total
 
 
305,000
 
 
 
 
 
305,000
 
 
Restricted Common Stock
 
On August 18, 2014, the Company issued 262,500 shares of restricted stock to employees. These shares vest over a three year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The aggregate value of the stock award was $202,125 based on the market price of our common stock of $0.77 per share on the date of grant, which will be amortized over the three-year vesting period. All restricted common stock grants are made under the 2007 Equity Compensation Plan.
 
On November 7, 2014, the Company issued 108,560 shares of restricted stock to employees. These shares vest over a three year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The aggregate value of the stock award was $70,564 based on the market price of our common stock of $0.65 per share on the date of grant, which will be amortized over the three-year vesting period. All restricted common stock grants are made under the 2007 Equity Compensation Plan.
 
The total fair value of restricted common stock vested during the six months ended December 31, 2014 was $98,621 and is included in selling, general and administrative expenses in the accompanying statement of operations. As of December 31, 2014, the amount of unvested compensation related to these issuances of restricted common stock was $425,774, which will be recorded as an expense in future periods as the stock vests. When calculating basic net income (loss) per share, these shares are included in weighted average common shares outstanding from the time they vest. When calculating diluted net income per share, these shares are included in weighted average common shares outstanding as of their grant date.
 
The following table summarizes restricted common stock activity:
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
Average
 
 
 
Number of
 
Grant Date
 
 
 
Shares
 
Fair Value
 
Non-vested, June 30, 2014
 
 
227,827
 
 
1.72
 
Granted
 
 
371,060
 
 
0.73
 
Vested
 
 
(85,941)
 
 
1.81
 
Forfeited
 
 
-
 
 
-
 
Non-vested, December 31, 2014
 
 
512,946
 
$
0.99
 
 
Common Stock Repurchase and Retirement
 
The Company’s Board of Directors has authorized the repurchase of up to $250,000 of the Company’s outstanding common stock. At December 31, 2014, the Company had not executed any repurchases. All common stock repurchased will be retired, with the excess of the cost over the par value of the common shares repurchased recorded to additional paid-in capital. Purchases may be made from time to time in open market or privately negotiated transactions as determined by the Company’s management. The actual timing, number and value of shares repurchased will be determined by the Company’s management at its discretion, and will depend on management's evaluation of market conditions and other factors. The Company has no obligation to repurchase any shares under this authorization, and the repurchase program may be suspended, discontinued or modified at any time, for any reason and without notice.