In 2012, pursuant to the recommendation of the Board of Directors, the stockholders ratified the creation of the Company’s 2012 Omnibus Incentive Plan (the “2012 Plan”), which superseded the 1990 Flexible Incentive Plan (the "1990 Plan"). The 2012 Plan is administered by a committee of the Board of Directors and provides for granting of various stock-based awards including stock options to eligible participants, primarily officers and certain key employees. A total of 2,000,000 shares of common stock were available under the terms of the 2012 Plan plus shares outstanding under the 1990 Plan that expired or were otherwise forfeited, canceled or terminated after July 25, 2012, the Effective Date of the 2012 Plan. As of June 30, 2021, there were 540,308 options available for future grants. Options vest over a 3 to 5 year period from the date of grant, with a maximum term of 5 to 10 years. The Company's policy is to issue new shares when stock options are exercised.

The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. The resulting compensation cost for fixed awards with graded vesting schedules is amortized on a straight-line basis over the vesting period for the entire award. Forfeitures are accounted for as they occur. The expected term of awards granted is determined based on historical experience with similar awards, giving consideration to the expected term and vesting schedules. The expected volatility is determined based on the Company’s historical stock prices over the most recent period commensurate with the expected term of the award. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term commensurate with the expected term of the award.

As of June 30, 2021, there was $1,223,200 of total unrecognized compensation cost related to stock options granted under the 2012 Plan. This cost is expected to be recognized over a weighted average period of 2.72 years. The Company recognized stock-based compensation expense of $619,137 and $549,594 in 2021 and 2020, respectively. These expenses were included in selling, general and administrative expenses.

Options are granted at a price equal to or greater than the market value of the common stock on the date of grant. The per share weighted average fair value of the stock options granted during the years ended June 30, 2021 and 2020 were $1.12 and $1.26, respectively. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. For the options granted in 2021 and 2020, the Company used the following weighted-average assumptions:


	2021	2020
Expected stock price volatility	77%	74%
Risk free interest rate	0.34%	1.87%
Expected dividend yield	—%	—%
Expected life of options (years)	6.0	6.1

The following table identifies options granted, exercised, canceled, or available for exercise pursuant to the 1990 Plan and the 2012 Plan:


							Aggregate
						Weighted	Intrinsic
				Weighted		Average	Value of
		Stock		Average		Remaining	In-The-
	Number of	Options		Exercise		Contractual	Money
	Shares	Price Range		Price		Life - Years	Options
Shares under option at June 30, 2019	2,592,875	$	1.77 - $6.28	$	2.96	4.23	$	48,280
Granted	555,000	$	1.97 - $2.17	$	2.08
Exercised	—		—		—
Expired	(362,000)	$	2.20 - $6.28	$	3.53
Forfeited	(64,000)	$	1.77 - $2.65	$	2.15
Shares under option at June 30, 2020	2,721,875	$	1.77 - $6.00	$	2.73	4.82	$	—
Granted	615,000	$	1.73 - $2.11	$	1.84
Exercised	(1,203,875)	$	1.77 - $6.00	$	2.75
Expired	(385,000)	$	1.77 - $5.24	$	3.24
Forfeited	—		—		—
Shares under option at June 30, 2021	1,748,000	$	1.73 - $6.00	$	2.29	4.86	$	36,594,280
Exercisable as of June 30, 2020	1,408,709	$	1.77 - $6.00	$	3.12	2.61	$	—
Exercisable as of June 30, 2021	288,000	$	1.73 - $6.00	$	3.19	2.81	$	5,767,425

The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of the Company's stock on any given date and the exercise price, multiplied by the number of in-the-money outstanding and exercisable stock options.

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A summary of intrinsic value and cash received from stock option exercises and fair value of vested stock options for the fiscal years ended June 30, 2021 and 2020 is as follows:


		Weighted
		Average
		Grant Date
	Shares	Fair Value
Non-vested as of June 30, 2019	1,272,584	1.19
Granted	555,000	1.26
Vested	(450,418)	1.07
Forfeited	(64,000)	1.39
Non-vested as of June 30, 2020	1,313,166	1.26
Granted	615,000	1.12
Vested	(468,166)	1.17
Forfeited	-	0
Non-vested as of June 30, 2021	1,460,000	1.23