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STOCK OPTIONS | 3 Months Ended
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Sep. 30, 2019
Share-based Payment Arrangement [Abstract] |
STOCK OPTIONS | On September 24, 2007, the Company’s Board of Directors unanimously adopted the 2007 Employee Stock Option Plan (the “2007 Employee Plan”) and the 2007 Directors Equity Incentive Plan (the “2007 Directors Plan”) each of which was approved by the shareholders on December 3, 2007. Each of those plans was amended during the term of such plan to increase the number of shares covered thereby. As of the last amendment thereof, the 2007 Employee Plan covered an aggregate of 600,000 shares of the Company’s Common Stock and the 2007 Directors Plan covered an aggregate of 500,000 shares of the Company’s Common Stock. Each of those plans terminated by its respective terms on September 24, 2017. These two plans were administered by the Board, which also established the terms of the awards. On September 14, 2017, the Company’s Board of Directors unanimously adopted the 2017 Employee Stock Option Plan (the “2017 Employee Plan”) and the 2017 Directors Equity Incentive Plan (the “2017 Directors Plan”) each of which was approved by the shareholders on December 4, 2017. Each of these plans is administered by the Board of Directors of the Company. Assumptions The fair value for the options granted were estimated using the Black-Scholes option pricing model with the following weighted average assumptions, assuming no expected dividends:
|  | Three Months Ended September 30, |
|  | 2019 |  |  | 2018 |
Expected volatility |  | 45.38%to 97.48% |  |  | 60.41% to 104.94 % |
Risk-free interest rate |  | 0.30% to 2.35% |  |  | 0.30% to 0.78 % |
Expected life (years) |  |  | 2.5 -3.25 |  |  |  | 2.50 |
The expected volatilities are based on the historical volatility of the Company’s stock. Due to higher volatility, the observation is made on a daily basis for the three months ended September 30, 2019. The observation period covered is consistent with the expected life of options. The expected life of the options granted to employees has been determined utilizing the “simplified” method as prescribed by ASC Topic 718 Stock Based Compensation, which, among other provisions, allows companies without access to adequate historical data about employee exercise behavior to use a simplified approach for estimating the expected life of a "plain vanilla" option grant. The simplified rule for estimating the expected life of such an option is the average of the time to vesting and the full term of the option. The risk-free rate is consistent with the expected life of the stock options and is based on the United States Treasury yield curve in effect at the time of grant. 2017 Employee Stock Option Plan The Company’s 2017 Employee Plan permits the grant of stock options to its employees covering up to an aggregate of 300,000 shares of Common Stock. Under the 2017 Employee Plan, all options must be granted with an exercise price of not less than fair value as of the grant date and the options granted must be exercisable within a maximum of ten years after the date of grant, or such lesser period of time as is set forth in the stock option agreements. The options may be exercisable (a) immediately as of the effective date of the stock option agreement granting the option, or (b) in accordance with a schedule related to the date of the grant of the option, the date of first employment, or such other date as may be set by the Compensation Committee. Generally, options granted under the 2017 Employee Plan are exercisable within five years after the date of grant, and vest over the period as follows: 25% vesting on the grant date and the remaining balance vesting in equal installments on the next three succeeding anniversaries of the grant date. The share-based compensation will be recognized in terms of the grade method on a straight-line basis for each separately vesting portion of the award. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2017 Employee Plan). During the first quarter of fiscal year 2020, the Company did not grant any options pursuant to the 2017 Employee Plan. There were no stock options exercised during the three-month period ended September 30, 2019. The Company recognized $8 stock-based compensation expenses during the three months ended September 30, 2019. During the first quarter of fiscal year 2019, the Company did not grant any options pursuant to the 2017 Employee Plan. There were no stock options exercised during the three-month period ended September 30, 2018. The Company recognized $1 stock-based compensation expenses during the three months ended September 30, 2018. As of September 30, 2019, there were vested stock options granted under the 2017 Employee Plan covering a total of 49,000 shares of Common Stock. The weighted-average exercise price was $4.97 and the weighted average remaining contractual term was 3.86 years. As of September 30, 2018, there were vested stock options granted under the 2017 Employee Plan covering a total of 15,000 shares of Common Stock. The weighted-average exercise price was $5.98 and the weighted average remaining contractual term was 4.48 years. A summary of option activities under the 2017 Employee Plan during the three months period ended Sep 30, 2019 is presented as follows:
|  | Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Outstanding at July 1, 2019 |  |  | 136,000 |  |  | $ | 4.53 |  |  |  | 4.28 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited or expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at September 30, 2019 |  |  | 136,000 |  |  |  | 4.53 |  |  |  | 4.02 |  |  |  | 19.2 |
Exercisable at September 30, 2019 |  |  | 49,000 |  |  |  | 4.97 |  |  |  | 3.86 |  |  |  | 5 |
A summary of the status of the Company’s non-vested employee stock options during the three months ended Sep 30, 2019 is presented below:
|  | Options |  |  | Weighted Average Grant-Date Fair Value |
Non-vested at July 1, 2019 |  |  | 87,000 |  |  | $ | 4.28 |
Granted |  |  | - |  |  |  | - |
Vested |  |  | - |  |  |  | - |
Forfeited |  |  | - |  |  |  | - |
Non-vested at September 30, 2019 |  |  | 87,000 |  |  | $ | 4.28 |
A summary of option activities under the 2017 Employee Plan during the three months period ended Sep 30, 2018 is presented as follows:
|  | Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Outstanding at July 1, 2018 |  |  | 60,000 |  |  | $ | 5.98 |  |  |  | 4.73 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited or expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at September 30, 2018 |  |  | 60,000 |  |  |  | 5.98 |  |  |  | 4.48 |  |  |  | — |
Exercisable at September 30, 2018 |  |  | 15,000 |  |  |  | 5.98 |  |  |  | 4.48 |  |  |  | — |
A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2018 is presented below:
|  | Options |  | Weighted Average Grant-Date Fair Value
Non-vested at July 1, 2018 |  |  | 45,000 |  |  | $ | 5.98 |
Granted |  |  | — |  |  |  | — |
Vested |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |
|  |  | 45,000 |  |  | $ | 5.98 |
2007 Employee Stock Option Plan The 2007 Employee Plan terminated by its terms on September 24, 2017 and no further options may be granted thereunder. However, the options outstanding thereunder continue to remain outstanding and in effect in accordance with their terms. The 2007 Employee Plan permitted the issuance of options to employees. As the 2007 Plan has terminated, the Company did not grant any options pursuant to the 2007 Employee Plan during the three months ended September 30, 2019 and September 30, 2018 respectively. There were no options exercised during the three months ended September 30, 2019. There were 15,000 of options exercised during the three months ended September 30, 2018. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2019. The Company recognized stock-based compensation expenses of $1 in the three months ended September 30, 2018 under the Employee Plan. As of September 30, 2019, there were vested stock options granted under the 2007 Employee Plan covering a total of 68,125 shares of Common Stock. The weighted-average exercise price was $3.62 and the weighted average remaining contractual term was 1.89 years. As of September 30, 2018, there were vested employee stock options covering a total of 83,750 shares of Common Stock. The weighted-average exercise price was $3.39 and the weighted average contractual term was 1.75 years. A summary of option activities under the 2007 Employee Plan during the three months ended September 30, 2019 is presented as follows:
|  | Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Outstanding at July 1, 2019 |  |  | 77,500 |  |  | $ | 3.69 |  |  |  | 2.22 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited or expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at September 30, 2019 |  |  | 77,500 |  |  | $ | 3.69 |  |  |  | 1.97 |  |  | $ | 14 |
Exercisable at September 30, 2019 |  |  | 68,125 |  |  | $ | 3.62 |  |  |  | 1.89 |  |  | $ | 14 |
A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2019 is presented below:
|  | Options |  | Weighted Average Grant-Date Fair Value
Non-vested at July 1, 2019 |  |  | 9,375 |  |  | $ | 4.14 |
Granted |  |  | — |  |  |  | — |
Vested |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |
Non-vested at September 30, 2019 |  |  | 9,375 |  |  | $ | 4.14 |
A summary of option activities under the 2007 Employee Plan during the three months ended September 30, 2018 is presented as follows:
|  | Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Outstanding at July 1, 2018 |  |  | 127,500 |  |  | $ | 3.52 |  |  |  | 2.10 |  |  | $ | 121 |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Exercised |  |  | (15,000 | ) |  |  | 3.62 |  |  |  | — |  |  |  | — |
Forfeited or expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at September 30, 2018 |  |  | 112,500 |  |  | $ | 3.50 |  |  |  | 2.10 |  |  | $ | 120 |
Exercisable at September 30, 2018 |  |  | 83,750 |  |  | $ | 3.39 |  |  |  | 1.75 |  |  | $ | 99 |
A summary of the status of the Company’s non-vested employee stock options during the three months ended September 30, 2018 is presented below:
|  | Options |  | Weighted Average Grant-Date Fair Value
Non-vested at July 1, 2018 |  |  | 28,750 |  |  | $ | 3.83 |
Granted |  |  | — |  |  |  | — |
Vested |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |
Non-vested at September 30, 2018 |  |  | 28,750 |  |  | $ | 3.83 |
2017 Directors Equity Incentive Plan The 2017 Directors Plan permits the grant of options covering up to an aggregate of 300,000 shares of Common Stock to its directors in the form of non-qualified options and restricted stock. The exercise price of the non-qualified options is 100% of the fair value of the underlying shares on the grant date. The options have five-year contractual terms and are exercisable immediately as of the grant date. During the first quarter of fiscal year 2020, the Company did not grant any options pursuant to the 2017 Directors Plan. There were no stock options exercised during the three months ended September 30, 2019. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2019. During the first quarter of fiscal year 2019, the Company did not grant any options pursuant to the 2017 Directors Plan. There were no stock options exercised during the three months ended September 30, 2018. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2018. As all of the stock options granted under the 2017 Directors Plan vest immediately on the date of grant, there were no unvested stock options granted under the 2017 Directors Plan as of September 30, 2019. As of September 30, 2019, there were vested stock options granted under the 2017 Directors Plan covering a total of 160,000 shares of Common Stock. The weighted-average exercise price was $4.63 and the weighted average remaining contractual term was 4.00 years. As of September 30, 2018, there were vested stock options granted under the 2017 Directors Plan covering a total of 80,000 shares of Common Stock. The weighted-average exercise price was $5.98 and the weighted average remaining contractual term was 4.48 years. A summary of option activities under the 2017 Directors Plan during the three months ended September 30, 2019 is presented as follows:
|  | Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Outstanding at July 1, 2019 |  |  | 160,000 |  |  | $ | 4.63 |  |  |  | 4.25 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited or expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at September 30, 2019 |  |  | 160,000 |  |  |  | 4.63 |  |  |  | 4.00 |  |  |  | 26 |
Exercisable at September 30, 2019 |  |  | 160,000 |  |  |  | 4.63 |  |  |  | 4.00 |  |  |  | 26 |
A summary of option activities under the 2017 Directors Plan during the three months ended September 30, 2018 is presented as follows:
|  | Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Outstanding at July 1, 2018 |  |  | 80,000 |  |  | $ | 5.98 |  |  |  | 4.73 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited or expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at September 30, 2018 |  |  | 80,000 |  |  |  | 5.98 |  |  |  | 4.48 |  |  |  | — |
Exercisable at September 30, 2018 |  |  | 80,000 |  |  |  | 5.98 |  |  |  | 4.48 |  |  |  | — |
2007 Directors Equity Incentive Plan The 2007 Directors Plan terminated by its terms on September 24, 2017 and no further options may be granted thereunder. However, the options outstanding thereunder continue to remain outstanding and in effect in accordance with their terms. The 2007 Employee Plan permitted the issuance of options to employees. As the 2007 Plan has terminated, the Company did not grant any options pursuant to the 2007 Employee Plan during the three months ended September 30, 2019 and September 30, 2018. There were no stock options exercised during the three months ended September 30, 2019. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2019. There were no stock options exercised during the three months ended September 30, 2018. The Company did not recognize any stock-based compensation expenses during the three months ended September 30, 2018. As of September 30, 2019, there were vested stock options granted under the 2007 Directors Plan covering a total of 300,000 shares of Common Stock. The weighted-average exercise price was $3.40 and the weighted average remaining contractual term was 1.33 years. As of September 30, 2018, there were vested stock options granted under the 2007 Directors Plan covering a total of 330,000 shares of Common Stock. The weighted-average exercise price was $3.38 and the weighted average remaining contractual term was 2.13 years. A summary of option activities under the 2007 Directors Plan during the three months ended September 30, 2019 is presented as follows:
|  | Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Outstanding at July 1, 2019 |  |  | 300,000 |  |  | $ | 3.40 |  |  |  | 1.58 |  |  | $ | 9 |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited or expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at September 30, 2019 |  |  | 300,000 |  |  | $ | 3.40 |  |  |  | 1.33 |  |  | $ | 97 |
Exercisable at September 30, 2019 |  |  | 300,000 |  |  | $ | 3.40 |  |  |  | 1.33 |  |  | $ | 97 |
A summary of option activities under the 2007 Directors Plan during the three months ended September 30, 2018 is presented as follows:
|  | Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Outstanding at July 1, 2018 |  |  | 390,000 |  |  | $ | 3.41 |  |  |  | 2.05 |  |  | $ | 412 |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Exercised |  |  | (40,000 | ) |  |  | 3.62 |  |  |  | — |  |  |  | — |
Forfeited or expired |  |  | (20,000 | ) |  |  | (3.62 | ) |  |  | — |  |  |  | — |
Outstanding at September 30, 2018 |  |  | 330,000 |  |  | $ | 3.38 |  |  |  | 2.13 |  |  | $ | 394 |
Exercisable at September 30, 2018 |  |  | 330,000 |  |  | $ | 3.38 |  |  |  | 2.13 |  |  | $ | 394 |

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