Stock Warrants and Options

3 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 10 - Stock Warrants and Options

Stock Warrants

Stock Warrants	Number of Shares		Weighted Average Exercise Price per share ($)		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ($)

Outstanding and exercisable at June 30, 2018		6,969,588	$	4.80		.53	$	-

Granted		11,432		.41

Expired		2,868,981		5.25		-
Outstanding and exercisable at September 30, 2018		4,112,039	$	4.48		.63	$	-

Of the above warrants,

3,679,127

expire in fiscal year ending June 30, 2019;

68,592

expire in fiscal year ending June 30, 2020,

57,160

expire in fiscal year ending June 30, 2021, 45,728 expire in the fiscal year ending June 30, 2022 and 261,432 warrants expire in the fiscal year ending June 30, 2023.

Stock Options

Stock Options	Number of Shares		Weighted Average Exercise Price per share ($)		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ($)
Outstanding at June 30, 2018		-	$	-		-	$	-

Granted		300,000		.50		-		-

Outstanding at September 30, 2018		300,000		.50		2.92		-

Of the above options, 100,000

are vested and exercisable as of

September 30, 2018, 100,000

become vested and exercisable on September 1, 2019 and 100,000 become vested and exercisable on September 1, 2020. The options expire on August 31, 2021. The options will not become vested and exercisable until the option is vested pursuant to the vesting schedule set forth above, provided that Dr. Taraporewala continues to be employed by, or provide service to, the Company. If Dr. Taraporewala’s continuous service terminates for any reason other than cause, any such option exercisable as of the date of termination may be exercised at any time by the participant prior to the expiration date. If Dr. Taraporewala’s continuous service should be terminated for “Cause” (as defined in the option), then any outstanding option, vested or unvested, shall terminate immediately and shall no longer be exercisable

The Company estimated the fair value of the option grant at $35,761 and recognized the estimated value of the vested and exercisable options as a compensation expense of $11,920 for the three months ended September 30, 2018. The Company will recognize the remaining unrecognized fair value of the option grant of $23,841 in installments over the vesting period.

The Company estimated the fair value of the options granted to Dr. Taraporewala on the date of grant using a lattice model that values the options based upon a stock price modeled such that it follows a geometric Brownian motion with constant drift and volatility:

Expected life (year)	3

Expected volatility	55.09	%

Expected annual rate of quarterly dividends	0.00	%

Risk-free rate(s)	2.71	%

Expected forfeiture (attrition) rate (%)	5.00	%

Expected volatility is based on historical volatility of the Company’s common stock and the expected life of options. The Company estimates forfeitures at the time of valuation and reduces expense ratably over the vesting period. This estimate is adjusted periodically based on the extent to which actual forfeitures differ or are expected to differ, from the previous estimate.