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Equity Transactions
 3 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Equity Transactions
7. Equity Transactions

 

Stock Options

 

The following table summarizes the activity relating to the Company’s stock options for the three months ended September 30, 2019:

 

   Options  Weighted-Average Exercise Price  Weighted Remaining Average Contractual Term  Aggregate Intrinsic Value
Outstanding at June 30, 2019   7,250,000   $0.10    5.2   $87,480 
Granted   —      —      —      —   
Options Exercised or Forfeited   —      —      —      —   
Outstanding at September 30, 2019   7,250,000   $0.10    4.8   $87,480 
Exercisable at  September 30, 2019   7,250,000   $0.10    4.8   $87,480 

 

The fair value of each option grant on the date of grant is estimated using the Black-Scholes option. There were no options granted during the three months ended September 30, 2019. The pricing model reflected the following weighted-average assumptions for the three months ended September 30, 2018:

 

   September 30 2019  September 30 2018
Expected life of options (In years)   —      9.5 
Expected volatility   —      63.09%
Risk free interest rate   —      0.00%
Dividend Yield   —      0%

 

Expected volatility is based on the historical volatilities of three comparable companies of the daily closing price of their respective common stock and the expected life of options is based on historical data with respect to employee exercise periods. The Company accounts for forfeitures as they are incurred.

 

The Company recorded stock-based compensation expense of $0 and $3,412 for the three- month period ended September 30, 2019 and 2018, respectively.

 

The following is a summary of stock options outstanding and exercisable by exercise price as of September 30, 2019:

 

Exercise Price  Outstanding  Weighted Average Contract Life  Exercisable
$0.03    700,000    4.3    700,000 
$0.05    1,300,000    4.4    1,300,000 
$0.06    3,100,000    6.4    3,100,000 
$0.07    100,000    4.0    100,000 
$0.10    500,000    3.3    500,000 
$0.20    200,000    3.0    200,000 
$0.21    550,000    2.6    550,000 
$0.22    100,000    2.5    100,000 
$0.23    200,000    2.9    200,000 
$0.25    500,000    2.1    500,000 
 Total    7,250,000         7,250,000 

 

Stock Warrants

 

The following table summarizes the warrants activity during the three months ended September 30, 2019:

 

   Number of Shares  Weighted Average Exercise Price  Weighted Average Remaining Life (Years)  Aggregate Intrinsic Value
Outstanding and exercisable at June 30, 2019   15,583,216   $0.36    5.6   $716,653 
Granted   156,250,000   $0.03    5.0   $5,906,250 
Expired   —     $—      —     $—   
Outstanding and exercisable at September 30, 2019   171,833,216   $0.04    4.9   $6,622,903 

 

Of the above warrants, 1,173,864 expire in fiscal year ending June 30, 2022, 556,818 expire in fiscal year ending June 30, 2023, and 170,102,534 expire in fiscal year ending June 30, 2025.