NOTE 5 - STOCK OPTIONS AND WARRANTS

12 Months Ended

Jun. 30, 2015

Disclosure Text Block Supplement [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

NOTE 5 – STOCK OPTIONS AND WARRANTS

General Option Information

On July 6, 2011, the Board of Directors cancelled the “2004 Non-Employee Directors’ Stock Incentive Plan” and approved the "Directors’ 2011 Stock Option and Award Plan”. Under the 2011 Plan, a total of 3,300,000 shares are authorized for issuance.

The Company also maintained the 2005 Stock Option and Award Plan, which was previously approved by shareholders, for the purpose of granting option awards to its employees and consultants. This plan had a 10 year life and expired July 2015.

On August 10, 2015, the Board of Directors cancelled the “Directors’ 2011 Stock Option and Award Plan” as all options under this plan had been granted and adopted the “2015 Omnibus Stock Option and Award Plan” which contains provisions for up to 3,000,000 stock options to be granted to employees, consultants and directors.

Prior Issuances of options

In July 2011, each non-executive director is eligible to receive (therefore granted), based on their length of service, options to purchase a total of 300,000 shares at that day’s closing price, $0.17. Any options issued will vest over a three year service period as follows: 100,000 on June 30, 2012, 100,000 on June 30, 2013 and 100,000 on June 30, 2014. These options expire two years after vesting. The Director who serves as Audit Chair during the fiscal year received an additional 50,000 options per year under the same terms. In June 2014, 1,450,000 options, representing 650,000 share options from the 2012 service period, 400,000 share options from the 2013 service period and 400,000 from the 2014 service period were extended for 5 years. In accordance with the Stock Compensation topic of the FASB ASC, the Company analyzed the transaction and determined that there was incremental compensation cost which is included in the Company’s total stock based compensation expense.

Also in July 2011, Board Chairman, who acted in the CEO capacity until April 1, 2015, Timothy L. Ryan was granted 200,000 options per year under the 2005 Stock Option and Award Plan with the same terms as above.

During the fiscal year ended June 30, 2013, the Company granted a total of 300,000 options to a director for his services on the Board of Directors. Those options were all cancelled during the year ended June 30, 2013, upon the director’s resignation from the Board. The Company also recognized $73,721 in expense related to the continued vesting of options that were granted during prior years. During the fiscal year ended June 30, 2014 the Company granted a total of 150,000 options to directors for service on the Board of Directors.

Option issuances and vesting during the period ending June 30, 2015

No options were granted to Board members for Board service for the year ended June 30, 2015.

During the year ended June 30, 2015, 100,000 options were granted to a consultant pursuant to a consulting agreement. Additionally 140,000 options related to this transaction vested (20,000 options monthly May – November 2014 at $0.10). Year to date expense related to these options is $12,022 as of June 30, 2015.

On December 1, 2014, 480,000 options were granted to the Company’s Chief Executive Officer (then our Chief Operating Officer) as part of his employment offer. The options have a strike price of $0.10, vest December 1, 2015 and expire December 1, 2020. Year to date expense related to these options is $10,844 as of June 30, 2015.

On January 21, 2015, 50,000 options were granted to the Company’s Chief Financial Officer as part of her employment offer. The options have a strike price of $0.10, vest ratably January 21, 2015 to December 1, 2015 and expire December 1, 2020. Year to date expense related to these options is $840 as of June 30, 2015.

We estimated the fair value of the stock options at the grant date based on the following weighted average assumptions:

Risk-free interest rate	1.190 – 1.345	%
Expected life	3.8 – 4.5	years
Expected volatility	147.43 – 152.40	%
Dividend yield	0.00	%

A summary of the status of our outstanding stock options as of June 30, 2015 and June 30, 2014 and changes during the periods then ended is presented below:

	June 30, 2015					June 30, 2014
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding beginning of period		1,754,000		$	0.17		1,904,000		$	0.23
Granted		670,000		$	0.10		150,000		$	0.08
Expired/Cancelled		(154,000	)	$	0.29		(300,000	)	$	0.50
Exercised		-		$	-		-		$	-
Outstanding end of period		2,270,000		$	0.14		1,754,000		$	0.17

Exercisable		1,752,500		$	0.16		1,604,000		$	0.18

The following table summarizes the range of outstanding and exercisable options as of June 30, 2015:

		Outstanding						Exercisable
Range of Exercise Prices		Number Outstanding at June 30, 2015		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable at June 30, 2015		Weighted Average Remaining Contractual Life
$	0.08		150,000		6.42	$	0.08		150,000		6.42
$	0.10		670,000		4.47	$	0.10		152,500		4.47
$	0.17		650,000		4.42	$	0.17		650,000		4.42
$	0.17		400,000		5.42	$	0.17		400,000		5.42
$	0.17		400,000		6.42	$	0.17		400,000		6.42
			2,270,000						1,752,500

General Warrant Information

In September 2013, the Company obtained an extension on the remaining $100,000 secured convertible promissory note that was issued in the private placement that closed in a prior year. In exchange for the extension, the note holder received 500,000 common stock warrants and $6,500 in accrued interest and fees. The common stock warrants expire three years from the date of issuance, are exercisable at $0.13 per share, and vest on the next date the value of Amerityre common stock reaches $0.25 per share. As of June 30, 2015 the warrants have not vested. The related note was paid off as of June 30, 2014.