NOTE 6 - STOCK OPTIONS AND WARRANTS

3 Months Ended

Sep. 30, 2015

Disclosure Text Block Supplement [Abstract]

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

NOTE 6 - 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

During the quarter ended September 30, 2014, 60,000 options were granted to a consultant pursuant to a consulting agreement. Additionally 100,000 options related to this transaction vested (20,000 options monthly May – September 2014 at $0.10). Year to date expense related to these options was $3,842 as of September 30, 2014.

Option issuances and vesting during the period ending September 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 $4,648 as of September 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 $420 as of September 30, 2015.

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

Risk free interest rate	1.190 – 1.345	%
Expected life	3.8 – 4.0	years
Expected volatility	147.43 – 152.40	%
Dividend yield	0.00	%

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

	September 30, 2015				June 30, 2015
	Shares		Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding beginning of period		2,270,000	$	0.14		1,754,000		$	0.17
Granted		-	$	-		670,000			0.10
Expired/Cancelled		-	$	-		(154,000	)		0.29
Exercised		-	$	-		-			-
Outstanding end of period		2,270,000	$	0.14		2,270,000		$	0.14
Exercisable		1,777,500	$	0.16		1,752,500		$	0.16

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

		Outstanding					Exercisable
Range of Exercise Prices		Number Outstanding at September 30, 2015		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number Exercisable at September 30, 2015	Weighted Average Remaining Contractual Life
$	0.08		150,000	6.17	$	0.08	150,000		6.17
$	0.10		670,000	4.21	$	0.10	177,500		4.21
$	0.17		650,000	4.17	$	0.17	650,000		4.17
$	0.17		400,000	5.17	$	0.17	400,000		5.17
$	0.17		400,000	6.17	$	0.17	400,000		6.17
			2,270,000				1,777,500

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 September 2010. This note was paid off as of June 30, 2015. 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 September 30, 2015 the warrants have not vested.