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Note 12 - Equity Transactions and Stock-based Compensation
 12 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
Note
1
2
. Equity Transactions
and Stock-Based Compensation
 
Stock Option Plan
s
.
The Company has adopted a stock option plan for the granting of options or restricted shares to employees, officers, directors and consultants of the Company that originally provided for the issuance of up to
7,000,000
shares of common stock, at the discretion of the Board of Directors. Subsequent to the adoption, the Board of Directors and stockholders approved additional common stock shares aggregating
6,000,000
to be available for grant, for a total of
13,000,000
shares of common stock reserved for issuance under the Company's
2001
Stock Option Plan, as amended (the “Plan”). The Company also has a
1997
Stock Option Plan with
5,000,000
shares of common stock reserved for issuance. Stock option grants
may
not
be priced less than the fair market value of the Company's common stock at the date of grant. Options granted are generally for
ten
-year periods, except that incentive stock options granted to a
10%
stockholder (as defined) are limited to
five
-year terms. As of
June 30, 2020,
the Company has
8,799,389
shares of common stock remaining under the Plans.
 
In
May, 2019,
there were
1,883,000
stock options authorized by the Board of Directors and issued to Company officers, employees and directors with an exercise price ranging from
$0.21
to
$0.23,
vesting over
three
years, with terms of either
five
or
ten
years. During the fiscal year ended
June 30, 2020
and
2019,
the Company incurred stock compensation expense of approximately
$59
and
$144.
The Company expects to record additional stock compensation expense of approximately
$65
over the estimated weighted average remaining vesting period of
two
years.  There were
no
stock option grants in the fiscal year ended
June 30, 2020.
 
The Company used the following assumptions to calculate the fair value of the stock option grants using the Black-Scholes option pricing model on the measurement date during the year ended
June 30, 2019:
 
Risk Free Interest Rate
    
2.12%
to
2.29
 %
Volatility
    
81.1%
to
90.3
 %
Term
  
4 1/2 to 10 years
  
Dividend Rate
    
0.00
 %
Closing Price of Common Stock
   $
0.21
  
 
The Company calculates expected volatility for a stock-based grant based on historic daily stock price observations of its common stock during the period immediately preceding the grant that is equal in length to the expected term of the grant. The expected term of the options is estimated based on the Company's historical exercise rate and forfeiture rates are estimated based on employment termination experience. The risk free interest rate is based on U.S. Treasury yields for securities in effect at the time of grants with terms approximating the term of the grants. The assumptions used in the Black-Scholes option valuation model are highly subjective, and can materially affect the resulting valuations.
 
For fiscal years ended
June 30, 2020
and
2019,
stock options in the aggregate amount of
none
and
2,020,500,
respectively, were
not
included in the computation of weighted average diluted common shares outstanding as the effect of doing so would be anti-dilutive.
 
Additionally, in the fiscal year ended
June 30, 2019,
the
8,230,769
common shares underlying the convertible note were potentially dilutive and therefore included in the diluted earnings per share calculation on a proportionate basis prior to the conversion into common shares of the Company as of
July 24, 2018
and the results were antidilutive.  (See Note
5.
Senior Credit Facility, Subordinated Convertible Note, net - CD Financial, LLC and other Long Term Debt).
 
The intrinsic value of options outstanding and exercisable at
June 30, 2020
and
2019
was
$846
and
$256,
respectively.
 
A summary of the Company's stock option activity, and related information for the years ended
June 30,
follows:
 
           
Weighted
  
           
Average
  
           
Exercise
  
   
Options
    
Price
  
                 
Outstanding as of July 1, 2018
    
2,439,250
     $
0.29
  
Granted
    
1,883,000
      
0.21
  
Exercised
    
(200,000
 )    
0.12
  
Terminated
    
(17,500
 )    
0.18
  
Expired
    
(343,250
 )    
0.14
  
Outstanding as of June 30, 2019
    
3,761,500
      
0.16
  
Granted
    
-
      
-
  
Exercised
    
(80,000
 )    
0.09
  
Terminated
    
(137,500
 )    
0.14
  
Expired
    
(200,000
 )    
0.10
  
Outstanding as of June 30, 2020
    
3,344,000
     $
0.16
  
                 
Exercisable at June 30, 2019
    
2,863,800
     $
0.14
  
Exercisable at June 30, 2020
    
2,875,533
     $
0.16
  
 
 
The following table summarizes the range of exercise prices and weighted-average exercise prices for stock options outstanding and exercisable as of
June 30, 2020
under the Company's stock option plans:
 
                                       
Weighted
                  
                                       
Average
                  
 
 
      
 
      
 
      
 
    
Weighted
    
Remaining
      
 
    
Weighted
  
 
      
 
    
Average
    
Contractual
      
 
    
Average
  
Range of Exercise Price
    
Outstanding
    
Exercise Price
    
Life (years)
    
Exercisable
    
Exercise Price
  
                                                             
$
0.09
      
-
     $
0.10
      
1,386,000
     $
0.09
      
4.9
      
1,386,000
     $
0.09
  
$
0.21
      
-
     $
0.21
      
1,408,000
      
0.21
      
8.9
      
1,022,867
      
0.21
  
$
0.23
      
-
     $
0.25
      
550,000
      
0.23
      
6.4
      
466,666
      
0.23
  
$
0.09
      
-
     $
0.25
      
3,344,000
     $
0.16
      
7.7
      
2,875,533
     $
0.16