STOCK-BASED COMPENSATION

9 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure Of Compensation Related Costs Share Based Payments [Text Block]

NOTE 13 – STOCK-BASED COMPENSATION

2009 Equity Incentive Plan

In April 2009, the Company authorized an equity incentive plan (“2009 Equity Incentive Plan”) that provides for issuance of up to 2,000,000 shares of the Company’s common stock. Under the 2009 Equity Incentive Plan, the management may, at their discretion, grant any employees and directors of the Company, and consultants (i) options to subscribe for common stocks, (ii) stock appreciation rights to receive payment, in cash and/or the Company’ common stocks, equals to the excess of the fair market value of the Company’ common stocks, (iii) Restricted stock awards and restricted stock units, or (iv) other types of compensation based on the performance of the Company’ common stocks. The exercise price of the options may not be less than the fair market value of the share on the grant date and the option term may not exceed ten years.

Non-Vested Stock Grants

On February 23, 2011, the Company granted an executive 30,000 shares of restricted common stock with a grant date fair value of $1.82 per share as part of his remuneration for his service commencing February 23, 2011 for a one-year period. The restricted common stock will vest over a 12-month period.

On February 21, 2012, the Company granted an executive and a director 60,000 shares of restricted common stock with a grant date fair value of $1.23 per share as part of their remuneration for their service commencing February 21, 2012 for a one-year period. The restricted common stock will vest on the one-year anniversary date of the grant date.

On December 14, 2012, the Company granted an executive 50,000 shares of restricted common stock with a grant date fair value of $1.00 per share as part of his remuneration for the service commencing December 14, 2012 for a one-year period. The restricted common stock will vest on the one-year anniversary date of the grant date.

On March 7, 2013, the Company granted a director 10,000 shares of restricted common stock with a grant date fair value of $2.43 per share as part of his remuneration for the service commencing March 7, 2013 for a one-year period. The restricted common stock will vest on the one-year anniversary date of the grant date.

Stock-based compensation expense for the three months ended March 31, 2013 and 2012 was $24,248 and $16,016, respectively. Stock-based compensation expense for the nine month ended March 31, 2013 and 2012 was $63,685 and $43,616, respectively. The remaining $58,000 stock-based compensation will be expensed over the remainder of the one-year service period. The value of the non-vested stock at March 31, 2013 is nil.

Options

There were 105,000 options outstanding as of March 31, 2013 and June 30, 2012, respectively, under 2009 Equity Incentive Plan. Stock-based compensation expense for the three months ended March 31, 2013 and 2012 on the stock options were $15,695 and $16,330, respectively. Stock-based compensation expense for the nine month ended March 31, 2013 and 2012 on the stock options were $47,782 and $49,986, respectively.  The remaining $4,534 stock-based compensation expenses will be recorded over a weighted average service period of 0.1 year.

The following table summarizes the options activity for the nine month ended March 31, 2013:

	Options		Weighted-average exercise price		Weighted average remaining contractual life (years)		Aggregate Intrinsic Value
Outstanding as of June 30, 2012		105,000		2.71		2.86		-
Issued		-		-		-		-
Exercised		-		-		-		-
Expired		-		-		-		-
Outstanding as of March 31, 2013		105,000	$	2.71		2.11	$	-

Total intrinsic value of stock options outstanding as of March 31, 2013 and June 30, 2012 was nil.