14 Stock Options

12 Months Ended

Jun. 30, 2015

Notes

14 Stock Options

14              STOCK OPTIONS

On January 1, 2015, the Company issued a total of 300,000 common stock purchase options to management. This stock compensation grant was valued at $74,691 and the Company recorded $22,822 stock option compensation expense for the year ended June 30, 2015. Options issued during the year ended June 30, 2015 will vest in equal proportions on January 1, 2016, January 1, 2017 and January 1, 2018.

The unrecognized compensation expense for the Company as of June 30, 2014 and 2015 were nil and $51,869 respectively.

The Company calculated the estimated fair value of the options of the grant date using the Black-Scholes Option Pricing Model with the following assumptions:

	For the year ended June 30, 2015
Estimated dividends	None
Expected volatility		101.63	%
Risk-free interest rate		1.65	%
Expected term (years)		5

The model requires the input of subjective assumptions including the expected stock price volatility and the expected dividend yield. The Company uses historical experience of employee turnover and future expectation to estimate forfeiture rate. For expected volatilities, the Company has made reference to historical volatilities of the Company’s stock. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury Bills yield in effect at the time of grant.

A summary of option activity as of June 30, 2015 and 2014, and changes during the years then ended is as followings:

						Weighted-avg.		Aggregate
				Weighted-avg.		remaining		intrinsic
	Shares			Exercise Price		Term (yr.)		Value
On June 30, 2013		132,000		$	2.00	1.1		$	0
Granted:		-		$	-	-			-
Exercised:		-			-	-			-
Forfeited:		-		-		-		-
On June 30, 2014		132,000		$	2.00	0.1		$	0
Granted:		300,000		$	0.33		5.0	-
Exercised:		-		-		-		-
Forfeited:		(132,000	)	-		-		-
On June 30, 2015		300,000		$	0.33		4.5	$	426,000