Shareholders equity

9 Months Ended

Mar. 31, 2016

Shareholders equity [Text Block]

Note 12 – Shareholders’ equity

Restricted Stock Grants

Restricted stock grants are measured based on the market price on the grant date. The Company has granted restricted shares of common stock to the members of the board of directors (the “Board”), senior management and consultants.

Effective September 9, 2014, the Board granted an aggregate of 150,000 shares of common stock, which were issued with a market value of $625,500 to its 13 employees under the Company’s 2009 Equity Incentive Plan (the “2009 Plan”). These shares are vested in two equal installments every six months from the date of grant. As of March 31, 2016, all of the shares were vested.

Effective September 22, 2014, the Board granted and issued 1,875 shares of common stock to an officer. The grant was under the 2009 Plan and the employment agreement by and between the Company and the grantee. In addition, such grant was to fulfill the Company’s contractual obligation in the employment agreement. As a result, the shares were vested immediately upon the issuance.

Effective June 29, 2015, the Board granted an aggregate of 100,000 shares of common stock, which were issued with a market value of $380,000 to its two employees under the 2009 Plan. These shares are vested in two equal installments every three months from the date of grant. As of March 31, 2016, all of the shares were vested.

Effective June 29, 2015, at the annual meeting held on that date, the stockholders of the Company approved to increase by 200,000 shares of common stock reserved under the 2009 Plan.

For the three months ended March 31, 2016, the Company had no compensation expenses related to restricted stock grants. For the three months ended March 31, 2015, the Company recognized $0.2 million of compensation expenses related to restricted stock grants. For the nine months ended March 31, 2016 and 2015, the Company recognized $0.5 million and $0.4 million of compensation expenses related to restricted stock grants, respectively.

Following is a summary of the restricted stock grants:

				Weighted Average		Aggregate
				Grant Date		Intrinsic
Restricted stock grants	Shares			Fair Value Per Share		Value
Nonvested as of June 30, 2014	-		$	-	$	-
Granted	251,875			4.02		1,013,413
Vested	(76,875	)		4.17		320,663
Nonvested as of June 30, 2015	175,000		$	3.96	$	692,750
Vested	(175,000	)		3.96		692,750
Nonvested as of March 31, 2016	-		$	-	$	-

Stock Issuance

Effective December 2, 2014, the Board authorized the issuance of 174,865 shares of restricted common stock to two shareholders for repayments of certain other payables. These other payables were originated from the professional expenses the shareholders paid on behalf of the Company.

See Note 14 for stocks issued under the 2013 Employee Stock Purchase Plan.