XML 15 R10.htm IDEA: XBRL DOCUMENT v3.20.2
Options
 12 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
OPTIONS
4.OPTIONS

   

Stock Option Plan

The non-qualified common stock options expire on the date specified in the option agreement, which date is not later than the fifth (5th) anniversary from the grant date of the options. As of June 30, 2020, 250,000 options were fully vested with a maturity date of March 31, 2020, which expired and were forfeited as of June 30, 2020; on October 2, 2017, the Company issued 10,000,000 non-qualified common stock options, which vest one-third immediately, and one-third the second and third year, whereby, the options are fully vested with a maturity date of October 2, 2022, and are exercisable at an exercise price of $0.01 per share.

 

On January 23, 2019, the Company issued 170,000,000 stock options, of which one-third (1/3) vest immediately, and the remaining shall vest one-twenty fourth (1/24) per month after the date of these options (remaining block). The first block shall become exercisable immediately and is exercisable for a period of seven (7) years. The options fully vest by January 23, 2021.

 

On January 31, 2019, the Company issued 6,000,000 stock options, of which two-third (2/3) vest immediately, and the remaining shall vest one-twelfth (1/12) per month from after the date of these options (remaining block). The first block shall become exercisable immediately and is exercisable for a period of seven (7) years. The options fully vested on January 31, 2020.

 

On July 22, 2019, the Company issued 10,000,000 stock options, of which one-third (1/3) vest immediately, and the remaining shall vest one-twenty fourth (1/24) per month from after the date of these options (remaining block). The first block shall become exercisable immediately and is exercisable for a period of seven (7) years. The options fully vest by July 22, 2021.

 

A summary of the Company's stock option activity and related information follows:

 

   6/30/2020   6/30/2019 
       Weighted       Weighted 
   Number   average   Number   average 
   of   exercise   of   exercise 
   Options   price   Options   price 
Outstanding, beginning of period   186,250,000   $0.01    10,250,000   $0.01 
Granted   10,000,000   $0.01    176,000,000   $0.01 
Exercised   -    -    -    - 
Forfeited/Expired   (250,000)   -    -    - 
Outstanding, end of period   196,000,000   $0.01    186,250,000   $0.01 
Exercisable at the end of period   160,493,150   $0.01    85,583,333   $0.01 

 

The weighted average remaining contractual life of options outstanding as of June 30, 2020 and 2019 was as follows:

 

6/30/2020   6/30/2019 
Exercisable
Price		   Stock Options Outstanding   Stock Options Exercisable   Weighted Average Remaining Contractual Life (years)   Exercisable Price   Stock Options Outstanding   Stock Options Exercisable   Weighted Average Remaining Contractual Life (years) 
$-    -    -    -   $0.02    250,000    250,000    0.75 
$0.01    10,000,000    10,000,000    1.26   $0.01    10,000,000    5,250,000    3.26 
$0.0097-0.0099    176,000,000    144,018,263    5.57 – 5.59   $0.0097-0.0099    176,000,000    60,666,667    6.57 - 6.84 
$0.0060    10,000,000    6,474,887    6.06   $-    -    -    - 
      196,000,000    160,493,150              186,250,000    85,583,333      

 

    6/30/20       6/30/19  
Risk free interest rate     1.47% - 2.58 %     1.94 %
Stock volatility factor     54.99% - 189.01 %     146 %
Weighted average expected option life     6 years       7 years  
Expected dividend yield      None       None  

 

The stock-based compensation expense recognized in the statement of operations during the years ended June 30, 2020 and 2019, related to the granting of these options was $473,853 and $735,772, respectively.