Stockholders' equity (Deficit)

6 Months Ended

Dec. 31, 2014

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY (DEFICIT)

NOTE 7 STOCKHOLDERS’ EQUITY (DEFICIT)

Common stock

The Company is authorized to issue 100,000,000 shares of no par value Common Stock. At December 31, 2014, 21,772,567 shares were issued and outstanding.

On July 31, 2013, the Company’s registration statement on Form S-1 became effective. The Company was offering for sale a maximum of 6,250,000 shares of its no par value common stock at a price of $1.60 per share. As of December 31, 2014, 312,500 shares had been sold pursuant to the offering. These shares were sold during the year ended June 30, 2014. This S-1 was no longer effective as of July 2014.

Stock options

During the year ended June 30, 2014, two employees were granted an aggregate of 614,000 five year options which vested immediately as to 114,000 options and as to 125,000 options per year over the next 4 years. The options are exercisable at $2.50 per share for 114,000 options, $3.00 per share for 125,000 options, $3.50 per share for 125,000 options, $3.75 for 125,000 options and $4.00 for 125,000 options. The aggregate grant date fair value of the options was approximately $1,416,000, of which $413,398 has been charged to operations during the year ended June 30, 2014. The balance of the fair value of the options will be charged to operations over the vesting period of which $144,936 has been charged to operations during the period ended December 31, 2014. The options were valued using a binomial option pricing model with the following assumptions:

Volatility 154% - Dividend rate 0% - Interest rate 1.36% - 1.66% - Term 5 years

A summary of the status of the stock options granted to employees and others as of December 31, 2014 is as follows:

	Number
	of
	Options
Options outstanding at beginning of year		614,000
Changes:
Granted		---
Cancelled/exercised		---
Options outstanding at end of period		614,000
Options exercisable at end of period		145,520

Stock Warrants

Stock warrants outstanding at December 31, 2014 are as follows:

Date Issued	Expiration Date	Exercise Price		Number of Warrants
July 2013	July 2016	$	2.00		125,000
February 2014	February 2019	$	1.00		1,000,000
February 2014	February 2017	$	1.50		200,000
February 2014	February 2017	$	2.00		200,000