Stockholders' Deficit

9 Months Ended

Mar. 31, 2016

Stockholders' Deficit [Abstract]

STOCKHOLDERS' DEFICIT

NOTE 7—STOCKHOLDERS’ DEFICIT

Equity

During the three and nine months ended March 31, 2016, the Company had not issued any new shares of common stock to the stockholders.

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 will vest 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 $222,687 has been charged to operations during the period ended March 31, 2015. No stock based compensation was recorded during the three and nine months ended March 31, 2016 due to the cancellation of options in April 2015. 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 March 31, 2016 is as follows:

	Number of Shares
Options outstanding at June 30, 2015	$	207,750
Changes:
Granted		-
Exercised		-
Forfeited		-
Cancelled		-
Options outstanding at March 31, 2016		207,750
Options exercisable at March 31, 2016	$	207,750

Stock Warrants

Stock warrants outstanding at March 31, 2016 were as follows:

	Number of Shares		Weighted Average Remaining Contractual Life (Years)
Warrants outstanding at June 30, 2015	$	525,000		1.48
Changes:
Granted		-		-
Exercised		-		-
Forfeited		-		-
Cancelled		-		-
Warrants outstanding at March 31, 2016		525,000		0.78
Warrants exercisable at March 31, 2016	$	525,000	$	0.78

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