Equity Transactions

6 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Equity Transactions

7. Equity Transactions

Stock Options

The following table summarizes the activity relating to the Company’s stock options for the six months ended December 31, 2019:

	Options		Weighted-Average Exercise Price		Weighted Remaining Average Contractual Term		Aggregate Intrinsic Value
Outstanding at June 30, 2019		58,000	$	12.50		5.2	$	87,480
Granted		2,400		7.42		4.1		—
Options Exercised or Forfeited		—		—		—		—
Outstanding at December 31, 2019		60,400	$	12.29		4.5	$	2,100
Exercisable at December 31, 2019		60,400	$	12.29		4.5	$	2,100

The fair value of each option grant on the date of grant is estimated using the Black-Scholes option. The pricing model reflected the following weighted-average assumptions for the six months ended December 31, 2019:

	December 31 2019			December 31 2018
Expected life of options (In years)		5			5
Expected volatility		71.55	%		67.91	%
Risk free interest rate		1.61	%		2.98	%
Dividend Yield		0	%		0	%

Expected volatility is based on the historical volatilities of three comparable companies of the daily closing price of their respective common stock and the expected life of options is based on historical data with respect to employee exercise periods. The Company accounts for forfeitures as they are incurred.

The Company recorded stock-based compensation expense of $0 and $11,162 for the three- and six- month periods ended December 31, 2019, respectively, and $16,285 and $19,697 for the three- and six- month periods ended December 31, 2018, respectively.

The following is a summary of stock options outstanding and exercisable by exercise price as of December 31, 2019:

Exercise Price		Outstanding		Weighted Average Contract Life		Exercisable
$	3.75		5,600		4.1		5,600
$	6.25		11,200		4.2		11,200
$	7.50		25,600		6.2		25,600
$	8.75		1,600		4.3		1,600
$	12.50		4,000		3.1		4,000
$	25.00		1,600		2.8		1,600
$	26.25		4,400		2.3		4,400
$	27.50		800		2.2		800
$	28.75		1,600		2.6		1,600
$	31.25		4,000		1.9		4,000

Stock Warrants

The following table summarizes the warrants activity during the six months ended December 31, 2019:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Life (Years)		Aggregate Intrinsic Value
Outstanding and exercisable at June 30, 2019		124,667	$	45.00		5.6	$	716,653
Granted		1,250,000	$	4.00		4.7	$	—
Expired		—	$	—		—	$	—
Outstanding and exercisable at December 31, 2019		1,374,667	$	7.72		4.7	$	139,498

Of the above warrants, 9,391 expire in fiscal year ending June 30, 2022, 4,455 expire in fiscal year ending June 30, 2023, and 1,360,821 expire in fiscal year ending June 30, 2025.

Offerings of Common Stock and Warrants

Issuance of Stock Options

On October 1, 2019, the Company issued stock options to purchase 800 shares of common stock to the Chief Financial Officer as part of her compensation. The stock options were issued and are exercisable at an exercise price of $8.75 at any time from date of issuance and expire in 5 years from the date of issuance.

On October 13, 2019, the Company issued stock options to purchase 800 shares of common stock as part of their annual board of director compensation. The stock options were issued and are exercisable at $7.50 at any time from date of issuance and expire in 5 years from the date of issuance.

On November 10, 2019, the Company issued stock options to purchase 800 shares of common stock as part of their annual board of director compensation. The stock options were issued and are exercisable at $6.25 at any time from date of issuance and expire in 5 years from the date of issuance.