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Capital Stock (Tables)
 9 Months Ended
Mar. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Summary of Option Activity Under Stock Incentive and Compensation Plan

A summary of option activity under the Stock Incentive and Compensation Plan  as of March 31, 2017, and changes during the nine month period ended is presented below.

 

Options

 

Options

 

 

Weighted

Average

Exercise Price

 

 

Weighted-

Average Remaining

Contractual Term (Years)

 

 

Aggregate

Intrinsic Value

 

Outstanding at July 1, 2016

 

 

995,000

 

 

$

1.53

 

 

 

—

 

 

$

-

 

Granted

 

 

50,000

 

 

 

2.12

 

 

 

—

 

 

 

—

 

Exercised

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Forfeited or expired

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Outstanding at March 31, 2017

 

 

1,045,000

 

 

$

1.56

 

 

 

3.31

 

 

$

139,300

 

Exercisable at March 31, 2017

 

 

680,005

 

 

$

1.58

 

 

 

3.36

 

 

$

92,868

 

 
Summary of Status of Non-Vested Options

A summary of the status of Paramount’s non-vested options as of July 1, 2016 and changes during the nine month period ended March 31, 2017 is presented below.

 

Non-vested Options

 

Options

 

 

Weighted-

Average Grant-

Date Fair Value

 

Non-vested at July 1, 2016

 

 

663,330

 

 

$

1.13

 

Granted

 

 

50,000

 

 

 

1.23

 

Vested

 

 

348,335

 

 

 

1.14

 

Forfeited

 

 

—

 

 

 

—

 

Non-vested at March 31, 2017

 

 

364,995

 

 

$

1.14

 

 
Black-Scholes option valuation model | Option awards without performance conditions  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Schedule of Changes in Fair Value Assumptions

The fair value of option awards that do not have market conditions are estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table. Because Black-Scholes option valuation models incorporate ranges of assumptions for inputs, those ranges are disclosed. Given Paramount’s short history as a public company, expected volatilities are based on, historical volatilities from five proxy companies’ stock. Paramount uses historical data to estimate option exercise and employee termination within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding; the range given below results from certain groups of employees exhibiting different behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

 

 

 

2017

 

 

2016

 

Weighted average risk-free interest rate

 

 

1.26

%

 

 

—

 

Weighted-average volatility

 

 

70.26

%

 

 

—

 

Expected dividends

 

$

0.00

 

 

 

—

 

Weighted average expected term (years)

 

 

5.00

 

 

 

—

 

Weighted average fair value

 

$

1.23

 

 

 

—

 

 
Monte-Carlo Simulation valuation model | Option awards with performance conditions  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Schedule of Changes in Fair Value Assumptions

The key assumptions used in the simulations were as follows:

 

 

 

2017

 

 

2016

 

Weighted average risk-free interest rate

 

 

1.26

%

 

 

—

 

Weighted average volatility

 

 

70.26

%

 

 

—

 

Weighted average fair value

 

$

1.22

 

 

 

—

 

 
Warrants  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Summary of Warrant Activity

A summary of warrant activity as of March 31, 2017, and changes during the nine month period ended is presented below:

 

 

Warrants

 

 

Weighted

Average

Exercise Price

 

 

Weighted-

Average Remaining

Contractual Term (Years)

 

 

Aggregate

Intrinsic Value

($)

 

Outstanding at July 1, 2016

 

 

—

 

 

$

-

 

 

 

—

 

 

 

—

 

Issued

 

 

1,045,000

 

 

 

2.13

 

 

 

1.92

 

 

 

—

 

Outstanding at March 31, 2017

 

 

1,045,000

 

 

$

2.13

 

 

 

1.92

 

 

 

—

 

 
Warrants | Black-Scholes option valuation model  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Schedule of Changes in Fair Value Assumptions

The fair value of warrants issued during the nine months ended March 31, 2017 was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions:

 

 

 

2017

 

 

2016

 

Weighted average risk-free interest rate

 

 

0.83

%

 

 

—

 

Weighted-average volatility

 

 

55.21

%

 

 

—

 

Expected dividends

 

$

0.00

 

 

 

—

 

Weighted average expected term (years)

 

 

1.00

 

 

 

—

 

Weighted average fair value

 

$

0.45

 

 

 

—