4. Stock Option Plan

12 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Stock Option Plan

On September 22, 2011, the Board of Directors of the Company adopted the Company’s 2011 Stock Option Plan (the 2011 Plan), which was approved by the shareholders of the Company on December 8, 2011. Under this plan options to purchase a maximum of 133,000 shares of common stock may be granted to any employee of the Company, including officers. Such options may be either incentive stock options or non-qualified options

and must be granted with an exercise price no less than the fair market value of the stock on the date of the grant. No stock options have been granted under this plan.

On December 2, 1998, the Company adopted its Stock Option Plan of 1998 (the 1998 Plan) which was amended and restated effective December 5, 2001, pursuant to which options to purchase a maximum of 85,000 shares of common stock may be granted to executives and key employees.  Incentive stock options have been granted under this plan with an exercise price no less than fair market value of the stock on the date of grant. Outstanding options generally are exercisable for ten years from the date of grant, except for two grants totaling 8,700 options which are exercisable for a 5-year term. Outstanding options have expiration dates ranging from December 2, 2018 to September 21, 2021. No additional options may be granted under this plan.

There were no stock options granted in fiscal 2015 or in fiscal 2014. The Company recorded no stock option compensation expense in either fiscal year 2015 or fiscal year 2014.

The changes in the number of shares under option are as follows:

	Number of Shares			Weighted Average Exercise Price
Balance at June 30, 2013		46,500		$	2.00
Granted during 2014		--
Expired		(9,300	)		1.94
Balance at June 30, 2014		37,200			2.02
Granted during 2015		--
Expired		(4,000	)		2.47
Balance at June 30, 2015		33,200		$	1.97
Exercisable at June 30, 2015		33,200		$	1.97

At the Annual Meeting of Stockholders on December 5, 2001, the Company adopted a Stock Option Plan for Non-Employee Directors (the “Directors Plan”).  The number of shares issuable upon exercise of options which may be granted under this plan shall not exceed 50,000 shares of common stock.  No options have been granted under this plan.

Listed below is a summary of the stock options outstanding and exercisable at June 30, 2015:

Outstanding and Exercisable

				Weighted Average		Weighted Average
Exercise Price		Options		Exercise Price		Remaining Life-Years
$	1.60		3,100	$	1.60		3.5
	2.24		9,000		2.24		4.8
	2.20		4,000		2.20		.5
	2.00		9,000		2.00		5.5
	1.71		4,700		1.71		1.3
	1.55		3,400		1.55		6.3
			33,200	$	1.97		4.0

As of June 30, 2015, stock options outstanding and exercisable had an intrinsic value of $6,153.