Note 7 - Share Based Compensation

3 Months Ended

Sep. 30, 2014

Notes

Note 7 - Share Based Compensation

NOTE 7 – SHARE BASED COMPENSATION

On July 10, 2013, the Company announced the election of Peter Opata as a new director and Allan Kronborg, as an advisory board member and also as a business consultant to the Company. On July 31, 2013, as part of our board of director’s compensation plan, we granted non-qualified options to our four outside directors and Mr. Kronborg as follows:

		Option	Exercise	Years to
Name	Grant Date	Shares	Price	Exercise
James Jensen	July 31, 2013	40,000	$0.32	5
Rene Mikkelsen	July 31, 2013	30,000	$0.32	5
Soren Jonassen	July 31, 2013	30,000	$0.32	5
Peter Opata	July 31, 2013	30,000	$0.32	5
Allen Kronborg	July 31, 2013	30,000	$0.32	5

The exercise price, $0.32 per share, for these options was based on the volume weighted average price per share, for the previous five trading days from the Grant Date of the Company’s common stock.

On August 19, 2013 the board of directors of the Company elected Mr. Allan Kronborg as the Chief Executive Officer (CEO).  We also granted non-qualified options to our four senior managers as follows:

		Option	Exercise	Years to
Name	Grant Date	Shares	Price	Exercise
Allan Kronborg	August 19, 2013	2,000,000	$0.68	5
Robert Bench	August 19, 2013	2,000,000	$0.68	5
Lars Nielsen	August 19, 2013	1,000,000	$0.68	5
Stephen Abu	August 19, 2013	1,000,000	$0.68	5

The exercise price, $0.68 per share, for these options was based on the volume weighted average price per share, for the previous five trading days from Grant Date of the Company’s common stock.

The fair value of the stock option grants is estimated on the date of grant using a lattice based option pricing model in accordance with proper accounting treatment and valuation as set forth in the Statement of Financial Accounting Standard No. ASC 718 for Share-based Payments.  

Share-based compensation, from issuance of stock and granted stock options, recorded during the three month periods ended September 30, 2014 and 2013 was $0 and $39,422,respectively, and is reported as general and administrative expense in the accompanying condensed consolidated statements of operations.  As of September 30, 2014 and June 30 2014, there was $0 of unrecognized compensation cost related to stock-based payments that will be recognized over the remaining life of the options.