Stock Options

12 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock Options

NOTE 6 – STOCK OPTIONS

A summary of stock options as of June 30, 2020 and for the two years then ended is as follows:

	Number of Shares		Weighted - Average Exercise Price
Outstanding at June 30, 2018		2,500,000	$	0.08
Granted		1,150,000		0.03
Forfeited		—	$	—
Outstanding at June 30, 2019		3,650,000	$	0.06
Granted		—		—
Forfeited		—	$	—
Outstanding at June 30, 2020		3,650,000	$	0.06
Exercisable at June 30, 2020		3,650,000	$	0.06

On January 10, 2020, the Company modified the term of a stock option originally granted to its Chief Executive Officer in February 2013 and due to expire in February 2020. The Company extended the expiration date of the stock option by an additional 24 months. Due to the modification, the Company recorded a charge of approximately $6,000 on the modification date to account for the incremental change in fair value of the stock option before and after the modification,which was recognized as compensation cost.

In December 2018, the Company granted to its directors and employees, stock options to purchase an aggregate of 1,150,000 shares of Common Stock. The fair value of the stock options granted was determined to be $21,000 and was being amortized over the vesting period of 12 months. During the years ended June 30, 2020 and 2019, the Company recorded stock-based compensation expense of $10,000 and $11,000, respectively, related to the vesting of these options. As of June 30, 2020, the Company had no outstanding unvested options with future compensation costs. The outstanding and exercisable stock options had an intrinsic value of $12,000 and $23,000, respectively, on June 30, 2020, and June 30, 2019.

The fair value of each option on the date of grant was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	2019
Exercise Price	$	0.03
Stock Price	$	0.03
Risk-free interest rate		2.63	%
Expected volatility		121	%
Expected life (in years)		2.0
Expected dividend yield		0	%

Additional information regarding options outstanding as of June 30, 2020, is as follows:

Options Outstanding at June 30, 2020								Options Exercisable at June 30, 2020
Range of Exercise		Number of Shares Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number of Shares Exercisable		Weighted Average Exercise Price
$	0.03		1,150,000		4.48	$	0.03		1,150,000	$	0.03
$	0.08		2,500,000		1.61	$	0.08		2,500,000	$	0.08
			3,650,000						3,650,000