Stock Options

3 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK OPTIONS

(14) STOCK OPTIONS

On December 4, 2016, the Board of Directors adopted the Company’s 2016 Equity Incentive Plan (the “2016 Plan”) which was subsequently approved and adopted by majority written consent in lieu of an annual meeting. The purpose of the 2016 Plan is to encourage and enable the officers, employees, directors and other key persons (including consultants) of the Company, upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business, to acquire a proprietary interest in the Company. It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests with those of the Company and its stockholders, thereby stimulating their efforts on the Company’s behalf and strengthening their desire to remain with the Company.

On January 1, 2017, the Board granted options to purchase a total of 7,364,136 shares, all with an exercise price of $0.20 per share. Options were granted to nine employees to purchase 5,498,555 shares and to six consultants to purchase 1,865,581 shares. On January 1, 2018, the Board granted options to purchase 5,000,000 shares all with an exercise price of $0.20 per share to four consultants. On May 1, 2018, the Board granted options to purchase 500,000 shares all with an exercise price of $0.20 per share to an additional consultant.

In computing the impact of stock option grants, the fair value of each option is estimated on the date of grant based on the Black-Scholes options-pricing model utilizing certain assumptions for a risk-free interest rate; volatility; and expected remaining lives of the awards. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company’s stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. The Company cannot assess its forfeiture rate at this time. During the three months ended September 30, 2018, the options issued above were valued using the Black-Scholes model but based on exercise price and fair value being the same the options had zero value.

	As of September 30, 2018			As of June 30, 2018
Expected volatility		0.00	%		0.00	%
Expected term		3 Years			3 Years
Risk-Free interest rate		2.79% to 3.08%			2.79% to 3.08%
Forfeiture rate		0.00	%		0.00	%
Expected dividend rate		0.00	%		0.00	%

The expected term is estimated as the numbers needed for the calculation will not be available until the underlying common stock is quoted on an OTC market for a sufficient amount of time to obtain historical patterns and volatility.

The following table summarizes information about all of the stock options outstanding under the 2016 Plan at September 30, 2018 and June 30, 2018:

Employees/Consultants	Shares			Wtd. Avg.
Outstanding at June 30, 2017		6,627,720		$	0.20
Granted		5,500,000		$	0.20
Exercised		-		$	-
Cancelled		(490,943	)	$	0.20
Outstanding at June 30, 2018		11,636,781		$	0.20
Granted		-		$	-
Exercised		-		$	-
Cancelled		(294,566	)	$	0.20
Outstanding at September 30, 2018		11,342,211		$	0.20

At September 30, 20118, the Company has issued options pursuant to six different stock option plans, the most recent being the 2016 Plan. The previous five plans through and including the 2012 Non-Statutory Plan have a remaining total of options vested and exercisable to purchase 13 shares at exercise prices from a high of $57,000 to a low of $350 per share. The tables below summarize information about these five plans:

Employees/Consultants	Shares			Wtd. Avg.
Outstanding at June 30, 2017		65		$	12,070
Granted		-		$	-
Exercised		-		$	-
Cancelled		(52	)	$	14,770
Outstanding at June 30, 2018		13		$	1,210
Granted		-		$	-
Exercised		-		$	-
Cancelled		(0.11	)	$	11,000
Outstanding at September 30, 2018		13		$	1,189

Vested & Exercisable Stock Options	September 30, 2018		June 30, 2018
Employee 2016 Equity Plan		-		-
Director 2016 Equity Plan		-		-
Employee Other Plans		13		13
Directors and Consultants Other Plans		-		-
Total		13		13

The Company’s common stock, symbol IMDS, was quoted on OTCmarkets.com Pink until September 25, 2014 at which time IDSI’s registration was revoked by the Securities and Exchange Commission (SEC) for failure to timely file its Quarterly and Annual Reports. The last quoted price was $0.1. Because the Company was de-registered and OTC markets did not provide a quote for IMDS, there is no public market for the Company’s shares. Given the exercise prices adjusted for the reverse split, it is highly unlikely that any employee holding pre-2016 Plan options will exercise them. The Company has sufficient authorized shares available for all outstanding option; however, if exercised, the shares will be issued with a restrictive legend because the Company was not an SEC reporting company until October 2018. Further, given its recent return to SEC reporting status, the Company is unable to file an S-8 Registration Statement to register shares issued because of option exercise pursuant to various stock option agreements.