Stock Options

6 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

STOCK OPTIONS

(15) 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 and fair value 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 and fair value 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 and fair value of $0.20 per share to an additional consultant. On January 1, 2019, the Board granted options to purchase 2,040,000 shares all with an exercise price of $.20 and fair value of $.51 per share to five consultants. On May 1, 2019, the Board granted options to purchase 360,000 shares all with an exercise price of $.20 and fair value of $.51 per share to one consultant. On November 1, 2019, the Board granted options to purchase 2,000,000 shares all with an exercise price of $.51 and fair value of $.51 per share to one 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 of a comparable company; 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.

	As of December 31, 2019			As of June 30, 2019
Expected volatility		23 to 24.00	%		24.00	%
Expected term		4 to 5 Years			5 Years
Risk-Free interest rate		1.55 to 2.49	%		2.49	%
Forfeiture rate		0.00	%		0.00	%
Expected dividend rate		0.00	%		0.00	%

The following table summarizes information about all of the stock options granted, exercised and cancelled under the 2016 Plan at December 31, 2019 and June 30, 2019:

Employees/Consultants	Options			Wtd. Avg. Exercise Price
Outstanding at June 30, 2018		11,636,777		$	0.20
Granted		2,400,000		$	0.20
Exercised		-		$	-
Cancelled		(589,132	)	$	0.20
Outstanding at June 30, 2019		13,447,645		$	0.20
Granted		2,000,000		$	0.51
Exercised		-		$	-
Cancelled		(450,000	)	$	0.20
Outstanding at December 31, 2019		14,997,645		$	0.24

The following table summarizes information about vested and unvested options under the 2016 Plan at December 31, 2019 and June 30, 2019:

Employees/Consultants	Unvested			Vested		Total
Outstanding at June 30, 2018		6,825,181			4,811,596		11,636,777
Granted		1,800,000			600,000		2,400,000
Vested		(2,305,527	)		2,305,527		-
Cancelled		(589,132	)		-		(589,132	)
Outstanding at June 30, 2019		5,730,522			7,717,123		13,447,645
Granted		1,500,000			500,000		2,000,000
Vested		-			-		-
Cancelled		(450,000	)		-		(450,000	)
Outstanding at December 31, 2019		6,780,522			8,217,123		14,997,645

Unvested options will be expensed under the Black-Scholes options-pricing model when they vest.

At December 31, 2019, 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 $13,500 to a low of $350 per share. The tables below summarize information about these five plans:

Employees/Consultants	Options			Wtd. Avg. Exercise Price
Outstanding at June 30, 2018		13		$	1,210
Granted		-		$	-
Exercised		-		$	-
Cancelled		(.31	)	$	6,083
Outstanding at June 30, 2019		13		$	976
Granted		-		$	-
Exercised		-		$	-
Cancelled		-		$	-
Outstanding at December 31, 2019		13		$	976

Vested & Exercisable Stock Options	December 31, 2019		June 30, 2019
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.