Note 14 - Capital Structure and Stock-based Compensation

12 Months Ended

Jun. 30, 2016

Notes to Financial Statements

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

Note 14 – Capital Structure and Stock-based Compensation

:

At June 30, 2016, the Company has 20,000,000 authorized shares of common stock and is authorized to issue 2,500,000 shares of preferred stock, from time to time, in one or more series and to fix the voting powers, designations, preferences and the relative participating, optional or other rights, if any, of any wholly unissued series of preferred stock.

In November 1995, the Company’s stockholders approved the 1995 Equity Participation Plan (the “1995 Plan”). The 1995 Plan provides for the granting of options, restricted stock and stock appreciation rights (“SARs”) to key employees, directors and consultants of the Company. Under the 1995 Plan, the maximum number of shares of common stock that can be issued upon the exercise of options or SARs, or upon the vesting of restricted stock awards, was initially 1,000,000, but the maximum number of available shares of common stock could increase by an amount equal to 1% of the total number of issued and outstanding shares of common stock as of June 30 of the fiscal year immediately preceding such fiscal year. Each grant or issuance under the 1995 Plan is set forth in a separate agreement and indicates, as determined by the stock option committee, the type, terms, vesting period and conditions of the award.

On July 1, 2005, the Company implemented ASC Topic 718, “Compensation – Stock Compensation (“ASC 718”). ASC 718 addresses accounting for equity-based compensation arrangements, including employee stock options. The Company adopted the “modified prospective method” where stock-based compensation expense is recorded beginning on the adoption date. Under this method, compensation expense is recognized using the fair-value based method for all new awards granted after July 1, 2005. The fair value of each grant is estimated using the Black-Scholes option-pricing model. There were no option grants in fiscal years 2016, 2015 and 2014. The Company has not awarded any new grants since fiscal 2013.

The Company recognized stock-based compensation expense for the years ended June 30, 2016 and 2015 and 2014 of $4,500, $4,400 and $4,400, respectively. As of June 30, 2016, the Company had $4,800 of unrecognized stock-based compensation expense to be recognized over the next 13 months.

The following table summarizes activity related to stock options for the periods indicated:

	June 30,
	2016				2015				2014
			Weighted				Weighted					Weighted
			Average				Average					Average
	Shares		Exercise Price		Shares		Exercise Price		Shares			Exercise Price
Options outstanding at beginning of period		10,000	$	16.00		10,000	$	16.00		22,697		$	13.91
Exercised		-		-		-		-		(12,697	)		12.26
Granted		-		-		-		-		-			-
Options outstanding at end of period		10,000	$	16.00		10,000	$	16.00		10,000		$	16.00
Options exercisable at end of period		6,000				4,000				2,000
Shares available for issuance		2,219,845				2,115,246				2,010,647

As of June 30, 2016

Options Outstanding

Options Exercisable

Weighted Average

Range of

Number

Remaining Contractual

Weighted Average

Number

Weighted Average

Exercise prices

Outstanding

Life (in years)

Exercise Price

Exercisable

Exercise Price

$16.00

-

$16.00

10,000

6.08

$

16.00

6,000

$

16.00

At June 30, 2016, the aggregate intrinsic value of options outstanding and options exercisable was $0. There were no options exercised during the year ended June 30, 2016. The total intrinsic value of options exercised during the year ended June 30, 2015 and 2014 was $0 and $35,496, respectively.