Note 14 - Capital Structure and Stock-based Compensation

12 Months Ended

Jun. 30, 2017

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, 2017,

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

2017,

2016

and

2015.

The Company has

not

awarded any new grants since fiscal

2013.

The Company recognized stock-based compensation expense for the years ended

June 30, 2017

and

2016

and

2015

of

$4,800,

$4,500

and

$4,400,

respectively. As of

June 30, 2017,

the Company had

no

stock-based compensation expense to be recognized.

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

	June 30,
	2017				2016				2015
			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		10,000	$	16.00
Exercised		4,000		16.00		-		-		-		-
Granted		-		-		-		-		-		-
Options outstanding at end of period		6,000	$	16.00		10,000	$	16.00		10,000	$	16.00
Options exercisable at end of period		4,000				6,000				4,000
Shares available for issuance		2,322,643				2,219,845				2,115,246

As of June 30, 2017

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

6,000

5.08

$

16.00

4,000

$

16.00

At

June 30, 2017,

the aggregate intrinsic value of options outstanding and options exercisable was

$11,400

and

$5,700,

respectively. The total intrinsic value of options exercised during the year ended

June 30, 2017

was

$12,418.

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

was

$0.