10. STOCK PURCHASE OPTIONS AND WARRANTS

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

10. STOCK PURCHASE OPTIONS AND WARRANTS

The Board of Directors on June 10, 2009 approved the 2009 Long-Term Stock Incentive Plan.  The purpose of the 2009 Long-term Stock Incentive Plan is to advance the interests of the Company by encouraging and enabling acquisition of a financial interest in the Company by employees and other key individuals.  The 2009 Long-Term Stock Incentive Plan is intended to aid the Company in attracting and retaining key employees, to stimulate the efforts of such individuals and to strengthen their desire to remain with the Company.  A maximum of 1,500,000 shares of the Company's Common Stock is reserved for issuance under stock options to be issued under the 2009 Long-Term Stock Incentive Plan.  The Plan permits the grant of incentive stock options, nonstatutory stock options and restricted stock awards.  The 2009 Long-Term Stock Incentive Plan is administered by the Board of Directors or, at its direction, a Compensation Committee comprised of officers of the Company.

Stock Purchase Options

During the fiscal year ended June 30, 2018, the Company did not issue stock purchase options.  

During the fiscal year ended June 30, 2017, the Company issued 500,000 stock purchase options.  

The following table summarizes the changes in options outstanding of the Company during the fiscal year ended June 30, 2018.

Date Issued	Number of Options		Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Expiration Date (yrs)		Value if Exercised
Balance June 30, 2017		525,000	$	0.18	$	0.16		4.81	$	93,750
Granted		-		-		-		-		-
Exercised		-		-		-		-		-
Cancelled/Expired		-		-		-		-		-
Outstanding as of June 30, 2018		525,000	$	0.05	$	0.16		4.06	$	93,750

 The following table summarizes the changes in options outstanding of the Company during the fiscal year ended June 30, 2017

Date Issued	Number of Options		Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Expiration Date (yrs)		Value if Exercised
Balance June 30, 2016		25,000	$	0.15	$	0.24		2.00	$	3,750
Granted		500,000		0.18		0.16		5.00		90,000
Exercised		-		-		-		-		-
Cancelled/Expired		-		-		-		-		-
Outstanding as of June 30, 2017		525,000	$	0.18	$	0.16		4.81	$	93,750

 Stock Purchase Warrants

During the fiscal year ended June 30, 2018, the Company issued warrants to purchase a total of 6,675,000, consisting of 75,000 warrants as part of a private placement valued at $6,019, 100,000 warrants as part of two AR financing agreements executed on August 2017 valued at $13,398, 150,000 warrants as part additional consideration of a promissory note on November 2017 valued at $12,560 and an additional 150,000 warrants to modify the note later in November 2017 valued at $12,570, 150,000 warrants as part additional consideration of a promissory note on January 2018 valued at $11,056, 1,000,000 warrants were for facilitating the sales of bBooth stock on February 2018 valued at 63,041, 550,000 warrants in conjunction with extension of three promissory notes valued at $54,491, and 4,500,000 warrants as compensation for consulting services valued at $183,828. The warrants are considered derivative liabilities under ASC 815-40 under the Company’s sequencing policy and were valued using the multinomial lattice model.

During the fiscal year ended June 30, 2017, the Company issued warrants to purchase a total of 10,424,998. The Company issued 455,000 warrants in conjunction with four promissory notes executed in February 2017 to June 2017. The warrants were valued using the Black-Scholes pricing model under the assumptions noted below. The Company apportioned value to the warrants based on the relative fair market value of the Common Stock and warrants.

The following table presents the assumptions used to estimate the fair values of the stock warrants and options granted:

	June 30, 2018	June 30, 2017
Expected volatility	105-304%	92-126%
Expected dividends	0%	0%
Expected term	0-5 Years	0-5 Years
Risk-free interest rate	0.96-2.73%	0.74-1.89%

The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the fiscal year ended June 30, 2018.

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Expiration Date (yrs)		Value if Exercised
Outstanding as of June 30, 2017		39,927,097		$	0.38	$	0.45		3.38	$	15,144,835
Granted		6,675,000			0.08		0.05		4.38		534,250
Exercised		-			-		-		-		-
Cancelled/Expired		(4,842,500	)		0.49		-		-		(2,388,063	)
Outstanding as of June 30, 2018		41,759,597		$	0.32	$	0.40		3.01	$	13,291,022

The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the fiscal year ended June 30, 2017. 

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Expiration Date (yrs)		Value if Exercised
Outstanding as of June 30, 2016		35,034,550		$	0.36	$	0.45		4.31	$	12,767,108
Granted		10,424,998			0.46		0.18		2.07		4,404,232
Exercised		(3,020,750	)		-		-		-		-
Cancelled/Expired		(2,511,701	)		0.36		-		-		(2,026,505	)
Outstanding as of June 30, 2017		39,927,097		$	0.38	$	0.45		3.38	$	15,144,835