3. STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2014

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

3. STOCK-BASED COMPENSATION

Stock-based compensation costs recognized during the quarters ended December 31, 2014 and 2013 amounted to $13,125 and $33,608, respectively, and the costs were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2014 - $0; 2013 - $32,050), research and development expenses (2014 - $13,125, 2013 - $550) and cost of goods sold (2014 - $0; 2013 - $1,008). Stock-based compensation costs recognized during  the six month periods ended December 31, 2014 and 2013 amounted to $40,125 and $67,216, respectively, and were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2014 - $27,000; 2013 - $64,100), research and development expenses (2014 - $13,125, 2013 - $1,100) and cost of goods sold (2014 - $0, 2013 - $2,016). No compensation has been capitalized because such amounts would have been immaterial.

The following tables summarize stock option activity for the six months ended December 31, 2014:

	Options Outstanding
	Number of Shares		Weighted Average Exercise Price		Weighted Average Contractual Life
Outstanding at July 1, 2014		409,087	$	4.49		6.27 years
Grants		65,000		0.90
Outstanding at December 31, 2014		474,087	$	3.93		6.29 years

Information related to the stock options outstanding as of December 31, 2014 is as follows:

Range of Exercise Prices		Number of Shares		Weighted-Average Remaining Contractual Life (years)		Weighted-Average Exercise Price		Exercisable Number of Shares		Exercisable Weighted-Average Exercise Price
$	1.20		207,800		7.17	$	1.20		207,800	$	1.20
$	0.90		65,000		9.53		0.90		41,667		0.90
$	0.90		9,000		9.01		0.90		9,000		0.90
$	0.85		9,000		8.01		0.85		9,000		0.85
$	0.55		49,500		7.12		0.55		49,500		0.55
$	0.27		40,000		6.54		0.27		40,000		0.27
$	1.35		1,200		4.90		1.35		1,200		1.35
$	1.25		1,200		3.91		1.25		1,200		1.25
$	6.25		1,600		2.91		6.25		1,600		6.25
$	7.75		1,200		2.91		7.75		1,200		7.75
$	11.50		800		0.91		11.50		800		11.50
$	13.75		50,427		1.36		13.75		50,427		13.75
$	20.75		37,360		0.46		20.75		37,360		20.75
$	0.27–$20.75		474,087		6.29	$	3.93		450,754	$	6.21

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of December 31, 2014 was $15,675.

On January 12, 2015, the Company issued 30,000 restricted shares of our common stock to Mr. Jeff DiRubio as compensation for services rendered to the Company.

On January 12, 2015, the Company issued 22,222 restricted shares of our common stock to Mr. Michael Marrus as compensation for services rendered to the Company.

On January 12, 2015, the Company issued 30,000 restricted shares of our common stock to Mr. Teddy Wood to settle a cash bonus in the amount of $30,000 earned by Mr. Wood as compensation for services rendered to the Company.