4. STOCK-BASED COMPENSATION

9 Months Ended

Mar. 31, 2017

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

STOCK-BASED COMPENSATION

Stock-based compensation costs recognized during the quarters ended March 31, 2017 and 2016 amounted to $44,310 and $51,705 respectively, and the costs were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2017 - $28,949; 2016 $33,721), research and development expenses (2017 - $6,692, 2016 - $9,316) and cost of goods sold (2017 - $8,669; 2016 - $8,668). Stock-based compensation costs recognized during the nine month periods ended March 31, 2017 and 2016 amounted to $154,743 and $194,133, respectively, and were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2017 - $106,035; 2016 - $94,099), research and development expenses (2017 - $22,701, 2016 - $48,023) and cost of goods sold (2017 - $26,007, 2016 - $52,011). No compensation has been capitalized because such amounts would have been immaterial.

The following tables summarize stock option activity for the nine months ended March 31, 2017:

	Options Outstanding
	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Life
Outstanding at June 30, 2016		1,136,000		$	0.79	7.74 years
Cancellations		(4,600	)	$	2.65
Outstanding at March 31, 2017		1,131,400		$	0.78	7.25 years

Information related to the stock options outstanding as of March 31, 2017 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
$	0.27		40,000		4.29	$	0.27		40,000	$	0.27
$	0.48		60,000		9.00	$	0.48		40,000	$	0.48
$	0.50		80,000		9.23	$	0.50		35,000	$	0.50
$	0.50		20,000		4.22	$	0.50		20,000	$	0.50
$	0.55		37,000		4.87	$	0.55		37,000	$	0.55
$	0.73		600,000		8.13	$	0.73		400,000	$	0.73
$	0.85		9,000		5.76	$	0.85		9,000	$	0.85
$	0.90		9,000		6.76	$	0.90		9,000	$	0.90
$	0.95		65,000		7.28	$	0.95		65,000	$	0.95
$	1.20		207,800		4.92	$	1.20		207,800	$	1.20
$	1.25		1,200		1.65	$	1.25		1,200	$	1.25
$	1.35		1,200		2.65	$	1.35		1,200	$	1.35
$	7.75		1,200		0.66	$	7.75		1,200	$	7.75
$	0.27–$7.75		1,131,400		7.25	$	0.78		866,400	$	0.82

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of March 31, 2017 was $5,500.