4. STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2018

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

STOCK-BASED COMPENSATION

4. STOCK-BASED COMPENSATION

The following table summarizes stock-based compensation expense for the three and six months ended December 31, 2018 and 2017:

	Three Months Ended December 31,				Six Months Ended December 31,
	2018		2017		2018		2017
Cost of Goods Sold	$	–	$	–	$	–	$	8,669
Research and Development		2,411		320		4,822		7,012
Selling, General and Administrative		7,817		6,651		348,390		17,347
Stock Based Compensation Expense	$	10,228	$	6,971	$	353,212	$	33,028

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, 2018:

	Options Outstanding
	Number of Shares			Weighted Average Exercise Price	Weighted Average Contractual Life
Outstanding at June 30, 2018	1,055,700		$	0.76	6.13 years
Granted	450,000
Expired or Cancelled	(13,700	)
Outstanding at December 31, 2018	1,492,000		$	0.75	6.83 years

Information related to the stock options outstanding as of December 31, 2018 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		2.54	$	0.27		40,000	$	0.27
$	0.40		15,000		8.33	$	0.40		10,000	$	0.40
$	0.48		60,000		7.25	$	0.48		60,000	$	0.48
$	0.50		100,000		6.47	$	0.50		100,000	$	0.50
$	0.55		42,000		5.31	$	0.55		37,000	$	0.55
$	0.64		25,000		8.86	$	0.64		15,000	$	0.64
$	0.70		100,000		9.59	$	0.70		33,333	$	0.70
$	0.73		853,000		7.70	$	0.73		658,000	$	0.73
$	0.85		9,000		4.01	$	0.85		9,000	$	0.85
$	0.90		9,000		5.01	$	0.90		9,000	$	0.90
$	0.95		30,000		5.53	$	0.95		30,000	$	0.95
$	1.20		207,800		3.17	$	1.20		207,800	$	1.20
$	1.35		1,200		0.90	$	1.35		1,200	$	1.35
$	0.27–$1.35		1,492,000		6.83	$	0.75		1,210,333	$	0.76

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of December 31, 2018 was $891,580 and $711,496, respectively.

Common Stock Award

On August 2, 2018, the Company awarded its Chief Executive Officer 300,000 shares of common stock for services performed through June 30, 2018. The fair market value of the 300,000 shares on the award date equal to $210,000 has been recorded as general and administrative stock-based compensation expense in the quarter ended September 30, 2018. As of December 31, 2018, 100,000 shares have been issued. Another 100,000 shares were issued on January 1, 2019, and the remaining 100,000 shares will be issued on January 1, 2020.