4. STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of stock-based compensation expense

The following table summarizes stock-based compensation expense for the years ended June 30:

	2020		2019
Cost of Goods Sold	$	44,932	$	11,233
Research and Development Expenses		68,061		20,398
Selling, General and Administrative Expenses		389,352		231,695
Stock Based Compensation Expense	$	502,345	$	263,326

Assumptions for fair value of options granted

The fair value of options at date of grant was estimated with the following assumptions for options granted in fiscal year 2020:

	Year Ended
	June 30, 2020
Assumptions:
Option life		5.3 years
Risk-free interest rate		3.0%
Stock volatility		131%
Dividend yield		0
Weighted average fair value of grants	$	1.31

Stock option activity

The following tables summarize stock option activity for the years ended June 30, 2020 and 2019:

	Options Outstanding
	Number of Shares			Weighted Average Exercise Price	Weighted Average Contractual Life
Outstanding at July 1, 2018	1,055,700		$	0.76	6.13 years
Grants	831,000		$	0.99
Exercised	(64,500	)	$	0.75
Cancellations	(2,700	)	$	0.86
Outstanding at June 30, 2019	1,819,500		$	0.87	7.05 years
Grants	315,000		$	1.38
Exercised	(47,500	)	$	0.62
Cancellations	(21,800	)	$	0.96
Outstanding at June 30, 2020	2,065,200		$	0.95	6.59 years

Stock options outstanding by exercise price ranges

Information related to the stock options outstanding as of June 30, 2020 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		1.04	$	0.27		40,000	$	0.27
$	0.48		60,000		5.75	$	0.48		60,000	$	0.48
$	0.50		100,000		4.97	$	0.50		100,000	$	0.50
$	0.55		44,000		3.71	$	0.55		44,000	$	0.55
$	0.70		100,000		8.10	$	0.70		100,000	$	0.70
$	0.73		786,000		6.31	$	0.73		786,000	$	0.73
$	0.85		6,000		2.51	$	0.85		6,000	$	0.85
$	0.90		36,000		3.94	$	0.90		36,000	$	0.90
$	1.20		200,200		1.67	$	1.20		200,200	$	1.20
$	1.25		45,000		9.72	$	1.25		–	$	–
$	1.30		478,000		8.95	$	1.30		126,679	$	1.30
$	1.42		100,000		9.20	$	1.42		–	$	–
$	1.50		70,000		9.44	$	1.50		70,000	$	1.50
$	0.27–1.50		2,065,200		6.59	$	0.95		1,568,879	$	0.83