Annual report pursuant to Section 13 and 15(d)

Stock Based Compensation (Tables)

v2.4.0.8
Stock Based Compensation (Tables)
 12 Months Ended
Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Option Activity
The following table summarizes the stock option activity for the fiscal years ended:
 
June 30,
 
2014
 
2013
 
Number of
Shares
 
WAEPS (1)
 
Number of
Shares
 
WAEPS (1)
Fiscal year beginning balance
7,888,957

 
$1.34
 
6,753,125

 
$1.44
Granted
3,000,000

 
$1.03
 
1,627,500

 
$1.23
Exercised
(275,000
)
 
$1.07
 
—

 
$0.00
Forfeited (2)
(121,666
)
 
$1.03
 
(491,668
)
 
$1.23
Options outstanding at end of fiscal year
10,492,291

 
$1.26
 
7,888,957

 
$1.34
Weighted average remaining contractual term of outstanding options
 
 
6.0 years
 
 
 
5.9 years
(1) Weighted average exercise price per share.
(2) Fiscal year 2013 includes the effect of 100,000 historically granted stock options forfeited erroneously.
Shares Authorized under Stock Option Plans, by Exercise Price Range
The following table summarizes options outstanding and exercisable as of June 30, 2014:
 
 
 
 
Options outstanding
 
Options exercisable
Range of
exercise
prices
 
Number
of
shares
 
Weighted average remaining contractual life
 
WAEPS (1)
 
Number
of
shares
 
Weighted average remaining contractual life
 
WAEPS (1)
$0.79
-
$1.04
 
3,057,500

 
9.2 years
 
$1.02
 
827,500

 
9.1 years
 
$1.02
$1.05
-
$1.11
 
1,415,000

 
8.0 years
 
$1.08
 
1,004,998

 
7.6 years
 
$1.09
$1.12
-
$1.18
 
1,191,666

 
7.7 years
 
$1.13
 
624,999

 
7.2 years
 
$1.13
$1.19
-
$1.40
 
3,100,000

 
1.9 years
 
$1.20
 
3,100,000

 
1.9 years
 
$1.20
$1.41
-
$2.41
 
1,728,125

 
5.0 years
 
$2.03
 
1,728,125

 
5.0 years
 
$2.03
 
 
 
 
10,492,291

 
6.0 years
 
$1.26
 
7,285,622

 
4.7 years
 
$1.36
Aggregate intrinsic value
$
9,857,615

 

 
 
 
$
6,152,424

 
 
 
 

(1) Weighted average exercise price per share.
Fair Value of Shares Issued Under the Stock Plan and Weighted-Average Assumptions
The fair value of shares issued under the 2012 Stock Incentive Plan were estimated using the following weighted-average assumptions for the fiscal years ended:
 
June 30,
 
2014
 
2013
 
PBOs (1)
 
Market Based (2)
 
Time based
and PBOs
Number of options
1,500,000
 
 
1,500,000
 
 
1,627,500
 
Weighted-average grant date fair value per share
$0.57
 
 
$0.69
 
 
$0.61
 
Expected dividend
$0.00
 
 
$0.00
 
 
$0.00
 
Forfeiture rate
0
 
 
0
 
 
0
 
Risk free interest rate
1.5
%
-
1.7%
 
 
 
2.8%
 
0.6
%
-
1.3%
Expected life (years)
0.4

-
1.6
 
 
 
2.6
 
5.1

-
6.0
Expected volatility (based on historical price)
61.7
%
-
61.9%
 
 
 
66.6%
 
60.3
%
-
63.5%

(1) The terms related to these PBOs were estimated using an average probabilistic weighted method.
(2) The Company assumed market based options will be voluntarily exercised at the midpoint of vesting, and the contractual term.