In our Board of Directors approved a private placement of up to shares of our common stock to select accredited investors for a total amount of or per share of common stock (“Offering”). As of shares of our common stock were sold to an accredited investor at per share for a total of The securities in the Offering were offered and sold to accredited investors in reliance upon exemptions from registration pursuant to Section (a)() of the Securities Act and Rule promulgated thereunder. See Note

 

 

Warrant detail for the months ended is reflected below:

 

		Number of Warrants				Weighted Average Exercise Price Per Warrant				Remaining Contract Term (# years)
Warrants outstanding and exercisable at June 30, 2017			2,342,590			$	1.97			0.12	-	1.55
Warrants issued			-			$	-				-
Warrants forfeited			(460,157	)		$	2.15				-
Warrants outstanding and exercisable at March 31, 2018			1,882,433			$	1.92				1.28

  

 

 

On our board of directors approved our Equity Incentive Plan (the Plan”), which was approved by our shareholders on The Plan offers selected employees, directors, and consultants the opportunity to acquire our common stock, and serves to encourage such persons to remain employed by us and to attract new employees. The Plan allows for the award of stock and options, up to shares of our common stock.

 

On we granted incentive stock options (“ISO”) of the Company’s common stock, with an estimated grant-date fair value of to Company employees. The ISOs vest on the grant date and then per quarter for the following quarters with all options expiring years from the date of grant. In addition, the Company issued non-qualified stock options (“NQSO”) of the Company’s common stock, with an estimated grant-date fair value of to members of its Board of Directors. The NQSOs vest per quarter over a -year period and expire years from the date of grant.

 

Activity in stock options during the months ended and related balances outstanding as of that date are reflected below:

 

		Number of Shares				Weighted Average Exercise Price				Weighted Average Remaining Contract Term (# years)
Outstanding at June 30, 2017			716,277			$	1.10
Granted			1,970,000				0.46
Exercised			-
Forfeited and cancelled			(66,910	)			0.62
Outstanding at March 31, 2018			2,619,367			$	0.61				8.60
Exercisable at March 31, 2018			1,228,654			$	0.77				7.75

 

Activity in stock options during the months ended and related balances outstanding as of that date are reflected below:

 

		Number of Shares				Weighted Average Exercise Price				Weighted Average Remaining Contract Term (# years)
Outstanding at June 30, 2016			900,402			$	1.13
Granted			-
Exercised			-
Forfeited and cancelled			(184,125	)		$	1.63
Outstanding at March 31, 2017			716,277			$	1.01				7.17
Exercisable at March 31, 2017			562,435			$	1.14				6.55

 

Stock-based compensation expense recognized in our condensed consolidated statements of operations for the and months ended and includes compensation expense for stock-based options and awards granted based on the grant date fair value. For options and awards granted, expenses are amortized under the straight-line method over the expected vesting period. Stock-based compensation expense recognized in the condensed consolidated statements of operations has been reduced for estimated forfeitures of options that are subject to vesting. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

 

Our average stock price during the months ended was and as a result the intrinsic value of the exercisable options at was

 

We allocated stock-based compensation expense included in the condensed consolidated statements of operations for employee option grants and non-employee option grants as follows:

 

		For the Three Months Ended March 31								For the Nine Months Ended March 31,
		201 8				201 7				201 8				201 7
Research and development		$	16,000			$	3,000			$	80,000			$	10,000
General and administration			29,000				7,000				129,000				20,000
Total stock-based compensation expense		$	45,000			$	10,000			$	209,000			$	30,000

 

The Company uses the Black-Scholes valuation model to calculate the fair value of stock options. The fair value of stock options was measured at the grant date using the assumptions (annualized percentages) in the table below:

 

Nine months ended March 31,		201 8				201 7
Expected volatility			100%				100%
Risk free interest rate			1.76%				1.31%
Forfeiture rate			23.0%				23.0%
Dividend yield			0%				0%
Expected term (years)			5				3

 

The remaining amount of unrecognized stock-based compensation expense at relating to outstanding stock options, is approximately which is expected to be recognized over the weighted average period of years.

 

 

Effective we entered into a renewal contract (the Renewal”) with Catalyst Global LLC to provide investor relations services for months in exchange for monthly fees of per month and shares of restricted common stock per quarter. The initial tranche of shares was valued at per share or when issued on the tranche of shares was valued at per share or when issued on the tranche of shares was valued at per share or when issued on the tranche of shares was valued at per share or when issued on The Renewal is cancelable upon days written notice.  

On we entered into a consulting agreement with SRID to assist us with identifying strategic partners, suppliers and manufacturers in China for a term of months. Included with the services is a -week trip to China to meet with potential manufacturers, which took place in In consideration for the services, we agreed to issue to SRID, up to shares of restricted common stock valued at approximately over the course of the -month term. See Note