Stockholders' Equity | 9 Months Ended |
Mar. 31, 2015 |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 4 – Stockholders' Equity |
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Preferred Stock |
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The Company has authorized 5,000,000 shares of preferred stock, par value $0.001 per share with such rights, preferences and limitation as may be set from time to time by resolution of the board of directors and the filing of a certificate of designation as required by Delaware General Corporation Law. |
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Common Stock |
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During the three months ended March 31, 2015, the Company issued 652,174 shares of common stock and two year warrants to purchase 326,087 shares of common stock at an exercise price of $2.00 per share in exchange for $150,000 in connection with private placements with our President and principal stockholder. |
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On February 2, 2015, the Company issued 428,032 shares of common stock to its president and principal shareholder as payment for annual accrued interest of $149, 811 related to convertible note agreement dated February 1, 2013. In accordance with the convertible note, the conversion rate for the accrued interest was $0.35 per shares. The fair market value of the Company's common stock was $0.32 on the date of conversion. As such the Company recorded other income of $12,841 for the three months ended March 31, 2015 in connection with the interest conversion. |
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During the three months ended December 31, 2014 the Company issued 3,525,269 shares of common stock and two year warrants to purchase 1,762,635 shares of common stock at an exercise price of $2.00 per share in exchange for $1,055,000 in connection with private placements with three accredited investors, including the issuance of 915,968 shares and 457,984 warrants to its President and principal shareholder in exchange for $250,000. |
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In December 2014, the Company issued 110,000 shares of common stock to two directors in exchange for $21,505. |
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During the three months ended September 30, 2014, the Company issued 2,205,328 shares of common stock and two year warrants to purchase 1,081,656 shares of common stock at an exercise price of $2.00 per shares in exchange for $1,125,000 in connection with private placements with three accredited investors, including the issuance of 1,953,227 shares and 976,614 warrants to its President and principal shareholder in exchange for $975,000. |
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In July 2014, the Company issued 107,143 shares of common stock to its President and principal shareholder in payment of accrued interest of $75,000 on a $1 million convertible note (see Note 3). |
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Options to Purchase Common Stock |
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Stock-based compensation expense recognized under ASC 718-10 for the period July 1, 2014 to March 31, 2015, was $642,209 for stock options granted to employees and directors. This expense is included in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. At March 31, 2015, the total compensation cost for stock options not yet recognized was approximately $445,236. This cost will be recognized over the remaining vesting term of the options of approximately two years. |
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Employee Options and Stock Appreciation Rights |
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In December 2014, the Company granted employees five year options to purchase a total of 215,000 shares of common stock at an exercise price of $0.23 per share. The options vested 25% immediately, with the remainder vesting in equal increments of 25% each year on the grant date over three years. The Company valued the options at $31,145 using the Black-Scholes option pricing model using a volatility of 87.78%, based upon the historical price of the Company's common stock, an estimated term of 4.0 years, using the Simplified Method and a discount rate of 1.31%. |
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In August 2014, the Company granted two summer employees five year options allowing each employee to purchase 1,000 shares of common stock at an exercise price of $0.66 per share. The options all vested immediately. The Company valued the options at $682 using the Black-Scholes option pricing model using a volatility of 87.99%, based upon the historical price of the Company's common stock, an estimated term of 2.5 years, using the Simplified Method and a discount rate of 0.63%. |
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Options Issued to Directors |
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As prescribed by the Company's 2007 Equity Incentive Plan, on July 1, 2014, the Company issued options to purchase 470,000 shares of common stock to directors. The options have an exercise price of $0.73 per share, vest on June 30, 2015¸ subject to continuing service as a director and bear a ten year term. The options were valued using the Black-Scholes model using a volatility of 88.55%, derived using the historical market price for the Company's common stock, an expected term of 5.5 years (using the simplified method) and a discount rate of 1.79%. The value of these options of $245,441 will be recognized as expense over the one year vesting period. |
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On January 23, 2015, the Company issued 10 year options to purchase 10,000 shares of the Company's common stock at an exercise price of $0.27 per share to a director in connection with his appointment as audit committee chairman. The options vest annually over a three year period on the anniversary of the grant, subject to continued service as the audit committee chairman. The Company valued the options at $1,974 using the Black-Scholes option pricing model using a volatility of 84.16%, based upon the historical price of the Company's common stock, an estimated term of 6.5 years, using the Simplified Method, and a discount rate of 1.61%. The fair value will be recognized in expense over the vesting period of the options. |
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Non-Employee, Non-Director Options |
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During the nine months ended March 31, 2015, there were no options granted to non-employees or non-directors. |
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Warrants to Purchase Common Stock |
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Warrants Issued as Settlements |
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During the nine months ended March 31, 2015, there were no warrants granted for settlements. |
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Warrants Issued for Cash or Services |
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During the three months ended March 31, 2015, the Company issued two year warrants to purchase 1,202,814 shares of common stock at an exercise price at $2.00 per share in connection with advances from its President and principal shareholder pursuant to a secured convertible line of credit agreement. |
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On March 17, 2015, the Company issued five year warrants to purchase 10,000 shares of common stock at an exercise price of $0.25 per share to a consultant in connection with services provided to our wildland firefighting efforts. The Company valued the warrants at $1,667 using the Black-Scholes option pricing model using a volatility of 84.08%, based upon the historical price of the Company's common stock, an estimated term of 5 years, the term of the warrants, and a discount rate of 1.61%. The warrants vested immediately and therefore the fair value was recognized in expense during the three months ending March 31, 2015. |
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During the three months ended March 31, 2015, the Company issued two year warrants to purchase 326,087 shares of common stock at an exercise price of $2.00 per share in connection with a private placement with its President and principal shareholder. |
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On January 23, 2015, the Company granted 5 year warrants to purchase 100,000 shares of the Company's common stock in exchange for legal services. The warrants vest immediately and are exercisable at $0.27 per share. The Company valued the warrants at $17,611 using the Black-Scholes option pricing model using a volatility of 81.85%, based upon the historical price of the Company's common stock, an estimated term of 5 years, the term of the warrants, and a discount rate of 1.39%. The warrants vested immediately and therefore the fair value was recognized in expense during the three months ending March 31, 2015. |
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During the three months ended December 31, 2014, the Company issued two year warrants to purchase 1,762,635 shares of common stock at an exercise price of $2.00 per share in connection with private placements with three accredited investors, including the issuance of 457,984 warrants to its President and principal shareholder. |
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During the three months ended September 30, 2014, the Company issued two year warrants to purchase 1,081,656 shares of common stock at an exercise price of $2.00 per share in connection with private placements with three accredited investors, including the issuance of 976,614 warrants to its President and principal shareholder. |
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