NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Organization and Business

 

Scio Diamond Technology Corporation (referred to herein as the “Company”, “we”, “us” or “our”) was incorporated under the laws of the State of Nevada as Krossbow Holding Corp. on September 17, 2009. The Company’s focus is on man-made diamond technology development and commercialization.

 

Going Concern

 

The Company has generated little revenue to date and consequently its operations are subject to all risks inherent in the establishment and commercial launch of a new business enterprise. As of March 31, 2015, our cash balance was $767,214 and as of June 30, 2015 our cash balance was reduced to $176,790. This reduction was due to our operating cash needs and purchases of equipment. Our cash on hand at June 30, 2015 is not expected to be adequate to fund our operations over the fiscal year ending March 31, 2016 and we had no additional lines of credit or other bank financing arrangements other than as described in Item 1, Note 3.

 

These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management has responded to these circumstances by taking the following actions:

 

·

On-going solicitation of investment in the Company in the form of private placements of common shares or debt securities;

 

·

Continue to explore strategic joint ventures and technology licensing agreements to expand company revenue and cash flow; and

 

·

Recently expanded and continue to optimize production of existing manufacturing capabilities to increase product revenues;

 

If successfully implemented, in the opinion of management, these actions will be sufficient to provide the Company with the liquidity it needs to meet its obligations and continue as a going concern. There can be no assurance, however, that the Company will successfully implement these plans. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

Accounting Basis

 

The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

 

In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company’s financial position as of June 30, 2015 and March 31, 2015 and the results of operations and cash flows for the three month interim periods ended June 30, 2015 and 2014. The interim amounts have not been audited, and the results of operations for the interim periods herein are not necessarily indicative of the results of operations to be expected for future periods or the year. The balance sheet at March 31, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Form 10-K Annual Report of the Company for the year ended March 31, 2015.

 

 

Basic and Diluted Net Loss per Share

 

Net loss per share is presented under two formats: basic net loss per common share, which is computed using the weighted average number of common shares outstanding during the period, and diluted net loss per common share, which is computed using the weighted average number of common shares outstanding, and the weighted average dilutive potential common shares outstanding, computed using the treasury stock method. Currently, for all periods presented, diluted net loss per share is the same as basic net loss per share as the inclusion of weighted average shares of non-vested restricted stock and common stock issuable upon the exercise of options and warrants would be anti-dilutive.

 

The following table summarizes the number of securities outstanding at each of the periods presented, which were not included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive:

 

 

Allowance for Doubtful Accounts

 

An allowance for uncollectible accounts receivable is maintained for estimated losses from customers’ failure to make payment on accounts receivable due to the Company. Management determines the estimate of the allowance for uncollectible accounts receivable by considering a number of factors, including: (1) historical experience, (2) aging of accounts receivable and (3) specific information obtained by the Company on the financial condition and the current credit worthiness of its customers. The Company has determined that an allowance was not necessary at June 30, 2015 or March 31, 2015.

 

Inventories

 

Inventories are stated at the lower of average cost or market. The carrying value of inventory is reviewed and adjusted based upon slow moving and obsolete items. Inventory costs include material, labor, and manufacturing overhead and are determined by the “first-in, first-out” (FIFO) method. The components of inventories are as follows:

 

 

 

Property, Plant and Equipment

 

Depreciation of property, plant and equipment is on a straight line basis beginning at the time it is placed in service, based on the following estimated useful lives:

 

		Years
Machinery and equipment		3 to15
Furniture and fixtures		3 to10
Engineering equipment		5 to 12

 

Leasehold improvements which are included in facility fixed assets on the balance sheet are depreciated over the lesser of the remaining term of the lease or the life of the asset (generally three to seven years).

 

Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred.

 

Intangible Assets

 

 

Stock-based Compensation

 

Stock-based compensation expense for the value of stock options is estimated on the date of the grant using the Black-Scholes option-pricing model. The Black-Scholes model takes into account implied volatility in the price of the Company’s stock, the risk-free interest rate, the estimated life of the equity-based award, the closing market price of the Company’s stock on the grant date and the exercise price. The estimates utilized in the Black-Scholes calculation involve inherent uncertainties and the application of management judgment.

 

Concentration of Credit Risk

 

During the three months ended June 30, 2015, the Company was selling substantially all of its production to the RCDC joint venture and had a receivable from RCDC at June 30, 2015 of $249,058. The Company expects this concentration of sales to RCDC to continue in the future.

 

Revenue Recognition

 

We recognize product revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. For our Company, this generally means that we recognize revenue when we or our fabrication vendor has shipped finished product to the customer. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part.

 

 

Recent Accounting Pronouncements

 

On May 28, 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition guidance in Topic 605, "Revenue Recognition", and most industry-specific guidance throughout the Industry Topics of the Codification. The guidance also supersedes some cost guidance included in Subtopic 605-35, "Revenue Recognition- Contract-Type and Production-Type Contracts". On April 1, 2015, the FASB voted to defer the effective date of the pronouncement by one year, however an amendment to the ASU has not yet been released. ASU 2014-9, as amended, is effective for annual periods, and interim periods within those years, beginning after December 31, 2017. An entity is required to apply the amendments using one of the following two methods: i) retrospectively to each prior period presented with three possible expedients: a) for completed contracts that begin and end in the same reporting period no restatement is required, b) for completed contract with variable consideration an entity may use the transaction price at completion rather than restating estimated variable consideration amounts in comparable reporting periods and c) for comparable reporting periods before date of initial application reduced disclosure requirements related to transaction price; ii) retrospectively with the cumulative effect of initially applying the amendment recognized at the date of initial application with additional disclosures for the differences of the prior guidance to the reporting periods compared to the new guidance and an explanation of the reasons for significant changes. We are required to adopt ASU 2014-09 in the first quarter of fiscal 2018, or in the first quarter of fiscal 2019, if deferred, and we are currently assessing the impact of this pronouncement on our financial statements.

 

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which requires management to assess, at each annual and interim reporting period, the entity's ability to continue as a going concern within one year after the date that the financial statements are issued and provide related disclosures. The ASU is effective for our fiscal year ending March 31, 2017, with early adoption permitted. The Company has assessed the impact of this standard and does not believe that it will have a material impact on the Company’s financial statements or disclosures.

 

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, ("ASU 2015-11"). This new guidance requires an entity to measure inventory at the lower of cost and net realizable value. Currently, entities measure inventory at the lower of cost and market. ASU 2015-11 replaces market with net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured under last-in, first-out or the retail inventory method. ASU 2015-11 requires prospective adoption for inventory measurements for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early application is permitted. ASU 2015-11 is therefore effective in our fiscal year beginning April 1, 2017. We are evaluating the effect that ASU 2015-11 will have on our financial statements and related disclosures.

 

There are currently no other accounting standards that have been issued but not yet adopted by the Company that will have a significant impact on the Company’s financial position, results of operations or cash flows upon adoption.

NOTE 4 — CAPITAL STOCK

 

The authorized capital of the Company is 75,000,000 common shares with a par value of $  0.001 per share.

 

The Company had 57,522,124 shares of common stock issued and outstanding as of June 30, 2015. This total includes 985,000 shares of non-vested restricted stock.

 

The Company had 3,028,045 warrants outstanding with a weighted average exercise price of $1.45 per share as of June 30, 2015. 2,538,750 warrants expired and none were issued in the three months ended June 30, 2015. 2,352,500 warrants will expire during the six months of 2015 while the balance of the warrants will expire in 2017 and 2018 if not exercised.

NOTE 5 — SHARE-BASED COMPENSATION

 

 

On May 7, 2015, the Board of Directors of the Company approved restricted stock awards for Mr. Gerald McGuire, the Company President and Chief Executive Officer and Mr. Jonathan Pfohl, the Company Chief Financial Officer. Mssrs. McGuire and Pfohl were granted 400,000 and 385,000 restricted shares of stock, respectively that will vest on July 1, 2018. The restricted shares are valued at $1.03, the closing price of the Company’s stock on May 7, 2015. The Company recognizes compensation expense for the restricted stock awards on a straight line basis over the vesting period. The Company recognized $42,555 in compensation expenses for these awards during the three months ended June 30, 2015. Also on May 7, 2015, the Board of Directors granted Renaissance Diamond Inc. a restricted stock award of 200,000 shares that only vests based on the attainment of specific performance criteria. The Company does not anticipate recognizing any financial impact for this restricted stock award until it is deemed likely that the performance criteria will be met.

 

The following sets forth the restricted stock outstanding as of June 30, 2014:

 

Restricted Stock		Shares
Restricted stock outstanding March 31, 2015			—
Granted			985,000
Vested			—
Expired/cancelled			—
Restricted stock outstanding June 30, 2015			985,000

 

On May 7, 2015, the Board of Directors granted Renaissance Diamond Inc. non-qualified stock options for 333,333 shares of common stock. These options will vest on June 29, 2016 if the RCDC joint venture attains specific performance criteria. The strike price of these options will be set at fifty percent of the market closing price upon vesting. The options will need to be exercised within 60 days of vesting.

 

In addition, on May 7, 2015, the Company granted seven non-executive employees options to purchase a total of 685,000 shares of the Company’s stock. The vesting schedule for these options call for 33.3% to vest upon the first, second and third anniversaries of the grant date. The exercise price of $1.03 per share is equal to the closing price of a share of the Company’s common stock on the date of grant. Using the Black-Scholes option pricing model, management has estimated these options had a value of $0.98 per option on the date of the grant. The Black-Scholes model assumptions used were: Expected dividend yield, 0.00%; Risk-free interest rate, 2.18%; Expected life in years, 10.0; Expected volatility, 124.3%; Forfeiture rate, 25.0%. None of these options were vested upon issuance and the Company recognized $21,946 in compensation costs for these options during the three months ending June 30, 2015.

 

The following sets forth the employee options to purchase shares of the Company’s stock issued and outstanding as of June 30, 2015 and does not include options granted to Renaissance Diamond Inc.:

Options		Shares			Weighted- Average Exercise Price			Weighted-Average Remaining Contractual Term
Employee options outstanding March 31, 2015			232,500		$	0.35			1.45
Granted			685,000			1.03			9.86
Exercised			(5,625)			.33			—
Expired/cancelled			(210,000)			0.83			—
Employee options outstanding June 30, 2015			701,875		$	0.87			7.80
Exercisable at June 30, 2015			17,500		$	0.48			0.85

 

A summary of the status of non-vested employee options as of June 30, 2015 and changes during the three months ended June 30, 2015 is presented below.

					Weighted Average
					Grant-Date
Non-vested Shares		Shares			Fair Value
Non-vested at March 31, 2015			209,375			0.21
Granted			685,000			0.98
Vested			—			—
Expired/cancelled: non-vested			(210,000)			0.76
Non-vested at June 30, 2015			684,375		$	0.81

 

The following table summarizes information about employee stock options outstanding by price range as of June 30, 2015:

 

			Options Outstanding									Options Exercisable
Range of Exercise Price			Number Outstanding			Weighted Average Remaining Contractual Life (years)			Weighted Average Exercise Price			Number of Shares			Weighted Average Exercise Price
$	1.03			535,000			9.86		$	1.03			—		$	—
$	0.80			7,500			0.02			0.80			5,500			0.80
$	0.33			159,375			1.24			0.33			12,000			0.33
				701,875			7.80		$	0.87			17,500		$	0.48

 

NOTE 9 — SUBSEQUENT EVENTS

 

On, July 1, 2015, the Renaissance Diamond Inc. was granted restricted stock awards for 550,000 shares that only vest based on the attainment of specific performance criteria. The Company will not recognize any financial impact for these restricted stock awards unless the performance criteria are met.

 

On August 7, 2015, the Company reached an amendment to the separation, waiver and release agreement executed on December 4, 2012 with our former Chief Executive Officer, Mr. Joseph Lancia. This amendment allows for no further severance payments to Mr. Lancia and will result in the company reversing $137,561 in accrued severance expenses in the quarterly financial results ending September 30, 2015.

 

On August 13, 2015, the Board of Directors of the Company approved restricted stock awards for Mr. Gerald McGuire, the Company President and Chief Executive Officer and Mr. Jonathan Pfohl, the Company Chief Financial Officer. Mssrs. McGuire and Pfohl were granted 400,000 and 150,000 restricted shares of stock, respectively that will vest on July 1, 2018. The restricted shares are valued at the closing price of the Company’s stock on August 13, 2015. The Company will recognize compensation expense for these restricted stock awards on a straight line basis over the vesting period.

Going Concern

 

The Company has generated little revenue to date and consequently its operations are subject to all risks inherent in the establishment and commercial launch of a new business enterprise. As of March 31, 2015, our cash balance was $767,214 and as of June 30, 2015 our cash balance was reduced to $176,790. This reduction was due to our operating cash needs and purchases of equipment. Our cash on hand at June 30, 2015 is not expected to be adequate to fund our operations over the fiscal year ending March 31, 2016 and we had no additional lines of credit or other bank financing arrangements other than as described in Item 1, Note 3.

 

These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management has responded to these circumstances by taking the following actions:

 

·

On-going solicitation of investment in the Company in the form of private placements of common shares or debt securities;

 

·

Continue to explore strategic joint ventures and technology licensing agreements to expand company revenue and cash flow; and

 

·

Recently expanded and continue to optimize production of existing manufacturing capabilities to increase product revenues;

 

If successfully implemented, in the opinion of management, these actions will be sufficient to provide the Company with the liquidity it needs to meet its obligations and continue as a going concern. There can be no assurance, however, that the Company will successfully implement these plans. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Accounting Basis

 

The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

 

In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company’s financial position as of June 30, 2015 and March 31, 2015 and the results of operations and cash flows for the three month interim periods ended June 30, 2015 and 2014. The interim amounts have not been audited, and the results of operations for the interim periods herein are not necessarily indicative of the results of operations to be expected for future periods or the year. The balance sheet at March 31, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Form 10-K Annual Report of the Company for the year ended March 31, 2015.

 

Basic and Diluted Net Loss per Share

 

Net loss per share is presented under two formats: basic net loss per common share, which is computed using the weighted average number of common shares outstanding during the period, and diluted net loss per common share, which is computed using the weighted average number of common shares outstanding, and the weighted average dilutive potential common shares outstanding, computed using the treasury stock method. Currently, for all periods presented, diluted net loss per share is the same as basic net loss per share as the inclusion of weighted average shares of non-vested restricted stock and common stock issuable upon the exercise of options and warrants would be anti-dilutive.

 

The following table summarizes the number of securities outstanding at each of the periods presented, which were not included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive:

 

Allowance for Doubtful Accounts

 

An allowance for uncollectible accounts receivable is maintained for estimated losses from customers’ failure to make payment on accounts receivable due to the Company. Management determines the estimate of the allowance for uncollectible accounts receivable by considering a number of factors, including: (1) historical experience, (2) aging of accounts receivable and (3) specific information obtained by the Company on the financial condition and the current credit worthiness of its customers. The Company has determined that an allowance was not necessary at June 30, 2015 or March 31, 2015.

Inventories

 

Inventories are stated at the lower of average cost or market. The carrying value of inventory is reviewed and adjusted based upon slow moving and obsolete items. Inventory costs include material, labor, and manufacturing overhead and are determined by the “first-in, first-out” (FIFO) method. The components of inventories are as follows:

 

 

Property, Plant and Equipment

 

Depreciation of property, plant and equipment is on a straight line basis beginning at the time it is placed in service, based on the following estimated useful lives:

 

		Years
Machinery and equipment		3 to15
Furniture and fixtures		3 to10
Engineering equipment		5 to 12

 

Leasehold improvements which are included in facility fixed assets on the balance sheet are depreciated over the lesser of the remaining term of the lease or the life of the asset (generally three to seven years).

 

Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred.

Intangible Assets

 

Stock-based Compensation

 

Stock-based compensation expense for the value of stock options is estimated on the date of the grant using the Black-Scholes option-pricing model. The Black-Scholes model takes into account implied volatility in the price of the Company’s stock, the risk-free interest rate, the estimated life of the equity-based award, the closing market price of the Company’s stock on the grant date and the exercise price. The estimates utilized in the Black-Scholes calculation involve inherent uncertainties and the application of management judgment.

Concentration of Credit Risk

 

During the three months ended June 30, 2015, the Company was selling substantially all of its production to the RCDC joint venture and had a receivable from RCDC at June 30, 2015 of $249,058. The Company expects this concentration of sales to RCDC to continue in the future.

Revenue Recognition

 

We recognize product revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. For our Company, this generally means that we recognize revenue when we or our fabrication vendor has shipped finished product to the customer. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part.

 

Recent Accounting Pronouncements

 

On May 28, 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition guidance in Topic 605, "Revenue Recognition", and most industry-specific guidance throughout the Industry Topics of the Codification. The guidance also supersedes some cost guidance included in Subtopic 605-35, "Revenue Recognition- Contract-Type and Production-Type Contracts". On April 1, 2015, the FASB voted to defer the effective date of the pronouncement by one year, however an amendment to the ASU has not yet been released. ASU 2014-9, as amended, is effective for annual periods, and interim periods within those years, beginning after December 31, 2017. An entity is required to apply the amendments using one of the following two methods: i) retrospectively to each prior period presented with three possible expedients: a) for completed contracts that begin and end in the same reporting period no restatement is required, b) for completed contract with variable consideration an entity may use the transaction price at completion rather than restating estimated variable consideration amounts in comparable reporting periods and c) for comparable reporting periods before date of initial application reduced disclosure requirements related to transaction price; ii) retrospectively with the cumulative effect of initially applying the amendment recognized at the date of initial application with additional disclosures for the differences of the prior guidance to the reporting periods compared to the new guidance and an explanation of the reasons for significant changes. We are required to adopt ASU 2014-09 in the first quarter of fiscal 2018, or in the first quarter of fiscal 2019, if deferred, and we are currently assessing the impact of this pronouncement on our financial statements.

 

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which requires management to assess, at each annual and interim reporting period, the entity's ability to continue as a going concern within one year after the date that the financial statements are issued and provide related disclosures. The ASU is effective for our fiscal year ending March 31, 2017, with early adoption permitted. The Company has assessed the impact of this standard and does not believe that it will have a material impact on the Company’s financial statements or disclosures.

 

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, ("ASU 2015-11"). This new guidance requires an entity to measure inventory at the lower of cost and net realizable value. Currently, entities measure inventory at the lower of cost and market. ASU 2015-11 replaces market with net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured under last-in, first-out or the retail inventory method. ASU 2015-11 requires prospective adoption for inventory measurements for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early application is permitted. ASU 2015-11 is therefore effective in our fiscal year beginning April 1, 2017. We are evaluating the effect that ASU 2015-11 will have on our financial statements and related disclosures.

 

There are currently no other accounting standards that have been issued but not yet adopted by the Company that will have a significant impact on the Company’s financial position, results of operations or cash flows upon adoption.

The following table summarizes the number of securities outstanding at each of the periods presented, which were not included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive:

 

The components of inventories are as follows:

 

Depreciation of property, plant and equipment is on a straight line basis beginning at the time it is placed in service, based on the following estimated useful lives:

 

		Years
Machinery and equipment		3 to15
Furniture and fixtures		3 to10
Engineering equipment		5 to 12

Intangible assets consist of the following:

				June 30,			March 31,
		Life		2015			2015
Patents, gross		6.75 – 19.46		$	8,135,063		$	8,135,063
In-process research and development		Indefinite			1,832,370			1,832,370
					9,967,433			9,967,433
Accumulated amortization					(2,113,195)			(1,919,485)
Net intangible assets				$	7,854,238		$	8,047,948

Total annual amortization expense of finite lived intangible assets is estimated to be as follows:

 

Fiscal Year Ending
Nine months ending March 31, 2016		$	581,130
March 31, 2017			774,840
March 31, 2018			774,840
March 31, 2019			774,840
March 31, 2020			595,159
Thereafter		$	2,521,059

The following sets forth the restricted stock outstanding as of June 30, 2014:

 

Restricted Stock		Shares
Restricted stock outstanding March 31, 2015			—
Granted			985,000
Vested			—
Expired/cancelled			—
Restricted stock outstanding June 30, 2015			985,000

The following sets forth the employee options to purchase shares of the Company’s stock issued and outstanding as of June 30, 2015 and does not include options granted to Renaissance Diamond Inc.:

Options		Shares			Weighted- Average Exercise Price			Weighted-Average Remaining Contractual Term
Employee options outstanding March 31, 2015			232,500		$	0.35			1.45
Granted			685,000			1.03			9.86
Exercised			(5,625)			.33			—
Expired/cancelled			(210,000)			0.83			—
Employee options outstanding June 30, 2015			701,875		$	0.87			7.80
Exercisable at June 30, 2015			17,500		$	0.48			0.85

A summary of the status of non-vested employee options as of June 30, 2015 and changes during the three months ended June 30, 2015 is presented below.

					Weighted Average
					Grant-Date
Non-vested Shares		Shares			Fair Value
Non-vested at March 31, 2015			209,375			0.21
Granted			685,000			0.98
Vested			—			—
Expired/cancelled: non-vested			(210,000)			0.76
Non-vested at June 30, 2015			684,375		$	0.81

The following table summarizes information about employee stock options outstanding by price range as of June 30, 2015:

 

			Options Outstanding									Options Exercisable
Range of Exercise Price			Number Outstanding			Weighted Average Remaining Contractual Life (years)			Weighted Average Exercise Price			Number of Shares			Weighted Average Exercise Price
$	1.03			535,000			9.86		$	1.03			—		$	—
$	0.80			7,500			0.02			0.80			5,500			0.80
$	0.33			159,375			1.24			0.33			12,000			0.33
				701,875			7.80		$	0.87			17,500		$	0.48

Rollforward of the Company’s ownership interest in the joint venture for the three months ended June 30, 2015:

Balance of ownership interest in joint venture at March 31,2015		$	30,041
Aggregate fiscal 2016 equity gain – share of joint venture income			16,339
Balance of ownership interest in joint venture at June 30, 2015		$	46,380
Cumulative recognized income on ownership interest in joint venture at June 30, 2015		$	45,380

Selected financial results for RCDC for the three months ended June 30, 2015 are as follows:

Revenues		$	260,299
Expenses			227,622
Net Income		$	32,677
Total Assets		$	611,259
Total Liabilities		$	518,499
Total Partners Capital			92,760
Total Liabilities and Partner Capital		$	611,259