SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

3 Months Ended

Sep. 30, 2021

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

11. SHAREHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Stock-Based Compensation

The following table summarizes the components of the Company’s stock-based compensation included in net income for the periods presented:

	Three Months Ended September 30,
	2021		2020
Employee stock options	$	69,565	$	91,040
Restricted stock awards		209,842		16,315
Totals	$	279,407	$	107,355

No stock-based compensation was capitalized as a cost of inventory during the three months ended September 30, 2021 or 2020.

Stock Options – The following is a summary of the stock option activity for the three months ended September 30, 2021:

	Shares			Weighted Average Exercise Price
Outstanding, June 30, 2021		2,235,286		$	1.24
Granted		72,500		$	2.67
Exercised		(183,637	)	$	1.40
Forfeited		(14,584	)	$	0.89
Expired		(49,079	)	$	1.27
Outstanding, September 30, 2021		2,060,486		$	1.28

The total fair value of stock options that vested during the three months ended September 30, 2021 was approximately $38,000.

The following table summarizes information about stock options outstanding at September 30, 2021:

Options Outstanding						Options Exercisable						Options Vested or Expected to Vest
Balance as of 9/30/2021		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Balance as of 9/30/2021		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Balance as of 9/30/2021		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price
	2,060,486		6.35	$	1.28		1,525,774		5.42	$	1.30		1,988,851		6.26	$	1.28

As of September 30, 2021, the unrecognized stock-based compensation expense related to unvested stock options was approximately $208,000, which is expected to be recognized over a weighted average period of approximately 25 months.

The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at September 30, 2021 was approximately $1.53 million. These amounts are before applicable income taxes and represents the closing market price of the Company’s common stock at September 30, 2021 less the grant price, multiplied by the number of stock options that had a grant price that is less than the closing market price. These values represent the amount that would have been received by the optionees had these stock options been exercised on that date. During the three months ended September 30, 2021, the aggregate intrinsic value of stock options exercised was approximately $255,000 and the total tax benefit associated with the stock options that were exercised was approximately $240,000. No stock options were exercised during the three months ended September 30, 2020.

Restricted Stock – The following is a summary of the restricted stock activity for the three months ended September 30, 2021:

	Shares			Weighted Average Grant Date Fair Value
Unvested, June 30, 2021		178,750		$	0.72
Granted		242,725		$	2.75
Vested		(242,725	)	$	1.25
Unvested, September 30, 2021		178,750		$	2.75

The unvested restricted shares as of September 30, 2021 are all performance-based restricted shares that are scheduled to vest, subject to achievement of the underlying performance goals, in July 2022. As of September 30, 2021, the estimated unrecognized stock-based compensation expense related to unvested restricted shares subject to achievement of performance goals was approximately $468,000, all of which is expected to be recognized over a weighted average period of approximately ten months.

SHAREHOLDERS' EQUITY

Dividends

The Company has paid no cash dividends during the current fiscal year through September 30, 2021.