SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 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 December 31,						Six Months Ended December 31,
	2021			2020			2021			2020
Employee stock options		$	57,448		$	50,176		$	127,014		$	141,216
Restricted stock awards			141,556			37,762			351,397			54,077
Totals		$	199,004		$	87,938		$	478,411		$	195,293

No stock-based compensation was capitalized as a cost of inventory during the three and six months ended December 31, 2021 and 2020.

Stock Options

The following is a summary of the stock option activity for the six months ended December 31, 2021:

	Shares			Weighted Average Exercise Price
Outstanding, June 30, 2021		2,235,286		$	1.24
Granted		142,793		$	2.92
Exercised		(439,227	)	$	1.24
Forfeited		(14,584	)	$	0.89
Expired		(60,079	)	$	1.52
Outstanding, December 31, 2021		1,864,189		$	1.36

The total fair value of stock options that vested during the six months ended December 31, 2021 was approximately $166,000.

The following table summarizes information about stock options outstanding at December 31, 2021:

Options Outstanding						Options Exercisable						Options Vested or Expected to Vest
Balance as of 12/31/2021		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Balance as of 12/31/2021		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Balance as of 12/31/2021		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price
	1,864,189		6.31	$	1.36		1,463,550		5.59	$	1.29		1,805,494		6.23	$	1.36

As of December 31, 2021, the unrecognized stock-based compensation expense related to unvested stock options was approximately $277,000, which is expected to be recognized over a weighted average period of approximately 20 months.

The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at December 31, 2021 was approximately $3.04 million. These amounts are before applicable income taxes and represent the closing market price of the Company’s common stock at December 31, 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 six months ended December 31, 2021 and 2020, the aggregate intrinsic value of stock options exercised was approximately $717,000 and $48,000, respectively. During the six months ended December 31, 2021 and 2020, the total estimated tax benefit associated with certain stock options that were exercised was approximately $76,000 and $0, respectively.

Restricted Stock

The following is a summary of the restricted stock activity for the six months ended December 31, 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, December 31, 2021		178,750		$	2.75

The unvested restricted shares as of December 31, 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 December 31, 2021, the estimated unrecognized stock-based compensation expense related to unvested restricted shares subject to achievement of performance goals was approximately $326,000, all of which is expected to be recognized over a weighted average period of approximately seven months.

SHAREHOLDERS' EQUITY

Dividends

The Company has paid no cash dividends during the current fiscal year through December 31, 2021.