Stock-Based Compensation

6 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

12. Stock-based compensation

Stock option and restricted stock activity

Options

     The following table summarizes stock option activity for the three and six months ended December 31, 2011, and 2010:

	Number of shares	Weighted average exercise price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value		Weighted Average Grant Date Fair Value
Outstanding – July 1, 2011	2,120,656	$	18.44	6.82	$	243
Granted under Plan in
August 2011	165,000		6.59	10.00			$	297
Granted under Plan in October
2011	202,000		7.98	10.00			$	442
Outstanding – December 31, 2011.	2,487,656	$	16.81	6.81	$	378
Outstanding – July 1, 2010	1,813,656	$	19.76	7.41	$	585
Granted under Plan in
November 2010	307,000		10.59	10.00			$	801
Outstanding – December 31, 2010.	2,120,656	$	18.44	7.32	$	908

     During each of the three and six months ended December 31, 2011, 102,333 stock options became exercisable. No stock options became exercisable during the three and six months ended December 31, 2010. As of December 31, 2011, 1,355,989 stock options were exercisable.

     No stock options were exercised during the three and six months ended December 31, 2011 or during the three months ended December 31, 2010. During the six months ended December 31, 2010, the Company received approximately $0.02 million from repayment of stock option-related loans. The Company issues new shares to satisfy stock option exercises.

Restricted stock

The following table summarizes restricted stock activity for the six months ended December 31, 2011, and 2010:

	Number of Shares of Restricted Stock		Weighted Average Grant Date Fair Value
Non-vested – July 1, 2011	103,672			-
Granted – August 2011	30,155		$	199
Vested – August 2011	(6,157	)		-
Vested – November 2011	(27,667	)		-
Non-vested – December 31, 2011	100,003			-
Non-vested – July 1, 2010	407,828			-
Granted – August 2010	13,956		$	185
Granted – October 2010	60,000		$	740
Granted – November 2010	83,000		$	879
Vested – September 2010	(201,704	)		-
Non-vested – December 31, 2010	363,080			-

     The fair value of restricted stock vested during the three and six months ended December 31, 2011, was $0.2 million and $0.3 million, respectively. The fair value of restricted stock vested during the six months ended December 31, 2010, was $2.3 million.

Stock-based compensation charge and unrecognized compensation cost

The Company has recorded a stock compensation charge of $0.5 million and $1.6 million for the three months ended December 31, 2011 and 2010, respectively, which comprised:

	Total charge		Allocated to cost of goods sold, IT processing, servicing and support		Allocated to selling, general and administration
Three months ended December 31, 2011
Stock-based compensation charge	$	543	$	-	$	543
Total – three months ended
December 31, 2011	$	543	$	-	$	543
Three months ended December 31, 2010
Stock-based compensation charge	$	1,558	$	51	$	1,507
Total – three months ended
December 31, 2010	$	1,558	$	51	$	1,507

     The Company has recorded a stock compensation charge of $1.0 million and $2.9 million for the six months ended December 31, 2011 and 2010, respectively, which comprised:

	Total charge		Allocated to cost of goods sold, IT processing, servicing and support		Allocated to selling, general and administration
Six months ended December 31, 2011
Stock-based compensation charge	$	1,039	$	-	$	1,039
Total – six months ended
December 31, 2011	$	1,039	$	-	$	1,039
Six months ended December 31, 2010
Stock-based compensation charge	$	2,996	$	102	$	2,894
Total – six months ended
December 31, 2010	$	2,996	$	102	$	2,894

      The stock-based compensation charges have been allocated to cost of goods sold, IT processing, servicing and support and selling, general and administration based on the allocation of the cash compensation paid to the employees.

     As of December 31, 2011, the total unrecognized compensation cost related to stock options was approximately $1.3 million, which the Company expects to recognize over approximately three years. As of December 31, 2011, the total unrecognized compensation cost related to restricted stock awards was approximately $0.9 million, which the Company expects to recognize over approximately three years.

     As of December 31, 2011, the Company has recorded a deferred tax asset of approximately $1.0 million related to the stock-based compensation charge recognized related to employees of Net1 as it is able to deduct the grant date fair value for taxation purposes in the United States.