Note 3 - Stock-based Compensation

9 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Note

3

– Stock-Based Compensation

The Company has a Long Term Incentive and Share Award Plan, which is more fully described in Note

12

and Note

13

to the consolidated financial statements included in the

Company’s Annual Report on Form

10

-K for the fiscal year ended

July 1, 2018

, that provides for the grant to eligible employees, consultants and directors of stock options, restricted shares, and other stock-based awards.

The amounts of stock-based compensation expense recognized in the periods presented are as follows:

	Three Months Ended				Nine Months Ended
	March 31, 2019		April 1, 2018		March 31, 2019		April 1, 2018
	(in thousands)				(in thousands)
Stock options	$	67	$	108	$	250	$	323
Restricted stock		1,836		825		4,281		2,679
Total		1,903		933		4,531		3,002
Deferred income tax benefit		328		254		982		846
Stock-based compensation expense, net	$	1,575	$	679	$	3,549	$	2,156

 Stock-based compensation is recorded within the following line items of operating expenses:

	Three Months Ended				Six Months Ended
	March 31, 2019		April 1, 2018		March 31, 2019		April 1, 2018
	(in thousands)				(in thousands)
Marketing and sales	$	830	$	248	$	1,816	$	804
Technology and development		118		49		274		160
General and administrative		955		636		2,441		2,038
Total	$	1,903	$	933	$	4,531	$	3,002

Stock based compensation expense has

not

been allocated between business segments, but is reflected as part of Corporate overhead. (see 

Note

12

- Business Segments

.

)

Stock Options

The following table summarizes stock option activity during the 

nine

months ended

March 31, 2019:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (000s)
Outstanding at July 1, 2018		1,968,234		$	2.35
Granted		-		$	-
Exercised		(448,234	)	$	2.12
Forfeited		(2,000	)	$	2.22
Outstanding at March 31, 2019		1,518,000		$	2.42		2.3	$	24,004
Exercisable at March 31, 2019		1,385,000		$	2.36		2.2	$	21,976

As of

March 31, 2019,

the total future compensation cost related to non-vested options,

not

yet recognized in the statement of income, was

$0.2

million and the weighted average period over which these awards are expected to be recognized was

0.6

 years.

Restricted Stock

The Company grants shares of Common Stock to its employees that are subject to restrictions on transfer and risk of forfeiture until fulfillment of applicable service and performance conditions and, in certain cases, holding periods (Restricted Stock). The following table summarizes the activity of non-vested restricted stock awards during the

nine

months ended

March 31, 2019:

	Shares			Weighted Average Grant Date Fair Value
Non-vested at July 1, 2018		968,273		$	7.70
Granted		937,313		$	12.70
Vested		(411,600	)	$	7.91
Forfeited		(24,037	)	$	9.62
Non-vested at March 31, 2019		1,469,949		$	10.80

The fair value of non-vested shares is determined based on the closing stock price on the grant date. As of

March 31, 2019,

there was

$11.6

 million of total unrecognized compensation cost related to non-vested restricted stock-based compensation to be recognized over the weighted-average remaining period of

2.2

 years.