Note 3 - Stock-based Compensation

9 Months Ended

Mar. 29, 2020

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

June 30, 2019

, 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 29, 2020		March 3 1 , 201 9		March 29, 2020		March 3 1 , 201 9
	(in thousands)
Stock options	$	6	$	67	$	99	$	250
Restricted stock		2,390		1,836		6,342		4,281
Total		2,396		1,903		6,441		4,531
Deferred income tax benefit		594		328		1,597		982
Stock-based compensation expense, net	$	1,802	$	1,575	$	4,844	$	3,549

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

	Three Months Ended				Nine Months Ended
	March 29, 2020		March 3 1 , 201 9		March 29, 2020		March 31 , 201 9
	(in thousands)
Marketing and sales	$	1,097	$	830	$	2,960	$	1,816
Technology and development		181		118		473		274
General and administrative		1,118		955		3,008		2,441
Total	$	2,396	$	1,903	$	6,441	$	4,531

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 29, 2020:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
						(in years)		(in thousands)
Outstanding at June 30, 2019		1,365,000		$	2.48
Granted		-		$	-
Exercised		(150,000	)	$	1.90
Forfeited		-		$	-
Outstanding at March 29, 2020		1,215,000		$	2.55		1.5	$	12,550
Exercisable at March 29, 2020		1,215,000		$	2.55		1.5	$	12,550

As of

March 29, 2020,

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

not

yet recognized in the statement of income, was

$0.0

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

0.0

 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 29, 2020:

	Shares			Weighted Average Grant Date Fair Value
Non-vested at June 30, 2019		1,438,592		$	10.81
Granted		736,555		$	13.09
Vested		(468,683	)	$	10.37
Forfeited		(59,816	)	$	12.54
Non-vested at March 29, 2020		1,646,648		$	11.89

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

March 29, 2020,

there was

$12.2

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

1.9

 years.