2. Supplemental Financial Information

6 Months Ended

Dec. 31, 2015

Supplemental Financial Information Details - Computation Of Net Loss Per Share

Supplemental Financial Information

Inventories

Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and consist of the following:

	December 31,		June 30,
	2015		2015
	(In thousands)
Finished goods	$	4,650	$	6,044
Raw materials		2,005		2,122
Finished goods held by distributors		1,206		1,337
Inventories, net	$	7,861	$	9,503

Other Liabilities

The following table presents details of our other liabilities:

	December 31,		June 30,
	2015		2015
	(In thousands)
Current
Customer deposits and refunds	$	912	$	854
Accrued raw materials purchases		657		916
Deferred revenue		484		690
Capital lease obligations		65		62
Deferred rent		52		40
Taxes payable		249		247
Accrued operating expenses		1,156		1,040
Total other current liabilities	$	3,575	$	3,849
Non-current
Deferred revenue	$	83	$	80
Deferred rent		227		–
Total other non-current liabilities	$	310	$	80

Computation of Net Loss per Share

Basic and diluted net loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the applicable period.

The following table presents the computation of net loss per share:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
	(In thousands, except per share data)
Numerator:
Net loss	$	(928	)	$	(632	)	$	(1,259	)	$	(894	)
Denominator:
Weighted-average common shares outstanding (basic and diluted)		15,160			14,874			15,131			14,831
Net loss per share (basic and diluted)	$	(0.06	)	$	(0.04	)	$	(0.08	)	$	(0.06	)

The following table presents the common stock equivalents excluded from the diluted net loss per share calculation, because they were anti-dilutive for the periods presented. These excluded common stock equivalents could be dilutive in the future.

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
	(In thousands)
Common stock equivalents		3,857		1,672		3,774		1,632

Facility Lease

The lease for our new corporate headquarters in Irvine, California, commenced in July 2015. The lease agreement provided for a tenant improvement allowance from the landlord of up to $243,000 for tenant improvements and other qualified expenses. In connection with this allowance, the landlord paid for approximately $190,000 in tenant improvements, and, in September 2015, reimbursed Lantronix for the remaining $53,000.

Separation Agreement with Former Chief Executive Officer

In December 2015, we entered into a separation and release agreement (the “Separation Agreement”) with Kurt F. Busch, our former President and Chief Executive Officer. The Separation Agreement provided for (i) release of all claims by Mr. Busch in favor of Lantronix; (ii) a cash payment to Mr. Busch of $271,000, which was paid in January 2016; and (iii) the acceleration of vesting of 50,000 restricted stock units, for which we recorded a net $52,000 share-based compensation charge. Both the $271,000 accrued obligation and the share-based compensation charge are included in selling, general and administrative expense in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended December 31, 2015.

Supplemental Cash Flow Information

The following table presents non-cash investing and financing transactions excluded from the unaudited condensed consolidated statements of cash flows:

	Six Months Ended
	December 31,
	2015		2014
	(In thousands)
Accrued property and equipment paid for in the subsequent period	$	294	$	38
Non-cash acquisition of property and equipment under capital leases	$	37	$	–
Non-cash tenant improvements paid by landlord	$	190	$	–