5. Stockholders' Equity

6 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders' Equity

Share-Based Plans

Our stock incentive plans permit the granting of stock options (both incentive and nonqualified stock options), restricted stock units (“RSUs”), stock appreciation rights, non-vested stock, and performance shares to certain employees, directors and consultants. As of December 31, 2015, no stock appreciation rights, non-vested stock, or performance shares were outstanding.

Stock Option Awards

In December 2015, in accordance with his employment offer letter, our new Chief Executive Officer, Jeffrey Benck, was granted the following stock options pursuant to our Amended and Restated 2010 Stock Incentive Plan:

(a) an option to purchase 150,000 shares of Lantronix common stock that vest according to the following schedule: 25% of the options shall vest on September 1, 2017 and the remaining options shall vest ratably each month thereafter for a period of 36 months; and

(b) an option to purchase 150,000 shares of Lantronix common stock that vest according to the following schedule: 25% of the options shall vest on September 1, 2018 and the remaining options shall vest ratably each month thereafter for a period of 36 months.

The following table presents a summary of stock option activity under all of our stock option plans:

					Weighted
					Average
		Number of			Exercise Price
		Shares			per Share
		(In thousands)
Balance of options outstanding at June 30, 2015			3,546		$	2.19
	Granted		924			1.26
	Forfeited		(327	)		1.76
	Expired		(56	)		2.51
	Exercised		–			–
Balance of options outstanding at December 31, 2015			4,087		$	2.01

Restricted Stock Units

The following table presents a summary of activity with respect to our RSUs:

					Weighted
					Average
					Grant - Date
		Number of			Fair Value
		Shares			per Share
		(In thousands)
Balance of RSUs outstanding at June 30, 2015			28		$	1.98
	Granted		70			1.28
	Vested		(78	)		1.58
Balance of RSUs outstanding at December 31, 2015			20		$	1.10

Employee Stock Purchase Plan 

Our 2013 Employee Stock Purchase Plan (the “ESPP”) is intended to provide employees with an opportunity to purchase our common stock through accumulated payroll deductions. Each of our employees (including officers) is eligible to participate in the ESPP, subject to certain limitations as defined in the ESPP plan document.

The following table presents a summary of activity under our ESPP:

	Number of
	Shares
	(In thousands)
Shares available for issuance at June 30, 2015		906
Reserved for issuance		–
Issued		(93	)
Shares available for issuance at December 31, 2015		813

In accordance with the terms of our ESPP, the purchase price of the 93,000 shares that were issued on November 13, 2015 was adjusted to $1.02 per share, which represents 85% of the closing market price of our common stock on that date.

Share-Based Compensation Expense

The following table presents a summary of share-based compensation expense included in each functional line item on our unaudited condensed consolidated statements of operations:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
	(In thousands)
Cost of revenues	$	20	$	16	$	38	$	36
Selling, general and administrative		182		195		353		369
Research and development		50		54		94		115
Total share-based compensation expense	$	252	$	265	$	485	$	520

The following table summarizes the remaining unrecognized share-based compensation expense related to our outstanding share-based awards as of December 31, 2015:

	Remaining		Remaining
	Unrecognized		Weighted
	Compensation		Average Years
	Cost		To Recognize
	(In thousands)
Stock options	$	1,229		3.3
Restricted stock units		19		0.9
Stock purchase rights under ESPP		164		1.9

If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate, increase or cancel remaining unearned share-based compensation expense. Future share-based compensation expense and unearned share-based compensation will increase to the extent that we grant additional share-based awards.