5. Stockholders' Equity

9 Months Ended

Mar. 31, 2017

Equity [Abstract]

Stockholders' Equity

Stock Incentive 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 March 31, 2017, no stock appreciation rights, non-vested stock, or performance shares were outstanding.

Stock Options

The following table presents a summary of activity during the nine months ended March 31, 2017 with respect to our stock options:

				Weighted-
				Average
	Number of			Exercise Price
	Shares			per Share
	(In thousands)
Balance of options outstanding at June 30, 2016		3,606		$	1.85
Granted		864			1.61
Forfeited		(45	)		1.42
Expired		(74	)		4.22
Exercised		(99	)		1.85
Balance of options outstanding at March 31, 2017		4,252		$	1.77

Restricted Stock Units

The following table presents a summary of activity during the nine months ended March 31, 2017 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, 2016		460		$	1.10
Granted		85			1.81
Vested		(198	)		1.10
Cancelled / forfeited		–			–
Balance of RSUs outstanding at March 31, 2017		347		$	1.27

During the nine months ended March 31, 2017, a total of 187,500 RSUs vested pursuant to a RSU grant made in April 2016 to Jeffrey Benck, our chief executive officer. In connection with the vesting of these RSUs, we issued approximately 112,000 shares of our common stock to Mr. Benck, and withheld the remaining approximately 76,000 shares for purposes of employee payroll taxes.

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 at the end of a specified purchase period. Each of our employees (including officers) is eligible to participate in the ESPP, subject to certain limitations as set forth in the ESPP.

The following table presents a summary of activity under our ESPP during the nine months ended March 31, 2017:

	Number of
	Shares
	(In thousands)
Shares available for issuance at June 30, 2016		736
Shares issued		(113	)
Shares available for issuance at March 31, 2017		623

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				Nine Months Ended
	March 31,				March 31,
	2017		2016		2017		2016
	(In thousands)
Cost of revenue	$	12	$	14	$	36	$	52
Selling, general and administrative		169		131		480		484
Research and development		43		41		129		135
Total share-based compensation expense	$	224	$	186	$	645	$	671

The following table presents the remaining unrecognized share-based compensation expense related to our outstanding share-based awards as of March 31, 2017:

	Remaining		Remaining
	Unrecognized		Weighted-
	Compensation		Average Years
	Expense		To Recognize
	(In thousands)
Stock options	$	1,395		3.0
RSUs		408		2.8
Stock purchase rights under ESPP		128		1.1

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.