The 2009 Share Option/Share Issuance Plan (the “2009 Plan”) was approved in September 2009 at the annual general meeting of shareholders in connection with the Company's IPO. At the annual general meeting of shareholders in November 2018, the 2009 Plan was approved to be terminated and the 2018 Omnibus Incentive Plan (the "2018 Plan") was effective. No further awards will be made under the 2009 Plan. The 2018 Plan authorized the board of directors to grant incentive share options, non-statutory share options and restricted shares to employees, directors, non-employee directors and consultants of the Company and its subsidiaries for up to 2,065,000 common shares. The 2018 Plan does not include an evergreen authorization, therefore the Company is not permitted to increase the number of shares reserved in the share pool without

obtaining further shareholder approval. Outstanding shares under the 2018 Plan and awards granted under the 2009 Plan that expire, are forfeited or cancelled or terminate prior to the issuance of the shares subject to those awards or are settled in cash will be available for subsequent issuance under the 2018 Plan. As of June 30, 2020, 1,606,154 shares were available for grant under the 2018 Plan.

Beginning with the 2014 Annual Shareholders Meeting, on the date of each annual shareholders meeting, each individual who commences service as a non-employee Board member by reason of his or her election to the Board at such annual meeting and each individual who is to continue to serve as a non-employee Board member, whether or not that individual is standing for re-election to the Board at that particular annual meeting, will automatically be granted an award in the form of restricted share units ("RSU") covering that number of common shares determined by dividing ninety-five thousand dollars ($95,000) by the average fair market value per share for the ninety (90)-day period preceding the grant date.

Under the 2018 Plan, incentive share options and RSU are to be granted at a price that is not less than 100% and nonstatutory share options are to be granted at not less than 85% of the fair value of the common shares, at the date of grant for employees and consultants. Options and RSUs generally vest over a four-year to five-year period, and are exercisable for a maximum period of ten years after the date of grant.



	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2017	974,365		$	13.51	1.68	$	16,244,748
Granted	482,397		$	16.46
Vested	(468,051	)	$	13.24
Forfeited	(69,688	)	$	14.25
Nonvested at June 30, 2018	919,023		$	15.14	1.62	$	13,086,888
Granted	527,022		$	11.28
Vested	(499,954	)	$	13.09
Forfeited	(39,750	)	$	13.82
Nonvested at June 30, 2019	906,341		$	14.09	1.62	$	8,465,225
Granted	505,440		$	8.51
Vested	(455,893	)	$	13.53
Forfeited	(23,750	)	$	13.19
Nonvested at June 30, 2020	932,138		$	11.36	1.66	10,141,661

In March each year since year 2017, the Company granted PRSU to certain personnel. The number of shares to be ultimately earned under the PRSU is determined based on the level of attainment of predetermined financial goals. The PRSU vests in four equal annual installments from the first anniversary date after the grant date if certain predetermined financial goals were met. The Company recorded approximately $1.5 million, $2.8 million and $1.9 million of expenses for these PRSUs during the years ended June 30, 2020, 2019 and 2018, respectively.

During the quarter ended June 30, 2019, the Company announced an incentive program. Under this program, each participant’s award is denominated in stock and subject to achievement of certain objective goals within certain timelines. In June 2020, the Company believed it was most likely that predetermined goal measures would be met. The Company recorded $0.6 million of non-cash compensation expense for these awards in the quarter ended June 30, 2020. The expense was reported in the other current liabilities line on the consolidated balance sheet as the total amount of bonus is to be settled in variable



	Number of Performance-based Restricted Stock Units		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Recognition Period (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2017	170,000		$	17.58	2.21	$	2,833,900
Granted	298,050		$	16.22
Vested	(38,247	)	$	17.58
Forfeited	(7,503	)	$	17.26
Nonvested at June 30, 2018	422,300		$	16.63	2.06	$	6,013,552
Granted	291,750		$	11.18
Vested	(111,623	)	$	16.68
Forfeited	(5,703	)	$	16.78
Nonvested at June 30, 2019	596,724		$	13.95	1.88	$	5,573,402
Granted	155,000		$	7.36
Vested	(110,659	)	$	16.68
Forfeited	(298,290	)	$	11.32
Nonvested at June 30, 2020	342,775		$	12.38	1.60	3,729,392

During the quarter ended September 30, 2018, the Company granted 1.3 million market-based restricted stock units ("MSUs") to certain personnel. The number of shares to be earned at the end of the performance period is determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2019 to December 31, 2021 as well as the recipients remaining in continuous service with the Company through such period. The MSUs vest in four equal annual installments after the end of performance period. The Company estimated the grant date fair values of its MSUs with derived service periods of 4.5 to 7.5 years using a Monte-Carlo simulation model with the following assumptions: Risk-free interest rate of 2.7%, expected term of 3.5 years, expected volatility of 38.8% and dividend yield of 0%. The Company recorded approximately $0.6 million and $0.4 million of expense for these MSUs during the years ended June 30, 2020 and 2019, respectively. Subsequent to June 30, 2020, the Company's Board of Directors approved the modification of the performance period of the MSU. See Note 14.



					Weighted
			Weighted		Average
			Average		Remaining
	Number of		Exercise Price		Contractual	Aggregate
	Shares		Per Share		Term (in years)	Intrinsic Value

Outstanding at June 30, 2017	1,053,367		$	10.98	4.43
Granted	—		$	—
Exercised	(166,389	)	$	11.00		$	959,257
Canceled or forfeited	—		$	—
Outstanding at June 30, 2018	886,978		$	10.97	4.03
Granted	—		$	—
Exercised	(10,500	)	$	10.50		$	43,415
Canceled or forfeited	—		$	—
Outstanding at June 30, 2019	876,478		$	10.98	3.06
Granted	—		$	—
Exercised	(2,500	)	$	10.50		$	4,726
Canceled or forfeited	(230,000	)	$	17.11
Outstanding at June 30, 2020	643,978		$	8.79	2.89	$	1,544,664
Options vested and expected to vest	643,978		$	8.79	2.89	$	1,544,664
Exercisable at June 30, 2020	643,978		$	8.79	2.89	$	1,544,664



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted-Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Number Exercisable	Weighted-Average Exercise Price
$7.21 - $7.21	6,875	3.58	$	7.21	6,875	$	7.21
$7.44 - $7.44	331,139	3.71	$	7.44	331,139	$	7.44
$7.56 - $9.19	132,150	3.14	$	8.47	132,150	$	8.47
$9.90 - $12.68	168,000	1.11	$	11.64	168,000	$	11.64
$12.91 - $12.91	5,814	0.79	$	12.91	5,814	$	12.91
$7.21 - $12.91	643,978	2.89	$	8.79	643,978	$	8.79

At the annual general meeting of shareholders in November 2018, the 2018 Employee Share Purchase Plan ("Purchase Plan" or "ESPP") Plan was approved, under which 1,430,000 common shares are available for issuance. The ESPP Plan does not include an evergreen authorization, therefore the Company is not permitted to increase the number of shares reserved in the share pool without obtaining further shareholder approval. The Purchase Plan provided for a series of overlapping offering periods with a duration of 24 months, generally beginning on May 15 and November 15 of each year. The Purchase Plan allows employees to purchase common shares through payroll deductions of up to 15% of their eligible compensation. Such deductions will accumulate over a six-month accumulation period without interest. After such accumulation period, common

shares will be purchased at a price equal to 85% of the fair market value per share on either the first day of the offering period or the last date of the accumulation period, whichever is less. The maximum number of shares that may be purchased by a participant on any purchase date may not exceed 875 shares for a total of 3,500 shares per a 24-month offering period. In addition, no participant may purchase more than $25,000 worth of common stock in any one calendar year period. No more than 200,000 common shares may be purchased by all participants on any purchase date.



	Year Ended June 30,
	2020	2019	2018
Volatility rate	46.4% - 58.3%	40.1% - 40.7%	42.1% - 45.3%
Risk-free interest rate	0.2% - 1.6%	2.1% - 2.9%	1.4% - 2.6%
Expected term	1.3 years	1.3 years	1.3 years
Dividend yield	—%	—%	—%



	Year Ended June 30,
	2020		2019		2018
	(in thousands)
Cost of goods sold	$	1,530	$	1,963	$	1,641
Research and development	2,895		2,453		1,855
Selling, general and administrative	6,029		8,761		7,916

	$	10,454	$	13,177	$	11,412