XML 30 R16.htm IDEA: XBRL DOCUMENT v3.22.0.1
Shareholders' Equity and Share-based Compensation
 6 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Shareholders' Equity and Share-based Compensation Shareholders' Equity and Share-based Compensation
Share Repurchase

In September 2017, the Board of Directors approved a repurchase program (the “Repurchase Program”) that allowed the Company to repurchase its common shares from the open market pursuant to a pre-established Rule 10b5-1 trading plan or through privately negotiated transactions up to an aggregate of $30.0 million. The amount and timing of any repurchases under the Repurchase Program depend on a number of factors, including but not limited to, the trading price, volume and availability of the Company’s common shares. Shares repurchased under this program are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity. From time to time, treasury shares may be reissued as part of the Company’s share-based compensation programs. Gains on re-issuance of treasury stock are credited to additional paid-in capital; losses are charged to additional paid-in capital to offset the net gains, if any, from previous sales or re-issuance of treasury stock. Any remaining balance of the losses is charged to retained earnings.

During the six months ended December 31, 2021, the Company did not repurchase any shares pursuant to the Repurchase Program. Since the inception of the program, the Company repurchased an aggregate of 6,784,648 shares for a total cost of $67.3 million, at an average price of $9.92 per share, excluding fees and related expenses.  No repurchased shares have been retired. Of the 6,784,648 repurchased shares, 161,895 shares with a weighted average repurchase price of $10.12 per share, were reissued at an average price of $5.16 per share pursuant to option exercises and vested restricted share units (“RSU”). As of December 31, 2021, approximately $13.4 million remained available under the Repurchase Program.

Time-based Restricted Stock Units (“TRSU”)
The following table summarizes the Company's TRSU activities for the six months ended December 31, 2021:
 Number of Restricted Stock
Units		Weighted Average
Grant Date Fair
Value Per Share		Weighted Average
Remaining
Contractual
Term (Years)		Aggregate Intrinsic Value
Nonvested at June 30, 20211,053,524 $21.60 1.73$32,016,594 
Granted117,095 $36.06 
Vested(71,284)$21.04 
Forfeited(41,376)$22.12 
Nonvested at December 31, 20211,057,959 $23.21 1.36$64,069,997 

Market-based Restricted Stock Units (“MSU”)

In December 2021, the Company granted 1.0 million market-based restricted stock units ("MSUs") to its certain personnel. The number of shares to be earned at the end of performance period is determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2022 to December 31, 2024 as well as the recipients remaining in continuous service with the Company through such period. The MSU vests in four equal annual installments after the end of performance period. The Company estimated the grant date fair values of its MSU with derived service periods of 4.1 to 7.1 years using a Monte-Carlo simulation model with the following assumptions: Risk-free interest rate of 1.0%, expected term of 3.1 years, expected volatility of 62.8% and dividend yield of 0% . The Company recorded approximately $0.5 million of expenses for these MSUs during the three and six months ended December 31, 2021.

During the quarter ended September 30, 2018, the Company granted 1.3 million MSUs to certain personnel. The number of shares to be earned at the end of 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 the performance period. The Company estimated the grant date fair values of its MSUs using a Monte-Carlo simulation model. On August 31, 2020, the Compensation Committee of the Board approved a modification of the terms of MSU to (i) extend the performance period through December 31, 2022 and (ii) change the commencement date for the four-year time-based service period to January 1, 2023. The fair value of these MSUs was recalculated to reflect the change as of August 31, 2020 and the unrecognized compensation amount was adjusted to reflect the increase in fair value. The Company recorded approximately $0.4 million and
$0.8 million of expenses for MSUs during the three and six months ended December 31, 2021, respectively, and approximately $0.4 million and $0.6 million during the three and the six months ended December 31, 2020, respectively.

Performance-based Restricted Stock Units (“PRSUs”)

In March each year since year 2017, the Company granted PRSUs to certain personnel. The number of shares to be earned under the PRSUs is determined based on the level of attainment of predetermined financial goals. The PRSUs vest 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 $1.0 million and $2.0 million of expense for these PRSUs during the three and six months ended December 31, 2021, respectively and approximately $0.4 million and $0.8 million during the three and six months ended December 31, 2020.
During the three months 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. Therefore, the Company reported such expenses in the other current liabilities line on the Condensed Consolidated Balance Sheets as the amount of bonus is to be settled in variable number of RSU’s at the completion of the objective goals. Such non-cash compensation expense was recorded as part of share-based compensation expense in the Condensed Consolidated Statements of Operations. As of December 31, 2021 and June 30, 2021, the Company recorded nil and $0.1 million such expenses in the other current liabilities, respectively. The Company recorded $0.2 million and $0.3 million such non-cash compensation expense during the three and six months ended December 31, 2021, respectively, and $0.8 million and $1.4 million during the three and six months ended December 31, 2020, respectively. As of December 31, 2021, the Company granted RSUs valued at $4.0 million to participants, which were fully vested due to achievement of certain objective measures.
The following table summarizes the Company’s PRSUs activities for the six months ended December 31, 2021:

 Number of Performance-based Restricted Stock
Units		Weighted Average
Grant Date Fair
Value Per Share		Weighted Average
Remaining
Contractual Term
(Years)		Aggregate Intrinsic Value
Nonvested at June 30, 2021353,824 $22.69 1.74$10,752,711 
Vested(750)$16.22 
Forfeited(1,000)$16.22 
Nonvested at December 31, 2021352,074 $22.72 1.24$21,321,601 
Stock Options
The Company did not grant any stock options during the six months ended December 31, 2021 and 2020. The following table summarizes the Company's stock option activities for the six months ended December 31, 2021:

Weighted
WeightedAverage
AverageRemaining
Number ofExercise PriceContractual Aggregate
SharesPer ShareTerm (in years)Intrinsic Value
Outstanding at June 30, 2021487,875 $7.99 2.32$10,928,653 
Exercised(36,600)$8.21 
Outstanding at December 31, 2021451,275 $7.97 1.81$23,731,985 
Options vested and expected to vest451,275 $7.97 1.81$23,731,985 
Exercisable at December 31, 2021451,275 $7.97 1.81$23,731,985 
Employee Share Purchase Plan (“ESPP”)
The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:
Six Months End December 31,
2021
Volatility rate66.4%
Risk-free interest rate0.3%
Expected term1.3 years
Dividend yield0%
Share-based Compensation Expense
The total share-based compensation expense recognized in the Condensed Consolidated Statements of Operations for the periods presented was as follows:
Three Months Ended December 31,Six Months Ended December 31,
2021202020212020
(in thousands)(in thousands)
Cost of goods sold$1,709 $383 $2,278 $768 
Research and development1,912 1,243 2,955 2,323 
Selling, general and administrative4,926 1,598 7,949 3,009 
$8,547 $3,224 $13,182 $6,100 

As of December 31, 2021, total unrecognized compensation cost under the Company's equity plans was $65.3 million, which is expected to be recognized over a weighted-average period of 4.1 years.