At the Company’s 2021 Annual Meeting of Stockholders held on October 28, 2021, the stockholders approved the 2021 Plan which provides for the grant of stock options, restricted stock and restricted stock units (“RSUs”). The 2021 Plan authorized the issuance of up to 7,500,000 shares (the “Share Limit”); provided, however that the Share Limit is reduced, on a one-for-one-basis, for each share of common stock subject to a stock option grant, and on a three-for-one basis for each share of common stock issued pursuant to restricted stock awards or RSUs.

During the year ended June 30, 2022, the Company granted 251,905 RSUs comprised of 181,588 service-based RSUs and 70,317 performance-based RSUs. The service-based RSUs will vest in three tranches over a period of 2.6 years and the performance-based RSUs will cliff vest upon the achievement of performance measures over the three-year period ending June 30, 2024. The total number of performance-based RSUs that will vest, if any, will depend on whether and to what extent the performance measures are achieved. Common stock will be issued from authorized shares upon the vesting of the RSUs. At June 30, 2022, there were 6,744,285 shares remaining available for future grants of stock options, restricted stock or RSUs under the 2021 Plan, subject to the limitations noted above.

No grants were made under the 2016 Plan during the year ended June 30, 2022. As of October 28, 2021, the 2016 Plan was frozen and the Company no longer makes grants under the 2016 Plan.

Stock options granted under the 2016 Plan vest in equal installments over a five-year service period. Stock options were granted at an exercise price equal to the fair value of the Company's common stock on the grant date based on the closing market price and have an expiration period of 10 years. No stock options were granted during the years ended June 30, 2022, 2021 and 2020.

There were no restricted stock awards granted during the year ended June 30, 2022. There were 53,706 restricted stock awards granted during the year ended June 30, 2021. There were no restricted stock awards granted during the year ended June 30, 2020.

The following table presents stock-based compensation expense for the years ended June 30, 2022, 2021 and 2020:


	Years Ended June 30,
	2022		2021		2020
Stock option expense	$	849	$	1,823	$	1,838
Restricted stock expense		2,049		3,850		4,041
Restricted stock unit expense		896		-		-
Total stock-based compensation expense	$	3,794	$	5,673	$	5,879

During the years ended June 30, 2022, 2021 and 2020, the income tax benefit attributed to our stock-based compensation expense was $1.0 million, $1.6 million and $1.6 million, respectively.

The following is a summary of the Company’s stock option activity and related information for its option plans for the year ended June 30, 2022:


	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
	(In Thousands)						(In Thousands)
Outstanding at June 30, 2021		3,253	$	14.97	5.5 years		$	177
Granted		-		-		-
Exercised		-		-		-
Forfeited		-		-
Outstanding at June 30, 2022		3,253	$	14.97	4.5 years		$	61

Exercisable at June 30, 2022		3,133	$	15.03	4.4 years		$	61

The Company generally issues shares from authorized but unissued shares upon the exercise of vested options.

There were no vested options exercised during the year ended June 30, 2022. A total of 41,412 vested options, with an aggregate intrinsic value of $158,000, were exercised during the year ended June 30, 2021. In fulfillment of these exercises, the Company issued 41,412 shares from authorized but unissued shares. There were no vested options exercised during the year ended June 30, 2020.

The cash proceeds from stock option exercises during the year ended June 30, 2021 totaled approximately $373,000. A portion of such exercises represented disqualifying dispositions of incentive stock options for which the Company recognized $47,000 in income tax benefit.

Expected future compensation expense relating to the 120,000 non-vested options outstanding as of June 30, 2022 is $212,000 over a weighted average period of 1.5 years.

Restricted shares awarded under the 2016 Plan generally vest in equal installments over a five-year service period. In addition to the requisite service period, the vesting of certain restricted shares awarded to management are also conditioned upon the achievement of one or more objective performance factors established by the Compensation Committee of the Company’s Board of Directors. In accordance with the terms of the 2016 Plan, such factors may be based on the performance of the Company as a whole or on any one or more business units of the Company or its subsidiaries. Performance factors may be measured relative to a peer group, an index or certain financial targets established in the Company's strategic business plan and budget.

The Company fully achieved the applicable performance targets for fiscal 2021 and therefore all eligible performance-based restricted shares successfully vested during the year ended June 30, 2022.

The performance factors and underlying cost basis of the remaining unvested performance-based restricted shares are generally expected to be determined annually concurrent with the anniversary date of the original grants.

For service based awards management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period. For performance vesting awards management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period; however, if the corporate performance goals to which the vesting of such shares are tied are not achieved, recognized compensation expense is adjusted accordingly.

The following is a summary of the Company’s restricted share award activity for the year ended June 30, 2022:


	Vesting Contingent on Service Conditions					Vesting Contingent on Performance and Service Conditions
	Restricted Shares			Weighted Average Grant Date Fair Value		Restricted Shares			Weighted Average Grant Date Fair Value
	(In Thousands)					(In Thousands)
Non-vested at June 30, 2021		264		$	14.54		160		$	14.27
Granted		-			-		-			-
Vested		(189	)		15.01		(99	)		14.85
Forfeited		-			-		-			-
Non-vested at June 30, 2022		75		$	13.34		61		$	13.33

During the years ended June 30, 2022, 2021 and 2020, the total fair value of vested restricted shares were $4.3 million, $4.2 million and $4.2 million, respectively. Expected future compensation expense relating to the 136,166 non-vested restricted shares at June 30, 2022 is $1.4 million over a weighted average period of 3.9 years.

RSUs awarded under the 2021 Plan generally vest in equal installments over a specified service period. In addition to the requisite service period, the vesting of certain RSUs are also conditioned upon the achievement of one or more objective performance measures established by the Compensation Committee of the Company’s Board of Directors. In accordance with the terms of the 2021 Plan, such measures may be based on the performance of the Company as a whole or on any one or more business units of the Company or its subsidiaries. Performance measures may be measured relative to a peer group, an index or certain financial targets established in the Company’s strategic business plan and budget.

For service-based RSUs, the Company recognizes compensation expense for the fair value of RSUs on a straight-line basis over the requisite service period of each tranche. For performance-based RSUs, the Company recognizes compensation expense for the fair value of RSUs on a straight-line basis over the requisite service period; however, the compensation will be adjusted accordingly based on the achievement of the performance measures.

The following is a summary of the Company’s RSU activity for the year ended June 30, 2022:


	Vesting Contingent on Service Conditions				Vesting Contingent on Performance and Service Conditions
	Restricted Stock Units		Weighted Average Grant Date Fair Value		Restricted Stock Units		Weighted Average Grant Date Fair Value
	(In Thousands)				(In Thousands)
Non-vested at June 30, 2021		-	$	-		-	$	-
Granted		182		13.68		70		13.68
Vested		-		-		-		-
Forfeited		-		-		-		-
Non-vested at June 30, 2022		182	$	13.68		70	$	13.68

Expected future compensation expense relating to the 251,905 non-vested RSUs at June 30, 2022 is $2.5 million over a weighted average period of 2.1 years.