Share-Based Compensation

9 Months Ended

Mar. 31, 2014

4. Share-Based Compensation

As of March 31, 2014, we had share-based compensation plans which are described in Note 11 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2013. We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. As of March 31, 2014, we had 184,517 stock options outstanding and 318,371 restricted shares outstanding. No restricted shares vested, or were granted or cancelled during the three months ended March 31, 2014, and no stock options were granted or exercised during the three and nine months ended March 31, 2014.

We recorded share-based compensation related to the issuance of stock options and restricted stock to employees and board members as follows (in thousands):

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2014		2013		2014		2013
Share-based compensation expense
included in the Statements of Operations:
Cost of sales	$	15	$	14	$	43	$	41
Sales and marketing		43		48		133		116
Research and development		42		37		118		90
General and administrative		154		125		589		346
Total		254		224		883		593
Tax benefit		-		-		-		-
Share-based compensation expense, net of taxes	$	254	$	224	$	883	$	593

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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