Share-Based Compensation

3 Months Ended

Sep. 30, 2016

Share-based Compensation [Abstract]

Share-Based Compensation

6. Share-Based Compensation

As of September 30, 2016, we had share-based compensation plans which are described in Note 10 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2016. We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. As of September 30, 2016, we had 70,509 stock options outstanding and 652,125 restricted shares outstanding. During the three months ended September 30, 2016, no stock options were granted or exercised; however, 13,910 stock options were cancelled. We recorded share-based compensation related to the issuance of restricted stock to employees and board members as follows:

	Three Months Ended September 30,
	2016		2015
Share-based compensation expense included in the consolidated statement of operations:
Cost of sales	$	8	$	1
Sales and marketing		72		30
Research and development		8		31
General and administrative		154		105
Total	$	242	$	167

A summary of the activity of our time-based, service condition restricted shares during the three months ended September 30, 2016, is presented below:

Restricted Stock Awards	Shares		Weighted- Average Grant Date Fair Value
Non-vested at July 1, 2016		464,117	$	5.39
Granted		188,000		5.53
Vested		(30,310)		5.32
Forfeited		(19,682)		5.72
Non-vested at September 30, 2016		602,125	$	5.43

In conjunction with the resignation of one of our directors (See Note 17 – Commitments and Contingencies – Board Representation and Standstill Agreement), we accelerated the vesting of 5,400 shares of restricted stock. This acceleration of vesting resulted in stock compensation expense of $27 during the three months ended September 30, 2016.

During the three months ended September 30, 2016, we issued 50,000 performance-based restricted shares (“PSAs”) to senior and executive management. The PSAs issued in fiscal year 2016 will be released only if certain company financial performance criteria are achieved over a cumulative three-year performance period. The weighted-average grant date fair value per share for these PSAs was established on the date the cumulative three-year performance criteria was approved by our Board of Directors (“Board”).

During the three months ended September 30, 2016, 5,387 previously granted performance-based restricted shares were forfeited due to a failure to meet performance goals associated with our fiscal year 2016 financial results. A summary of the activity of our performance-based restricted shares during the three months ended September 30, 2016, is presented below:

 

Performance Stock Awards	Shares		Weighted- Average Grant Date Fair Value
Non-vested at July 1, 2016		5,387	$	5.14
Granted		50,000		5.49
Vested		-		-
Forfeited		(5,387)		5.14
Non-vested at September 30, 2016		50,000	$	5.49