Share-Based Compensation

6 Months Ended

Dec. 31, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

NOTE 7. SHARE-BASED COMPENSATION

We have two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the "Employees Plan") and the Amended and Restated 2004 Directors Stock Option Plan (the "Directors Plan") (collectively, the "Plans"), pursuant to which (i) options to purchase shares of common stock, or (ii) restricted shares of common stock, may be granted up to an aggregate amount of 1,333,333 common shares, with 1,066,667 and 266,666 shares distributed between the Employees Plan and the Directors Plan, respectively. The Plans are substantially similar, providing for vesting periods, as determined by the Board for the Employees Plan and six months for the Directors Plan, and allow for the options granted under each to be outstanding for a period of up to ten years, subject to forfeit 30 days after the holder ceases to be an employee or 90 days after the holder ceases to be director, as the case may be. At December 31, 2011, options to purchase an aggregate of 391,351 and 71,667 shares under the Employees Plan and the Directors Plan, respectively, are available to grant in future years. Aggregate share-based compensation expense under the Plans for the three months ended December 31, 2011 and 2010 was $21,000 and $9,000, respectively, and for the six months ended December 31, 2011 and 2010 was $33,000 and $12,000, respectively.

The following weighted-average assumptions were used in the calculation of share-based compensation expense for options granted during the three and six months ended December 31, 2011 and 2010:

	Three Months Ended December 31,
	2011		2010
Dividend rate		None		None
Price volatility		88%		44%
Risk-free interest rate		1.0% - 1.2%		1.8% - 2.1%
Expected life		5.50 years		5.25 years

	Six Months Ended December 31,
	2011		2010
Dividend rate		None		None
Price volatility		62%		43%
Risk-free interest rate		1.0% - 1.3%		1.8% - 2.1%
Expected life		6.0 years		6.0 years

As of December 31, 2011, there was an aggregate of $195,000 of unrecognized compensation cost under the Plans related to 267,083 non-vested outstanding stock options with a per share weighted average value of $1.57. The unrecognized expense is anticipated to be recognized on a straight-line basis over a weighted average period of 1.9 years. Following is a summary of stock option activity for the six months ended December 31, 2011 and 2010:

	2011					2010
	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of period		320,842		$	2.71		193,843		$	3.94
Granted		205,000			2.04		115,000			2.01
Exercised		—			—		(20,500	)		1.27
Forfeited		(14,168	)		2.43		(27,501	)		4.29
Outstanding at end of period		511,674		$	2.65		260,842		$	3.25
Exercisable at end of period		244,591		$	3.32		156,000		$	3.97
Weighted-average fair value per option granted during the period				$	1.16				$	0.89

Following is a summary of information regarding options outstanding and options exercisable at December 31, 2011:

	Options Outstanding								Options Exercisable
Range of Exercise Price	Number Outstanding		Average Contractual Life		Average Exercise Price		Aggregate Intrinsic Value		Number Outstanding		Average Remaining Contractual Life		Average Exercise Price		Aggregate Intrinsic Value
$1.35 to $2.09		308,000		9.0 years	$	1.86	$	184,851		139,000		8.5 years	$	1.86	$	69,034
$2.34 to $4.68		160,000		8.4 years		2.95		11,800		63,000		8.5 years		3.89		1,189
$5.22 to $5.76		20,000		3.0 years		5.51		—		20,000		3.0 years		5.51		—
$7.65 to $9.90		23,000		3.6 years		8.65		—		23,000		3.6 years		8.65		—
Total		511,000		8.3 years	$	2.65	$	196,651		245,000		7.0 years	$	3.32	$	70,223