SHARE-BASED COMPENSATION

12 Months Ended

Jun. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE-BASED COMPENSATION

NOTE 9 – SHARE-BASED COMPENSATION

We have two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the “Employees Stock Option Plan”) and the Amended and Restated 2004 Directors Stock Option Plan (the “Directors Stock Option 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 Stock Option Plan and the Directors Stock Option Plan, respectively. The Plans are substantially similar, providing for a strike price equal to the closing price for a share of our common stock as of the last business day immediately prior to the Grant Date, vesting periods, as determined by the Board for the Employees Stock Option Plan and six months for the Directors Stock Option Plan, and terms 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 June 30, 2013, options to purchase an aggregate of 439,000 and 140,000 shares under the Employees Stock Option Plan and the Directors Stock Option Plan, respectively, are available to grant in future years. Aggregate share-based compensation expense under the Plans for the years ended June 30, 2013 and 2012 were $100,000 and $108,000, respectively.

The following weighted average assumptions were used in the calculation of share-based compensation expense for options granted during the years ended June 30, 2013 and 2012: 

	2013		2012
Dividend rate	None		None
Price volatility	89	%	75	%
Risk-free interest rate	0.9	%	0.9% - 1.3	%
Expected life	5.7 years		5.9 years

As of June 30, 2013, there was an aggregate of $74,000 of unrecognized compensation cost under the Plans related to 95,000 non-vested outstanding stock options with a per share weighted average value of $1.26. The unrecognized expense is anticipated to be recognized on a straight-line basis over a weighted average period of 1.6 years.

The following is a summary of stock option activity under the Plans for the years ended June 30, 2013 and 2012: 

	2013					2012
				Weighted-					Weighted-
				Average					Average
				Exercise					Exercise
	Shares			Price		Shares			Price
Outstanding at beginning of period		591,672		$	2.48		320,842		$	3.04
Granted		70,000			1.92		425,000			2.01
Exercised		(43,334	)		1.53		(24,722	)		1.96
Forfeited		(325,834	)		2.61		(129,448	)		2.41
Outstanding at end of period		292,504		$	2.35		591,672		$	2.48
Exercisable at end of period		197,920		$	2.61		276,951		$	3.10
Weighted-average fair value per option granted during the period				$	1.36				$	1.43

The following table summarizes information regarding options outstanding and options exercisable under the Plans at June 30, 2013:

	Options Outstanding							Options Exercisable
Range of Exercise Price	Number Outstanding		Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price		Aggregate Intrinsic Value		Number Outstanding		Weighted- Average Remaining Contractual Life	Weighted- Average Exercise Price		Aggregate Intrinsic Value
$1.73 to $3.21		255,834	8.3 years	$	1.91	$	16,025		161,250	8.1 years	$	1.95	$	6,125
$3.22 to $4.69		18,335	4.1 years		4.41		—		18,335	4.1 years		4.41		—
$4.70 to $6.17		10,001	1.0 years		5.61		—		10,001	1.0 years		5.61		—
$6.18 to $7.65		8,334	2.5 years		7.65		—		8,334	2.5 years		7.65		—
Total		292,504	7.6 years	$	2.35	$	16,025		197,920	7.1years	$	2.61	$	6,125

Restricted Stock

The following is a summary of restricted share activity for the year ended June 30, 2013: 

	Shares		Weighted- Average Grant Date Fair Value
Outstanding at beginning of  year		—		—
Granted		35,000	$	1.73
Vested		—		—
Forfeited		2,500		1.73
Outstanding at end of period		32,500	$	1.73

As of June 30, 2013, there was $32,000 in unrecognized compensation cost related to non-vested outstanding restricted shares. The unrecognized expense is anticipated to be amortized over the next 2.2 years.

There was no restricted share activity during 2012, nor were any restricted shares outstanding during that period.