SHARE-BASED COMPENSATION

6 Months Ended

Dec. 31, 2013

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

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 “Stock Option 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 Stock Option 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 December 31, 2013, 506,105 and 173,334 shares under the Employees Stock Option Plan and the Directors Stock Option Plan, respectively, are available to grant in future years. Share-based compensation expense under the Stock Option Plans for the three months ended December 31, 2013 and 2012 was $12,000 and $36,000, respectively, and for the six months ended December 31, 2013 and 2012 was $31,000 and $65,000, respectively.

Stock Options

The following assumptions were used in the calculation of share-based compensation expense for options granted during the three and six months ended December 31, 2012:


Dividend rate	None
Price volatility	87%
Risk-free interest rate	0.9%
Expected life	6.0 years

No options were granted during the three or six months ended December 31, 2013.

As of December 31, 2013, there was an aggregate of $34,000 of unrecognized compensation cost under the Stock Option Plans related to 43,000 non-vested outstanding stock options with a per share weighted average value of $1.80. The unrecognized expense is anticipated to be recognized on a straight-line basis over a weighted average period of 1.4 years. Following is a summary of stock option activity for the six months ended December 31, 2013 and 2012:


		2013					2012
					Weighted- Average Exercise					Weighted- Average Exercise
	Shares			Price		Shares			Price
Outstanding at beginning of period		292,504		$	2.35		591,672		$	2.48
Granted		—			—		35,000			1.73
Exercised		(804	)		1.80		(33,334	)		1.50
Forfeited		(100,306	)		2.34		(13,334	)		7.74
Outstanding at end of period		191,394		$	2.36		580,004		$	2.37
Exercisable at end of period		148,061		$	2.53		250,976		$	2.96
Weighted-average fair value per option granted during the period				$	—				$	1.25

Following is a summary of information regarding options outstanding and options exercisable at December 31, 2013:

			Options Outstanding						Options Exercisable
			Average		Average		Aggregate				Average Remaining		Average		Aggregate
Range of	Number		Contractual		Exercise		Intrinsic		Number		Contractual		Exercise		Intrinsic
Exercise Price	Outstanding		Life		Price		Value		Outstanding		Life		Price		Value
$0 to $2.50		169,725		7.86	$	1.87	$	95,546		126,392		7.68	$	1.89	$	67,971
$2.51 to $5.00		3,334		3.38		4.38		—		3,334		3.38		4.38		—
$5.01 to $7.50		10,001		0.49		5.61		—		10,001		0.49		5.61		—
$7.51 to $10.00		8,334		2.02		7.65		—		8,334		2.02		7.65		—
Total		191,394		7.14	$	$2.36	$	95,546		148,061		6.78	$	2.53	$	67,971

Restricted Stock

The following is a summary of restricted share activity for the six months ended December 31, 2013 and 2012:

	2013					2012
	Shares			Weighted- Average Grant Date Fair Value		Shares			Weighted- Average Grant Date Fair Value
Outstanding at beginning of year		32,500		$	1.73		—
Granted		—			—		35,000		$	1.73
Vested		(9,166	)		1.73		—			—
Forfeited		(6,667	)		1.73		(2,500	)		1.73
Outstanding at end of period		16,667		$	1.73		32,500		$	1.73

As of December 31, 2013, there was $19,000 in unrecognized compensation cost related to non-vested outstanding restricted shares.

The unrecognized expense is anticipated to be amortized over the next 1.7 years.

- 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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