SHARE-BASED COMPENSATION

3 Months Ended

Sep. 30, 2015

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

SHARE-BASED COMPENSATION

NOTE 9. SHARE-BASED COMPENSATION

As discussed further below, until June 2014 we had two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the “Employee 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, could be granted up to an aggregate amount of 1,333,333 common shares, with 1,066,667 and 266,666 shares distributed between the Employee Stock Option Plan and the Directors’ Stock Option Plan, respectively. The Stock Option Plans were 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 Employee 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 a director, as the case may be. Share-based compensation expense under the Stock Option Plans for the three months ended September 30, 2015 and 2014 was $2,000 and $8,000, respectively.

In June 2014, our Board of Directors terminated the Employee Stock Option Plan, with the provision that options outstanding under the Employee Stock Option Plan will remain outstanding in accordance with their respective terms. At the date of termination, 531,381 shares were reserved for issuance under the Employee Stock Option Plan in excess of shares issuable pursuant to outstanding options, all of which shares will be available for issuance under the provisions of the Employee Stock Purchase Plan described below.

In September 2014, our Board approved the inclusion in our proxy statement for approval by our shareholders at the 2014 Annual Meeting of Shareholders its recommendation to terminate the Directors’ Stock Option Plan, which proposal was approved by our shareholders at the December 3, 2014 Annual Meeting. At September 30, 2014, 173,334 shares were reserved for issuance under the Directors’ Stock Option Plan, all of which will be available for issuance under the provisions of the Employee Stock Purchase Plan described below.

Stock Options

No options were granted during the three months ended September 30, 2015 and 2014.

As of September 30, 2015, there was no unrecognized compensation cost under the Stock Option Plans as all outstanding stock options are fully vested. Following is a summary of stock option activity for the three months ended September 30, 2015 and 2014:

	2015			2014
	Number of Shares		Weighted-Average Exercise Price	Number of Shares		Weighted-Average  Exercise Price
Outstanding at beginning of period	106,668	$	2.41	165,002	$	2.40
Options granted	—		—	—		—
Options exercised	—		—	—		—
Options canceled or expired	—		—	(8,334)		5.58
Outstanding at end of period	106,668	$	2.41	156,668	$	2.23
Stock Options Exercisable at September 30,	106,668	$	2.41	150,001	$	2.26

Following is a summary of information regarding options outstanding and options exercisable at September 30, 2015:

		Options Outstanding & Exercisable
Range of Exercise Prices	Number Outstanding		Weighted-Avg. Remaining Contractual Life in Years	Weighted- Avg. Exercise Price	Aggregate. Intrinsic Value
$0 to 2.50	95,000		6.14	$  1.88	$ 55,250
2.5  to 5.00	3,334		1.63	4.38	—
7.51 to 10.00	8,334		0.27	7.65	—
Total	106,668		5.54	$  2.41	$ 55,250

Employee Stock Purchase Plan

Also in September 2014, our Board approved the establishment of an Employee Stock Purchase Plan (the “ESPP”), which was similarly approved by our shareholders at the December 3, 2014 Annual Meeting. The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. The Board of Directors also approved the provision that shares formerly reserved for issuance under the Employee Stock Option Plan and the Directors’ Stock Option Plan in excess of shares issuable pursuant to outstanding options, aggregating 704,715 shares, be reserved for issuance pursuant to the ESPP. During the first quarter ended September 30, 2015, 1,925 shares were purchased and allocated to employees based upon their contributions at a price of $2.34 per share.

Restricted Stock

The following is a summary of restricted share activity for the three months ended September 30, 2015 and 2014:

	2015			2014
	Number of Shares		Weighted- Average Grant Date Fair Value	Number of Shares		Weighted- Average  Grant Date Fair Value
Outstanding at beginning of  period	5,000	$	1.73	13,333	$	1.73
Granted	—		—	—		—
Vested	(5,000)		1.73	(6,667)		1.73
Forfeited	—		—	—		—
Outstanding at end of period	—	$	—	6,666	$	1.73