Share-Based Compensation

12 Months Ended

Jun. 30, 2016

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

Share-Based Compensation

11. Share-Based Compensation

Stock Option Plans

Through June 2014, we had two active stock option 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” and, collectively with the Employees Stock Option Plan, the “Option Plans”). The 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 of Directors 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. Aggregate share-based compensation expense under the Plans for the years ended June 30, 2016 and 2015 were $2,000 and $17,000, 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 were reallocated 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 shares were reallocated for issuance under the provisions of the Employee Stock Purchase Plan described below.

Stock Options

There were no stock options granted during the fiscal years ended June 30, 2016 and 2015. As of June 30, 2016, there was no unrecognized compensation cost under the Stock Option Plans as all outstanding stock options are fully vested.

The following is a summary of stock option activity under the Option Plans for the years ended June 30, 2016 and 2015:

		Outstanding Options
	Number of Shares			Weighted-Average Exercise Price
Balance, July 1, 2014		165,002		$	2.40
Options granted		—			—
Options canceled or expired		(10,001	)		4.94
Options exercised		(48,333	)		1.87
Balance, July 1, 2015		106,668		$	2.41
Options granted		—			—
Options canceled or expired		(8,334	)		(7.65	)
Options exercised		(7,500	)		(2.14	)
Balance, June 30, 2016		90,834		$	1.95
Stock Options Exercisable at June 30, 2016		90,834		$	1.95

The following table summarizes information regarding options outstanding and options exercisable under the Option Plans at June 30, 2016:

	Options Outstanding & Exercisable
Range of Exercise Prices	Number Outstanding		Weighted-Avg. Remaining Contractual Life		Weighted-Avg. Exercise Price		Aggregate Intrinsic Value
$0 to 2.50		87,500		5.28	$	1.86	$	323,750
2.5  to 5.00		3,334		0.88		4.38		3,934
Total		90,834		5.12 years	$	1.95	$	327,684

Restricted Stock

The following is a summary of restricted share activity for the years ended June 30, 2016 and 2015:

	Outstanding Restricted Stock Units
		Number of Shares			Weighted-Average Stock Price On Grant Date
Balance, June 30, 2014		13,333		$	1.73
Granted		—			—
Forfeited		(1,667	)		1.73
Vested		(6,666	)		1.73
Balance, June 30, 2015		5,000		$	1.73
Granted		—			—
Forfeited		—			—
Vested		(5,000	)		1.73
Balance, June 30, 2016		—		$	—

Employee Stock Purchase Plan

Also in September 2014, our Board approved the establishment of an Employee Stock Purchase Plan (the “ESPP”). 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. The ESPP was approved by our shareholders at the December 3, 2014 Annual Meeting. On February 2, 2015, the Company filed a Registration Statement on Form S-8 registering the 704,715 shares issuable under the ESPP under the Securities Act of 1933.

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, upon the completion of the first offering period. During the third quarter ended March 31, 2016, 3,671 shares were purchased and allocated to employees based upon their contributions at a price of $2.31 per share, upon the completion of the second offering period. During the fiscal year ended June 30, 2016, we recorded stock compensation expense in the amount of $2,000 relating to the ESPP.