STOCK BASED COMPENSATION PLANS

3 Months Ended

Sep. 30, 2015

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

STOCK BASED COMPENSATION PLANS

12. STOCK BASED COMPENSATION PLANS

STOCK OPTIONS

The fair value of each option granted is estimated on the date of the grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for options granted during:

	Three months ended  September 30,
	2015		2014
Expected volatility		63-66%		79%
Expected life		4 - 4.5 years		7 years
Expected dividends		0.00%		0.00%
Risk-free interest rate		1.34-1.49%		2.04%

Stock based compensation related to stock options for the three months ended September 30, 2015 and 2014 was $115 thousand and $52 thousand, respectively. Unrecognized compensation related to stock option grants as of September 30, 2015 was $444 thousand.

Changes in outstanding stock options for the three months ended September 30, 2015 and 2014 consisted of the following:

	2015						2014
	Options		Weighted  Average  Exercise Price		Weighted  Average Grant  Date Fair Value		Options		Weighted  Average  Exercise Price		Weighted  Average Grant  Date Fair Value
Options outstanding, beginning of period		538,888	$	1.86	$	1.33		120,000	$	2.05	$	1.49
Granted		119,586	$	3.38	$	1.77		328,888	$	1.80	$	1.27
Forfeited		-	$	-	$	-		-	$	-	$	-
Expired		-	$	-	$	-		-	$	-	$	-
Exercised		-	$	-	$	-		-	$	-	$	-
Options outstanding, end of period		658,474	$	2.14	$	1.41		448,888	$	1.87	$	1.33

Changes in unvested stock options for the three months ended September 30, 2015 and 2014 consisted of the following:

	2015					2014
	Options			Weighted Average  Grant Date Fair  Value		Options		Weighted Average  Grant Date Fair  Value
Unvested options, beginning of period		505,553		$	1.32		120,000	$	1.49
Granted		119,586		$	1.77		328,888	$	1.27
Vested		(168,888	)	$	1.27		-	$	-
Forfeited		-		$	-		-	$	-
Unvested options, end of period		456,251		$	1.46		448,888	$	1.33

Exercise prices of stock options outstanding as of September 30 and June 30, 2015 consisted of the following:

	September 30, 2015				June 30, 2015
	(unaudited)
Range of Exercise Prices	Options  Outstanding		Options  Exercisable		Options  Outstanding		Options  Exercisable
$1.62 to $1.68		75,000		-		75,000		-
$1.80		328,888		168,888		328,888		-
$2.05		100,000		33,335		100,000		33,335
$2.09		10,000		-		10,000		-
$2.75		25,000		-		25,000		-
$3.38		119,586		-		-		-
		658,474		202,223		538,888		33,335

	September 30, 2015				June 30, 2015
	(unaudited)
($ in thousands except per share price and number of options)	Options  Outstanding		Options  Exercisable		Options  Outstanding		Options  Exercisable
Number of stock options		658,474		202,223		538,888		33,335
Weighted average exercise price	$	2.14	$	1.84	$	1.86	$	2.05
Aggregate intrinsic value	$	230	$	131	$	451	$	22
Weighted average contractual life		6.11		5.88		6.21		5.97
Share price	$	2.49	$	2.49	$	2.70	$	2.70

STOCK GRANTS

The Company’s nonvested common shares as of September 30, 2015, and changes during the period then ended consisted of the following:

	Shares			Weighted-Average  Grant-Date  Fair Value
Nonvested at June 30, 2015		18,604		$	1.88
Granted		131,558			3.04
Vested		(21,664	)		2.70
Nonvested at September 30, 2015		128,498		$	2.97