STOCK-BASED COMPENSATION

9 Months Ended

Mar. 31, 2016

NOTE 7 – STOCK-BASED COMPENSATION

Stock-based compensation cost for options and restricted stock awarded to employees and directors is measured at the grant date, based on the calculated fair value of the award and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). Stock-based compensation costs from performance-based stock option awards are estimated at the date when key terms and conditions of the performance-based stock award are known (the “service inception date”), and in subsequent reporting periods, trued up at the grant date and recognized as expense over the employee’s requisite service period (from the service inception date through the end of the vesting period). During the three and nine months ended March 31, 2016 and 2015, stock-based compensation amounts are as follows (in thousands):

	Three-Months Ended				Nine-Months Ended
	March 31,				March 31,
	2016		2015		2016		2015
	(Unaudited)				(Unaudited)

Stock-based compensation expense included in:

Cost of revenue	$	7	$	6	$	25	$	16
Selling, general and administrative		145		120		485		367
Total	$	152	$	126	$	510	$	383