10. SHAREHOLDERS’ EQUITY

Employee and Directors Stock Option Plans—The 2011 Director Stock Option Plan was approved by SunLink’s shareholders at the Annual Meeting of Shareholders on November 7, 2011. This plan permits the grant of options to non-employee directors of SunLink for the purchase of up to 300,000 common shares through November 2021. Options for 0 and 72,000 shares were granted during the fiscal years ended June 30, 2018 and 2017, respectively. No options have been exercised under this plan. Options outstanding under the plan were 300,000 at June 30, 2018. No additional awards may be granted under this Plan.

The 2005 Equity Incentive Plan was approved by SunLink’s shareholders at the Annual Meeting of Shareholders on November 7, 2005. This plan permitted the grant of options to employees, non-employee directors and service providers of SunLink for the purchase of up to 800,000 common shares plus the number of unused shares under the 2001 Plans, which is 30,675, by November 2015. This Plan restricted the number of Incentive Stock Options to 700,000 shares and Restricted Stock Awards to 200,000 shares. The combination of Incentive Stock Options and Restricted Stock Awards cannot exceed 800,000 shares plus the number of unused shares under the 2001 Plans. Each award of Restricted Shares reduces the number of share options to be granted by four option shares for each Restricted Share awarded. No options have been exercised under this Plan. Options to purchase 0 and 0 shares were granted during the fiscal years ended June 30, 2018 and 2017, respectively. Options outstanding under this Plan were 351,000 at June 30, 2018. No additional awards may be granted under this Plan.

The activity of Company’s share options is shown in the following table:


	Number of Shares			Weighted- Average Exercise Price		Range of Exercise Prices
Options outstanding June 30, 2016		635,642		$	2.07	$	0.71 - $8.00
Granted		72,000			1.21		1.21
Forfeited		(27,500	)		6.55		6.55

Options outstanding June 30, 2017		680,142		$	1.80	$	0.71 - $8.00
Granted		0			N/A		N/A
Forfeited		(29,142	)		8.00		8.00

Options outstanding June 30, 2018		651,000		$	1.52	$	0.71 - $2.51

Options exercisable June 30, 2017		620,142		$	1.81	$	0.71 - $8.00

Options exercisable June 30, 2018		636,000		$	1.52	$	0.71 - $2.51

The weighted-average fair value of each option granted during the year ended June 30, 2017 was $1.21. The fair value of each stock option grant was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants during the year ended June 30, 2017: estimated volatility of 87%; risk-free interest rate of 1.30%; dividend yield of 0%; and an expected life of 5 years. The expected life of each stock option grant was determined to be the midpoint between the vesting period and the contractual term of the grants. The estimate of the forfeited options in the compensation expense calculation was determined as the weighted-average forfeitures for the last three years. For the years ended June 30, 2018 and 2017, the Company recognized $8 and $64, respectively, of compensation expense for share options issued. As of June 30, 2018, there was $1 of unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plans. That cost is expected to be recognized during the fiscal year ended June 30, 2019.

Information with respect to stock options outstanding and exercisable at June 30, 2018 is as follows:


Exercise Prices		Number Outstanding		Weighted-Average Remaining Contractual Life (in years)		Number Exercisable
$	0.71		18,000		5.22		18,000
$	1.21		72,000		8.21		72,000
$	1.22		210,000		4.18		210,000
$	1.49		90,000		6.19		90,000
$	1.67		60,000		3.37		60,000
$	1.79		75,000		7.20		60,000
$	2.09		120,000		3.20		120,000
$	2.51		6,000		0.23		6,000

			651,000		4.99		636,000

No options were exercised during the years ended June 30, 2018 and 2017. As of June 30, 2018 and 2017, the aggregate intrinsic value of options outstanding and options exercisable were $0 and $0, respectively.

Common Share Purchase Tender Offers—On November 21, 2017, SunLink commenced a tender offer for the purchase of a portion of its common shares at a price of $1.60 per share (the “Offer”). The offer expired on December 21, 2017 with 3,726 common shares tendered. In accordance with the terms and conditions of the Offer, the Company accepted for payment a total of approximately 1,746 shares at a price of $1.60 per share for a total cost of approximately $2,794, excluding fees and expenses relating to the Offer.

On June 5, 2018, the Company purchased 70 common shares for $1.40 per share, or $98 in total, from a director of the Company at a price equal to the closing price on that date of the Company’s shares on the NYSE American Exchange. This purchase been approved on June 1, 2018 by the Executive Committee of the Company’ Board of Directors.

SunLink purchased 281 of its common shares at a price of $1.50 per share as a result of a tender offer (the “Offer”) which expired February 24, 2017. The aggregate purchase price of the common shares, including expenses of the Offer was $641.

Accumulated Other Comprehensive Loss—Information with respect to the balances of each classification within accumulated other comprehensive loss is as follows:


	Minimum Pension Liability Adjustment			Accumulated Other Comprehensive Loss
June 30, 2016	$	(420	)	$	(420	)
Current period change		93			93

June 30, 2017	$	(327	)	$	(327	)
Current period change		150			150

June 30, 2018	$	(177	)	$	(177	)