The Company had the following reserved shares of common stock for future issuance as of the dates noted (in thousands):

	September 30, 2020		June 30, 2020
2013 Equity Incentive Plan shares available for grant		6,431		13,118
Employee stock options and awards outstanding		13,549		10,396
2014 Employee Stock Purchase Plan		5,913		7,364
Total shares reserved for issuance		25,893		30,878

Share-based compensation expense recognized in the condensed consolidated financial statements by line item caption is as follows (in thousands):

	Three Months Ended
	September 30, 2020		September 30, 2019
Cost of product revenues	$	258	$	250
Cost of service and subscription revenues		372		347
Research and development		2,272		2,435
Sales and marketing		2,647		3,719
General and administrative		2,753		2,083
Total share-based compensation expense	$	8,302	$	8,834

The following table summarizes stock option activity for the three months ended September 30, 2020 (in thousands, except per share and contractual term):

	Number of Shares			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Options outstanding at June 30, 2020		2,922		$	4.95		3.09	$	1,688
Granted		—			—
Exercised		(15	)		4.18
Cancelled		(81	)		5.29
Options outstanding at September 30, 2020		2,826		$	4.95		2.94	$	1,384
Vested and expected to vest at September 30, 2020		2,826		$	4.95		2.94	$	1,384
Exercisable at September 30, 2020		1,745		$	3.97		1.44	$	1,384

The fair value of each stock option grant under the 2013 Plan is estimated on the date of grant using the Black-Scholes-Merton option valuation model. The expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The risk-free rate is based upon the estimated life of the option and the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock. There were no stock options granted during the three months ended September 30, 2020. The average fair value of the stock options granted during the three months ended September 30, 2019 was $3.52.

Stock awards may be granted under the 2013 Plan on terms approved by the Compensation Committee of the Board. Stock awards generally provide for the issuance of restricted stock units (“RSUs”) including performance or market-condition RSUs which vest over a fixed period of time or based upon the satisfaction of certain performance criteria or market conditions. The Company recognizes compensation expense on the awards over the vesting period based on the awards’ grant date fair value as of the date of grant. The Company does not estimate forfeitures, but accounts for them as incurred.

The following table summarizes stock award activity for the three months ended September 30, 2020 (in thousands, except grant date fair value):

	Number of Shares			Weighted- Average Grant Date Fair Value		Aggregate Fair Market Value
Non-vested stock awards outstanding at June 30, 2020		7,474		$	6.83
Granted		5,306			4.71
Released		(1,453	)		7.35
Cancelled		(604	)		9.61
Non-vested stock awards outstanding at September 30, 2020		10,723		$	5.55	$	43,108
Vested and expected to vest at September 30, 2020		10,409		$	5.52	$	41,843

The RSU's granted under the 2013 plan vest over a period of time, generally one-to-three years, and are subject to participant's continued service to the Company. The stock awards granted during the three months ended September 30, 2020 included 1,350,000 RSUs including the market condition awards discussed below to named executive officers.

On July 27, 2020, the Compensation Committee of the Board granted 475,000 RSUs with vesting based on market conditions (“MSU”) to certain of the Company’s executive officers. These MSUs will vest based on the Company’s total shareholder return (“TSR”) relative to the TSR of the Russell 2000 Index (“Index”). The MSU award represents the right to receive a target number of shares of common stock up to 150% of the original grant. The MSUs vest based on the Company’s TSR relative to the TSR of the Index over performance periods from August 15, 2020 through August 15, 2023, subject to the grantees’ continued service through the certification of performance.

Total shareholder return is calculated based on the average closing price for the 30-trading days prior to the beginning and end of the performance periods. Performance is measured based on three periods, with the ability for up to one-third of target shares to vest after years 1 and 2 and the ability for up to the maximum of the full award to vest based on the full 3-year TSR less any shares vested based on 1 and 2 year periods. Linear interpolation is used to determine the number of shares vested for achievement between target levels.

The grant date fair value of each MSU was determined using the Monte-Carlo simulation model. The weighted-average grant-date fair value of these MSU was $5.32. The assumptions used in the Monte-Carlo simulation included the expected volatility of 69%, risk-free rate of 0.18%, no expected dividend yield, expected term of 3 years and possible future stock prices over the performance period based on the historical stock and market prices. The Company recognizes the expense related to these MSUs on a graded-vesting method over the estimated term.

During fiscal 2019 and 2018, the Company approved the grant of 0.6 million shares underlying stock awards each year in the form of restricted stock units with certain performance conditions (“PSUs”) to named executive officers and other vice president level employees. These PSUs would vest once the Company’s U.S. GAAP earnings aggregates at least $0.09 per share over two consecutive quarters (the “Performance Thresholds”). Upon satisfying the Performance Thresholds, the PSUs will vest with respect to the same number of RSUs that have vested which were granted on the same date and thereafter will vest on the same schedule as the RSUs, subject to continued service to the Company. If the Performance Thresholds are not met by the third anniversary of the grant date for each award, that award is canceled. The PSUs issued in fiscal 2018 expired and were cancelled during the three months ended September 30, 2020 without the achievement of the Performance Thresholds. During the three months ended September 30, 2020 and 2019 the Performance Thresholds for outstanding performance PSUs issued in fiscal 2019 were not achieved, and as such, no compensation expense was recorded in either reporting period.

The fair value of each share purchase option under the ESPP is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The expected term of the ESPP represents the term of the offering period of each option. The risk-free rate is based upon the estimated life and on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock.

There were 1.5 million and 1.2 million shares issued under the ESPP during the three months ended September 30, 2020 and 2019, respectively. The following assumptions were used to determine the grant-date fair values of the ESPP shares during the following periods:

	Employee Stock Purchase Plan
	Three Months Ended
	September 30, 2020			September 30, 2019
Expected life	0.5 years			0.5 years
Risk-free interest rate		0.12	%		1.85	%
Volatility		119	%		43	%
Dividend yield		—	%		—	%

The weighted-average grant-date fair value of shares issued under the ESPP during the three months ended September 30, 2020 and 2019 was $2.23 and $2.02, respectively.