Stock Options And Restricted Stock

6 Months Ended

Dec. 31, 2011

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

Note 10 – Stock Options and Restricted Stock

The Company recognizes compensation costs for all share-based payments granted based on the grant-date fair value estimated in accordance with the provisions of ASC 718, “Compensation – Stock Compensation.”

The Bolt Technology Corporation Amended and Restated 2006 Stock Option and Restricted Stock Plan (the “Plan”) provides that 750,000 shares of Common Stock may be used for awards under the Plan, of which up to 225,000 shares of Common Stock may be used for restricted stock awards.

Options granted to employees can become vested over, and can be exercisable for, a period of up to ten years.  The Plan also provides that each non-employee director is granted options to purchase 7,500 shares of Common Stock on the date of his or her election to the Board of Directors.  Each such option granted to a non-employee director has an option term of five years from the date of grant and becomes exercisable with respect to 25% of the shares covered under the option in each of the second through fifth years of its term.  Under the terms of the Plan, no options or restricted stock may be granted or awarded subsequent to June 30, 2016.

Stock Options

Stock option compensation expense, which is a non-cash item, was $163,000 and $173,000 for the six month periods ended December 31, 2011 and 2010, respectively. Unrecognized compensation expense for stock options at December 31, 2011 amounted to $550,000 and the weighted average period for recognizing this expense is 2.3 years.

A summary of changes in stock options during the six month period ended December 31, 2011 is as follows:

				Weighted
				Average
				Exercise
	Shares			Price
Options outstanding at June 30, 2011		194,500		$	15.98
Granted		22,500		$	10.84
Exercised		(11,250	)	$	(7.05	)
Expired		(37,500	)	$	(11.86	)
Options outstanding at December 31, 2011		168,250		$	16.81

During the six month period ending December 31, 2011, stock option grants for 22,500 shares were awarded in November 2011. The fair value of options granted was $3.32 as estimated on the date of grant using the Black-Scholes pricing model with the following assumptions:

Expected dividend yield	0	%
Stock price volatility	33	%
Expected life (years)	5 years
Expected forfeiture rate	0	%
Risk-free interest rate	0.9	%

At December 31, 2011, there was no aggregate intrinsic value for outstanding options because the market price of the Company’s Common Stock at December 31, 2011 was less than the weighted average exercise price of such options.

The weighted average remaining contractual life of options outstanding at December 31, 2011 was 2.3 years.

The expiration dates for the outstanding options at December 31, 2011 are as follows:

Expiration Date of Option	Number of Shares
April 2012		24,000
November 2012		7,500
January 2013		15,750
June 2013		22,250
November 2013		3,750
August 2014		50,000
November 2014		15,000
November 2015		7,500
November 2016		22,500
Total		168,250

Options exercisable at December 31, 2011, totaled 94,376 shares, consisting of 24,626 non-qualified and 69,750 qualified options.

During the six month periods ended December 31, 2011 and 2010, the fair value of options that vested was $239,000 (21,875 shares) and $348,000 (31,250 shares), respectively. During the six month period ended December 31, 2011, 11,250 options were exercised. No options were exercised during the six month period ended December 31, 2010. The weighted average exercise price of exercisable options as of December 31, 2011 was $18.66. At December 31, 2011, there was no aggregate intrinsic value of exercisable options because the market price of the Company’s Common Stock at December 31, 2011 was less than the weighted average exercise price of exercisable options. The weighted average remaining contractual life of exercisable options at December 31, 2011 was 1.6 years.

Restricted Stock

During the six month periods ended December 31, 2011 and 2010, 40,300 and 30,000 shares, respectively, of restricted stock were granted. These shares vest over a five year period and the cost to recipients is zero.  The aggregate compensation cost for restricted stock granted during the six month periods ended December 31, 2011 and 2010 was $432,000 and $298,000, respectively, as of the grant dates.  This compensation expense, which is a non-cash item, is being recognized in the Company’s financial statements over the five-year vesting period.  Restricted stock compensation expense was $232,000 and $223,000 for the six month periods ended December 31, 2011 and 2010, respectively.  Unrecognized compensation expense for restricted stock at December 31, 2011 amounted to $1,223,000.

A summary of changes in restricted stock awards during the six month period ended December 31, 2011 is as follows:

	Shares			Weighted Average Grant Date Fair Value
Unvested restricted stock awards outstanding at June 30, 2011		95,300		$	13.46
Granted		40,300			10.72
Vested		(18,100	)		13.05
Unvested restricted stock awards outstanding at December 31, 2011		117,500		$	12.58

The Company receives a tax deduction for certain stock option exercises when the options are exercised, generally for the excess of the fair value over the exercise price of the option.  The Company also receives a tax deduction and/or liability when restricted stock vests based on the difference between the fair value at the grant date versus the vesting date. The tax benefit and/or liability from the exercise of stock options and/or the vesting of restricted stock are reported as cash flows from financing activities in the Consolidated Statements of Cash Flows (Unaudited).