Stock Options and Restricted Stock

9 Months Ended

Mar. 31, 2014

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

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

Note 9 – 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 2012 Stock Incentive Plan (the “2012 Plan”) was approved by the Company’s stockholders at the November 20, 2012 Annual Meeting of Stockholders. The 2012 Plan replaced the Company’s Amended and Restated 2006 Stock Option and Restricted Stock Plan (the “2006 Plan”). No new grants may be made under the 2006 Plan, but stock option and restricted stock grants awarded prior to the effective date of the 2012 Plan continue in effect.

The 2012 Plan provides that 750,000 shares of Common Stock may be used for equity awards under the 2012 Plan of either stock options or restricted stock grants or any combination thereof. Stock options granted under the 2012 Plan can become vested over, and can be exercisable for, a period of up to ten years.

Under the 2012 Plan, non-qualified or compensatory stock options can be granted and awards of restricted stock can be made to non-employee directors at the discretion of the compensation committee, for up to a combined annual maximum of 3,000 shares of Common Stock per non-employee director. Under the terms of the 2012 Plan, no stock options or restricted stock can be granted subsequent to June 30, 2022.

Stock Options

Stock option compensation expense was $141,000 and $184,000 for the nine month periods ended March 31, 2014 and 2013, respectively.

A summary of changes in stock options during the nine month period ended March 31, 2014 is as follows:

	2012 Plan				2006 Plan
			Weighted Average Exercise				Weighted Average Exercise
	Shares		Price		Shares		Price
Options outstanding at June 30, 2013		50,000	$	15.43		83,425	$	12.33
Granted		55,000	$	21.16		-	$	-
Exercised		(500)	$	15.43		(30,050)	$	(12.30)
Options outstanding at March 31, 2014		104,500	$	18.45		53,375	$	12.35

During the three months ended March 31, 2014, stock option grants for 55,000 shares were awarded in January 2014 under the 2012 Plan. The fair value per share of options granted in January 2014 was $1.88, as estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

	January
	2014
	Grant
Expected dividend yield		3.87	%
Stock price volatility		19	%
Expected life (years)		5 years
Expected forfeiture rate		0	%
Risk-free interest rate		0.8	%

At March 31, 2014, the aggregate intrinsic value for outstanding options was $535,000, because the market price of the Company’s Common Stock at March 31, 2014 was higher than the weighted average exercise price of such options.

Restricted Stock

During the nine month period ended March 31, 2014, 33,100 shares of restricted stock were granted under the 2012 Plan. Of these shares, 28,000, 600 and 4,500 shares vest over a five-year period, three-year period and one-year period, respectively, and the cost to the recipients is zero.  During the nine month period ended March 31, 2013, 27,100 shares of restricted stock were granted under the 2006 Plan. These shares vest over a five year period and the cost to the recipients is zero. The aggregate compensation cost for restricted stock granted during the nine month periods ended March 31, 2014 and 2013 was $618,000 and $479,000, 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 vesting period of each restricted stock grant.  

Restricted stock compensation expense was $389,000 and $380,000 for the nine month periods ended March 31, 2014 and 2013, respectively.  

A summary of changes in restricted stock awards during the nine month period ended March 31, 2014 is as follows:

	2012 Plan				2006 Plan
			Weighted Average Grant Date				Weighted Average Grant Date
	Shares		Fair Value		Shares		Fair Value
Unvested restricted stock awards outstanding at June 30, 2013		5,200	$	14.49		91,100	$	12.52
Granted		33,100	$	18.67		-	$	-
Vested		(3,600)	$	14.33		(30,300)	$	12.61
Unvested restricted stock awards outstanding at March 31, 2014		34,700	$	18.50		60,800	$	12.47