Equity Plan

12 Months Ended

Jun. 30, 2023

Equity Plans [Abstract]

Equity Plan

17. Equity Plan

Equity Incentive Plan

During 2015, the Company’s board of directors and stockholders approved the Company’s 2015 Equity Incentive Plan (the “Plan”). During December 2020, the Company’s stockholders approved an amendment to the Plan to increase the number of shares of the Company’s common stock authorized for issuance pursuant to awards granted under the Plan from 1,500,000 shares to 3,000,000 shares. The fair value of awards granted under the Plan is expensed on straight-line basis over the vesting period of the awards. Share-based compensation expense is included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations. Non-cash share-based compensation expense under the Plan totaled $3.1 million and $2.6 million for fiscal 2023 and fiscal 2022, respectively.

During fiscal 2023, restricted stock awards of a total of 222,672 shares and 128,985 restricted stock units were granted under the Plan. A portion of the restricted stock awards granted during fiscal 2023 is scheduled to vest ratably over four years and the remainder is scheduled to vest in 10 years from the date of grant. The total grant date fair value, determined by using the closing stock price on the date of grant, of such restricted stock awards was $3.6 million. A portion of the restricted stock units granted during fiscal 2023 is scheduled to vest ratably over four years and the remainder is scheduled to vest in 4 to 40 years from the date of grant. The total grant date fair value of such restricted stock units was $2.1 million.

During fiscal 2022, restricted stock awards, restricted stock units and stock awards of a total of 134,612 shares, 178,719 shares and 8,287 shares, respectively, were granted under the Plan. A portion of the restricted stock awards granted during fiscal 2022 is scheduled to vest ratably over four years and the remainder is scheduled to vest in 10 to 19 years from the date of grant, subject, in the case of certain restricted shares, to accelerated vesting upon the achievement of certain specified performance goals. The total grant date fair value, determined by using the closing stock price on the date of grant, of such restricted stock awards was $4.8 million. A portion of the restricted stock units granted during fiscal 2022 is scheduled to vest ratably over four years and the remainder is scheduled to vest in 4 to 37 years from the date of grant. The total grant date fair value of such restricted stock units was $3.8 million. Stock awards relate to shares of the Company’s common stock issued under the Plan which are immediately held by the recipient upon grant without any risk of forfeiture. The total grant date fair value of the stock awards granted during fiscal 2022 was $300,000.

During fiscal 2023, 20,973 shares of restricted stock awards and 10,784 restricted stock units vested and 6,200 shares of common stock with an aggregate fair market value of $125,000 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of such restricted stock.

During fiscal 2022, 14,485 shares of restricted stock awards and 6,350 restricted stock units vested and 3,834 shares of common stock with an aggregate fair market value of $87,000 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of such restricted stock. As described above, during fiscal 2022, the Company also granted stock awards (not subject to forfeiture) of 8,287 shares of the Company’s common stock. 3,261 of such shares of common stock, which had an aggregate fair market value of $118,000 as of the grant date, were withheld in lieu of cash to satisfy tax withholding obligations in connection with the grant of the stock awards.

As of June 30, 2023, the Company had $20.0 million and $10.4 million of total unrecognized compensation expense related to non-vested restricted stock awards and restricted stock units, respectively, which is expected to be recognized over the weighted-average period of 14.8 years and 10.4 years, respectively.

The following is a summary of non-vested restricted stock activity as of, and for the fiscal year ended, June 30, 2023:

	Restricted Stock Awards					Restricted Stock Units
	Shares			Weighted- Average Grant Date Fair Value		Shares			Weighted- Average Grant Date Fair Value
Non-vested restricted stock outstanding at June 30, 2022		1,026,183		$	21.65		416,465		$	26.75
Granted		222,672			16.30		128,985			16.52
Vested		(20,973	)		28.51		(10,784	)		31.11
Forfeited		-			-		(1,466	)		20.42
Non-vested restricted stock outstanding at June 30, 2023		1,227,882			20.56		533,200			24.20

Employee Stock Purchase Plan

During 2017, the Company’s board of directors and stockholders approved the Company’s 2017 Employee Stock Purchase Plan, which, subject to the terms of the plan, allows eligible employees the opportunity to purchase shares of the Company’s common stock at a 5% discount. The employee stock purchase plan provides for six-month offering periods ending on December 31 and June 30 of each year. During fiscal 2023, 5,432 shares of common stock were purchased under the Company’s employee stock purchase plan for which the Company received net proceeds of $118,000. During fiscal 2022, 8,389 shares of common stock were purchased under the Company’s employee stock purchase plan for which the Company received net proceeds of $120,000.