STOCK BASED COMPENSATION PLANS

9 Months Ended

Mar. 31, 2013

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

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

NOTE 8 – STOCK BASED COMPENSATION PLANS

The Company follows Accounting Standard Codification (ASC) Topic 718 “Compensation – Stock Compensation”, which addresses accounting for equity-based compensation arrangements, including employee stock options and restricted stock units. 

Please refer to Note 16 – Stock Based Compensation Plans in the Company's Form 10-K for the year ended June 30, 2012 for more detail information on the Company’s stock-based compensation plans.

During the three months ended March 31, 2013 and 2012, the Company recorded stock option compensation cost of $80,000 and $55,000, respectively, related to the issuance of stock options. During the nine months ended March 31, 2013 and 2012, the Company recorded stock option compensation cost of $271,000 and $153,000, respectively, related to the issuance of stock options. As of March 31, 2013, there was a total of $390,000 of unamortized compensation related to stock options which is expected to be recognized over the weighted-average period of 5 years.

Option-pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price history. The Company has selected to use the simplified method for estimating the expected term. The risk-free interest rate is based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and does not anticipate issuing any dividends in the future.

The following table summarizes the stock options activity from June 30, 2011 through March 31, 2013:

		Number of		Weighted Average		Weighted Average		Aggregate
		Shares		Exercise Price		Remaining Life		Intrinsic Value
Oustanding at	June 30, 2011		162,000	$	11.02		6.48 years	$	2,252,000
Granted			95,000		20.04
Exercised			-		-
Forfeited			-		-
Exchanged			(15,000)		13.72
Oustanding at	June 30, 2012		242,000	$	14.55		7.46 years	$	2,050,000
Exercisable at	June 30, 2012		87,000	$	11.48		4.92 years	$	1,046,000
Vested and Expected to vest at	June 30, 2012		242,000	$	14.55		7.46 years	$	2,050,000
Oustanding at	June 30, 2012		242,000	$	14.55		7.46 years	$	2,050,000
Granted			-		-
Exercised			-		-
Forfeited			-		-
Exchanged			-		-
Oustanding at	March 31, 2013		242,000	$	14.55		6.71	$	2,252,000
Exercisable at	March 31, 2013		125,000	$	12.48		5.3	$	1,418,000
Vested and Expected to vest at	March 31, 2013		242,000	$	14.55		6.71	$	2,252,000

The table below summarizes the restricted stock units (RSUs) granted and outstanding.

				Weighted Average
				Grant Date
		Number of RSUs		Fair Value
RSUs outstanding as of	June 30, 2011		20,884	$	16.14
Granted			8,245		24.94
Converted to common stock			(20,884)		16.14
RSUs outstanding as of	June 30, 2012		8,245		24.94
Granted			-		-
Converted to common stock			(4,125)		24.94
RSUs outstanding as of	March 31, 2013		4,120	$	24.94

On July 1 of every year, as part of the Stock Compensation Plan for Non-employee Directors, each non-employee director received an automatic grant of a number of shares of Company’s Common Stock equal in value to $22,000 ($88,000 total recorded as stock compensation expense) based on 100% of the fair market value of the Company’s stock on the day of grant. During the nine months ended March 31, 2013 and 2012, the four non-employee directors of the Company received a total grant of 3,528 and 3,532 shares of common stock.