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Stockholders' Equity Transactions
 6 Months Ended
Dec. 31, 2012
Stockholders' Equity Transactions
NOTE 9 – Stockholders’ Equity Transactions

During the three and six months ended December 31, 2012 certain employees exercised incentive stock options under the Company’s 2002 Plan totaling 702,000 and 729,000 shares, respectively. The exercises were completed as cashless exercises as allowed for under the 2002 Plan, where the exercise shares are issued by the Company in exchange for shares of the Company’s common stock that are owned by the optionees. The number of shares surrendered by the optionees are based upon the per share price on the effective date of the option exercise. In addition, the Company repurchased 128,588 shares of its Common Stock from its Chief Executive Officer, Richard Soloway. The purchase price was $3.38 per share, the previous business day’s closing price on NASDAQ, for an aggregate purchase price of $434,627. The repurchase was to fund Mr. Soloway’s tax liability associated with the exercise of 675,000 options granted to him under the 2002 Plan. The repurchase was approved by the Board of Directors of the Company, including all of the independent directors. Mr. Soloway’s exercises resulted in a tax benefit to the Company of $118,000 which is included in Additional Paid-in Capital.

The following table reflects the activity of these equity transactions for the three and six months ended December 31, 2012 (dollars in thousands):

 
  
Common Stock
          
Treasury Stock
  
 
  
Number of
Shares
Issued
    
Amount
    
Additional
Paid-in
Capital
    
Number of
Shares
    
Amount
  
                               
BALANCE June 30, 2012
     20,095,713     $ 201     $ 14,080       (1,000,000 )   $ (5,615 )
Options exercised
     27,000       --       --       --       --  
Shares surrendered and cancelled under option exercise
     (13,807 )     --       --       --       --  
                                         
BALANCE September 30, 2012
     20,108,906     $ 201     $ 14,080       (1,000,000 )   $ (5,615 )
Options exercised
     702,000       7       1,369       --       --  
Shares surrendered and cancelled under option exercise
     (14,093 )     --       --       --       --  
Shares surrendered and held in Treasury under option exercise
     --       --               (371,890 )     (1,257 )
Shares repurchased and held in Treasury
     --       --       --       (128,588 )     (435 )
                                         
BALANCE December 31, 2012
     20,796,813     $ 208     $ 15,449       (1,500,478 )   $ (7,307 )