Share-Based Payments

9 Months Ended

Mar. 31, 2016

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

Equity Incentive Plan

The 2011 Executive Incentive Plan (the "Plan") of the Company was approved on February 21, 2011 by the written consent of the holder of a majority of the Company's outstanding common stock. The Plan provides the Company the ability to grant to any officer, director, employee, consultant or other person who provides services to the Company or any related entity, options, stock appreciation rights, restricted stock awards, dividend equivalents and other stock-based awards and performance awards, provided that only employees are entitled to receive incentive stock options in accordance with IRS guidelines. The Plan provides for the issuance of a maximum of 6,250,000 shares of common stock. Pursuant to the Executive Incentive Plan and the employment agreements, between February 15, 2011 and March 31, 2016, the Compensation Committee of the Company's Board of Directors authorized the grants of restricted stock and stock options described below.

Restricted Stock

The per share fair value of RSUs granted with service conditions was determined on the date of grant using the fair market value of the shares on that date and is recognized as an expense over the requisite service period.

The following table summarizes the Company's RSU activity for nine months ended March 31, 2016:



	Shares		Weighted Average Grant Date Fair Value
Nonvested at July 1, 2015	357,685		$	52.23
Granted	351,427		1.63
Vested	(330,489	)	54.10
Forfeited and canceled	(152,447	)	3.65
Nonvested at March 31, 2016	226,176		$	4.71

Compensation expense related to restricted stock was $11,951 and $19,252 for the nine months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was $479 in total unrecognized share-based compensation costs related to restricted stock.

Stock Options

The following table summarizes the Company's stock option activity for nine months ended March 31, 2016:



	Number of Options		Weighted average exercise price
Outstanding at July 1, 2015	1,181,630		$	11.18
Granted	235,333		0.46
Exercised	—		—
Forfeited and canceled	(359,330	)	6.01
Outstanding at March 31, 2016	1,057,633		$	10.63
Exercisable at March 31, 2016	959,561		$	11.20

The Company is accounting for these options at fair market value of the options on the date of grant, with the value being recognized over the requisite service period. The fair value of each option award is estimated using a Black-Scholes option valuation model. Expected volatility is based on the historical volatility of the price of comparable companies' stock. The risk-free interest rate is based on U.S. Treasury issues with a term equal to the expected life of the option. The Company uses historical data to estimate expected dividend yield, expected life and forfeiture rates. Options generally have an expiration of 10 years and vest over a period of 3 or 4 years. There were 235,333 and 310,335 options granted during the nine months ended March 31, 2016 and 2015, respectively. The fair value of the options granted during the nine months ended March 31, 2016 and March 31, 2015 were estimated based on the following weighted average assumptions:



	Nine Months Ended March 31, 2016			Nine Months Ended March 31, 2015
Expected volatility	80		%	80		%
Risk-free interest rate	1.94		%	2.04		%
Expected dividend yield	—			—
Expected life (in years)	6.50			6.50
Estimated fair value per option granted	$	0.33		$	2.55

Compensation expense related to stock options of $380 and $3,700 is included in the accompanying Consolidated Statements of Operations in selling, general and administrative expenses for the nine months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was approximately $185 of total unrecognized stock-based compensation cost which will generally be recognized over a four year period.