Share-Based Compensation

9 Months Ended

Mar. 31, 2015

4.	Share-Based Compensation

As of March 31, 2015, we had share-based compensation plans which are described in Note 11 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2014. We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. As of March 31, 2015, we had 114,198 stock options outstanding and 346,239 restricted shares outstanding. No stock options were granted or exercised during the nine months ended March 31, 2015, and 69,119 options expired or were forfeited during the nine months ended March 31, 2015. A summary of the activity of our time-based, service condition restricted shares during the nine months ended March 31, 2015, is presented below:

Restricted Stock Awards	Shares			Weighted Average Grant Date Fair Value

Non-vested at July 1, 2014		183,634		$	6.08
Granted		255,000			7.03
Vested		(86,096	)		6.31
Forfeited		(32,186	)		6.18
Non-vested at March 31, 2015		320,352		$	6.77

During the nine months ended March 31, 2015, we released restrictions on 51,293 previously granted performance-based restricted shares, due to the achievement of performance goals attributable to our fiscal year 2014 financial results. A summary of the activity of our performance based restricted shares during the nine months ended March 31, 2015, is presented below:

Performance Stock Awards	Shares			Weighted Average Grant Date Fair Value

Non-vested at July 1, 2014		115,912		$	5.59
Granted		-			-
Vested		(51,293	)		5.30
Forfeited		(38,732	)		5.82
Non-vested at March 31, 2015		25,887		$	5.84

We recorded share-based compensation related to the issuance of restricted stock to employees and board members as follows (in thousands):

	Three Months Ended March 31,						Nine Months Ended March 31,
	2015			2014			2015			2014
Share-based compensation expense included in the Statement of Operations:
Cost of sales		$	13		$	15		$	40		$	43
Sales and marketing			9			43			81			133
Research and development			24			42			75			118
General and administrative			186			154			447			589
Total		$	232		$	254		$	643		$	883

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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