Share-Based Compensation

9 Months Ended

Mar. 31, 2017

Share-based Compensation [Abstract]

Share-Based Compensation

6. Share-Based Compensation

As of March 31, 2017, we had share-based compensation plans which are described in Note 10 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2016. We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. As of March 31, 2017, we had 55,138 stock options outstanding and 589,395 restricted shares outstanding. During the nine months ended March 31, 2017, no stock options were granted or exercised; however, 29,281 stock options were cancelled. We recorded share-based compensation related to the issuance of restricted stock to employees and board members as follows:

 

	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2016		2017		2016
Share-based compensation expense included in  the consolidated statement of operations:
Cost of sales	$	5	$	8	$	19	$	16
Sales and marketing		(51)		40		119		113
Research and development		19		7		48		85
General and administrative		172		124		510		347
Total	$	145	$	179	$	696	$	561

A summary of the activity of our time-based, service condition restricted shares during the nine months ended March 31, 2017, is presented below:

Restricted Stock Awards	Shares		Weighted- Average Grant Date Fair Value
Non-vested at July 1, 2016		464,117	$	5.39
Granted		247,000		5.51
Vested		(83,861)		5.35
Forfeited		(87,861)		5.63
Non-vested at March 31, 2017		539,395	$	5.41

In conjunction with the resignation of one of our directors (See Note 17 – Commitments and Contingencies – Board Representation and Standstill Agreement), we accelerated the vesting of 5,400 shares of restricted stock. This acceleration of vesting resulted in stock compensation expense of $27 during the nine months ended March 31, 2017. 

During the nine months ended March 31, 2017, we issued 50,000 performance-based restricted shares (“PSAs”) to senior and executive management. The PSAs issued in fiscal year 2016 will be released only if certain company financial performance criteria are achieved over a cumulative three-year performance period. The weighted-average grant date fair value per share for these PSAs was established on the date the cumulative three-year performance criteria was approved by our Board of Directors (“Board”).

During the nine months ended March 31, 2017, 5,387 previously granted performance-based restricted shares were forfeited due to a failure to meet performance goals associated with our fiscal year 2016 financial results. A summary of the activity of our performance-based restricted shares during the three months ended March 31, 2017, is presented below:

 

Performance Stock Awards	Shares		Weighted- Average Grant Date Fair Value
Non-vested at July 1, 2016		5,387	$	5.14
Granted		50,000		5.49
Vested		-		-
Forfeited		(5,387)		5.14
Non-vested at March 31, 2017		50,000	$	5.49