6.	Share-Based Compensation

As of September 30, 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, 2017. We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. As of September 30, 2017, we had 3,000 stock options outstanding and 489,424 restricted shares outstanding. During the three months ended September 30, 2017, no stock options were granted or exercised; however, 27,881 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
	September 30,
	2017		2016

Share-based compensation expense included in the consolidated statement of operations:
Cost of sales	$	6	$	2
Sales and marketing		44		62
Research and development		17		(1)
General and administrative		154		154
Total	$	221	$	217

A summary of the activity of our time-based, service condition restricted shares during the three months ended September 30, 2017, is presented below:

			Weighted-
			Average
			Grant Date
Restricted Stock Awards	Shares		Fair Value

Non-vested at July 1, 2017		440,613	$	5.45
Granted		50,400		5.66
Vested		(31,589)		5.61
Forfeited		(20,000)		6.05
Non-vested at September 30, 2017		439,424	$	5.43

In conjunction with the resignation of three of our independent directors (see Note 17 – Commitments and Contingencies – Resignation of Directors), we accelerated the vesting of 5,400 shares of restricted stock held by each of the resigning directors. This acceleration of vesting resulted in incremental stock compensation expense of $37 during the three months ended September 30, 2017.

During the three months ended September 30, 2017, 50,000 performance-based restricted shares (“PSAs”) to senior and executive management previously issued during fiscal year 2017 at a weighted-average grant date fair value of $5.49 remain outstanding. The PSAs issued in fiscal year 2017 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. As of September 30, 2017, management determined that the likelihood of achieving the specific three-year performance criteria was not probable and, as a result, no share-based compensation expense associated with these PSAs was recorded for the three months ended September 30, 2017.