Stockholders' Equity

9 Months Ended

Mar. 31, 2015

5.	Stockholders’ Equity

Stock Based Compensation

We recorded stock-based compensation of $290 and $966 for the three and nine months ended March 31, 2015, and $178 and $462 for the three and nine months ended March 31, 2014.

Upon the separation with our Chief Executive Officer in October 2014, in accordance with his employment agreement, all outstanding options and restricted stock awards which would have otherwise vested by July 31, 2015, immediately vested. As a result, the Company recognized $158 of stock compensation expense in general and administrative during the quarter ended December 31, 2014 as the vesting accelerated on 166,667 options and 70,000 restricted stock awards.

The following is a summary of option activity for our stock option plans:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value

Outstanding at June 30, 2014		1,253,035		$	2.08

Granted		1,369,250		$	1.26
Forfeited		(70,000	)	$	2.50
Expired		(169,500	)	$	3.43

Outstanding at March 31, 2015		2,382,785		$	1.50		4.7		--

Vested and Expected to Vest at March 31, 2015		2,050,445		$	1.50		4.5		--

Exercisable at March 31, 2015		961,179		$	1.65		2.9		--

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock. During the nine months ended March 31, 2014, the aggregate intrinsic value of options exercised under the Company’s stock option plans was $4. There were no options exercised during the nine months ended March 31, 2015.

The fair value of the Company’s stock options granted for the nine months ended March 31, 2015 was estimated using the following weighted-average assumptions:

Expected life (years)	4
Risk-free interest rate	1.37	%
Expected volatility	76	%
Dividend yield	0	%

Common Stock Restricted Awards

The following is a summary of restricted stock activity during the nine months ended March 31, 2015:

	Number of Shares			Weighted Average Grant Date Fair Value
Balance at June 30, 2014		803,799		$	1.90
Granted		12,000		$	0.88
Vested		(269,999	)	$	2.01
Forfeited		(10,791	)	$	1.39
Outstanding at March 31, 2015		535,009		$	1.83

In connection with the vesting of the restricted stock awards, the election was made by some of the employees to satisfy the applicable federal income tax withholding obligation by a net share settlement, pursuant to which the Company withheld 85,484 shares and used the deemed proceeds from those shares to pay the income tax withholding. The net share settlement is deemed to be a repurchase by the Company of its common stock.

Warrants

A summary of warrant activity for the nine months ended March 31, 2015 follows:

	Number of Shares			Weighted-Average Exercise Price Per Share		Weighted-Average Contractual Life
Beginning balance		5,113,420		$	2.21		4.1
Warrants granted		--			--
Warrants canceled		(61,020	)	$	2.15
Warrants exercised		--			--
Outstanding at March 31, 2015		5,052,400		$	2.21		3.4
Exercisable at March 31, 2015		5.052,400		$	2.21		3.4

At March 31, 2015, the total intrinsic value of wrrants outstanding and exercisable was $0.