Share-Based Compensation

9 Months Ended

Mar. 31, 2016

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

Share-Based Compensation [Text Block]

13. Share-Based Compensation

 

On December 22, 2015, the Company and its owners approved a 10% pro-rata donation of members’ equity units to treasury units for no consideration. These units were used to retain and attract key members of management in contemplation of the reverse merger. During 2015, the units were committed to three key members of management. On January 12, 2016, the units were awarded with full rights and privileges. The Company has recognized $1,418,000 of share based compensation based on the fair value of the units issued. The fair value of the unit based compensation was determined by using the value of AHC based on published stock values, and discounting them accordingly for lack of marketability and a probability discount associated with certain earn-outs.

Stock option activity under the Company’s stock option plans for employees and non-executive directors for the period ended March 31, 2016 is as follows:

Employees Information	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic value
Outstanding July 1, 2015		-	$	-		-	$	-
Options acquired in merger		182,259		12.45		-		-
Granted		-		-		-		-
Expired/forfeited		-		-		-		-
Outstanding March 31, 2016		182,259		12.45		6.55		49,160
Exercisable March 31, 2016		137,151		13.15		3.14		47,580
Expected to vest at March 31, 2016		35,311	$	10.42		6.59	$	1,238

Non-Executive Director Information	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic value
Outstanding July 1, 2015		-	$	-		-	$	-
Options acquired in merger		433,882		4.46		-		-
Granted		-		-		-		-
Expired/forfeited		-		-		-		-
Outstanding and exercisable March 31, 2016		433,882	$	4.46		7.97	$	481,862

Employee options are granted at the closing price on the day of issuance and typically vest over a three-year period and non-executive director options are granted at market price and vest on the grant date. $58,000 and $1,476,000 of stock based compensation was recognized for the three and nine month period ending March 31, 2016, respectively.

As of March 31, 2016, there was approximately $285,000 of total unrecognized compensation expense related to unvested share-based compensation arrangements that is expected to be recognized over a weighted-average period of 12 months.

As of March 31, 2016, there were approximately 35,800 restricted stock units outstanding that were granted to employees in connection with the Company’s compensation modification program. These restricted stock units vest when the Company achieves cash flow breakeven for two consecutive quarters, as defined.