STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2014

NOTE 7 – STOCK-BASED COMPENSATION

Stock-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). Reductions in taxes payable resulting from tax deductions that exceed the recognized tax benefit associated with compensation expense (excess tax benefits) are classified as financing cash flows and as an increase to additional paid in capital. During the three and six months ended December 31, 2014 and 2013, stock-based compensation amounts are as follows (in thousands):

	Three-Months Ended				Six-Months Ended
	December 31,				December 31,
	2014		2013		2014		2013
	(Unaudited)				(Unaudited)
Stock-based compensation expense included in:

Cost of revenue	$	6	$	4	$	10	$	10
Selling, general and administrative expense		135		115		247		190
Total	$	141	$	119	$	257	$	200

For the three and six months ended December 31, 2014 and 2013, excess tax benefits have been eliminated by the valuation allowance on the deferred tax assets.

- 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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