STOCK-BASED COMPENSATION

9 Months Ended

Mar. 31, 2015

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 nine months ended March 31, 2015 and 2014, stock-based compensation amounts are as follows (in thousands):

	Three-Months Ended				Nine-Months Ended
	March 31,				March 31,
	2015		2014		2015		2014
	(Unaudited)				(Unaudited)
Stock-based compensation expense included in:

Cost of revenue	$	6	$	4	$	16	$	14
Selling, general and administrative		120		118		367		308
Total	$	126	$	122	$	383	$	322

For the three and nine months ended March 31, 2015 and 2014, 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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