STOCK-BASED COMPENSATION

12 Months Ended

Jun. 30, 2015

NOTE 7 - STOCK BASED COMPENSATION

The Company sponsors the Sharps Compliance Corp. 2010 Stock Plan (the “2010 Plan”) covering employees, consultants and non-employee directors. The 2010 Stock Plan replaced the Sharps Compliance Corp. 1993 Stock Plan (the “1993 Plan”). The 2010 Plan provides for the granting of stock-based compensation (stock options or restricted stock) of up to 3,000,000 shares of the Company’s common stock of which 1,085,245 options and restricted shares are outstanding as of June 30, 2015. Options granted generally vest over a period of three to four years and expire seven years after the date of grant. Restricted stock generally vests over one year.

The 1993 Plan, as amended, provided for the granting of stock-based compensation (stock options or restricted stock) of up to 4,000,000 shares of the Company’s common stock of which 302,558 shares are outstanding as of June 30, 2015. Options granted generally vest over a period of three years and expire seven years after the date of grant. Restricted stock generally vested between one to three years.

As of June 30, 2015, 2014 and 2013, options available for grant under the 2010 Plan are as follows:

June 30,	2010 Stock Plan

2015		1,597,030
2014		139,267
2013		296,308

The summary of activity for all stock options during the fiscal years ended June 30, 2015, 2014 and 2013 is presented in the table below (in thousands except per share amounts):

	Options Outstanding			Weighted Average Exercise Price
Balance at June 30, 2012		1,078		$	4.60
Granted		178		$	2.90
Exercised		(100	)	$	1.62
Forfeited or canceled		(280	)	$	5.82

Balance at June 30, 2013		876		$	4.21
Granted		244		$	3.95
Exercised		(13	)	$	3.53
Forfeited or canceled		(157	)	$	3.50

Balance at June 30, 2014		950		$	4.27
Granted		516		$	4.63
Exercised		(61	)	$	2.30
Forfeited or canceled		(30	)	$	4.68

Balance at June 30, 2015		1,375		$	4.49

Exercisable at June 30, 2015		625		$	4.63

The summary of activity for all restricted stock during the fiscal years ended June 30, 2015, 2014 and 2013 is presented in the table below (in thousands):

	Year Ended June 30,
	2015			2014			2013

Unvested at beginning of the year		15			15			17
Granted		53			62			62
Vested		(55	)		(62	)		(64	)
Unvested at end of the year		13			15			15

The weighted average fair value per share of restricted stock granted during the fiscal years ended June 30, 2015, 2014 and 2013 was $4.28, $4.84 and $2.48, respectively. The weighted average fair value per share of restricted stock which vested during the fiscal years ended June 30, 2015, 2014 and 2013 was $4.44, $4.25 and $3.01, respectively.

The following table summarizes information about stock options outstanding as of June 30, 2015 (in thousands except per share amounts):

		Options Outstanding
	Range of Exercise Price	Outstanding as of June 30, 2015		Weighted Average Remaining Life (in Years)		Weighted Average Exercise Price

$	0.00 - $2.50		56		0.35	$	2.10
$	2.51 - $3.50		173		4.99	$	2.97
$	3.51 - $5.50		939		4.60	$	4.34
$	5.51 - $7.50		110		6.73	$	5.79
$	7.51- $9.50		97		1.12	$	8.50
			1,375			$	4.49

The following table summarizes information about stock options exercisable as of June 30, 2015 (in thousands except per share amounts):

		Options Exercisable
	Range of Exercise Price	Exercisable as of June 30, 2015		Weighted Average Remaining Life (in Years)		Weighted Average Exercise Price

$	0.00 - $2.50		56		0.35	$	2.10
$	2.51 - $3.50		59		4.85	$	2.96
$	3.51 - $5.50		414		2.84	$	4.31
$	5.51 - $7.50		-		-	$	-
$	7.51- $9.50		96		1.12	$	8.50
			625			$	4.63

As of June 30, 2015, there was $0.6 million of stock option and restricted stock compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 3.0 years.