STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2015

NOTE 7 – STOCK-BASED COMPENSATION

Stock-based compensation cost for options and restricted stock awarded to employees and directors 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). Stock-based compensation costs from performance-based stock option awards are estimated at the date when key terms and conditions of the performance-based stock award are known (the “service inception date”), and in subsequent reporting periods, trued up at the grant date and recognized as expense over the employee’s requisite period (from the service inception date through the end of the vesting period). During the three and six months ended December 31, 2015 and 2014, stock-based compensation amounts are as follows (in thousands):

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

Cost of revenues	$	10	$	6	$	18	$	10
Selling, general and administrative		207		135		340		247
Total	$	217	$	141	$	358	$	257