STOCK BASED COMPENSATION

9 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation Plans

The Company’s 2010 Equity Incentive Plan and 2005 Equity Incentive Plan are described in the Company’s Annual Report.

In December 2020, the Company's stockholders approved the Ubiquiti Inc. 2020 Omnibus Incentive Plan (the “2020 Equity Plan”) that will succeed the Company's 2010 Equity Incentive Plan (the “Prior Plan”), and no additional awards will be granted under the Prior Plan following January 31, 2021. Under the terms of the 2020 Equity Plan, the Company is authorized to grant awards for up to five million shares of common stock over the term of the 2020 Equity Plan. Outstanding awards under the Prior Plan remain in effect pursuant to the terms of the Prior Plan.

As of March 31, 2021, the Company had 4,989,876 authorized shares available for future issuance under all of its stock incentive plans.

Stock-Based Compensation

The following table shows total stock-based compensation expense included in the Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Cost of revenues	$	23	$	29	$	80	$	94
Research and development	538		499		1,560		1,507
Sales, general and administrative	214		197		625		543
	$	775	$	725	$	2,265	$	2,144

Stock Options

The following is a summary of option activity for the Company’s stock incentive plans for the nine months ended March 31, 2021:


	Common Stock Options Outstanding
	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (In thousands)
Balance, June 30, 2020	22,265	$	11.07	2.16	$	3,640

Exercised	(8,950)	$	10.20
Forfeitures and cancellations	(6)	$	2.90
Balance, March 31, 2021	13,309	$	11.65	1.56	$	3,815
Vested as of March 31, 2021	13,309	$	11.65	1.56	$	3,815
Vested and exercisable as of March 31, 2021	13,309	$	11.65	1.56	$	3,815

During the three months ended March 31, 2021 and 2020, the aggregate intrinsic value of options exercised under the Company’s stock incentive plans was $1.4 million and $0.3 million, respectively, as determined as of the date of option exercise.

During the nine months ended March 31, 2021 and 2020, the aggregate intrinsic value of options exercised under the Company’s stock incentive plans was $2.4 million and $3.5 million, respectively, as determined as of the date of options exercise.

As of March 31, 2021, the Company had no unrecognized compensation costs related to stock options.

The Company did not grant any employee stock options during the three and nine months ended March 31, 2021 and 2020.

Restricted Stock Units (“RSUs”)

The following table summarizes the activity of the RSUs made by the Company:


	Number of Shares	Weighted Average Grant Date Fair Value Per Share
Non-vested RSUs, June 30, 2020	82,571	$	99.57
RSUs granted	14,880	$	249.02
RSUs vested	(33,335)	$	86.07
RSUs canceled	(2,001)	$	105.82
Non-vested RSUs, March 31, 2021	62,115	$	142.42

The intrinsic value of RSUs vested in the three months ended March 31, 2021 and 2020 was $3.2 million and $3.3 million, respectively.

The intrinsic value of RSUs vested in the nine months ended March 31, 2021 and 2020 was $7.7 million and $6.7 million, respectively.

The total intrinsic value of all outstanding RSUs was $18.5 million as of March 31, 2021.

As of March 31, 2021, there were unrecognized compensation costs related to RSUs of $6.6 million which the Company expects to recognize over a weighted average period of 3.4 years.