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Stock Benefit Plans
 6 Months Ended
Dec. 31, 2012
Stock Benefit Plans

9. Stock Benefit Plans

Stock Incentive Plans

The Company may grant incentive stock options (ISOs), nonstatutory stock options (NQSOs), restricted stock, restricted stock units, stock appreciation rights, performance-based stock awards and other forms of equity compensation, as well as performance cash awards under its 2010 Equity Incentive Plan (the 2010 Incentive Plan), or NQSOs and restricted stock units to non-employee directors under the 2010 Non-Employee Directors’ Stock Award Plan (the Directors’ Plan). To date, the Company has issued only ISOs, NQSOs and restricted stock units under the plans.

As of December 31, 2012, 7,066,233 shares were reserved and 4,271,047 shares were available for issuance under the 2010 Incentive Plan, and 1,170,000 shares were reserved and 763,873 shares were available for issuance under the Directors’ Plan.

Stock-Based Compensation

The Company estimates the fair value of stock options at the date of grant using the Black-Scholes option-pricing model. Options are granted with an exercise price equal to the fair value of the common stock at the date of grant. The weighted average Black-Scholes model assumptions and the weighted average grant date fair value of employee stock options for the three and six months ended December 31, 2012 and 2011 were as follows:

 

     Three Months Ended
December 31,		     Six Months Ended
December 31,		  
     2012     2011     2012     2011  

Expected term (in years)

      4.6        4.6        4.6        4.6   

Expected volatility

      54 %      56 %      55 %      55 % 

Expected dividend yield

      0.0 %      0.0 %      0.0 %      0.0 % 

Risk-free interest rate

      0.8 %      0.9 %      0.7 %      1.1 % 

Grant date fair value

    $ 3.07      $ 5.20      $ 3.97      $ 5.32   

The fair value of restricted stock units is determined based on the closing price of the Company’s common stock on the grant date. Compensation expense is amortized net of estimated forfeitures on a straight-line basis over the requisite service period of the stock-based compensation awards.