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Shareholders' Equity and Share-based Compensation | 9 Months Ended
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Mar. 31, 2022
Share-based Payment Arrangement, Noncash Expense [Abstract] |
Shareholders' Equity and Share-based Compensation | Shareholders' Equity and Share-based Compensation Share Repurchase In September 2017, the Board of Directors approved a repurchase program (the “Repurchase Program”) that allowed the Company to repurchase its common shares from the open market pursuant to a pre-established Rule 10b5-1 trading plan or through privately negotiated transactions up to an aggregate of $30.0 million. The amount and timing of any repurchases under the Repurchase Program depend on a number of factors, including but not limited to, the trading price, volume and availability of the Company’s common shares. Shares repurchased under this program are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity. From time to time, treasury shares may be reissued as part of the Company’s share-based compensation programs. Gains on re-issuance of treasury stock are credited to additional paid-in capital; losses are charged to additional paid-in capital to offset the net gains, if any, from previous sales or re-issuance of treasury stock. Any remaining balance of the losses is charged to retained earnings. During the nine months ended March 31, 2022, the Company did not repurchase any shares pursuant to the Repurchase Program. Since the inception of the program, the Company repurchased an aggregate of 6,784,648 shares for a total cost of $67.3 million, at an average price of $9.92 per share, excluding fees and related expenses. No repurchased shares have been retired. Of the 6,784,648 repurchased shares, 166,645 shares with a weighted average repurchase price of $10.07 per share, were reissued at an average price of $5.02 per share pursuant to option exercises and vested restricted share units (“RSU”). As of March 31, 2022, approximately $13.4 million remained available under the Repurchase Program. Time-based Restric ted Stock Units (“TRSU”) The following table summarizes the Company's TRSU activities for the nine months ended March 31, 2022:
| Number of Restricted Stock Units |  | Weighted Average Grant Date Fair Value Per Share |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Nonvested at June 30, 2021 | 1,053,524 |  |  | $ | 21.60 |  |  | 1.73 |  | $ | 32,016,594 |
Granted | 563,681 |  |  | $ | 46.10 |  |  |  |  |
Vested | (380,029) |  |  | $ | 20.01 |  |  |  |  |
Forfeited | (46,251) |  |  | $ | 23.14 |  |  |  |  |
Nonvested at March 31, 2022 | 1,190,925 |  |  | $ | 33.64 |  |  | 1.92 |  | $ | 65,084,051 |
Market-based Restricted Stock Units (“MSU”) In December 2021, the Company granted 1.0 million market-based restricted stock units ("MSUs") to its certain personnel. The number of shares to be earned at the end of performance period is determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2022 to December 31, 2024 as well as the recipients remaining in continuous service with the Company through such period. The MSU vests in four equal annual installments after the end of performance period. The Company estimated the grant date fair values of its MSU with derived service periods of 4.1 to 7.1 years using a Monte-Carlo simulation model with the following assumptions: Risk-free interest rate of 1.0%, expected term of 3.1 years, expected volatility of 62.8% and dividend yield of 0%. The Company recorded approximately $2.0 million and $2.5 million of expenses for these MSUs during the three and nine months ended March 31, 2022, respectively. During the quarter ended September 30, 2018, the Company granted 1.3 million MSUs to certain personnel. The number of shares to be earned at the end of performance period is determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2019 to December 31, 2021 as well as the recipients remaining in continuous service with the Company through such period. The MSUs vest in four equal annual installments after the end of the performance period. The Company estimated the grant date fair values of its MSUs using a Monte-Carlo simulation model. On August 31, 2020, the Compensation Committee of the Board approved a modification of the terms of MSU to (i) extend the performance period through December 31, 2022 and (ii) change the commencement date for the four-year time-based service period to January 1, 2023. The fair value of these MSUs was recalculated to reflect the change as of August 31, 2020 and the unrecognized compensation amount was adjusted to reflect the increase in fair value. The Company recorded approximatel y $0.4 million and $1.2 million of expenses for MSUs during the three and nine months ended March 31, 2022, respectively, and approximately $0.3 million and $0.9 million during the three and the nine months ended March 31, 2021, respectively. Performance-based Restricted Stock Units (“PRSUs”) In March each year since year 2017, the Company granted PRSUs to certain personnel. The number of shares to be earned under the PRSUs is determined based on the level of attainment of predetermined financial goals. The PRSUs vest in four equal annual installments from the first anniversary date after the grant date if certain predetermined financial goals were met. The Company recorded approximately $1.0 million and $3.0 million of expens e for these PRSUs during the three and nine months ended March 31, 2022, respectively and approximatel y $0.5 million and $1.3 million during the three and nine months ended March 31, 2021. During the three months ended June 30, 2019, the Company announced an incentive program. Under this program, each participant’s award is denominated in stock and subject to achievement of certain objective goals within certain timelines. In June 2020, the Company believed it was most likely that predetermined goal measures would be met. Therefore, the Company reported such expenses in the other current liabilities line on the Condensed Consolidated Balance Sheets as the amount of bonus is to be settled in variable number of RSU’s at the completion of the objective goals. Such non-cash compensation expense was recorded as part of share-based compensation exp ense in the Condensed Consolidated Statements of Income. As of March 31, 2022 and June 30, 2021, the Company recorde d nil an d $0.1 million such expenses in the other current liabilities, respectively. The Company recorded nil and $0.3 million such non-cash compensation expense during the three and nine months ended March 31, 2022, respectively, and $0.8 million and $2.2 million during the three and nine months ended March 31, 2021, respectively. As of March 31, 2022, the Company granted RSUs valued at $4.0 million to p articipants, which were fully vested due to achievement of certain objective measures. The following table summarizes the Company’s PRSUs activities for the nine months ended March 31, 2022:
| Number of Performance-based Restricted Stock Units |  | Weighted Average Grant Date Fair Value Per Share |  | Weighted Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
Nonvested at June 30, 2021 | 353,824 |  |  | $ | 22.69 |  |  | 1.74 |  | $ | 10,752,711 |
Granted | 194,000 |  |  | $ | 48.65 |  |  |  |  |
Vested | (151,199) |  |  | $ | 19.44 |  |  |  |  |
Forfeited | (1,000) |  |  | $ | 16.22 |  |  |  |  |
Nonvested at March 31, 2022 | 395,625 |  |  | $ | 36.68 |  |  | 2.11 |  | $ | 21,620,906 |
Stock Options The Company did not grant any stock options during the three and nine months ended March 31, 2022 and 2021. The following table summarizes the Company's stock option activities for the nine months ended March 31, 2022:
|  |  |  |  |  |  | Weighted |  |
|  |  | Weighted |  |  |  | Average |  |
|  |  | Average |  |  |  | Remaining |  |
| Number of |  | Exercise Price |  |  |  | Contractual |  | Aggregate
| Shares |  | Per Share |  |  |  | Term (in years) |  | Intrinsic Value
Outstanding at June 30, 2021 | 487,875 |  |  | $ | 7.99 |  |  |  |  | 2.32 |  | $ | 10,928,653 |
Exercised | (93,000) |  |  | $ | 9.24 |  |  |  |  |  |  |
Outstanding at March 31, 2022 | 394,875 |  |  | $ | 7.70 |  |  |  |  | 1.78 |  | $ | 18,541,050 |
Options vested and expected to vest | 394,875 |  |  | $ | 7.70 |  |  |  |  | 1.78 |  | $ | 18,541,050 |
Exercisable at March 31, 2022 | 394,875 |  |  | $ | 7.70 |  |  |  |  | 1.78 |  | $ | 18,541,050 |
Employee Share Purchase Plan (“ESPP”) The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:
| Nine Months End March 31,
| 2022 |  |
Volatility rate | 66.4% |  |
Risk-free interest rate | 0.3% |  |
Expected term | 1.3 years |  |
Dividend yield | 0% |  |
Share-based Compensation Expense T he total share-based compensation expense recognized in the Condensed Consolidated Statements of Income for the periods presented was as follows:
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2022 |  | 2021 |  | 2022 |  | 2021
| (in thousands) |  | (in thousands)
Cost of goods sold | $ | 1,282 |  |  | $ | 427 |  |  | $ | 3,560 |  |  | $ | 1,195 |
Research and development | 1,814 |  |  | 1,316 |  |  | 4,769 |  |  | 3,639 |
Selling, general and administrative | 5,177 |  |  | 2,082 |  |  | 13,125 |  |  | 5,091 |
| $ | 8,273 |  |  | $ | 3,825 |  |  | $ | 21,454 |  |  | $ | 9,925 |
As of March 31, 2022, total unrecognized compensation cost under the Company's equity plans was $86.2 million, which is expected to be recognized over a weighted-average period of 3.5 years.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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