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Compensatory Equity Incentive Plan and Other Equity Incentives | 12 Months Ended
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Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Compensatory Equity Incentive Plan and Other Equity Incentives | 8. Compensatory Equity Incentive Plan and Other Equity Incentives Share-based payment arrangements — The Plan included several available forms of stock compensation of which incentive stock options, non-qualified stock options and restricted stock units have been granted to date. These plans are summarized below:
|  |  |  | Award Shares |  | Available for
|  | Award Shares |  | Outstanding |  | Issuance
|  | Authorized |  | at June 30, |  | at June 30,
Equity Compensation Arrangement |  |  |  | 2015 |  | 2015
Amended and Restated Omnibus Incentive Plan |  |  | 3,915,625 |  |  |  | 1,797,783 |  |  |  | 1,478,778 |
Employee Stock Purchase Plan |  |  | 400,000 |  |  |  | — |  |  |  | 400,000 |
|  |  | 4,315,625 |  |  |  | 1,797,783 |  |  |  | 1,878,778 |
The 2004 Employee Stock Purchase Plan (“ESPP”) permitted employees to purchase common stock through payroll deductions, not to exceed 15% of an employee’s compensation, at a price not less than 85% of the market value of the stock on specified dates (June 30 and December 31). In no event could any participant purchase more than $25,000 worth of shares of Class A common stock in any calendar year and an employee could purchase no more than 4,000 shares on any purchase date within an offering period of 12 months and 2,000 shares on any purchase date within an offering period of six months. The ESPP expired on December 6, 2014, and was replaced by the LightPath Technologies, Inc. Employee Stock Purchase Plan (“2014 ESPP”), which was adopted by the Company’s Board of Directors on October 30, 2014 and approved by the Company’s stockholders on January 29, 2015. The 2014 ESPP permits employees to purchase common stock through payroll deductions, which may not exceed 15% of an employee’s compensation, at a price not less than 85% of the market value of the stock on specified dates (June 30 and December 31). In no event can any participant purchase more than $25,000 worth of shares of Class A common stock in any calendar year and an employee cannot purchase more than 8,000 shares on any purchase date within an offering period of 12 months and 4,000 shares on any purchase date within an offering period of six months. This discount of $1,356 and $755 for fiscal 2015 and 2014, respectively, is included in the selling, general and administrative expense in the accompanying consolidated statements of operations and comprehensive loss. Grant Date Fair Values and Underlying Assumptions; Contractual Terms—The Company estimates the fair value of each stock option as of the date of grant. The Company uses the Black-Scholes-Merton pricing model. The ESPP or the 2014 ESPP fair value is the amount of the discount the employee obtains at the date of the purchase transaction. For stock options and restricted stock units (“RSUs”) granted in the years ended June 30, 2015 and 2014, the Company estimated the fair value of each stock award as of the date of grant using the following assumptions:
| Year Ended |  | Year Ended
| June 30, 2015 |  | June 30, 2014
Expected volatility |  | 103% - 104% |  |  |  | 105% - 123% |
Weighted average expected volatility |  | 103% - 104% |  |  |  | 105% - 123% |
Dividend yields |  | 0% |  |  |  | 0% |
Risk-free interest rate |  | 1.64% - 1.77% |  |  |  | 1.60% - 2.81% |
Expected term, in years |  | 7.49 |  |  |  | 3 - 7 |
Most options granted under the Plan vest ratably over two to four years and are generally exercisable for ten years. The assumed forfeiture rates used in calculating the fair value of options and restricted stock unit grants with both performance and service conditions were 20% for each of the years ended June 30, 2015 and 2014. The volatility rate and expected term are based on seven-year historical trends in Class A common stock closing prices and actual forfeitures. The interest rate used is the U.S. Treasury interest rate for constant maturities. Information Regarding Current Share Based Payment Awards—A summary of the activity for share-based payment awards in the years ended June 30, 2015 and 2014 is presented below:
|  |  |  |  |  |  |  | Restricted
|  |  |  |  |  |  | Stock Options |  |  |  |  |  |  |  | Stock Units (RSUs) |
|  |  |  |  |  |  | Weighted |  |  |  | Weighted |  |  |  |  |  |  |  | Weighted |
|  |  |  |  |  |  | Average |  |  |  | Average |  |  |  |  |  |  |  | Average |
|  |  |  |  |  |  | Exercise |  |  |  | Remaining |  |  |  |  |  |  |  | Remaining |
|  |  |  |  |  |  | Price |  |  |  | Contract |  |  |  |  |  |  |  | Contract |
|  |  | Shares |  |  |  | (per share) |  |  |  | Life (YRS) |  |  |  | Shares |  |  |  | Life (YRS) |
Options Outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2013 |  |  | 585,009 |  |  | $ | 2.38 |  |  |  | 5.9 |  |  |  | 834,700 |  |  |  | 1.1 |
Granted |  |  | 83,000 |  |  |  | 1.41 |  |  |  | 9.4 |  |  |  | 212,760 |  |  |  | 2.3 |
Exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (191,160 | ) |  |  | — |
Cancelled |  |  | (13,851 | ) |  |  | 2.40 |  |  |  | — |  |  |  | — |  |  |  | — |
June 30, 2014 |  |  | 654,158 |  |  | $ | 2.25 |  |  |  | 5.5 |  |  |  | 856,300 |  |  |  | 0.9 |
Granted |  |  | 103,000 |  |  | $ | 1.35 |  |  |  | 9.4 |  |  |  | 219,000 |  |  |  | 2.3 |
Exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Cancelled/Forfeited |  |  | (34,675 | ) |  | $ | 3.06 |  |  |  | 2.9 |  |  |  | — |  |  |  | — |
June 30, 2015 |  |  | 722,483 |  |  | $ | 2.08 |  |  |  | 5.3 |  |  |  | 1,075,300 |  |  |  | 0.9 |
Awards exercisable/ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
vested as of |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2015 |  |  | 497,983 |  |  | $ | 2.44 |  |  |  | 3.9 |  |  |  | 671,430 |  |  |  | — |
Awards unexercisable/ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
unvested as of |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2015 |  |  | 224,500 |  |  | $ | 1.29 |  |  |  | 8.5 |  |  |  | 403,870 |  |  |  | 0.9 |
|  |  | 722,483 |  |  |  |  |  |  |  |  |  |  |  | 1,075,300 |  |  |  |  |
The total intrinsic value of share options exercised for years ended June 30, 2014 and 2013 was $0. The total intrinsic value of shares options outstanding and exercisable at both June 30, 2015 and 2014 was $86,000 and $22,000, respectively. The total fair value of shares options vested during the years ended June 30, 2015 and 2014 was $92,000 and $122,000, respectively. The total intrinsic value of RSUs exercised during the years ended June 30, 2015 and 2014 was $0 and $289,000, respectively. The total intrinsic value of RSUs outstanding and exercisable at June 30, 2015 and 2014 was $1.18 million and $683,000, respectively. The total fair value of RSUs vested during the years ended June 30, 2015 and 2014 was $200,000 and $334,000, respectively. As of June 30, 2015 there was $462,548 of total unrecognized compensation cost related to non-vested share-based compensation arrangements (including share options and restricted stock units) granted under the Plan. The cost expected to be recognized as follows:
|  |  |  | Restricted |  |
|  |  |  | Stock |  |
|  | Stock |  | Share/ |  |
|  | Options |  | Units |  | Total
| Year ended June 30, 2016 |  |  | $ | 44,425 |  |  | $ | 211,931 |  |  | $ | 256,356 |
| Year ended June 30, 2017 |  |  |  | 34,682 |  |  |  | 120,513 |  |  |  | 155,195 |
| Year ended June 30, 2018 |  |  |  | 20,915 |  |  |  | 24,906 |  |  |  | 45,821 |
| Year ended June 30, 2019 |  |  |  | 5,176 |  |  |  | — |  |  |  | 5,176 |
|  |  |  | $ | 105,198 |  |  | $ | 357,350 |  |  | $ | 462,548 |
The table above does not include shares under the Company’s 2014 ESPP, which has purchase settlement dates in the second and fourth fiscal quarters. The Company’s 2014 ESPP is not administered with a look back option provision and, as a result, there is not a population of outstanding option grants during the employee contribution period. RSU awards vest immediately or from two to four years from the grant date. The Company issues new shares of common stock upon the exercise of stock options. The following table is a summary of the number and weighted average grant date fair values regarding our unexercisable/unvested awards as of June 30, 2015 and 2014 and changes during the two years then ended:
Unexercisable/unvested awards |  | Stock Options Shares |  | RSU Shares |  | Total Shares |  | Weighted-Average Grant Date Fair Values (per share)
June 30, 2013 |  |  | 183,250 |  |  |  | 371,670 |  |  |  | 554,920 |  |  | $ | 1.57 |
Granted |  |  | 83,000 |  |  |  | 212,760 |  |  |  | 295,760 |  |  | $ | 1.36 |
Vested |  |  | (73,250 | ) |  |  | (230,127 | ) |  |  | (303,377 | ) |  | $ | 1.36 |
Cancelled/Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
June 30, 2014 |  |  | 193,000 |  |  |  | 354,303 |  |  |  | 547,303 |  |  | $ | 1.18 |
Granted |  |  | 103,000 |  |  |  | 219,000 |  |  |  | 322,000 |  |  | $ | 1.30 |
Vested |  |  | (71,500 | ) |  |  | (169,433 | ) |  |  | (240,933 | ) |  | $ | 1.28 |
Cancelled/Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
June 30, 2015 |  |  | 224,500 |  |  |  | 403,870 |  |  |  | 628,370 |  |  | $ | 1.10 |
Acceleration of Vesting—The Company does not generally accelerate the vesting of any stock options. Upon the death of one of the former members of the Company’s Board of Directors in fiscal 2014, 75,460 of his RSUs vested on an accelerated basis. Financial Statement Effects and Presentation—The following table shows total stock-based compensation expense for the years ended June 30, 2015 and 2014 included in the Consolidated Statement of Operations and Comprehensive Loss:
| Year ended |  | Year ended
| June 30, |  | June 30,
| 2015 |  | 2014
Stock options | $ | 53,583 |  |  | $ | 68,113 |
RSU |  | 231,367 |  |  |  | 288,702 |
Total | $ | 284,950 |  |  | $ | 356,815 |
The amounts above were included in: |  |  |  |  |  |  |
General & administrative | $ | 273,379 |  |  | $ | 346,119 |
Cost of sales |  | 158 |  |  |  | — |
New product development |  | 11,413 |  |  |  | 10,696 |
| $ | 284,950 |  |  | $ | 356,815 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51659978&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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