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8. Stockholders' Equity

9 Months Ended

Mar. 31, 2020

Equity [Abstract]

Stockholders' Equity

8.	Stockholders’ Equity

Stock Incentive Plans

Our stock incentive plans permit the granting of stock options (both incentive and nonqualified stock options), RSUs, stock appreciation rights, non-vested stock, and performance shares to certain employees, directors and consultants. As of March 31, 2020, no stock appreciation rights or non-vested stock was outstanding.

Stock Options

The following table presents a summary of activity during the nine months ended March 31, 2020 with respect to our stock options:

							Weighted-
							Average
			Number of				Exercise Price
			Shares				per Share
				(In thousands)
Balance of options outstanding at June 30, 2019				3,147			$	2.29
Granted				248				3.33
Forfeited				(179	)			2.35
Expired				(76	)			2.21
Exercised				(834	)			1.76
Balance of options outstanding at March 31, 2020				2,306			$	2.58

Restricted Stock Units

The following table presents a summary of activity during the nine months ended March 31, 2020 with respect to our RSUs:

							Weighted-
							Average
							Grant Date
			Number of				Fair Value
			Shares				per Share
				(In thousands)
Balance of RSUs outstanding at June 30, 2019				866			$	4.24
Granted				431				3.32
Vested				(203	)			4.68
Forfeited				(109	)			3.76
Balance of RSUs outstanding at March 31, 2020				985			$	3.80

Performance Stock Units

In October 2019, we granted 975,000 RSUs with performance-based vesting requirements (“performance stock units” or “PSUs”) to certain executive employees. In February 2020, we granted an additional 70,000 RSUs with performance-based vesting requirements and vesting schedule identical to those granted in October 2019. One third of the PSUs will be eligible to vest in each of the three years beginning in fiscal 2020 if certain earnings per share, revenue targets and market conditions are met. The estimate of the grant date fair value and related share-based compensation expense included the use of a Monte Carlo simulation which incorporates estimates of the potential outcomes of the market condition of these awards.

Employee Stock Purchase Plan

Our 2013 Employee Stock Purchase Plan (“ESPP”) is intended to provide employees with an opportunity to purchase our common stock through accumulated payroll deductions at the end of a specified purchase period. Each of our employees (including officers) is eligible to participate in our ESPP, subject to certain limitations as set forth in our ESPP.

The following table presents a summary of activity under our ESPP during the nine months ended March 31, 2020:

			Number of
			Shares
				(In thousands)
Shares available for issuance at June 30, 2019				517
Shares issued				(64	)
Shares available for issuance at March 31, 2020				453

Share-Based Compensation Expense

The following table presents a summary of share-based compensation expense included in each functional line item on our accompanying unaudited condensed consolidated statements of operations:

		Three Months Ended								Nine Months Ended
		March 31,								March 31,
		2020				2019				2020				2019
		(In thousands)
Cost of revenue		$	70			$	22			$	142			$	62
Selling, general and administrative			939				213				2,176				950
Research and development			123				96				331				248
Total share-based compensation expense		$	1,132			$	331			$	2,649			$	1,260

The following table presents the remaining unrecognized share-based compensation expense related to our outstanding share-based awards as of March 31, 2020:

		Remaining				Remaining
		Unrecognized				Weighted-
		Compensation				Average Years
		Expense				To Recognize
			(In thousands)
Stock options		$	1,494				2.6
RSUs			3,309				3.2
PSUs			1,205				2.3
Stock purchase rights under ESPP			13				0.1
		$	6,021

If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate, increase or cancel remaining unearned share-based compensation expense. Future share-based compensation expense and unearned share-based compensation will increase to the extent that we grant additional share-based awards.