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Stockholders’ Equity | 12 Months Ended
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Jun. 30, 2021
Equity [Abstract] |
Stockholders’ Equity | 6. Stockholders’ Equity Stock Incentive Plans We have stock incentive plans in effect under which non-qualified and incentive stock options to purchase shares of Lantronix common stock (“stock options”) have been granted to employees, non-employees and board members. In addition, we have previously granted restricted common stock awards (“non-vested shares”) to employees and board members under these plans. In November 2020, our stockholders voted to approve the 2020 Performance Incentive Plan (the “2020 Plan”), replacing our Amended and Restated 2010 Stock Incentive Plan (the “2010 Plan”), which expired in September 2020. At the 2010 Plan’s expiration date, approximately 1,097,000 shares of our common stock that remained available for award grants under the 2010 Plan became available for award grants under the 2020 Plan. An additional 2,500,000 shares our common stock are also available for award grants under the 2020 Plan. In addition, any shares of common stock subject to outstanding awards under the 2010 Plan that expire, are cancelled, or otherwise terminate after the expiration date of the 2010 Plan will be available for award grant purposes under the 2020 Plan. The 2020 Plan authorizes awards of stock options (both non-qualified and incentive), stock appreciation rights, non-vested shares, restricted stock units (“RSUs”) and performance shares. New shares are issued to satisfy stock option exercises and share issuances. At June 30, 2021, approximately 2,995,000 shares remain available for issuance under the 2020 Plan. We have also granted stock options and RSUs under individual inducement award agreements. The Compensation Committee of our board of directors determines eligibility, vesting schedules and exercise prices for stock options and shares granted under the plans. Stock options are generally granted with an exercise price equal to the market price of our common stock on the grant date. Stock options generally have a contractual term of seven to ten years. Share-based awards generally vest and become exercisable over a one to four-year service period. As of June 30, 2021, no stock appreciation rights or non-vested stock was outstanding. No income tax benefit was realized from activity in the share-based plans during the fiscal years ended June 30, 2021 and 2020. Stock Option Awards The fair value of each stock option grant is estimated on the grant date using the Black-Scholes-Merton option-pricing formula. Expected volatilities are based on the historical volatility of our stock price. The expected term of stock options granted is estimated using the simplified method, as permitted by guidance issued by the Securities and Exchange Commission. We use the simplified method because we believe we are unable to rely on our limited historical exercise data or alternative information as a reasonable basis upon which to estimate the expected term of such options. The risk-free interest rate assumption is based on the U.S. Treasury interest rates appropriate for the expected term of our stock options. The following weighted-average assumptions were used to estimate the fair value of all of our stock option grants:
Schedule of Valuation Assumptions |  |  |  |  |  |  |  |
|  | Years Ended June 30, |
|  | 2021 |  |  | 2020 |
Expected term (in years) |  |  | 7.0 |  |  |  | 4.3 |
Expected volatility |  |  | 69% |  |  |  | 65% |
Risk-free interest rate |  |  | 0.59% |  |  |  | 1.56% |
Dividend yield |  |  | 0.00% |  |  |  | 0.00% |
The following table presents a summary of activity for all of our stock options:
Summary of stock option activity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | Weighted-Average |  |  |  |
|  |  |  |  | Exercise |  |  | Remaining |  |  | Aggregate |
|  | Number of |  |  | Price |  |  | Contractual |  |  | Intrinsic |
|  | Shares |  |  | Per Share |  |  | Term |  |  | Value |
|  | (In thousands) |  |  |  |  |  | (In years) |  |  | (In thousands) |
Balance of options outstanding at June 30, 2020 |  |  | 2,055 |  |  | $ | 2.72 |  |  |  |  |  |  |  |  |
Options granted |  |  | 50 |  |  |  | 4.41 |  |  |  |  |  |  |  |  |
Options forfeited |  |  | (38 | ) |  |  | 1.81 |  |  |  |  |  |  |  |  |
Options expired |  |  | (18 | ) |  |  | 2.20 |  |  |  |  |  |  |  |  |
Options exercised |  |  | (352 | ) |  |  | 1.79 |  |  |  |  |  |  |  |  |
Balance of options outstanding at June 30, 2021 |  |  | 1,697 |  |  | $ | 2.98 |  |  |  | 3.9 |  |  | $ | 3,699 |
Options exercisable at June 30, 2021 |  |  | 1,278 |  |  | $ | 2.71 |  |  |  | 3.5 |  |  | $ | 3,123 |
The following table presents a summary of grant date fair value and intrinsic value information for all of our stock options:
Summary of option grant-date fair value and intrinsic value information |  |  |  |  |  |  |  |
|  | Years Ended June 30, |
|  | 2021 |  |  | 2020 |
|  | (In thousands, except per share data) |
Weighted-average grant date fair value per share |  | $ | 2.84 |  |  | $ | 1.90 |
Intrinsic value of options exercised |  | $ | 1,110 |  |  | $ | 1,850 |
Restricted Stock Units The fair value of our RSUs is based on the closing market price of our common stock on the grant date. The following table presents a summary of activity with respect to our RSUs during the fiscal year ended June 30, 2021:
Summary of other-than-option activity |  |  |  |  |  |  |  |
|  | Number of Shares |  |  | Weighted-Average Grant Date Fair Value per Share |
|  | (In thousands) |  |  |  |
Balance of RSUs outstanding at June 30, 2020 |  |  | 927 |  |  | $ | 3.93 |
Granted |  |  | 400 |  |  |  | 4.69 |
Forfeited |  |  | (45 | ) |  |  | 3.00 |
Vested |  |  | (364 | ) |  |  | 3.77 |
Balance of RSUs outstanding at June 30, 2021 |  |  | 918 |  |  | $ | 4.14 |
Performance Stock Units Fiscal 2021 Grant In November 2020, we granted 415,000 RSUs with performance-based vesting requirements (“performance stock units” or “PSUs”) to certain executive employees. One third of the PSUs are eligible to vest in each of the three years beginning with the fiscal year ended June 30, 2021 if certain earnings per share and revenue targets are met. Fiscal 2020 Grants In October 2019, we granted 975,000 PSUs to certain executive employees. In February 2020, we granted an additional 70,000 PSUs with performance-based vesting requirements and vesting schedule identical to those granted in October 2019. One third of the PSUs are 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 of these awards included the use of a Monte Carlo simulation. The Monte Carlo simulation incorporates estimates of the potential outcomes of the market condition of these awards, which is based on the relative total shareholder return of the Company as compared to that of the Russell Microcap Index. The following table presents a summary of activity with respect to our PSUs during the fiscal year ended June 30, 2021:
Summary of other-than-option activity |  |  |  |
|  | Number of Shares |
|  | (In thousands) |
Balance of PSUs outstanding at June 30, 2020 |  |  | 985 |
Granted |  |  | 415 |
Forfeited |  |  | (115 | )
Vested |  |  | (201 | )
Balance of PSUs outstanding at June 30, 2021 |  |  | 1,084 |
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 ESPP currently operates with six month offering periods commencing on the first trading day on or after May 16 and November 16 of each year (an “Offering Period”). Common stock may be purchased under the ESPP at the end of each six-month Offering Period unless the participant withdraws or terminates employment earlier. Shares of the Company’s common stock may be purchased under the ESPP at a price not less than 85% of the lesser of the fair market value of our common stock on the first or last trading day of each Offering Period. The per share fair value of stock purchase rights granted under the ESPP was estimated using the following weighted-average assumptions:
Schedule of Valuation Assumptions |  |  |  |  |  |  |  |
|  | Years Ended June 30, |
|  | 2021 |  |  | 2020 |
Expected term (in years) |  |  | 0.5 |  |  |  | 0.5 |
Expected volatility |  |  | 62% |  |  |  | 61% |
Risk-free interest rate |  |  | 0.08% |  |  |  | 1.00% |
Dividend yield |  |  | 0.00% |  |  |  | 0.00% |
The following table presents a summary of activity under our ESPP during the fiscal year ended June 30, 2021:
Summary of other-than-option activity |  |  |  |
|  | Year Ended |
|  | June 30, 2021 |
|  | (In thousands, except per share data) |
Shares available for issuance at June 30, 2020 |  |  | 404 |
Shares issued |  |  | (154 | )
Shares available for issuance at June 30, 2021 |  |  | 250 |
Weighted-average purchase price per share |  | $ | 3.36 |
Intrinsic value of ESPP shares on purchase date |  | $ | 225 |
Share-Based Compensation Expense The following table presents a summary of share-based compensation expense included in each applicable functional line item on our consolidated statements of operations:
Schedule of share-based compensation expense by functional line item |  |  |  |  |  |  |  |
|  | Years Ended June 30, |
|  | 2021 |  |  | 2020 |
|  | (In thousands) |
Cost of revenues |  | $ | 281 |  |  | $ | 227 |
Selling, general and administrative |  |  | 2,719 |  |  |  | 2,959 |
Research and development |  |  | 584 |  |  |  | 453 |
Total share-based compensation expense |  | $ | 3,584 |  |  | $ | 3,639 |
The following table presents a summary of the remaining unrecognized share-based compensation expense related to our outstanding share-based awards as of June 30, 2021:
Schedule of unrecognized share-based compensation expense |  |  |  |  |  |  |  |
|  | Remaining Unrecognized Compensation Expense |  |  | Remaining Weighted-Average Years to Recognize |
|  | (In thousands) |  |  |  |
Stock options |  | $ | 864 |  |  |  | 1.7 |
RSUs |  |  | 3,404 |  |  |  | 2.6 |
PSUs |  |  | 958 |  |  |  | 1.5 |
Common stock purchase rights under ESPP |  |  | 86 |  |  |  | 0.4 |
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 expense will increase to the extent that we grant additional share-based awards.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 16 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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