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Share-Based Compensation
 12 Months Ended
Jun. 30, 2012
Share-Based Compensation [Abstract]  
SHARE-BASED COMPENSATION

NOTE 9 – SHARE-BASED COMPENSATION

We have two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the “Employees Stock Option Plan”) and the Amended and Restated 2004 Directors Stock Option Plan (the “Directors Stock Option Plan”) (collectively, the “Plans”), pursuant to which (i) options to purchase shares of common stock, or (ii) restricted shares of common stock, may be granted up to an aggregate amount of 1,333,333 common shares, with 1,066,667 and 266,666 shares distributed between the Employees Stock Option Plan and the Directors Stock Option Plan, respectively. The Plans are substantially similar, providing for a strike price equal to the closing price for a share of our common stock as of the last business day immediately prior to the Grant Date, vesting periods, as determined by the Board for the Employees Stock Option Plan and six months for the Directors Stock Option Plan, and terms of up to ten years, subject to forfeit 30 days after the holder ceases to be an employee or 90 days after the holder ceases to be director, as the case may be. At June 30, 2012, options to purchase an aggregate of 286,632 and 71,667 shares under the Employees Stock Option Plan and the Directors Stock Option Plan, respectively, are available to grant in future years. Aggregate share-based compensation expense under the Plans for the years ended June 30, 2012 and 2011 were $108,00 and $43,000, respectively.

The following weighted average assumptions were used in the calculation of share-based compensation expense for options granted during the years ended June 30, 2012 and 2011:

 

                 
    2012     2011  

Dividend rate

     None       None  

Price volatility

     75 %      48 % 

Risk-free interest rate

     0.9% - 1.3 %      1.8% - 2.1 % 

Expected life

     5.9 years       6.1 years  

As of June 30, 2012, there was an aggregate of $282,000 of unrecognized compensation cost under the Plans related to 315,000 non-vested outstanding stock options with a per share weighted average value of $1.94. The unrecognized expense is anticipated to be recognized on a straight-line basis over a weighted average period of 2.0 years.

 

The following is a summary of stock option activity under the Plans for the years ended June 30, 2012 and 2011:

 

                                 
    2012     2011  
         

Weighted-

Average

          

Weighted-

Average

  
          Exercise           Exercise  
    Shares     Price     Shares     Price  

Outstanding at beginning of period

     320,842     $ 3.04       193,843     $ 3.94  

Granted

     425,000       2.01       175,000       2.05  

Exercised

     —         —         (20,500 )      1.27  

Repurchased

     (24,722 )      1.96       —         —    

Forfeited

     (129,448 )      2.41       (27,501 )      4.37  
   

 

 

    

 

 

    

 

 

    

 

 

  

Outstanding at end of period

     591,672     $ 2.48       320,842     $ 3.04  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Exercisable at end of period

     276,951     $ 3.10       218,898     $ 3.50  
         

Weighted-average fair value per option granted during the period

           $ 1.43             $ 0.91  

The following table summarizes information regarding options outstanding and options exercisable under the Plans at June 30, 2012:

 

                                                         
    Options Outstanding     Options Exercisable  

Range of Exercise Price

   Number
Outstanding		     Weighted-
Average
Remaining
Contractual
Life		   Weighted-
Average
Exercise
Price 		    Aggregate
Intrinsic
Value		     Number
Outstanding		     Weighted-
Average
Remaining
Contractual
Life		   Weighted-
Average
Exercise
Price		     Aggregate
Intrinsic
Value		  

$1.35 to $2.09

     468,334     9.2 years   $ 1.91     $ 51,417       153,613     8.2 years   $ 1.85     $ 30,709  

$2.34 to $4.68

     80,003     7.0 years     3.29       —         80,003     7 years     3.29       —    

$5.22 to $5.76

     20,001     2.5 years     5.51       —         20,001     2.5 years     5.51       —    

$7.65 to $9.90

     23,334     3.0 years     8.65       —         23,334     3.1 years     8.65       —    
   

 

 

    

 

  

 

 

    

 

 

    

 

 

    

 

  

 

 

    

 

 

  

Total

     591,672     8.4 years   $ 2.48     $ 51,417       276,951     7.0 years   $ 3.10     $ 30,709