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Share-Based Compensation
 9 Months Ended
Mar. 31, 2012
Share-Based Compensation [Abstract]  
Share-Based Compensation

NOTE 8. 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 March 31, 2012, options to purchase an aggregate of 424,685 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 three months ended March 31, 2012 and 2011 was $40,000 and $16,000, respectively, and for the nine months ended March 31, 2012 and 2011 was $73,000 and $28,000, respectively.

The following weighted-average assumptions were used in the calculation of share-based compensation expense for options granted during the nine months ended March 31, 2012 and 2011:

 

     2012    2011

Dividend rate

    None    None

Price volatility

    62%    43%

Risk-free interest rate

    1.0% - 1.3%    1.8% - 2.1%

Expected life

    6.0 years    6.0 years

 

As of March 31, 2012, there was an aggregate of $160,000 of unrecognized compensation cost under the Plans related to 200,278 non-vested outstanding stock options with a per share weighted average value of $1.46. The unrecognized expense is anticipated to be recognized on a straight-line basis over a weighted average period of 1.6 years. Following is a summary of stock option activity for the nine months ended March 31, 2012 and 2011:

 

     2012      2011  
           Weighted-
Average
Exercise		            Weighted-
Average
Exercise		  
     Shares     Price      Shares     Price  

Outstanding at beginning of period

      320,842      $ 2.71         193,843      $ 3.94   

Granted

      205,000        2.04         115,000        2.01   

Exercised

      —          —           (20,500 )      1.27   

Forfeited

      (47,502 )      2.43         (27,501 )      4.29   
  

 

 

    

 

 

     

 

 

    

 

 

  

Outstanding at end of period

      478,340      $ 2.67         260,842      $ 3.25   

Exercisable at end of period

      278,062      $ 3.15         182,091      $ 3.70   
         

Weighted-average fair value per option granted during the period

      $ 1.16         $ 0.88   
         

Following is a summary of information regarding options outstanding and options exercisable at March 31, 2012:

 

     Options Outstanding      Options Exercisable  

Range of

Exercise Price

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

$1.35 to $2.09

      298,334         8.7 years       $ 1.86       $ 175,267         155,834         8.3 years       $ 1.86       $ 91,992   

$2.34 to $4.68

      136,671         8.1 years         2.99         9,900         78,893         8.2 years         3.47         3,544   

$5.22 to $5.76

      20,001         2.7 years         5.51         —           20,001         2.7 years         5.51         —     

$7.65 to $9.90

      23,334         3.3 years         8.65         —           23,334         3.3 years         8.65         —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      478,340         8.0 years       $ 2.67       $ 185,167         278,062         7.1 years       $ 3.15       $ 95,536