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Share-Based Compensation
 3 Months Ended
Sep. 30, 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 September 30, 2012, 226,632 and 75,001 shares under the Employees Stock Option Plan and the Directors Stock Option Plan, respectively, are available to grant in future years. Share-based compensation expense under the Plans for the three months ended September 30, 2012 and 2011 were $29,000 and $12,000, respectively.

Stock Options

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

 

         
    2012   2011

Dividend rate

   None   None

Price volatility

   87%   42%

Risk-free interest rate

   0.9%   0.9%-1.4%

Expected life

   6.0 years   6.5 years

 

As of September 30, 2012, there was an aggregate of $288,000 of unrecognized compensation cost under the Plans related to 344,445 non-vested outstanding stock options with a per share weighted average value of $1.35. The unrecognized expense is anticipated to be recognized on a straight-line basis over a weighted average period of 2.4 years. Following is a summary of stock option activity for the three months ended September 30, 2012 and 2011:

 

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

Outstanding at beginning of period

     591,672     $ 2.48       320,842     $ 3.04  

Granted

     35,000       1.73       115,000       1.80  

Exercised

     —         —         —         —    

Forfeited

     (13,334 )      7.74       —         —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Outstanding at end of period

     613,338     $ 2.33       435,842     $ 2.71  

Exercisable at end of period

     268,893     $ 2.84       228,064     $ 3.44  

Weighted-average fair value per option granted during the period

           $ 1.25             $ 0.78  

Following is a summary of information regarding options outstanding and options exercisable at September 30, 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 $3.48

     548,334       8.9 years     $ 1.94     $ 9,734       203,889       8.1 years     $ 1.97     $ 9,734  

$3.49 to $5.62

     50,003       3.5 years     $ 3.32       —         50,003       3.5 years     $ 4.81       —    

$5.63 to $7.76

     10,001       3.0 years     $ 7.33       —         10,001       3.0 years     $ 7.33       —    

$7.77 to $9.90

     5,000       2.8 years     $ 9.90       —         5,000       2.8 years     $ 9.90       —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

     613,338       8.4 years     $ 2.33     $ 9,734       268,893       7.0 years     $ 2.84     $ 9,734  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Restricted Stock

The following is a summary of restricted share activity for the three months ended September 30, 2012:

 

                 
    Shares     Weighted-Average
Exercise Price		  

Outstanding at beginning of year

     —            

Granted

     35,000     $ 1.73  

Vested

     —         —    

Forfeited

     —         —    
   

 

 

    

 

 

  

Outstanding at end of period

     35,000     $ 1.73  
   

 

 

    

 

 

  

Exercisable at end of period

     —         —    

As of September 30, 2012, there was $44,000 in unrecognized compensation cost related to non-vested outstanding restricted shares. The unrecognized expense is anticipated to be amortized over the next three fiscal years.

There was no restricted share activity during the three months ended September 30, 2011, nor were any restricted shares outstanding during the period.