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SHARE-BASED COMPENSATION | 12 Months Ended
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Jun. 30, 2022
Share-Based Payment Arrangement [Abstract] |
SHARE-BASED COMPENSATION |
| 11. | SHARE-BASED COMPENSATION
Stock Option Plans Through 2014, we had two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the “Employee Stock Option Plan”) and the Amended and Restated 2004 Directors’ Stock Option Plan (the “Directors’ Stock Option Plan”) (collectively, the “Former Stock Option Plans”). The Employee Stock Option Plan and Director’s Stock Option Plan were terminated in June 2014 and December 2014, respectively. In September 2016, our Board approved the establishment of the 2016 Equity Incentive Plan, which was approved by our shareholders at our 2016 Annual Meeting. The 2016 Equity Incentive Plan provides for the award of up to 1,500,000 shares of our common stock in the form of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted shares, restricted stock units, performance awards, and other stock-based awards. Former Stock Option Plans No options were granted under the Former Stock Option Plans during the fiscal years ended June 30, 2022 and 2021. As of June 30, 2022, there was no unrecognized compensation cost under the Former Stock Option Plans as all outstanding stock options are fully vested. The intrinsic value of stock options outstanding and exercisable at June 30, 2022, was approximately $92,000 with a weighted-average remaining contractual term of 0.29 years at June 30, 2022. The following is a summary of stock option activity under the Former Stock Option Plans for the fiscal years ended June 30, 2022 and 2021:
Schedule of summary of stock option activity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2022 |  |  | 2021 |
|  | Number of Shares |  |  | Weighted-Average Exercise Price |  |  | Number of Shares |  |  | Weighted-Average Exercise Price |
Outstanding at July 1, |  |  | 31,500 |  |  | $ | 1.81 |  |  |  | 54,000 |  |  | $ | 1.86 |
Options granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Options exercised |  |  | (25,000 | ) |  |  | 1.80 |  |  |  | (22,500 | ) |  |  | 1.94 |
Options forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding at end of period |  |  | 6,500 |  |  | $ | 1.82 |  |  |  | 31,500 |  |  | $ | 1.81 |
Stock Options Exercisable at June 30, |  |  | 6,500 |  |  | $ | 1.82 |  |  |  | 31,500 |  |  | $ | 1.81 |
Performance Awards In December 2017, the Compensation Committee of our Board of Directors granted 200,000 performance awards to our employees, which upon vesting will generally be paid in shares of our common stock. Whether any performance awards vest, and the amount that does vest, is tied to the completion of service periods that range from 7 months to 9.5 years at inception and the achievement of our common stock trading at certain pre-determined prices. The weighted-average fair value of the performance awards granted was $4.46, calculated using the weighted-average fair market value for each award, using a Monte Carlo simulation. In February 2020, the Compensation Committee reallocated 48,000 previously forfeited awards, having the same remaining terms and conditions, to certain current employees. The weighted average fair value of the performance awards granted in fiscal 2020 was $16.90, calculated using the weighted-average fair market value for each award, using a Monte Carlo simulation. In December 2021, the Compensation Committee reallocated an additional 17,500 previously forfeited awards, having the same remaining terms and conditions, to other employees. The weighted average fair value of the performance awards reallocated in 2021 was $20.34, calculated using the weighted average fair market value for each award, using a Monte Carlo simulation. We recorded share-based compensation expense of $194,000 and $84,000 for the fiscal years ended June 30, 2022 and 2021, respectively, related to these performance awards. On June 30, 2022, there was approximately $322,000 of unrecognized compensation cost related to these non-vested performance awards expected to be expensed over the weighted-average period of 1.97 years. On July 1, 2020, it was determined by the Compensation Committee that the second of five tranches of the performance awards had been achieved and participants were awarded 40,000 shares of common stock. Each participant elected a net issuance to cover their individual withholding taxes in the amount of $259,000 and therefore we issued 25,629 shares with an effective date of July 16, 2020, coinciding with the pay date that included July 1, 2020. The following is a summary of performance awards activity for the fiscal years ended June 30, 2022 and 2021:
Schedule of summary of stock option activity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 2022 |  |  | 2021 |
|  |  | Number of Shares |  |  | Weighted-Average Grant Date Fair Value |  |  | Number of Shares |  |  | Weighted-Average Grant Date Fair Value |
Outstanding at July 1, |  |  |  | 105,000 |  |  | $ | 8.73 |  |  |  | 160,000 |  |  | $ | 8.19 |
Granted |  |  |  | 17,500 |  |  |  | 20.34 |  |  |  | — |  |  |  | — |
Vested |  |  |  | — |  |  |  | — |  |  |  | (40,000 | ) |  |  | 8.19 |
Forfeited |  |  |  | (5,000 | ) |  |  | 4.46 |  |  |  | (15,000 | ) |  |  | 4.46 |
Outstanding at end of period |  |  |  | 117,500 |  |  | $ | 10.64 |  |  |  | 105,000 |  |  | $ | 8.73 |
Non-Qualified Stock Options In December 2020, the Compensation Committee of our Board of Directors granted 310,000 non-qualified stock options to our directors and certain employees under the 2016 Equity Incentive Plan. Whether any stock options vest, and the amount that does vest, is tied to the completion of service periods that range from 18 months to 10.5 years at inception and the achievement of our common stock trading at certain pre-determined prices. We recorded compensation expense of $1,070,000 and $624,000 for the fiscal year ended June 30, 2022 and 2021, respectively, related to these options. The weighted average fair value of the stock option awards granted was $16.72, calculated using a Monte Carlo simulation. As of June 30, 2022, there was approximately $3.1 million of unrecognized compensation cost related to these non-vested non-qualified stock options. In February 2021, the Compensation Committee of our Board of Directors granted 62,000 non-qualified stock options to our directors and certain employees under the 2016 Equity Incentive Plan. Whether any stock options vest, and the amount that does vest, was tied to the completion of service periods that ranged from 4 months to 1.3 years at inception and the achievement of our common stock trading at certain pre-determined prices. Of these 62,000 stock options, 57,750 vested on July 1, 2021, as our common stock met the pre-determined prices set forth in the underlying agreements. We recorded compensation expense of $182,000 for the fiscal year ended June 30, 2021 related to these options. The weighted average fair value of the stock option awards granted was $3.16, calculated using a Monte Carlo simulation. In December 2021 the Compensation Committee of our Board of Directors granted, 5,000 previously forfeited non-qualified stock options to another employee. The following is a summary of non-qualified stock option activity under the 2016 Equity Incentive Plan for the fiscal year ended June 30, 2022 and 2021:
Schedule of summary of stock option activity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2022 |  |  | 2021 |
|  | Number of Shares |  |  | Weighted-Average Exercise Price |  |  | Number of Shares |  |  | Weighted-Average Exercise Price |
Outstanding at July 1, |  |  | 346,500 |  |  | $ | 41.83 |  |  |  | — |  |  | $ | — |
Options granted |  |  | 5,000 |  |  |  | 44.70 |  |  |  | 372,000 |  |  |  | 41.83 |
Options exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Options forfeited |  |  | (5,000 | ) |  |  | 44.70 |  |  |  | (25,500 | ) |  |  | 41.83 |
Outstanding at end of period |  |  | 346,500 |  |  | $ | 41.83 |  |  |  | 346,500 |  |  | $ | 41.83 |
Stock Options Exercisable at June 30, |  |  | 57,750 |  |  | $ | 27.50 |  |  |  | — |  |  |  | — |
Employee Stock Purchase Plan In September 2014, our Board approved the establishment of an Employee Stock Purchase Plan (the “ESPP”). The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase periods of six months, and bases the pricing at which participant’s purchase shares of our common stock on a formula so as to result in a per share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. Our Board of Directors also approved the provision that shares formerly reserved for issuance under the Former Stock Option Plans in excess of shares issuable pursuant to outstanding options, aggregating 704,715 shares, be reserved for issuance pursuant to the ESPP. The ESPP was approved by our shareholders at our 2014 Annual Meeting. On February 2, 2015, the Company filed a Registration Statement on Form S-8 registering the 704,715 shares issuable under the ESPP under the Securities Act of 1933. During the fiscal years ended June 30, 2022 and 2021, shares totaling 2,576 and 2,677, respectively, were purchased pursuant to the ESPP and allocated to participating employees based upon their contributions at weighted- average prices of $23.33 and $21.47, respectively. On a cumulative basis, since the inception of the ESPP, employees have purchased a total of 27,039 shares. During the fiscal years ended June 30, 2022 and 2021, we recorded stock compensation expense in the amount of $11,000 and $10,000, respectively, relating to the ESPP.

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