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Note 3 - Stock Based Compensation
 6 Months Ended
Dec. 31, 2011
Note 3 - Stock Based Compensation Disclosure  
Note 3 - Stock Based Compensation
3.            Stock Based Compensation

The following table summarizes the components of our share based compensation program expense (in thousands):

   
Three months ended
   
Six months ended
 
   
December 31,
   
December 31,
 
   
2011
   
2010
   
2011
   
2010
 
                         
Stock compensation expense for options, net of forfeitures
  $ 107     $ 212     $ 337     $ 427  
Stock compensation for restricted stock, net of forfeitures
    310       427       700       817  
Stock compensation (income) expense for stock appreciation rights, net of forfeitures
    420       141       (308 )     94  
Total stock compensation expense
  $ 837     $ 780     $ 728     $ 1,338  

As of December 31, 2011, we have approximately $1.1 million of unrecognized compensation cost related to unvested options granted under the Company's 2006 Omnibus Incentive Plan, as amended (the "2006 Plan"). This cost is expected to be recognized over a weighted-average period of 1.3 years and a total period of 3.3 years.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option valuation model that uses the following assumptions:

 
·
Dividend yield – the dividend yield is based on our historical experience and future expectation of dividend payouts.
 
·
Expected volatility – we analyzed the volatility of our stock using historical data for three or four years through the end of the most recent period to estimate the expected volatility, and the historical data used mirrors the vesting terms of the respective option.
 
·
Risk-free interest rate – the risk-free interest rate assumption is based on U.S. Treasury securities at a constant maturity with a maturity period that most closely resembles the expected term of the stock option award.
 
·
Expected terms – the expected terms of employee stock options represents the weighted-average period the stock options are expected to remain outstanding and has been determined based on an analysis of historical exercise behavior from 1995 through the end of the most recent period.

No grants were issued in the six months ended December 31, 2011 or 2010.

A summary of the award activity of the Company’s stock option plans as of December 31, 2011, and changes during the period then ended is presented below:

Options
 
Option Totals
 
Weighted-Average Exercise
Price per Share
         
Outstanding at July 1, 2011
 
1,432,083
 
$10.60
Granted
 
---
 
---
Exercised
 
(11,250)
 
$3.00
Forfeited or expired
 
(11,060)
 
$11.54
Outstanding at December 31, 2011
 
1,409,773
 
$10.58
Exercisable at December 31, 2011
 
1,151,315
 
$11.67
 
We also have approximately $3.4 million of unrecognized compensation expense related to restricted stock awards, which is anticipated to be recognized over a weighted-average period of 3.0 years and a total period of 3.8 years.  A summary of the restricted stock award activity under the 2006 Plan as of December 31, 2011, and changes during the six-month period is presented below:

 
Number of Restricted Stock Awards
 
Weighted-Average Grant Date Fair Value
       
Unvested at July 1, 2011
355,630
 
$12.27
Granted
84,593
 
$10.93
Vested and Issued
(94,795)
 
$11.91
Forfeited
(566)
 
$11.89
Unvested at December 31, 2011
344,862
 
$12.06

The fair value of each restricted stock award is based on the closing market price on the date of grant.

The company had 143,156 outstanding stock appreciation rights as of June 30, 2011 and December 31, 2011, respectively. These stock appreciation rights were granted at a fair value market price of $8.64 based on the closing market price on the date of the grant and are marked to market at the end of each quarter.