Stockholders' Equity | 6 Months Ended |
Dec. 31, 2014 |
Stockholders' Equity | -3 | Stockholders’ Equity | | | | | | | | | | | | | | | |
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Common Stock |
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As of December 31, 2014, the Company had 112,071,846 shares of common stock issued and 112,031,095 shares of common stock outstanding. |
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During the six months ended December 31, 2014, the Company: |
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| • | | issued 40,000 shares of common stock for the exercise of stock options and received cash proceeds of $0.1 million | | | | | | | | | | | | | |
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| • | | issued 414,760 shares of common stock for vested restricted stock units at par value | | | | | | | | | | | | | |
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| • | | retired 498,296 shares of treasury stock with a book value of $1.0 million | | | | | | | | | | | | | |
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| • | | acquired 81,331 shares of common stock at a cost of $0.1 million, which is included in treasury stock. | | | | | | | | | | | | | |
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Employee and Director Stock Compensation |
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During the six months ended December 31, 2014 and 2013, the Company recognized stock-based compensation for employees and directors of $0.9 million and $0.9 million, respectively. |
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Options |
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The fair value of options is estimated on the date of grant using the Black-Scholes-Merton option pricing model. No options were granted during the six months ended December 31, 2014. |
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The table below illustrates the range of assumptions used in estimating the fair value of the options granted during the six months ended December 31, 2013: |
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Expected volatility | | 64.6% - 66.4% | | | | | | | | | | | | | | |
Expected dividends | | - | | | | | | | | | | | | | | |
Expected term (years) | | 2.6 -3.04 | | | | | | | | | | | | | | |
Risk-free rate | | 0.49% - 0.57% | | | | | | | | | | | | | | |
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A summary of option activity from July 1, 2014 to December 31, 2014 is presented below (in thousands except per share and year amounts): |
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Options | | Shares | | | Weighted | | | Weighted | | | Aggregate | |
Average | Average | Intrinsic |
Exercise | Remaining | Value |
Price | Contractual Term | |
| (years) | |
Outstanding at July 1, 2014 | | | 3,152 | | | $ | 1.68 | | | | | | | | | |
Options granted | | | — | | | | — | | | | | | | | | |
Exercised | | | (40 | ) | | | 1.93 | | | | | | | | | |
Forfeited, cancelled or expired | | | (329 | ) | | | 1.77 | | | | | | | | | |
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Outstanding at December 31, 2014 | | | 2,783 | | | $ | 1.66 | | | | 3.14 | | | $ | 12 | |
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Exercisable at December 31, 2014 | | | 2,341 | | | $ | 1.65 | | | | 2.09 | | | $ | 12 | |
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The estimated grant date fair value of options granted during the six months ended December 31, 2013 was $0.4 million. |
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Restricted Stock Awards and Units |
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A summary of the activity of the Company’s restricted stock awards from July 1, 2014 to December 31, 2014 is presented below (in thousands except per share amounts): |
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Restricted Stock Awards | | Shares | | | Weighted Average | | | | | | | | | |
Grant Date Fair | | | | | | | | |
Value Per Share | | | | | | | | |
Oustanding July 1, 2014 | | | 24 | | | $ | 1.57 | | | | | | | | | |
Vested | | | (18 | ) | | | 1.67 | | | | | | | | | |
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Outstanding December 31, 2014 | | | 6 | | | $ | 1.29 | | | | | | | | | |
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A summary of the activity of the Company’s restricted stock units from July 1, 2014 to December 31, 2014 is presented below (in thousands except per share amounts): |
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Restricted Stock Units | | Restricted Stock | | | Weighted Average | | | | | | | | | |
Units | Grant Date Fair | | | | | | | | |
| Value | | | | | | | | |
Outstanding at July 1, 2014 | | | 1,153 | | | $ | 1.65 | | | | | | | | | |
Granted | | | 1,096 | | | | 1.49 | | | | | | | | | |
Vested | | | (415 | ) | | | 1.42 | | | | | | | | | |
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Outstanding at December 31, 2014 | | | 1,834 | | | $ | 1.64 | | | | | | | | | |
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As of December 31, 2014, there was $2.6 million of total unrecognized compensation cost related to all unvested share awards and options. |
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Consultant Stock Compensation |
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During the 2015 fiscal year, the Company issued 225,000 restricted stock units to consultant advisors, which will vest annually over two years. For the six month period ended December 31, 2014, the Company expensed approximately $32,000 for the above awards. |
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Incentive Fee |
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In February 2013, the Company entered into a contract with a consultant in connection with a transaction with a wholly owned subsidiary of Telefonaktiebolaget L M Ericsson (“Ericsson”). See Note 9 of the Notes to the Condensed Consolidated Financial Statements for more details. The terms of the contract included provisions for issuance of 1.2 million shares of the Company’s stock in two tranches if specified share price conditions were met (hereinafter referred to as the “Incentive Fee(s)”) by certain dates. In August 2014, the Incentive Fee on the first tranche of 500,000 shares expired as the volume weighted average trading price of the Company’s common stock over 20 days did not equal or exceed $3.00 per share. The second tranche of 700,000 shares will vest if the volume weighted 20-day average trading price is at or above $5.00 per share prior to February 12, 2015. The fair value of the second tranche was estimated to be of no value due to the high share price threshold, the market price of the Company’s stock on December 31, 2014, and the limited time period remaining. |
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The Company recognized a gain of $0.3 million and $0.8 million, respectively, for the six months ended December 31, 2014 and 2013 for the change in the fair value of liability classified stock awards. |