Annual report [Section 13 and 15(d), not S-K Item 405]

STOCK-BASED COMPENSATION EXPENSE

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STOCK-BASED COMPENSATION EXPENSE
 12 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION EXPENSE

NOTE 11 – STOCK-BASED COMPENSATION EXPENSE

 

Stock-based compensation (“SBC”) expense represents the estimated fair value of stock options, RSUs, PSUs and ESPP shares at the beginning of each offering period, amortized under the straight-line method over the requisite service period and reduced for estimated forfeitures. For PSUs with only performance conditions, recognition of SBC expense is delayed until the performance-based vesting conditions are deemed probable of being achieved, at which time the unrecognized SBC to date is recognized. For PSUs with market conditions, SBC expense is recognized beginning on the date of grant over the requisite service period regardless of whether the market condition is ultimately satisfied.

 

At June 30, 2026, none of the PSUs with performance only conditions were deemed to be probable of achievement and no related stock-based compensation has been recognized to date. The following table summarizes SBC expense:

 

    2026     2025  
    Fiscal year ended June 30,  
    2026     2025  
Selling and administrative   $ 912,000     $ 852,000  
Research and development     61,000       127,000  
Total stock-based compensation expense   $ 973,000     $ 979,000  

 

At June 30, 2026 and 2025, the unamortized stock-based compensation expense relating to outstanding stock options, RSUs and PSUs (excluding PSUs with performance conditions deemed “not probable”) was approximately $1,060,000 and $312,000, respectively, which are expected to be expensed over the weighted-average remaining term of 1.4 years and 0.9 years, respectively.