Quarterly report pursuant to Section 13 or 15(d)

Note 9 - Share-Based Compensation

Note 9 - Share-Based Compensation
9 Months Ended
Mar. 31, 2016
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Share-Based Compensation
All options are issued at the closing stock price on each grant date, and have a contractual term of 10 years. A summary of stock option activity occurring during the nine months ended March 31, 2016 is presented below:
Outstanding as of June 30, 2015
Activity during the nine months ended March 31, 2016
    (34,308 )
Canceled (forfeited/expired)
    (55,774 )
Outstanding as of March 31, 2016
Exerciseable as of March 31, 2016
At March 31, 2016, there were 1,332,557 shares of common stock available for future issuance pursuant to the 1992 Stock Option Plan.
Employment Agreement / Share-Based Awards
The Company and M. Farooq Kathwari, our President and Chief Executive Officer, entered into a new employment agreement (the "Agreement"), dated as of October 1, 2015, and effective as of July 1, 2015. Shareholders approved the incentive performance components of the Agreement for purposes of tax deductibility, and on December 1, 2015, the final vote count was certified. Pursuant to the Agreement, Mr. Kathwari will be entitled to, among other forms of incentive compensation, performance-based restricted stock units ("Performance Units") providing a contingent right to receive shares of the Company's common stock, conditioned upon the Company's achievement of certain performance targets and goals. In each fiscal year during the term of Mr. Kathwari's employment under the Agreement, Mr. Kathwari is to be granted Performance Units entitling Mr. Kathwari to earn 0 to 81,250 shares of common stock, with each such grant to be made within ninety (90) days of the beginning of each fiscal year, contingent upon the Company’s achievement of certain performance goals, and subject to the terms of the Agreement. For each grant of Performance Units, the amount of the grant that will be earned and paid will be determined by reference to the achievement of certain performance goals for each of the two initial fiscal years (on a cumulative basis) and the three fiscal years (on a cumulative basis) applicable to such grant.