Stockholders' Equity

9 Months Ended

Mar. 31, 2014

Stockholders' Equity

5. Stockholders’ Equity

Equity Transactions

Public Offering

In October 2013, the Company completed an underwritten registered offering of 4,375,000 shares of its common stock at a price per share of $8.00 pursuant to a “shelf” registration statement previously filed and declared effective by the Securities and Exchange Commission. The Company received net proceeds of $32.7 million associated with the offering.

Underwritten Registered Offering

In April 2013, the Company completed an underwritten registered offering of 2,030,000 shares of its common stock at a price per share of $7.50 pursuant to a “shelf” registration statement previously filed and declared effective by the Securities and Exchange Commission. The Company received net proceeds of $14.2 million associated with the offering.

December 2012 Equity Offering

In December 2012, the Company completed the sale (the “December 2012 private placement”) of 9,166,665 shares of common stock and warrants to purchase an additional 6,416,665 shares of common stock for an aggregate offering price of $27.5 million, pursuant to the terms of the Securities Purchase Agreement, dated November 4, 2012, between the Company and certain accredited investors identified therein. The Company received net proceeds of $25.3 million from the sale. In the period from December 18, 2012 through March 31, 2014, the investors exercised, on a cashless basis, warrants representing the right to purchase 2,046,871 shares of common stock. The Company issued 1,496,018 net shares of common stock in conjunction with the exercise of the warrants.

Warrants

As of March 31, 2014, there were outstanding warrants to purchase 315,546 shares of the Company’s common stock at an exercise price of $7.14 per share, which expire in May 2017, issued in conjunction with the Company’s May 2012 rights offering; outstanding Series A warrants and warrants issued to the Company’s placement agent for the May 2011 private placement to purchase up to 215,721 shares of common stock at an exercise price of $6.00 per share, which expire in November 2016; and warrants to purchase 4,369,794 shares of the Company’s common stock at an exercise price of $3.12 per share, which expire in December 2017, issued in conjunction with the December 2012 private placement.

Stock Compensation

The Company uses equity-based compensation programs to provide long-term performance incentives for its employees. These incentives consist primarily of stock options and RSUs. Under the Company’s Amended and Restated 2008 Stock Omnibus Equity Compensation Plan (the “Plan”), 2,186,000 shares of common stock are authorized for issuance. The Plan provides for the grant of options and/or other stock-based or stock-denominated awards to the Company’s non-employee directors, officers, employees and advisors.

Stock Options

As of March 31, 2014, there were options outstanding to purchase 1,016,100 shares of common stock at exercise prices ranging from $2.76 to $30.30 per share. The outstanding options expire at various dates in calendar years 2015 through 2019.

The following assumptions were used to determine the fair value of options granted during the period:

	Nine months ended March 31,
	2014	2013
Risk-free interest rate	.07% - 1.72%	.62% - .90%
Expected life	.7 years - 5 years	5 years
Expected volatility	56% - 158%	153% - 161%
Dividend yield	0%	0%
Weighted-average fair value	$6.70	$6.37

Stock option activity for the nine months ended March 31, 2014 was as follows:

	Stock options outstanding			Weighted average exercise price		Weighted average remaining contractual term (years)		Aggregate intrinsic value
Outstanding at June 30, 2013		635,094		$	8.26		3.5	$	2,204,000
Options granted		381,839		$	7.58		4.3	$	1,357,000
Options forfeited or expired		(833	)	$	37.80		—	$	—
Outstanding at March 31, 2014		1,016,100		$	7.98		3.7	$	3,561,000
Exercisable at March 31, 2014		271,090		$	9.17		2.7	$	880,000

Unrecognized compensation expense related to non-vested stock options totaled $2,760,000 as of March 31, 2014. Such compensation expense is expected to be recognized over a weighted-average period of 3.0 years.

Restricted Stock Units

In March 2013, the Compensation Committee of the Board of Directors granted 400,000 RSUs to the Company’s Chief Executive Officer, Dr. Daniel P. Gold. Each RSU represents the contingent right to receive one share of the Company’s common stock. One third of the RSUs will vest on each of August 30, 2014, August 30, 2015 and August 30, 2016. The shares underlying the RSUs will be delivered to Dr. Gold on the earliest to occur of (i) March 29, 2018, (ii) Dr. Gold’s death, disability or separation from service from the Company for any reason, or (iii) a change in control involving the Company.

The fair value of the RSUs on the date of grant was $3,452,000. The grant date fair value per unit was $8.63. As of March 31, 2014, unrecognized compensation expense related to the unvested portion of the Company’s RSUs was approximately $1,823,000 and is expected to be recognized over approximately 2.4 years.