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SHARE-BASED COMPENSATION AND WARRANTS (Tables)
 12 Months Ended
Jun. 30, 2021
SHARE-BASED COMPENSATION AND WARRANTS  
Schedule of the number of shares authorized, outstanding, and available for future grants under stock option

Presented below is a summary of the number of shares authorized, outstanding, and available for future grants under each of the Company’s stock option plans as of June 30, 2021 (in thousands):

 

 

 

 

 

 

 

 

 

 

    

Termination

    

Number of Shares

Description

    

Date

    

Authorized

    

Outstanding

    

Available

2014 Plan

 

March  2019

 

 2

 

 2

 

 —

2015 Plan

 

February 2020

 

51

 

51

 

 —

2016 Plan

 

October 2021

 

327

 

327

 

 —

2019 Plan

 

July 2029

 

200

 

200

 

 —

2021 Plan

 

March 2030

 

1,200

 

705

 

495

Total

 

  

 

1,780

 

1,285

 

495

 

Summary of the stock option activity

The following table sets forth a summary of the combined stock option activity under all of the Company’s stock option plans for the fiscal years ended June 30, 2021 and 2020 (shares in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

    

Shares

    

Price (1)

    

Term (2)

    

Shares

    

Price (1)

    

Term (2)

Outstanding, beginning of fiscal year

 

963

 

$

33.06

 

8.1

 

277

 

$

79.88

 

6.4

Stock options granted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Awards with time-based vesting

 

713

 

 

12.41

 

 

 

497

 

 

14.50

 

 

Awards with performance-based vesting

 

 —

 

 

 —

 

 

 

225

 

 

14.50

 

 

Stock options cancelled:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Awards with time-based vesting

 

(146)

 

 

69.66

 

 

 

 —

 

 

 —

 

 

Awards with performance-based vesting

 

(128)

 

 

14.50

 

 

 

 —

 

 

 —

 

 

Stock options forfeited:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Awards with time-based vesting

 

(82)

 

 

86.72

 

 

 

(25)

 

 

24.39

 

 

Awards with performance-based vesting

 

(35)

 

 

14.50

 

 

 

(11)

 

 

14.50

 

 

Outstanding, end of fiscal year

 

1,285

 

 

16.35

 

8.7

 

963

 

 

33.06

 

8.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vested, end of fiscal year

 

440

 

 

23.07

 

7.1

 

431

 

 

53.14

 

6.9

(1)

Represents the weighted average exercise price.

(2)

Represents the weighted average remaining contractual term until the stock options expire.
Schedule of the fair value of stock options was estimated on the date of grant using the BSM option-pricing model using following weighted-average assumptions

 

 

 

 

 

 

 

 

 

 

 

 

    

2021

 

2020

 

 

 

Time-Based

 

Time-Based

 

Hybrid

 

Market price of common stock on grant date

 

$

12.41

 

$

10.23

 

$

10.61

 

Expected volatility

    

 

118

%

 

118

%

 

118

%

Risk free interest rate

 

 

0.9

%

 

1.9

%

 

2.0

%

Expected term (years)

 

 

5.7

 

 

5.7

 

 

8.0

 

Dividend yield

 

 

 0

%

 

 0

%

 

 0

%

 

Schedule of stock-based compensation expense

Share-based compensation expense is included in compensation and benefits under the following captions in the consolidated statements of operations for the fiscal years ended June 30, 2021 and 2020 (in thousands):

 

 

 

 

 

 

 

 

    

2021

    

2020

Research and development

 

$

1,880

 

$

1,589

General and administrative

 

 

2,085

 

 

1,728

Total

 

$

3,965

 

$

3,317

 

Schedule of warrant activity

Presented below is a summary of grants and expirations for the fiscal years ended June 30, 2021 and 2020 (shares in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

    

Shares

    

Price (1)

    

Term (2)

    

Shares

     

Price (1)

    

Term (2)

Outstanding, beginning of fiscal year

 

618

  

$

57.46

 

2.3

 

920

  

$

66.80

 

3.4

Warrants issued

 

820

(4)  

 

19.50

 

  

 

14

(3)  

 

14.50

 

  

Warrant expirations

 

(186)

  

 

82.39

 

  

 

(316)

  

 

82.78

 

  

Outstanding, end of fiscal year

 

1,252

  

 

28.91

 

4.8

 

618

  

 

57.46

 

2.3

(1)

Represents the weighted average exercise price.

(2)

Represents the weighted average remaining contractual term for the number of years until the warrants expire.

(3)

Represents warrants granted for consulting services in November 2019 with an expiration date in November 2024. The fair value of the warrants of $67,000 was determined using the BSM option-pricing model. Since the warrants were immediately vested, this entire amount is included in consulting and outside services under research and development expenses for the fiscal year ended June 30, 2020. Key assumptions for the valuation of these warrants included the closing price of the Company’s shares of common stock of $14.50 on the grant date, the exercise price of $6.50 per share, historical volatility of 119%, and an expected term of 5.0 years.

Represents warrants granted in connection with the Fiscal 2021 Equity Financing on October 9, 2020 as discussed in Note 7. The warrants are exercisable at $19.50 per share for a period of 7 years and may be exercised on a cash or cashless basis at the election of the holder.