Warrant Liability

6 Months Ended

Dec. 31, 2016

Warrants and Rights Note Disclosure [Abstract]

Warrant Liability

5. Warrant Liability

Due to certain net cash settlement provisions, the warrants issued in connection with a public offering in October 2016, do not meet the criteria for classification as equity and are recorded as a liability  The Company recognized these warrants as a  liability at their fair value and re-measures them at fair value on each reporting date.

The Company uses Level 2 inputs for its valuation methodology for the warrant liability. The estimated fair value was determined using a Black-Scholes valuation model based on various assumptions.  The warrant liability is adjusted to reflect estimated fair value at each period end, with any changes in the fair value being recorded in changes in fair value of warrant liability.

The estimated fair value of the warrant liability was approximately $14.5 million and $7.3 million, as of December 31, 2016 and October 11, 2016 (date of issuance), respectively.  The change in fair value of the warrant liability for the three and six months December 31, 2016 was approximately $7.2 million.