0001193125-16-471686.txt : 20160222 0001193125-16-471686.hdr.sgml : 20160222 20160222163132 ACCESSION NUMBER: 0001193125-16-471686 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 67 CONFORMED PERIOD OF REPORT: 20151231 FILED AS OF DATE: 20160222 DATE AS OF CHANGE: 20160222 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AUTHENTIDATE HOLDING CORP CENTRAL INDEX KEY: 0000885074 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 141673067 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-20190 FILM NUMBER: 161445385 BUSINESS ADDRESS: STREET 1: CONNELL CORPORATE CENTER STREET 2: 300 CONNELL DRIVE, 5TH FLOOR CITY: BERKELEY HEIGHTS STATE: NJ ZIP: 07922 BUSINESS PHONE: 9087871700 MAIL ADDRESS: STREET 1: CONNELL CORPORATE CENTER STREET 2: 300 CONNELL DRIVE, 5TH FLOOR CITY: BERKELEY HEIGHTS STATE: NJ ZIP: 07922 FORMER COMPANY: FORMER CONFORMED NAME: BITWISE DESIGNS INC DATE OF NAME CHANGE: 19930328 10-Q 1 d102937d10q.htm FORM 10-Q Form 10-Q
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED: December 31, 2015

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM                      TO                     

COMMISSION FILE NUMBER: 0-20190

 

 

Authentidate Holding Corp.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   14-1673067

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

Connell Corporate Center

300 Connell Drive, 1st Floor,

Berkeley Heights, New Jersey

  07922
(Address of principal executive offices)   (Zip Code)

(908) 787-1700

(Registrant’s telephone number, including area code)

 

(Former name, former address and former fiscal year, if changed since last report)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   ¨    Smaller reporting company   x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Class

 

Outstanding February 10, 2016

Common Stock, $0.001 par value per share   5,772,256 shares

 

 

 


Table of Contents

Authentidate Holding Corp.

Form 10-Q

Table of Contents

 

         Page  
Part I  

Financial Information

  
Item 1.  

Financial Statements

  
 

Condensed Consolidated Balance Sheets (Unaudited)

     3   
 

Condensed Consolidated Statements of Operations and Comprehensive Operations (Unaudited)

     4   
 

Condensed Consolidated Statements of Cash Flows (Unaudited)

     5   
 

Notes to Condensed Consolidated Financial Statements (Unaudited)

     6   
Item 2.  

Management’s Discussion and Analysis of Financial Condition and Results of Operations

     19   
Item 3.  

Quantitative and Qualitative Disclosures About Market Risk

     26   
Item 4.  

Controls and Procedures

     27   
Part II  

Other Information

  
Item 1.  

Legal Proceedings

     27   
Item 1A.  

Risk Factors

     28   
Item 2.  

Unregistered Sales of Equity Securities and Use of Proceeds

     51   
Item 3.  

Defaults upon Senior Securities

     51   
Item 4.  

Mine Safety Disclosures

     51   
Item 5.  

Other Information

     51   
Item 6.  

Exhibits

     51   
Signatures      54   


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Condensed Consolidated Balance Sheets

 

 

     December 31        
     2015     June 30,  

( in thousands, except per share data )

   (Unaudited)     2015  

Assets

    

Current assets

    

Cash and cash equivalents

   $ 119      $ 247   

Restricted cash

     121        256   

Accounts receivable, net

     197        274   

Inventory, net

     356        603   

Prepaid expenses and other current assets

     379        222   
  

 

 

   

 

 

 

Total current assets

     1,172        1,602   

Property and equipment, net

     208        301   

Other assets

    

Licenses, net

     1,732        1,904   

Other assets, net

     302        356   
  

 

 

   

 

 

 

Total assets

   $ 3,414      $ 4,163   
  

 

 

   

 

 

 

Liabilities and Shareholders’ Deficit

    

Current liabilities

    

Accounts payable, accrued expenses and other liabilities

   $ 3,047      $ 2,109   

Notes payable, net of unamortized discount

     3,683        2,150   

Warrant liability

     2,690        214   

Deferred revenue

     63        67   
  

 

 

   

 

 

 

Total current liabilities

     9,483        4,540   

Long-term deferred revenue

     72        88   
  

 

 

   

 

 

 

Total liabilities

     9,555        4,628   
  

 

 

   

 

 

 

Commitments and contingencies (Note 10)

    

Shareholders’ deficit

    

Preferred stock, $.10 par value; 5,000 shares authorized, Series B, 28 shares and Series D, 625 and 665 shares issued and outstanding on December 31, 2015 and June 30, 2015, respectively

     65        69   

Common stock, $.001 par value; 190,000 shares authorized, 4,792 and 4,680 shares issued and outstanding on December 31, 2015 and June 30, 2015, respectively

     5        5   

Additional paid-in capital

     208,704        205,946   

Accumulated deficit

     (214,915     (206,485
  

 

 

   

 

 

 

Total shareholders’ deficit

     (6,141     (465
  

 

 

   

 

 

 

Total liabilities and shareholders’ deficit

   $ 3,414      $ 4,163   
  

 

 

   

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

3


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Operations (Unaudited)

 

 

     Three Months Ended     Six Months Ended  
     December 31,     December 31,  

(in thousands, except per share data)

   2015     2014     2015     2014  

Revenues

        

Hosted software services

   $ 364      $ 481      $ 746      $ 989   

Telehealth products and services

     35        866        51        1,410   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     399        1,347        797        2,399   

Operating expenses

        

Cost of revenues

     208        751        415        1,344   

Selling, general and administrative

     1,799        2,105        3,300        4,116   

Product development

     97        369        259        739   

Depreciation and amortization

     185        210        367        399   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     2,289        3,435        4,341        6,598   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (1,890     (2,088     (3,544     (4,199

Other expense

     (4,275     —          (4,684     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (6,165   $ (2,088   $ (8,228   $ (4,199
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic and diluted loss per common share

   $ (1.32   $ (0.47   $ (1.79   $ (0.98
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive operations

        

Net loss

   $ (6,165   $ (2,088   $ (8,228   $ (4,199
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive loss

   $ (6,165   $ (2,088   $ (8,228   $ (4,199
  

 

 

   

 

 

   

 

 

   

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

4


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

 

     Six Months Ended
December 31,
 

(in thousands)

   2015     2014  

Cash flows from operating activities

    

Net Loss

   $ (8,228   $ (4,199

Adjustments to reconcile net loss to net cash used in operating activities

    

Amortization of debt discount and deferred financing costs

     463        —     

Loss on extinguishment of notes

     2,977        —     

Change in warrant liability

     1,100        —     

Depreciation and amortization

     367        399   

Inventory reserve

     230        —     

Share-based compensation

     210        293   

Warrants issued for services

     12        16   

Restricted shares and stock options issued for services

     363        165   

Changes in assets and liabilities

    

Accounts receivable

     77        84   

Inventory

     17        181   

Prepaid expenses and other current assets

     (157     48   

Accounts payable, accrued expenses and other liabilities

     676        541   

Deferred revenue

     (20     (11
  

 

 

   

 

 

 

Net cash used in operating activities

     (1,913     (2,483
  

 

 

   

 

 

 

Cash flows from investing activities

    

Decrease in restricted cash

     135        —     

Purchases of property and equipment and other assets

     —          (126

Other intangible assets acquired

     (48     (168

Sale of marketable securities

     —          210   
  

 

 

   

 

 

 

Net cash provided (used) by investing activities

     87        (84
  

 

 

   

 

 

 

Cash flows from financing activities

    

Net proceeds from issuance of preferred and common stock and exercise of warrants

     3        2,124   

Proceeds from issuance of short-term promissory notes

     1,695        —     

Dividends paid

     —          (18
  

 

 

   

 

 

 

Net cash provided by financing activities

     1,698        2,106   
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (128     (461

Cash and cash equivalents, beginning of period

     247        1,084   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 119      $ 623   
  

 

 

   

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements. See Notes 7, 8 and 13 for supplemental cash flow information regarding debt extinguishments and discounts, preferred stock dividends and warrant liability.

 

5


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

1. Basis of Presentation and Liquidity

The accompanying unaudited condensed consolidated financial statements have been prepared by the company pursuant to the rules and regulations of the Securities and Exchange Commission and, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The condensed consolidated financial statements include the accounts of Authentidate Holding Corp. (AHC) and its subsidiaries (collectively, the “company”) prior to the business combination described below since the business combination was not completed until after the period covered by the financial statements included in this Quarterly Report on Form 10-Q. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations for the period ended December 31, 2015 are not necessarily indicative of the results to be expected for the full year. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and notes thereto included in the company’s Form 10-K for the fiscal year ended June 30, 2015 and the corresponding Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The company has incurred significant recurring losses and negative cash flows from operations and our product development activities have required substantial capital investment to date. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Additionally, on March 6, 2015 we announced that the Department of Veterans Affairs (VA) informed the company that it did not intend to exercise the fourth and final option year under our contract for telehealth products and services and our contract expired on May 15, 2015. Our VA revenue included both recurring service revenues as well as hardware sales and we expect to report significantly reduced revenues over the next several quarters as a result of the non-renewal of our VA contract. We have taken steps to reduce our operating costs and have implemented a number of changes to our business plan with the ultimate goal to increase revenues and generate positive cash flow from operations. These changes include cost reductions from reducing our workforce and use of consultants that we made in the third quarter of fiscal 2015 and additional workforce reductions through August 31, 2015. These reductions are expected to reduce operating expenses on an annualized basis. The company has also taken actions to realign our data center operations and relocated its corporate offices in November 2015, which are expected to result in additional annualized savings.

Since June 2015, the company has completed debt financing transactions resulting in total proceeds of approximately $1.7 million and has extended the maturity dates on approximately $1.8 million of its short-term debt obligations. Based on its business plan and the completion of the business combination described below, the company expects its existing resources and revenues generated from consolidated operations to satisfy its working capital requirements for at least the next twelve months. As discussed more fully in Note 4 of Notes to Condensed Consolidated Financial Statements, on January 27, 2016, the company completed its business combination with Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories, whereby AEON became a wholly-owned subsidiary of the company. Under the provisions of ASC 805-40 Business Combinations – Reverse Acquisitions, the transaction will be accounted for as a reverse acquisition with AEON becoming the acquirer for accounting purposes and AHC becoming the accounting acquiree.

Effective January 22, 2016, the company completed a one-for-nine reverse stock split of its common stock. The reverse stock split was approved at the special meeting of stockholders held on January 20, 2016, where the stockholders authorized the board of directors to proceed with a reverse split and to determine the ratio of the split within an approved range. All common stock, preferred stock and debt conversion rates, option, warrant and restricted stock unit amounts and related per share amounts have been restated for all periods presented to give effect to the reverse stock split.

 

6


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

2. Loss Per Share

The following table sets forth the calculation of basic and diluted loss per share for the periods presented (in thousands, except per share data):

 

     Three Months Ended
December 31,
     Six Months Ended
December 31,
 
     2015      2014      2015      2014  

Net loss

   $ (6,165    $ (2,088    $ (8,228    $ (4,199

Preferred stock dividends

     (101      (101      (202      (202
  

 

 

    

 

 

    

 

 

    

 

 

 

Net loss applicable to common shareholders

   $ (6,266    $ (2,189    $ (8,430    $ (4,401
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares

     4,754         4,623         4,721         4,500   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic and diluted loss per common share

   $ (1.32    $ (0.47    $ (1.79    $ (0.98
  

 

 

    

 

 

    

 

 

    

 

 

 

All common stock equivalents were excluded from the loss per share calculation for all periods presented because the impact is antidilutive. At December 31, 2015, options (634,000), restricted stock units (41,000), warrants (4,313,000), convertible debt (822,000), Series D preferred stock (640,000) and Series B preferred stock (28,000) were outstanding. At December 31, 2014, options (444,000), restricted stock units (98,000), warrants (3,075,000), Series D preferred stock (681,000) and Series B preferred stock (28,000) were outstanding.

 

3. Share-Based Compensation

Share-based compensation by category is as follows (in thousands):

 

     Three Months Ended
December 31,
     Six Months Ended
December 31,
 
     2015      2014      2015      2014  

SG&A

   $ 72       $ 124       $ 180       $ 263   

Product development

     10         20         20         20   

Cost of revenues

     5         10         10         10   
  

 

 

    

 

 

    

 

 

    

 

 

 

Share-based compensation expense

   $ 87       $ 154       $ 210       $ 293   
  

 

 

    

 

 

    

 

 

    

 

 

 

We computed the estimated fair values of all option-based compensation using the Black-Scholes option pricing model and the assumptions set forth in the following table. We based our estimate of the life of these options on historical averages over the past five years and estimates of expected future behavior. The expected volatility was based on the company’s historical stock volatility. The assumptions used in the company’s Black-Scholes calculations for fiscal 2016 and 2015 are as follows:

 

     Risk Free
Interest Rate
    Dividend
Yield
    Volatility
Factor
    Weighted
Average
Expected
Option Life
(Months)
 

Fiscal year 2016

     1.6     0     85     48   

Fiscal year 2015

     0.6     0     84     48   

The Black-Scholes option-pricing model requires the input of highly subjective assumptions. Because the company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models may not provide a reliable single measure of the fair value of share-based compensation for employee stock options. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of share-based compensation as circumstances change and additional data becomes available over time, which may result in changes to these assumptions and methodologies. Such changes could materially impact the company’s fair value determination.

 

7


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

On August 23, 2011, the stockholders approved the 2011 Omnibus Equity Incentive Plan (the 2011 Plan). The 2011 Plan replaces the 2010 Employee Stock Option Plan and the 2001 Non-Executive Director Stock Option Plan. On May 1, 2014, the stockholders approved an amendment to the 2011 Plan to increase the number of shares of common stock available for issuance under the plan by approximately 378,000 shares. As amended, the 2011 Plan provides for the issuance of up to approximately 750,000 shares of the company’s common stock in connection with stock options, restricted share awards and other stock compensation vehicles.

Stock option activity under the company’s stock option plans for employees and non-executive directors for the period ended December 31, 2015 is as follows (in thousands, except per share and average life data):

 

Employees Information

   Number of
Options
     Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual
Life (Years)
     Aggregate
Intrinsic
Value
 

Outstanding June 30, 2015

     237       $ 20.43         

Granted

     36         2.97         

Exercised

     (1      6.21         

Expired/Forfeited

     (65      18.09         
  

 

 

          

Outstanding December 31, 2015

     207       $ 18.18         6.08       $ 130   
  

 

 

          

Exercisable December 31 2015

     126       $ 25.38         3.46       $ 4   
  

 

 

          

Expected to vest at December 31, 2015

     64       $ 7.29         7.94       $ 99   
  

 

 

          

 

Non-Executive Director Information

   Number of
Options
     Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual
Life (Years)
     Aggregate
Intrinsic
Value
 

Outstanding June 30, 2015

     243       $ 5.58         

Granted

     186         3.24         

Expired

     (1      54.00         
  

 

 

          

Outstanding December 31, 2015

     427         4.41         8.24       $ 1,151   
  

 

 

          

Exercisable December 31 2015

     413       $ 4.32         8.18       $ 1,151   
  

 

 

          

Non-executive director options are granted at market price and vest on the grant date. Certain options granted to a director serving as an interim officer vest thirty (30) days from the grant date.

As of December 31, 2015, there were approximately 41,000 restricted stock units outstanding that were granted to employees as of January 15, 2013 and January 28, 2014 in connection with the company’s compensation modification program. These restricted stock units vest when the company achieves cash flow breakeven, as defined.

As of December 31, 2015, there was approximately $326,000 of total unrecognized compensation expense related to unvested share-based compensation arrangements that is expected to be recognized over a weighted-average period of 15 months.

There were 518 options exercised for approximately $3,200 during the six month period ended December 31, 2015 and no options were exercised during the six month period ended December 31, 2014. The intrinsic value of the options exercised was not material. The weighted average grant date fair value of options granted during the six month periods ended December 31, 2015 and 2014 was approximately $1.71 and $4.50, respectively. These values were calculated using the Black-Scholes option-pricing model.

 

8


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

The total fair value of options vested was $321,000 and $340,000 for the six month periods ended December 31, 2015 and 2014, respectively. In December 2012, the board of directors agreed that all non-employee directors would receive all of their cash director compensation, including amounts payable for committee service, service as a committee chair and per meeting fees, in restricted shares of our common stock or stock options issued at fair value in accordance with the terms of the 2011 Plan for periods ending after December 2012. During the six months ended December 31, 2015, the company issued 13,647 shares of restricted common stock and 69,344 stock options (with a total fair value of approximately $363,000) to certain non-executive directors in connection with this program. In January 2016 the company issued 1,643 shares of restricted common stock (with a fair value of approximately $10,500) to a director under this program for the quarter ended December 31, 2015. During the six months ended December 31, 2015, the board of directors also issued 108,333 stock options (with a total fair value of approximately $153,000) to the interim chief strategy officer for services.

 

4. Acquisition

On January 27, 2015 the company completed the acquisition of Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories, an expanding clinical laboratory based in Gainesville, GA (“AEON”). The transaction was structured as a tax-free exchange, with the former AEON members receiving shares of common stock of AHC at the closing, and potential further issuances of common stock tied primarily to the earnings of AEON during the five calendar years ending December 2019. The AEON members received an aggregate of 19.9% (958,030 shares) of common stock of AHC effective at the closing and can receive an additional 5% of the outstanding common stock of the company, as defined, upon approval of the merger transaction by the shareholders of the company. The AEON members can also earn additional shares of common stock to increase their aggregate holdings to up to 90% of the outstanding stock of AHC, as defined, based upon meeting the benchmark targets in the merger agreement, including delivering $16,000,000 in EBITDA for the calendar year ended 2015 and $100,000,000 in aggregate EBITDA for the calendar years 2016 through 2019. In connection with the completion of the merger, Hanif A. (“Sonny”) Roshan, founder of AEON, will become Chairman of AHC and Richard Hersperger, the CEO of AEON, will become CEO of the combined companies. Both men will also serve on the board of directors of AHC and the AEON members will have the right to elect one director for each 10% of the outstanding shares of the company’s common stock they hold as a group. Under the provisions of ASC 805-40 Business Combinations – Reverse Acquisitions, the transaction will be accounted for as a reverse acquisition with AEON becoming the acquirer for accounting purposes and AHC becoming the accounting acquiree.

AEON provides health care professionals with four primary tests: Medical Toxicology, Pharmacogenomics, Cancer Genetic Testing, and Molecular Biology.

 

5. Inventory

In connection with our manufacturing and sales plans for our telehealth service, the company has purchased certain components and contract manufacturing services for the production of the monitoring appliances. These inventory amounts are stated at the lower of cost or market and consist of the following (in thousands):

 

     December 31,      June 30,  
     2015      2015  

Purchased components, net

   $ 31       $ 261   

Finished goods

     325         342   
  

 

 

    

 

 

 

Total inventory

   $ 356       $ 603   
  

 

 

    

 

 

 

 

9


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

6. Other Intangible Assets

The following table sets forth licenses, net and other intangible assets that are included in other assets as follows (in thousands):

 

     December 31, 2015      June 30, 2015       
     Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Useful Life
In Years
                    

Patents

   $ 357       $ 288       $ 69       $ 357       $ 276       $ 81       17

Trademarks

     229         113         116         214         108         106       20

Acquired technologies

     95         78         17         95         72         23       2

Licenses

     4,245         2,513         1,732         4,212         2,308         1,904       3 - 10
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

   $ 4,926       $ 2,992       $ 1,934       $ 4,878       $ 2,764       $ 2,114      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

As of December 31, 2015 and June 30, 2015 goodwill amounted to approximately $50,000 and is included in other assets. The company amortizes licenses and other intangible assets under the straight line method. Amortization expense was approximately $115,000 and $228,000 for the three and six months ended December 31, 2015 and $102,000 and $190,000 for the prior year periods, respectively. Amortization expense for the next five fiscal years and thereafter is expected to be as follows (in thousands):

 

June 30,

  

2016

   $ 296   

2017

     440   

2018

     348   

2019

     304   

2020

     277   

Thereafter

     269   
  

 

 

 
   $ 1,934   
  

 

 

 

 

7. Notes Payable

On January 29, 2015, the company received a short-term loan of $200,000 from a strategic lender pursuant to which we issued a secured promissory note to the lender in the aggregate principal amount of $200,000. The note was secured by a first priority lien on certain equipment owned by the company with a net present value equivalent to the face value of the note, was due and payable on March 30, 2015 and accrued interest at the rate of 6% per annum. The note and accrued interest was repaid on the maturity date.

On February 17, 2015, the company entered into a securities purchase agreement with an accredited investor pursuant to which we issued a promissory note in the aggregate principal amount of $100,000 and common stock purchase warrants to purchase up to 8,889 shares of common stock for gross proceeds of $100,000. The note was an unsecured obligation of the company, was not convertible into equity securities of the company and accrued interest at a rate of 8% per annum. The note was due and payable on the six month anniversary of the issue date, subject to the right of the investor to extend the maturity date for up to an additional six months. The net proceeds from this transaction were approximately $92,000. The warrants vested in equal monthly installments over twelve months if the notes were outstanding and, subject to vesting requirements, were exercisable for a period of 54 months commencing on the six month anniversary of the issuance date at an initial exercise price of $9.09 per share. Although the securities purchase agreement that the company entered into with this investor contemplated a second closing for $900,000 of additional proceeds, the second closing did not occur and the company did not receive the additional funds. This note and the vested portion of the warrants were exchanged for notes and warrants issued in the June 8, 2015 transaction discussed below and the warrants issued for this transaction were cancelled.

On February 17, 2015, in a separate transaction, the company issued a short-term promissory note in the aggregate principal amount of $950,000 and warrants to purchase 11,056 shares of common stock to an accredited investor for gross proceeds of $950,000. The holder of the short-term note is an entity controlled by Douglas B. Luce, the brother of J. David Luce, a former member of the board of directors of the company. The short-term note was an unsecured obligation of the company, was not convertible into equity securities of the company and accrued interest at a rate of 5.76% per annum. The short-term note was due and payable on the first to occur of the one month anniversary of the issue date or the date on which the company received at least $950,000 in proceeds

 

10


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

from equity or debt financing. The note contained covenants and events of default customary for similar transactions. The net proceeds from this transaction were approximately $940,000. The warrants are exercisable for a period of 54 months commencing on the six month anniversary of the issuance date at an initial exercise price of $9.091 per share. On April 3, 2015, the company entered into an amendment agreement with the holder of the $950,000 short-term promissory note in order to amend such note to extend its maturity date from March 19, 2015 to July 2, 2015. In addition, pursuant to the amendment agreement, the company also agreed to grant the holder the right to exchange the principal amount of the short-term note (and unpaid interest thereon) into the securities of the company sold in the next financing, as defined in the amendment agreement. This investor subsequently agreed not to participate in the convertible debt financing for which a closing was held June 8, 2015 and in consideration of such election, the participation right was modified to allow him to exchange such note for comparable securities in an alternative transaction. In consideration of waivers previously granted by the holder of potential events of default under the short-term note and the amendment to extend the maturity date, the company agreed to issue the holder warrants to purchase 351,852 shares of common stock of the company. The warrants are exercisable for a period of 54 months commencing six months following the date of issuance and have an exercise price equal to $2.79 per share. Through a series of amendment agreements, the maturity date of this note was further extended and the interest rate was increased to 12% per annum in connection with such extensions.

On December 11, 2015, we entered into an exchange agreement with the holder of the $950,000 note pursuant to which the company agreed to issue such holder, in consideration of the cancellation of the original note, a new convertible note in the aggregate principal amount of $950,000 and warrants to purchase 422,222 shares of common stock. The closing of the exchange transaction occurred on December 17, 2015. The new convertible note is convertible into shares of common stock at an initial conversion price of $2.25 per share, subject to adjustment. The new convertible note is convertible beginning July 1, 2016 and is due one year from the closing date. Based on the initial conversion price, the note will be convertible into up to 422,222 shares of common stock. If the company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price then in effect, such conversion price will be decreased to equal 85% of such lower price. The foregoing adjustments to the conversion price will not apply to certain exempt issuances, including issuances pursuant to certain employee benefit plans. In addition, the conversion price is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. The new convertible note bears interest at 9% per annum with interest payable upon maturity or on any earlier redemption date. Following the date on which the new convertible note first becomes convertible, the company will have the right to redeem all or any portion of the outstanding principal balance of the note, plus all accrued but unpaid interest at a price equal to 110% of such amount. The holder of the new convertible note shall have the right to convert any or all of the amount to be redeemed into common stock prior to redemption. Subject to certain exceptions, the new convertible note is senior to existing and future indebtedness of the company and will be secured to the extent and as provided in the amended security agreement entered into between the company and the holder. To provide for the collateral to secure the repayment of the new convertible note, MKA 79, LLC, an entity affiliated with J. David Luce agreed to an amendment to the security agreement entered into in August 2015 to provide that the new convertible note shall be secured by the collateral defined in such earlier security agreement. Subject to certain exceptions, the new convertible note contains customary covenants against incurring additional indebtedness and granting additional liens and contains customary events of default. Upon the occurrence of an event of default under the new convertible note, the holder may require the company to repay all or a portion of the note in cash, at a price equal to 110% of the principal and accrued and unpaid interest.

Subject to certain limitations, the additional warrants are exercisable on or after the first business day following the twelve-month anniversary of the issue date; provided, however, if the company consummates the closing with AEON, then the initial exercise date of the additional warrants shall be the date that is the three year anniversary date of such closing. The initial exercise price of the additional warrants is $2.70 per share and is subject to adjustment for certain events. If the company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price of the new note, the exercise price of the additional warrants will be decreased to a lower price based on the amount by which the conversion price of the new note was reduced due to such transaction. The foregoing adjustments to the exercise price for future stock issues will not apply to certain exempt issuances, including issuances pursuant to certain employee benefit plans. In addition, the exercise price of the additional warrants is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. In addition, the additional warrants provide that, after their initial exercise date, the company shall have the right to cause the holder to exercise the additional warrants provided that that the following conditions are satisfied: (i) the closing bid price of the company’s common stock is at least $4.05 for the 20 consecutive trading days prior to the date of the mandatory exercise notice and (ii) the holder is not prevented from exercising the additional warrants pursuant to a lockup agreement. The additional warrants will expire 54 months from their initial exercise date. The holder shall not have the right to convert the new convertible note or exercise the additional warrants to the extent that such conversion or exercise would result in the holder being the beneficial owner in excess of 4.99% of the company’s common stock. In addition, the holder shall have no right to convert the new convertible note or exercise the additional warrants if the issuance of the shares of common stock upon such conversion or exercise would exceed the aggregate number of shares the company may issue without breaching the company’s obligations under Nasdaq listing rules.

 

11


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

On April 24, 2015, the company issued a promissory note in the aggregate principal amount of $500,000 to Lazarus Investment Partners LLLP, the beneficial owner of approximately 29.3% of the company’s common stock at the time, in a private transaction. The note was unsecured and was not convertible into equity securities of the company. The note was originally due and payable on the first to occur of July 2, 2015 or the date on which the company received at least $900,000 in proceeds from equity or debt financing transactions. Interest on the note was originally 5.76% per annum payable at maturity. The note contained terms and events of default customary for similar transactions. In consideration of the loan, the company and Lazarus entered into a warrant amendment agreement pursuant to which the company agreed to amend certain of the terms of the existing 692,626 common stock purchase warrants held by Lazarus to reduce the exercise price of such warrants to $2.25, which was above the most recently reported closing consolidated bid price of the company’s common stock prior to the execution of the transaction documents, and to extend the expiration date of the warrants to October 25, 2019. The warrants amended were issued in various transactions from 2010 through 2014 at exercise prices ranging between $7.92 and $18.00. The fair value related to the warrant modifications was recorded as a debt discount and amortized over the term of the agreement. Through a series of amendment agreements, the maturity date of this note was further extended and the interest rate was increased to 12% per annum in connection with such extensions. On December 15, 2015, we entered into an exchange agreement with Lazarus Investment Partners pursuant to which we agreed to issue such holder, in consideration of the cancellation of the original note, a new note in the aggregate principal amount of $532,811, which amount includes $32,811 in accrued interest on their original note, and warrants to purchase 111,111 shares of common stock. The closing of the exchange transaction with Lazarus Investment Partners occurred on December 15, 2015. The new note bears interest at 20% per annum, payable in arrears, and is due upon the earlier of (i) twelve months from the date of issuance, (ii) June 8, 2016 if the company has not consummated the closing with AEON by such date, or (iii) within 5 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The new note is neither secured by any of the company’s assets nor convertible into equity securities of the company. The new note contains certain events of default that are customary for similar transactions. Subject to certain limitations, the new warrants are exercisable on or after the first business day following the twelve-month anniversary of the issue date; provided, however, if the company consummates the closing of the transaction with AEON, then the initial exercise date of the new warrant shall be the date that is the three year anniversary date of such closing. The initial exercise price of the new warrants is $2.70 per share and is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. Pursuant to the exchange agreement entered into between the company and Lazarus Investment Partners, the expiration date of all warrants held by Lazarus Investment Partners shall be amended to be December 15, 2022. Further, the holder shall not have the right to exercise the warrants to the extent that such exercise would result in it being the beneficial owner of in excess of 4.99% of the company’s common stock. In addition, the holder shall have no right to exercise the warrants if the issuance of the shares of common stock upon such exercise would exceed the aggregate number of shares the company may issue without breaching the company’s obligations under Nasdaq listing rules. The company agreed to grant the holder piggyback registration rights with respect to the shares of common stock issuable upon conversion of the new warrants.

On June 8, 2015, the company entered into definitive agreements relating to a private placement of up to $3.0 million in principal amount of senior secured convertible notes and common stock purchase warrants. An initial closing for an aggregate principal amount of $900,000 of notes and warrants to purchase 402,963 shares of common stock was held on June 8, 2015. Subject to certain limitations, the warrants are exercisable on or after the six month anniversary of the date of issuance at an initial exercise price of $2.70 per share and will expire 54 months from the initial exercise date. In addition, subject to certain limitations, the warrants provide that, beginning six months from issuance, the company shall have the right to cause the holder to exercise the warrants provided that the following conditions are satisfied: (i) the closing bid price of the company’s common stock is at least $4.05 for the 20 consecutive trading days prior to the date of the mandatory exercise notice and (ii) all of the warrants issued in the transaction are called by the company for a mandatory exercise. A final closing for up to $2.1 million of debentures and warrants to purchase 933,333 shares of common stock did not occur. As a condition of the initial closing, the holder of an aggregate principal amount of $100,000 of previously issued promissory notes was required to exchange such notes and certain warrants held by it for senior secured notes and warrants issued in this transaction. These notes, subject to certain exceptions, rank senior to existing and future indebtedness of the company and are secured to the extent and as provided in the security agreement entered into between the company and the purchasers. Each note matures on the one-year anniversary of the issuance date thereof and, subject to certain limitations, is convertible at any time at the option of the holder into shares of the company’s common stock at an initial conversion price of $2.25 per share. Subject to certain exemptions, if the company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price then in effect, the conversion price then in effect will be decreased to equal 85% of such lower price and the exercise price of the warrants will be decreased to a lower price based on the amount by which the conversion price of the notes was reduced due to such transaction. The foregoing adjustments to the conversion price will not apply to certain exempt issuances, including issuances

 

12


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

pursuant to certain employee benefit plans. In addition, the conversion price is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. The senior secured notes bear interest at 9% per annum with interest payable upon maturity or on any earlier redemption date. At any time after the issuance date, the company will have the right to redeem all or any portion of the outstanding principal balance of the notes, plus all accrued but unpaid interest at a price equal to 110% of such amount and the holders shall have the right to convert any or all of the amount to be redeemed into common stock prior to redemption. The notes are secured by a first priority lien on the company’s assets related to its “Inscrybe Referral and Order Management” and “Inscrybe Hospital Discharge” solutions. Subject to certain exceptions, the notes contain customary covenants against incurring additional indebtedness and granting additional liens and contain customary events of default. Upon the occurrence of an event of default under the notes, a holder may require the company to repay all or a portion of its notes in cash, at a price equal to 110% of the principal and accrued and unpaid interest.

The company also agreed to file a registration statement covering the resale of the shares of the company’s common stock issuable upon conversion of the June 8, 2015 notes and exercise of the warrants and to use commercially reasonable efforts to have the registration declared effective in a timely manner. The Company will be subject to certain monetary penalties, as defined in the agreement if the registration statement is not filed, does not become effective on a timely basis, or does not remain available for the resale, as such term is defined in the registration rights agreement.

On August 7, 2015, the company issued a senior secured promissory note in the aggregate principal amount of $320,000 to an accredited investor in a private transaction. The note was due and payable on December 31, 2015 and interest shall accrue on the note at the rate of 10.0% per annum. The note was not convertible into equity securities of the company and it contains terms and events of default customary for similar transactions. The note is secured by a first priority lien on certain of our assets, as described in a security agreement entered into between the company and the purchaser dated as of August 7, 2015. Subject to certain exceptions, the note contains customary covenants against incurring additional indebtedness and granting additional liens and contains customary events of default. In consideration of the loan, the company and the purchaser entered into a warrant amendment agreement pursuant to which the company agreed to amend certain of the terms of the existing 608,314 common stock purchase warrants currently held by the purchaser and an affiliate to reduce the exercise price of such warrants to $1.53 and to extend the expiration date of the warrants to December 13, 2019. The warrants amended were issued in various transactions from 2012 through 2013 at exercise prices ranging between $8.55 and $12.06. The fair value related to the warrant modifications was recorded as a debt discount and is being amortized over the term of the new agreement. The purchaser is an entity affiliated with J. David Luce. Following an extension of the maturity date of the senior secured note to January 15, 2016, on such date we entered into a note amendment with the investor pursuant to which we agreed to modify certain of the terms of the senior secured note to extend the maturity date to April 15, 2016 and to allow the investor to elect to further extend the note for an additional 90 days. In consideration for such agreements, the company agreed that the senior secured note would be further modified so that it would be convertible into shares of common stock of the company at an initial conversion price of $4.86 per share, which was equal to the most recent consolidated closing bid price of the company’s common stock immediately prior to the execution of the amendment agreement. Based on the conversion price, the principal amount of the note will be convertible into up to 65,844 shares of common stock. The conversion price is only subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. The holder shall not have the right to convert the note to the extent that such conversion would result in the holder being the beneficial owner in excess of 4.99% of the company’s common stock. The other terms and conditions of the note were not amended.

On August 26, 2015, the company issued promissory notes in the aggregate principal amount of $400,000 to Lazarus Investment Partners LLLP, the beneficial owner of approximately 29.0% of the company’s common stock at the time, and an entity affiliated with J. David Luce in a private transaction. The notes are unsecured obligations of the company and are not convertible into equity securities of the company. The notes bear interest at 20% per annum, payable in arrears, and are due upon the earlier of (i) August 26, 2016, or (ii) within 30 days of the closing of the contemplated acquisition, merger or similar transaction with Peachstate Health Management, LLC (d/b/a AEON Clinical Laboratories) as described above, or a similar alternative acquisition, merger or similar transaction with an unaffiliated third party, or (iii) the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The holders have the right, at their option, to convert interest and principal due on the note into any alternative financing that may be undertaken by the company while the notes are outstanding.

In September 2015, the company issued promissory notes in the aggregate principal amount of $525,000 to accredited investors in a private transaction. The notes are unsecured and are not convertible into equity securities of the company. The notes bear interest at 20% per annum, payable in arrears, and are due upon the earlier of (i) September 18, 2016, or (ii) within 30 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The company also issued the investors warrants to purchase an aggregate of 116,667 shares of common stock. The warrants are exercisable commencing twelve months following their issuance for a period of 54 months at an exercise price of $2.70 per share. These closings are part of an offering of up to $1 million of notes and 222,222 warrants.

 

13


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

Except for the June 8, 2015, December 11, 2015 and December 15, 2015 transactions, the company allocated the proceeds from the initial note transactions to the notes and the related warrants based on the relative fair values of such instruments using the fair value of the notes at a market rate of interest and the fair value of the warrants based on the Black-Scholes option pricing model and the applicable assumptions set forth in Note 3 of Notes to Condensed Consolidated Financial Statements. These allocations resulted in effective interest rates for the $100,000 note of approximately 39% per annum, for the $950,000 note of approximately 65% per annum, for the $500,000 note of approximately 71% per annum for the $800,000 senior secured note of approximately 36% per annum, for the $320,000 secured note of approximately 63%, for the $400,000 note of approximately 20% and for the $525,000 notes of approximately 54%, respectively. However, since the subjective nature of the inputs for the option pricing and other models used to calculate fair values can materially affect fair value estimates, in management’s opinion, such models may not provide a reliable single measure of the fair value of the warrants and the resulting effective interest rates. In connection with the note transactions the company recorded promissory notes of $4,078,000, debt discount of $913,000, a warrant liability of $2,690,000, non-cash loss on extinguishments discussed below of $3,534,000 and additional paid-in-capital of $3,068,000 related to the fair value of the warrants.

In October 2015, the company issued a promissory note in the aggregate principal amount of $450,000 to Peachstate Medical Holdings LLC, d/b/a AEON Clinical Laboratories in a private transaction. The note is unsecured and is not convertible into equity securities of the company. The note bears interest at 20% per annum, payable in arrears, and is due upon the earlier of (i) October 28, 2016, or (ii) within 30 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The company also issued the investor warrants to purchase an aggregate of 111,111 shares of common stock. The warrants are exercisable commencing twelve months following their issuance for a period of 54 months at an exercise price of $2.70 per share.

As a result of the ratchet provision included in the June 8, 2015 transaction, the company recorded a warrant liability and a debt discount based on the fair value of the warrants issued in connection with the new senior secured note. As a result of similar provisions included in the December 11, 2015 transaction, the company recorded a warrant liability and a loss on extinguishment based on the difference between the reacquisition cost and the carrying amount of the old note. As discussed more fully in Note 13 of Notes to Condensed Consolidated Financial Statements, the company is required to revalue these warrants at the end of each reporting period. In connection with the modifications of the $100,000, $950,000 and $500,000 short-term notes discussed above, the company issued additional warrants and agreed to certain modifications that, for accounting purposes, resulted in the extinguishment of certain old notes and the creation of new notes. Accordingly, the company recorded non-cash losses on extinguishment of approximately $557,000 as other expense in the fourth quarter of fiscal 2015 ended June 30, 2015 and $2,977,000 in the second quarter of fiscal 2016 ended December 31, 2015. The modification of the $320,000 note on January 15, 2016 will be accounted as an extinguishment in the third quarter of fiscal 2016. The non-cash amortization of the debt discount of $244,000 and $371,000 and deferred financing costs of $49,000 and $92,000 is included in other expense for the three and six months ended December 31, 2015, respectively. There was no amortization for the three and six months ended December 31, 2014.

The following table sets forth the notes and unamortized debt discount (in thousands):

 

     December 31,
2015
     June 30,
2015
 
       

Notes payable

     

Secured notes payable

   $ 2,170       $ 900   

Unsecured notes payable

     1,908         1,450   

Unamortized debt discount

     (395      (200
  

 

 

    

 

 

 

Notes payable

   $ 3,683       $ 2,150   
  

 

 

    

 

 

 

 

8. Preferred Stock

As of December 31, 2015, there are 28,000 shares of Series B preferred stock outstanding. The Series B preferred stock was originally issued in a private financing in October 1999 and the conversion and redemption features were amended in October 2002 to provide for the rights and obligations described in this note. The company has the right to repurchase the outstanding Series B preferred stock at a redemption price equal to $25.00 per share, plus accrued and unpaid dividends. The holder of such shares has the right to convert shares of preferred stock into an aggregate of approximately 28,000 shares of our common stock at a conversion rate of $25.20 per share. In the event the company elects to redeem these securities, the holder will be able to exercise its conversion right

 

14


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

subsequent to the date that we issue a notice of redemption but prior to the deemed redemption date as would be set forth in such notice. At December 31, 2015, the company has accrued dividends in the amount of $35,000 which remain unpaid for the period ended December 31, 2015.

As of December 31, 2015, there are 625,000 shares of Series D convertible preferred stock outstanding. The Series D preferred stock was issued in June 2013 in connection with the cancelation of an aggregate principal amount of $6,500,000 of senior secured notes and can be converted by the holders into an aggregate of 639,622 shares of common stock at an initial conversion rate of $9.77139 per share. During the quarter ended December 31, 2015, 40,000 shares of Series D preferred stock were converted into 40,935 shares of common stock. The holders of such shares have the right to convert the preferred shares at any time commencing on the six month anniversary of the issue date; however, the shares received upon conversion may not be offered or sold except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The company has the right to repurchase the outstanding Series D preferred stock at a redemption price equal to $10.00 per share, plus accrued and unpaid dividends, beginning two years after issuance and to require holders to convert their Series D preferred stock beginning three years after issuance. Dividends on the Series D preferred stock accrue at a rate of 5% per annum and are payable semi-annually in cash or stock at the company’s option. At December 31, 2015, the company has accrued dividends in the amount of approximately $167,000 which remain unpaid for the period ended December 31, 2015.

 

9. Shareholder’s Equity

The changes in shareholders’ equity for the six months ended December 31, 2015 are summarized as follows (in thousands):

 

                  Additional            Total  
     Preferred     Common      Paid-in      Accumulated     Shareholders’  
     Stock     Stock      Capital      Deficit     Deficit  

Balance, June 30, 2015

   $ 69      $ 5       $ 205,946       $ (206,485   $ (465

Preferred stock dividends

             (202     (202

Share-based compensation expense

          210           210   

Restricted shares and stock options issued for services

          363           363   

Exercise of stock options

       —           3           3   

Conversion of Series D preferred stock

     (4        4           —     

Warrants issued for services

          12           12   

Warrants and conversion features releted to debt

          2,166           2,166   

Net loss

             (8,228     (8,228
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Balance, December 31, 2015

   $ 65      $ 5       $ 208,704       $ (214,915   $ (6,141
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

During the six months ended December 31, 2015 there were 518 stock options and no warrants exercised.

 

10. Commitments and Contingencies

During fiscal 2009, the company purchased certain inventory components under arrangements that required payment only after such components where actually used in production. Based on the company’s current production plans we have determined that these components will not be used and we offset the inventory balance for undelivered items against the related accounts payable balance during the quarter ended March 31, 2015. Additionally, we intend to return approximately $0.2 million of such items that are included in the inventory and accounts payable balances as of December 31, 2015. The vendor that provided these components is currently disputing this arrangement and is requesting payment for these items. In December 2015, the vendor served a summons and complaint against the Company seeking to recover an alleged amount due of approximately $2.1 million. The company believes the amount at issue is approximately $1.2 million and intends to vigorously contest this assertion. The caption of the litigation is Eurotech, Inc. vs. Authentidate Holding Corp. and the venue is Circuit Court of Howard County, State of Maryland, Case N. 13-C-15105926. Plaintiff has alleged breach of contract and equitable relief. Management does not believe that the ultimate resolution of this matter will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

We are also subject to claims and litigation arising in the ordinary course of business. Our management considers that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

 

15


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

We are not currently engaged in any other litigation which would be anticipated to have a material adverse effect on our financial condition or results of operations.

We have entered into employment agreements with our chief executive officer, chief financial officer and interim chief strategy officer that specify the executive’s current compensation, benefits and perquisites, the executive’s entitlements upon termination of employment, and other employment rights and responsibilities. The employment period for our chief executive officer and interim chief strategy officer ended on January 27, 2016 in connection with the completion of the merger transaction discussed more fully in Note 4 of Notes to Condensed Consolidated Financial Statements. In connection with the termination of the company’s employment relationship with its former chief executive officer and president in February 2015, the company is presently reviewing its severance obligations to him and the vesting and other post-termination provisions of certain of the unexercised stock options and other unvested stock options and unvested restricted stock units held by him as of the effective date of his separation from the company.

We have entered into various agreements by which we may be obligated to indemnify the other party with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business under which we customarily agree to hold the indemnified party harmless against losses arising from a breach of representations related to such matters as intellectual property rights. Payments by us under such indemnification clauses are generally conditioned on the other party making a claim. Such claims are generally subject to challenge by us and to dispute resolution procedures specified in the particular contract. Further, our obligations under these arrangements may be limited in terms of time and/or amount and, in some instances, we may have recourse against third parties for certain payments made by us. It is not possible to predict the maximum potential amount of future payments under these indemnification agreements due to the conditional nature of our obligations and the unique facts of each particular agreement. Historically, we have not made any payments under these agreements that have been material individually or in the aggregate. As of December 31, 2015, we are not aware of any obligations under such indemnification agreements that would require material payments.

 

11. Income Taxes

The company continues to recognize its tax benefits which are fully offset by a valuation allowance due to the uncertainty that the deferred tax assets will be realized. We will continue to evaluate the realizability of our net deferred tax assets and may record additional benefits in future earnings if we determine the realization of these assets is more likely than not.

 

12. Other Expense

Other expense consists of the following (in thousands):

 

     Three Months Ended      Six Months Ended  
     December 31,      December 31,  
     2015      2014      2015      2014  

Amortization of debt discount

   $ (244    $ —         $ (371    $ —     

Amortization of deferred financing costs

     (49      —           (92      —     

Loss on entinguishment of notes

     (2,977         (2,977   

Interest expense

     (64      —           (144      —     

Change in fair value of warrant liability

     (941      —           (1,100      —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other expense

   $ (4,275    $ —         $ (4,684    $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

The amortization of debt discount and deferred financing costs and the loss on extinguishment of notes for fiscal 2016 relates to the notes discussed in Note 7 of Notes to Condensed Consolidated Financial Statements.

 

16


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

13. Fair Value Measurements

The company measures fair value for financial assets and liabilities in accordance with the provisions of the accounting guidance regarding fair value measurements. The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. A brief description of those three levels is as follows:

 

    Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.

 

    Level 2: Inputs other than quoted prices for identical assets or liabilities that are observable for the asset or liability, either directly or indirectly.

 

    Level 3: Significant unobservable inputs.

The company’s assets and liabilities subject to fair value measurements as of December 31, 2015 and June 30, 2015 are as follows (in thousands):

 

     Fair Value Measurements  
     Using Fair Value Hierarchy  
     Fair value      Level 1      Level 2      Level 3  

December 31, 2015

           

Warrant liability

   $ 2,690       $ —         $ —         $ 2,690   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 2,690       $ —         $ —         $ 2,690   
  

 

 

    

 

 

    

 

 

    

 

 

 

June 30, 2015

           

Warrant liability

   $ 214       $ —         $ —         $ 214   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 214       $ —         $ —         $ 214   
  

 

 

    

 

 

    

 

 

    

 

 

 

The warrant liability represents the fair value of the warrants issued by the company in June 2015 and December 2015 that have reset features. The company is required to revalue the warrant liability at the end of each reporting period and record a non-cash gain or loss in the statement of operations for the change in the fair value of the warrant liability in the period in which the change occurs. The fair value of the warrant liability is estimated using an adjusted Black-Scholes model and the applicable level 1 and level 2 inputs disclosed in Note 3 of Notes to Condensed Consolidated Financial Statements and an unobservable level 3 input regarding the likelihood of a reset occurring. Since the company uses a level 3 input, the warrant liability in included in the level 3 category in the table above. Estimating fair value requires the input of highly subjective assumptions and because changes in such assumptions can materially affect the fair value estimate, in management’s opinion, the existing models may not provide a reliable single measure of the fair value of the related assets or liabilities.

For the three and six months ended December 31, 2015, the company recorded non-cash losses of approximately $941,000 and $1,100,000 in other expense for the change in fair value of the warrant liability. The company also recorded a warrant liability of $1,376,000 in December 2015 in connection with the extinguishment of the related note. For the three and six months ended December 31, 2014, there were no gains or losses resulting from the fair value measurement of assets or liabilities.

 

14. Accounting Standards Adopted in Fiscal 2016

The company has not adopted any FASB Accounting Standards Updates (ASU) during fiscal 2016.

 

15. Common Stock Warrants

During the six months ended December 31, 2015, the company issued warrants to purchase shares of its common stock as follows. The company issued 11,111 warrants to a consultant for services with an exercise price of $1.71 per share. These warrants have a five year life and, are exercisable beginning six months after the grant date. Under this consulting arrangement, the company may grant up to an additional 88,888 warrants to this consultant based on the achievement of performance targets. Unless such performance targets are achieved, no additional warrants would be issued under this arrangement. The fair value of these warrants, as determined by the Black Scholes Model, was charged to operations on the grant date. Further, as discussed more fully in Notes 7 of Notes to Condensed Consolidated Financial Statements, the company issued warrants to purchase approximately 761,000 shares of the company’s common stock in connection with the issuance of short-term notes in September and October 2015 and the modification of certain short-term notes in December 2015.

 

17


Table of Contents

Authentidate Holding Corp. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

A schedule of common stock warrant activity is as follows (in thousands, except per share and average life data):

 

     Number of
Shares
     Weighted
Average
Exercise Price
Per Share
     Weighted
Average
Remaining
Contractual Life
(Years)
     Aggregate
Intrinsic
Value
 

Outstanding, June 30, 2015

     3,741       $ 7.56         

Issued

     772         2.70         

Expired

     (200      5.67         
  

 

 

          

Outstanding, December 31, 2015

     4,313         5.22         4.81       $ 11,437   
  

 

 

          

Exercisable, December 31, 2015

     3,496       $ 5.67         4.71       $ 8,629   
  

 

 

          

 

18


Table of Contents
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements and Factors That May Affect Future Results

Certain statements in this Form 10-Q, including information set forth under Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). We desire to avail ourselves of certain “safe harbor” provisions of the Act and are therefore including this special note to enable us to do so. Forward-looking statements in this Form 10-Q or hereafter included in other publicly available documents filed with the Securities and Exchange Commission, reports to our stockholders and other publicly available statements issued or released by us involving known and unknown risks, uncertainties and other factors which could cause our actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such future results are based upon our management’s best estimates based upon current conditions and the most recent results of operations. These risks include, but are not limited to risks associated with the market acceptance of our software, products and services, competition, pricing, technological changes, implementation of our business plan, and other risks as discussed in our filings with the Securities and Exchange Commission, in particular our Annual Report on Form 10-K for the year ended June 30, 2015 and our subsequently filed reports filed with the Securities and Exchange Commission , all of which risk factors could adversely affect our business and the accuracy of the forward-looking statements contained herein.

The financial information included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations is that of Authentidate prior to the merger because the merger was consummated after the period covered by the financial statements included in this Quarterly Report on Form 10Q. Accordingly, the historical financial information included in this Quarterly Report on Form 10Q, unless otherwise indicated or as the context otherwise requires, is that of Authentidate and its subsidiaries prior to the merger.

Overview

Authentidate Holding Corp. (Authentidate or the company) and its subsidiaries provide secure web-based revenue cycle management applications and telehealth products and services that enable healthcare organizations to increase revenues, improve productivity, reduce costs, coordinate care for patients and enhance related administrative and clinical workflows and compliance with regulatory requirements. Our web-based services are delivered as Software as a Service (SaaS) to our customers interfacing seamlessly with billing and document management systems. These solutions incorporate multiple features and security technologies such as business- rules based electronic forms, intelligent routing, transaction management, electronic signatures, identity credentialing, content authentication, automated audit trails and remote patient management capabilities. Both web and fax-based communications are integrated into automated, secure and trusted workflow solutions.

Our telehealth solutions provide in-home patient vital signs monitoring systems and services to improve care for patients and reduce the cost of care by delivering results to their healthcare providers via the Internet. Our telehealth solutions combine our tablet or Electronic House Call™ patient vital signs monitoring appliances or our Interactive Voice Response patient vital signs monitoring solution with a web-based management and monitoring software module. Both solutions enable unattended measurements of patients’ vital signs and related health information and are designed to aid wellness and preventative care, and deliver better care to specific patient segments that require regular monitoring of medical and behavioral health conditions. Healthcare providers can easily view each specific patient’s vital statistics and make adjustments to the patient’s care plans securely via the Internet. This service provides a combination of care plan schedule reminders and comprehensive disease management education as well as intelligent routing to alert on-duty caregivers whenever a patient’s vital signs are outside of the practitioner’s pre-set ranges. Healthcare providers and health insurers are also expected to benefit by having additional tools to improve patient care and reduce in-person and emergency room patient visits and hospital readmissions.

We operate our business in the US with technology and service offerings that address emerging growth opportunities based on the regulatory and legal requirements specific to each market. Our business is engaged in the development and sale of web-based services largely based on our Inscrybe® platform and related capabilities and our telehealth products and services. In recent years we have focused our efforts on developing and introducing solutions for use in the healthcare information technology industry. More recently we have also been focused on evaluating strategic transactions, including the transaction discussed below with Peachstate Health Management, LLC, which we completed on January 27, 2016.

We believe there are a number of on-going factors that will be favorable for the healthcare information technology industry in the near future. These factors include regulatory reforms in the U.S. focused on controlling costs, automating medical records and processes and expanding the availability of healthcare coverage, and healthcare industry trends to significantly reduce costs, shorten

 

19


Table of Contents

the length of hospital stays, reduce hospital readmissions, shift patient care towards wellness and preventative care programs and automate healthcare records and processes. Furthermore, we believe our business will benefit as the recent U.S. Supreme Court decisions upholding the healthcare law are better recognized in the marketplace. Because healthcare information technology solutions play an important role in healthcare by improving safety, efficiency and reducing cost, they are often viewed as more strategic than other capital purchases. In addition, government agencies, as well as politicians and policymakers appear to agree that the growing cost of our healthcare system is unsustainable and the intelligent use of information systems will improve health outcomes and, correspondingly, drive down costs. The broad recognition that healthcare information technology is essential to help control healthcare costs and improve quality contributed to the inclusion of healthcare information technology incentives in the American Recovery and Reinvestment Act (ARRA) and accompanying Health Information Technology for Economic and Clinical Health (HITECH) provisions which include more than $35 billion in incentives for healthcare organizations to modernize operations through “meaningful use” of healthcare information technology. Further, as more consumers are provided with insurance coverage, healthcare providers may face increased volumes that could create capacity constraints, and they may find it challenging to profitably provide care at the planned reimbursement rates under the expanded coverage models. Another aspect of the market for healthcare information technology is the shift away from fee-for-service or volume-based reimbursement towards value-based or outcomes-based reimbursement. Payers, including health insurance companies and federal and state governments, are implementing programs to link reimbursement to quality measurements and outcomes, and this alignment creates significant financial motivation for adoption of healthcare information technology products and services. We believe that there are substantial sums of reimbursement funds that are tied to incentive programs such as value based purchasing, 30-day readmission rules and quality reporting requirements. There are also a growing number of third-party studies that document how telehealth can positively impact the way healthcare is delivered. From chronic care to behavioral health and wellness programs, a wide range of patient populations can benefit from telehealth. We believe that telehealth products are helping physicians and patients to accomplish a number of goals, including, shifting visits away from high-cost settings; reducing the cost of managing patients; reducing unnecessary hospital readmissions; reducing the duration of hospital stays; improving access to care for patients located in remote areas; and improving outcomes. We believe the factors discussed above will create strong incentives for providers to maximize efficiency and create the need for additional investments in healthcare information technology solutions and services. We also believe that the healthcare information technology industry will likely benefit as healthcare providers and governments continue to recognize that these solutions and services contribute to safer, more efficient healthcare.

Authentidate has experienced net losses and negative cash flow from operating activities while we have been focused on developing our products and services, refining our business strategies and repositioning our businesses for growth. Although we believe we are well positioned for such growth, we expect the current Authentidate business to continue to generate net losses and negative cash flow for the foreseeable future as we seek to expand our potential markets and generate increased revenues. During fiscal 2016 we have continued to focus primarily on marketing our telehealth products and services and our referral and order management solution while implementing various measures to decrease our operating costs. We intend to continue to take steps to refine our core product and service offerings, expand our addressable markets, manage operating costs and position the company for long-term growth. We believe the company is well positioned for growth as the healthcare markets it serves are growing rapidly and expected to continue to grow over the next several years according to third party analyst market assessments. Additionally, our products and services target the “12 month episode of care” market, which is the largest and fastest growing market segment for remote patient management services. Although we have taken steps to focus our business in these areas, our progress will continue to be impacted by the timing of customer contracts and implementations, our ability to fund our operating costs and the market acceptance of our products and services.

As previously reported, on March 6, 2015 we announced that the Department of Veterans Affairs (VA) informed the company that it did not intend to exercise the fourth and final option year under our contract for telehealth products and services and our contract expired on May 15, 2015. Our VA revenue included both recurring service revenues as well as hardware sales and we expect to report significantly reduced revenues from the current Authentidate business over the next several quarters as a result of the non-renewal of our VA contract. We have taken steps to reduce our operating costs and have implemented a number of changes to our business plan with the ultimate goal to increase revenues and positive cash flow from operations. These changes include cost reductions from reducing our workforce and use of consultants that we made in the third quarter of fiscal 2015 and additional workforce reductions through August 31, 2015. These reductions are expected to reduce operating expenses by approximately $4,151,000 on an annualized basis. We have also taken actions to realign our data center operations for an expected annualized cost reduction of $203,000 and have relocated our corporate offices, which is expected to result in annualized savings of $372,000.

We believe that our experience with the VA telehealth project has enabled us to refine our telehealth products and services and position the company for success in the commercial market which we believe provides a significantly larger opportunity for the company as this market develops. We have continued to develop lower cost solutions for the commercial market that we were not able to deploy at the VA and we have already reduced our operating costs in excess of the monthly recurring revenues and equipment margins that we were generating from the VA project.

 

20


Table of Contents

Revenues generated from the current Authentidate business consist principally of transaction fees for web-based hosted software services and revenues from hardware sales and rentals, monthly monitoring services and maintenance fees from our telehealth business. Growth in the Authentidate business is affected by a number of factors, including general economic and business conditions, and is characterized by long sales cycles. The timing of customer contracts, implementations and ramp-up to full utilization can have a significant impact on results and we believe our results over a longer period of time provide better visibility into our performance. We intend to continue our efforts to market our web-based services and related products in our target markets. We also intend to focus on identifying additional applications and markets where our technology can address customer needs.

Recent Developments

At Authentidate’s special meeting of stockholders held on January 20, 2016, the stockholders approved an amendment to the company’s Amended Certificate of Incorporation to implement a reverse stock split, with the ratio to be determined by the board of directors of the company, within a range of not less than 1-for-2 or greater than 1-for-10. Subsequently on January 20, 2106, the board of directors of the company determined to fix the ratio for the reverse stock split at 1-for-9. Thereafter, on January 21, 2016, the company filed a Certificate of Amendment to its Certificate of Incorporation of the company, as amended, to implement a one-for-nine reverse split of its common stock which became effective as of 5:00 p.m. (Eastern Time) on January 22, 2016, and the company’s common stock began trading on a post-split basis on January 25, 2016. As a result of the reverse split, every nine shares of issued and outstanding common stock have been combined into one share of issued and outstanding common stock. In addition, the reverse split effected a proportionate adjustment to the per share exercise price and the number of shares issuable upon the exercise or settlement of all outstanding options and warrants to purchase or acquire, as applicable, shares of the company’s common stock, and the number of shares reserved for issuance pursuant to the company’s existing equity incentive compensation plans were reduced proportionately. The reverse split also effected a proportionate adjustment to the conversion price and number of shares of common stock issuable upon the conversion of all outstanding shares of convertible preferred stock and upon the conversion of all outstanding convertible debt instruments.

Further, as described in greater detail below, at the special meeting of stockholders held on January 20, 2016, our stockholders approved an amendment to the company’s Amended Certificate of Incorporation to restrict certain transfers of our common stock (the “Protective Amendment”). The Protective Amendment is designed to prevent certain transfers of common stock that could result in an ownership change under Section 382 of the Internal Revenue Code and, therefore, materially inhibit the company’s ability to utilize its net operating losses under federal tax laws. The company filed the Certificate of Amendment to its Certificate of Incorporation for the Protective Amendment with the Secretary of State of Delaware on January 21, 2016.

As discussed more fully in Note 4 of Notes to Condensed Consolidated Financial Statements, on January 27, 2016, the company completed its business combination with Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories, whereby AEON became a wholly-owned subsidiary of the company. Under the provisions of ASC 805-40 Business Combinations – Reverse Acquisitions, the transaction will be accounted for as a reverse acquisition with AEON becoming the acquirer for accounting purposes and AHC becoming the accounting acquiree.

Critical Accounting Policies

There have been no changes to our critical accounting policies during the six months ended December 31, 2015. Critical accounting policies and the significant estimates made in accordance with such policies are regularly discussed with our Audit Committee. Those policies are discussed under Critical Accounting Policies in our Management’s Discussion and Analysis of Financial Condition and Results of Operations section included in item 7, as well as in our consolidated financial statements and the footnotes thereto contained in our Annual Report on Form 10-K for the fiscal year ended June 30, 2015.

Results of Operations

Three and six months ended December 31, 2015 compared to three and six months ended December 31, 2014

Revenues were $399,000 for the quarter ended December 31, 2015 compared to $1,347,000 for the prior year period. These results reflect a decrease in revenues from both our telehealth products and services and hosted software services due to lower equipment sales and service revenues and transaction volumes, respectively. Revenues for the six months ended December 31, 2015 were $797,000 compared to $2,399,000 for the prior year period reflecting the same trends as the quarter.

Cost of revenues decreased to $208,000 for the quarter ended December 31, 2015 compared to $751,000 for the same period in the prior year, due primarily to lower costs related to telehealth revenues and lower personnel costs for our hosted software services. Cost of revenues for the six months ended December 31, 2015 were $415,000 compared to $1,344,000 for the prior year period reflecting the same trends as the quarter.

 

21


Table of Contents

Selling general and administrative (SG&A) expenses decreased to $1,799,000 for the quarter ended December 31, 2015 compared to $2,105,000 for the prior year period. This decrease is due primarily to lower personnel and consulting expenses offset in part by inventory adjustment expenses and incremental legal and merger related expenses and does not give full effect to the impact of our recent cost-cutting measures for data center and facility expenses. SG&A expenses for the six months ended December 31, 2015 decreased to $3,300,000 compared to $4,116,000 for the prior year period reflecting the same trends as the quarter.

Product development expenses were $97,000 for the quarter ended December 31, 2015 compared to $369,000 for the prior year period reflecting lower personnel and contractor expenses. For the six months ended December 31, 2015 product development expenses were $259,000 compared to $739,000 for the prior year period reflecting the same trends as the quarter.

Depreciation and amortization expense was $185,000 for the quarter ended December 31, 2015 compared to $210,000 for the prior year period. This change reflects lower expenditures for property and equipment during the current period. For the six months ended December 31, 2015 depreciation and amortization expenses were $367,000 compared to $399,000 for the prior year period reflecting the same trends as the quarter.

Other expense was $4,275,000 for the quarter ended December 31, 2015 compared to zero for the prior year period. For the six months ended December 31, 2015 other expense was $4,684,000 compared to zero for the prior year period. Other expense for the current periods reflects the non-cash amounts recorded for the loss on extinguishment in connection with the extension of certain short-term notes, the amortization of debt discount and deferred financing costs on notes payable and the loss on the change in the fair value of the warrant liability. Other expense also includes interest expense on notes payable.

Net loss for the quarter ended December 31, 2015 was $6,165,000, or $1.32 per share, compared to $2,088,000, or $0.47 per share, for the prior year period. For the six months ended December 31, 2015 net loss was $8,228,000, or $1.79 per share, compared to $4,199,000, or $0.98 per share, for the prior year period. The increase in net loss for the current periods is due to the increase in non-cash expenses discussed above which offset lower operating losses for the quarter.

Liquidity and Capital Resources

Overview

Our current operations and product development activities have required substantial capital investment to date and we have been largely dependent on our ability to sell additional shares of our common stock or other equity and debt securities to obtain financing to fund our operating deficits, product development activities, business acquisitions, capital expenditures and telehealth activities. Since June 2015, we have completed debt financing transactions resulting in total proceeds of approximately $1.7 million and have extended the maturity dates on approximately $1.8 million of our short-term debt obligations. The material terms of these debt transactions are summarized in Note 7 of Notes to Condensed Consolidated Financial Statements. We are using the proceeds from these transactions for working capital and general corporate purposes, including supporting the rollout of our telehealth products and services. As discussed in more detail below, our recurring operating losses and capital needs, among other factors, raise substantial doubt about our ability to continue as a going concern. Our consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. As discussed more fully above and in Note 4 of Notes to Condensed Consolidated Financial Statements, on January 27, 2016, the company completed its business combination with Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories, whereby AEON became a wholly-owned subsidiary of the company. We believe that the business combination with AEON creates a company focused on delivering innovative healthcare solutions that achieve technology best practices in medicine and raise the standard of healthcare.

Cash Flows

The Authentidate business has incurred significant losses from operations and our product development activities have required substantial capital investment to date. Under our current operating plan to grow our business, our ability to improve operating cash flow has been highly dependent on the market acceptance of our offerings. As discussed more fully in the Overview section above, the VA, our largest customer, did not renew our contract beyond May 15, 2015 and we expect to report significantly reduced revenues from the current Authentidate business over the next several quarters. Also as discussed in the Overview section, we have taken steps to reduce our operating costs and better align our resources with our growth opportunities, we completed debt financing transactions resulting in total proceeds of approximately $1.7 million and have extended the maturity dates on approximately $1.8 million of our short-term debt obligations, and we recently completed the acquisition of AEON Clinical Laboratories. Based on our business plan, and the completion of the business combination described above, we expect our existing resources and revenues generated from consolidated operations to satisfy our working capital requirements for at least the next twelve months. If necessary, management of the company believes that it can raise additional equity or debt financing to satisfy its working capital requirements. Raising additional funds by issuing equity or convertible debt securities may cause our stockholders to experience substantial dilution in their ownership interests and new investors may have rights superior to the rights of our other stockholders. Raising additional funds through debt financing or preferred stock, if available, may involve covenants that restrict our business activities and options and such

 

22


Table of Contents

additional securities may have powers, designations, preferences or rights senior to our currently outstanding securities or may require the granting of liens on our assets or preferences on revenue sources. We may also enter into financing transactions which involve the granting of liens on our assets or which grant preferences of payment from our revenue streams, all of which could adversely impact our ability to rely on our revenue from operations to support our ongoing operating costs. Currently, the company does not have any definitive agreements with any third parties for such transactions and there can be no assurances that the company will be successful in raising additional capital or securing financing when needed or on terms satisfactory to the company.

At December 31, 2015, cash and cash equivalents amounted to approximately $119,000 and total assets at that date were $3,414,000. Since June 30, 2015 cash and cash equivalents decreased approximately $128,000 reflecting the issuance of company securities offset in part by cash used principally to fund operating losses, product development activities, changes in working capital, and capital expenditures during the six months ended December 31, 2015. Our current estimated monthly operational requirements after giving effect to our cost cutting measures, but not to any special or one-time events, is approximately $350,000. Cash used for the period includes investments in licenses and other assets, the prepayment of certain insurance premiums and the payment of certain merger related expenses. We expect to continue to use cash to fund operating losses, changes in working capital, product development activities, and capital expenditures for the foreseeable future.

Net cash used in operating activities for the six months ended December 31, 2015 was approximately $1,913,000 compared to $2,483,000 for the prior year period reflecting a decrease in cash used for operations during the current period. Net cash provided by investing activities was $87,000 for the six months ended December 31, 2015 compared to cash used of $294,000 for the prior year period. This change reflects a decrease in asset and related purchases and a decrease in restricted cash for the current period. Net cash provided by financing activities for the six months ended December 31, 2015 was approximately $1,698,000 compared to $2,106,000 for the prior year period. The amount for the current period reflects the proceeds from short-term note transactions discussed above. The amount for the prior year reflects the proceeds from the August 2014 registered direct offering less the payment of certain preferred stock dividends.

Our future capital requirements may vary materially from those now planned. The amount of capital that we will need in the future will depend on many factors, including:

 

    our relationships with suppliers and customers;

 

    the market acceptance of our products and services;

 

    the levels of promotion and advertising that will be required to launch our new offerings and achieve and maintain a competitive position in the marketplace;

 

    price discounts on our products and services to our customers;

 

    our need to repay existing indebtedness;

 

    our business, product, capital expenditure and research and development plans and product and technology roadmaps;

 

    the level of accounts receivable and inventories that we maintain;

 

    technological advances;

 

    our decision to redeem our outstanding shares of preferred stock; and

 

    our competitors’ response to our offerings.

Financing Activities

Except as discussed in Note 7 of Notes to Condensed Consolidated Financial Statements, we have not engaged in any external financing activities in fiscal 2016 and 2015.

Other Matters

The events and contingencies described below have impacted or may impact our liquidity and capital resources.

In January 2016, we announced that we had completed the acquisition of Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories, an expanding clinical laboratory based in Gainesville, GA. As described in greater detail in Note 4 of Notes to Condensed Consolidated Financial Statements, the merger agreement provides that if certain financial results are achieved during the next four years, the AEON members would be issued shares of the company’s common stock totaling up to 90% of the common stock on a fully-diluted basis, as defined, as of the closing date.

Presently, 28,000 shares of our Series B preferred stock, originally issued in a private financing in October 1999, remain outstanding. As of October 1, 2004, our right to redeem these shares of Series B preferred stock is vested. Accordingly, we have the right to repurchase such shares at a redemption price equal to $25.00 per share, plus accrued and unpaid dividends. The holder, however, has the right to convert these shares of preferred stock into an aggregate of approximately 28,000 shares of our common

 

23


Table of Contents

stock at a conversion rate of $25.20. In the event we elect to redeem these securities, the holder will be able to exercise its conversion right subsequent to the date that we issue a notice of redemption but prior to the deemed redemption date as would be set forth in such notice. As of December 31, 2015, no shares of the Series B preferred stock have been redeemed.

In connection with our private placement of Series D preferred stock in June 2013, we issued 665,000 shares of Series D 5% convertible preferred stock of which 625,000 shares are outstanding at December 31, 2015. During the quarter ended December 31, 2015, 40,000 shares of Series D preferred stock were converted into 40,935 shares of common stock. The outstanding Series D preferred stock is convertible into 639,622 shares of our common stock at an initial conversion rate of $9.77139 per share. Each share of Series D preferred stock has a stated value of $10.00 per share. The company has the right to repurchase these shares at the stated value per share, plus accrued and unpaid dividends, starting in June 2015 and to require the holders to convert such securities into common stock starting in June 2016. Each holder of our Series D preferred stock has the right to convert such shares into common stock at any time commencing on the six month anniversary date of the issue date. The Series D preferred stock will pay dividends at the rate of 5% per annum, payable in cash or shares of common stock, at the company’s option subject, however, to limitations required by the Nasdaq stock market.

Commitments

Office Lease Commitments

We entered into the lease agreement for our executive offices on July 11, 2005. The lease was for a term of ten years and four months, with a commencement date of October 1, 2005 and covers approximately 19,700 total rentable square feet. The annual rent in the first year was $324,000 increasing to $512,000 in year 2 and increasing at regular intervals until year 10 when the annual rent would be approximately $561,000. Effective February 1, 2010, we amended our lease to reduce the annual rent to approximately $512,000 for the remaining lease term and extended the lease term for one year through January 2017. As part of the lease agreement, we posted a letter of credit securing our lease payments which was reduced to approximately $256,000. On September 23, 2015, we amended our lease to relocate our executive offices to approximately 5,200 total rentable square feet in the same building and completed our relocation on November 1, 2015. The amended lease has a term of six years following the occupancy date and annual rentals ranging from approximately $135,000 in the first year to $148,000 in the final year. The lease also provides us with a one-time option to renew the lease for a term of five years at the then-current market rate and, provided we pay an early termination fee, allows us an early termination option on each of the 18-month, 27-month and 36-month anniversary dates of the effective date of the amendment. As part of the lease agreement, we reduced our letter of credit securing our lease payments to approximately $135,000.

Contractual Commitments

A summary of the contractual commitments associated with our lease obligations as of December 31, 2015 is as follows (in thousands):

 

     Total      Less than
1 year
     1-3 years      4-5 years      More than
5 years
 
              

Leases

              

Operating

   $ 826       $ 135       $ 422       $ 269       $ —     

Capital

     36         16         20         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total lease obligations

   $ 862       $ 151       $ 442       $ 269       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

In connection with the termination of the company’s employment relationship with its former chief executive officer and president in February 2015, the company is presently reviewing its severance obligations to him and the vesting and other post-termination provisions of certain of the unexercised stock options and other unvested stock options and unvested restricted stock units held by him as of the effective date of his separation from the company.

Off-Balance Sheet Arrangements

We have not created, and are not party to, any special-purpose or off-balance sheet entities for the purpose of raising capital, incurring debt or operating parts of our business that are not consolidated into our financial statements. We do not have any arrangements or relationships with entities that are not consolidated into our financial statements that are reasonably likely to materially affect our liquidity or the availability of our capital resources. We have entered into various agreements by which we may be obligated to indemnify the other party with respect to certain matters. Generally, these indemnification provisions are included in

 

24


Table of Contents

contracts arising in the normal course of business under which we customarily agree to hold the indemnified party harmless against losses arising from a breach of representations related to such matters as intellectual property rights. Payments by us under such indemnification clauses are generally conditioned on the other party making a claim. Such claims are generally subject to challenge by us and to dispute resolution procedures specified in the particular contract. Further, our obligations under these arrangements may be limited in terms of time and/or amount and, in some instances, we may have recourse against third parties for certain payments made by us. It is not possible to predict the maximum potential amount of future payments under these indemnification agreements due to the conditional nature of our obligations and the unique facts of each particular agreement. Historically, we have not made any payments under these agreements that have been material individually or in the aggregate. As of December 31, 2015, we were not aware of any obligations under such indemnification agreements that would require material payments.

Effects of Inflation and Changing Prices

The impact of general inflation on our operations has not been significant to date and we believe inflation will continue to have an insignificant impact on us.

Present Accounting Standards Not Yet Adopted

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606). This ASU is intended to clarify the principles for recognizing revenue by removing inconsistencies and weaknesses in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The provisions of this ASU were effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2016. Early application is not permitted. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”, which defers the effective date to fiscal periods beginning after December 15, 2017. Early adoption is permitted for fiscal periods beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact of this standard on our consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This ASU requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition, and apply existing guidance under the Stock Compensation Topic of the ASC as it relates to awards with performance conditions that affect vesting to account for such awards. The provisions of this ASU are effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2015. We are currently evaluating the impact of this standard on our consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU is intended to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Specifically, ASU 2014-15 provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans and requires an express statement and other disclosures when substantial doubt is not alleviated. The new standard will be effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of this standard on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” This ASU is intended to simplify the presentation of debt issuance costs and conform to the guidance in International Financial Reporting Standards, which requires that transaction costs be deducted from the carrying value of the financial liability and not recorded as separate assets. Additionally, the requirement to recognize debt issuance costs as deferred charges conflicts with the guidance in FASB Concepts Statement No. 6, “Elements of Financial Statements,” which states that debt issuance costs are similar to debt discounts and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate. FASB Concepts Statement No. 6 further states that debt issuance costs cannot be an asset because they provide no future economic benefit. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. For public business entities, the amendments in this ASU are effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15,

 

25


Table of Contents

2015. In August 2015, the FASB issued ASU No. 2015-15, “Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting.” This ASU adds SEC paragraphs pursuant to the SEC Staff Announcement at the June 18, 2015, Emerging Issues Task Force meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements to this topic. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We are currently evaluating the impact of this standard on our consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement”, which provides explicit guidance to help companies evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for public business entities for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2015. An entity can elect to adopt the amendments either prospectively for all arrangements entered into or materially modified after the effective date, or retrospectively. Early adoption is permitted for all entities. We are currently evaluating the impact of this standard on our consolidated financial statements.

In May 2015, the FASB issued ASU 2015-08, “Business Combinations - Pushdown Accounting - Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115.” This ASU was issued to amend various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. This update is not expected to have a significant impact on our consolidated financial statements.

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” The amendments in this ASU require an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. A reporting entity should apply the amendments prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. We are currently evaluating the impact of this standard on our consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes,” requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. ASU 2015-17 is effective for public business entities for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted at the beginning of an annual or interim period. We are currently evaluating the impact of this standard on our consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such these investments may be measured at cost. ASU 2016-01 is effective for public business entities for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted at the beginning of an annual reporting period. We are currently evaluating the impact of this standard on our consolidated financial statements.

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are not exposed to significant financial market risks from changes in foreign currency exchange rates and are only minimally impacted by changes in interest rates. However, in the future, we may enter into transactions denominated in non-U.S. currencies or increase the level of our borrowings, which could increase our exposure to these market risks. We have not used, and currently do not contemplate using, any derivative financial instruments.

 

26


Table of Contents

Interest Rate Risk

At any time, fluctuations in interest rates could affect interest earnings on our cash and marketable securities. We believe that the effect, if any, of reasonably possible near term changes in interest rates on our financial position, results of operations, and cash flows would not be material. Currently, we do not hedge these interest rate exposures. The primary objective of our investment activities is to preserve capital. We have not used derivative financial instruments in our investment portfolio.

At December 31, 2015, our unrestricted cash totaled approximately $119,000 and was in non-interest bearing checking accounts used to pay operating expenses.

 

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our chief executive officer and chief financial officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) under the Exchange Act) as of the end of the period covered by this report, have concluded that, based on the evaluation of these controls and procedures, our disclosure controls and procedures were effective at the reasonable assurance level to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, to allow timely decisions regarding required disclosure.

Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. Our management, however, believes our disclosure controls and procedures are in fact effective to provide reasonable assurance that the objectives of the control system are met.

Changes in Internal Control over Financial Reporting

As discussed above, we completed the business combination on January 27, 2016 and we are currently in the process of evaluating and integrating internal controls over financial reporting of the parties to the transaction. During the quarter ended December 31, 2015, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) identified in management’s evaluation during the quarter ended December 31, 2015 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

 

Part II Other Information

 

Item 1. Legal Proceedings

During fiscal 2009, the company purchased certain inventory components under arrangements that required payment only after such components where actually used in production. The company determined that these components will not be used and it offset the inventory balance for undelivered items against the related accounts payable balance during the quarter ended March 31, 2015. Additionally, it intends to return approximately $0.2 million of such items that are included in the inventory and accounts payable balances as of December 31, 2015. The vendor that provided these components is currently disputing this arrangement and is requesting payment for these items. In December 2015, the vendor served a summons and complaint against the company seeking to recover an alleged amount due of approximately $2.1 million. The company believes the amount at issue is approximately $1.2 million and intends to vigorously contest this assertion. The caption of the litigation is Eurotech, Inc. vs. Authentidate Holding Corp. and the venue is Circuit Court of Howard County, State of Maryland, Case N. 13-C-15105926. Plaintiff has alleged breach of contract and equitable relief.

We are subject to claims and litigation arising in the ordinary course of business. Our management considers that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

 

27


Table of Contents
Item 1A. Risk Factors

As provided for under the Private Securities Litigation Reform Act of 1995, we wish to caution shareholders and investors that the following important factors, among others discussed throughout this Quarterly Report on Form 10-Q and a restated description of the risk factors associated with our business is set forth below. This description includes any material changes to and supersedes the description of the risk factors associated with our business previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended June 30, 2015 and in our reports subsequently filed with the SEC. You should carefully consider the risks described below, together with all of the following risk factors and the other information included in this report, in considering our business herein as well as the information included in our other reports filed with the SEC. These risks have affected, and in some cases could affect, our actual results of operations and cause our results to differ materially from those anticipated in forward looking statements made herein. The risks and uncertainties described below are not the only ones facing our company. Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations, financial condition and/or operating results. If any of the matters or events described in the following risks actually occurs, our business, financial condition or results of operations could be harmed. In such case, the trading price of our common stock could decline, and you may lose all or part of your investment due to any of these risks.

Risks Related to our Merger with AEON Clinical Laboratories

On January 27, 2016, we completed a business combination with Peachstate Health Management LLC, d/b/a AEON Clinical Laboratories (“AEON”) pursuant to which AEON merged with a newly-formed subsidiary of our company in an all-stock transaction. Details of the merger, and related transactions, including associated risks, are set forth in this Quarterly Report on Form 10-Q, the Form 8-K filed by us on February 1, 2016 and other materials to be filed with the SEC. The following are certain risks related the merger.

Risks Related to the Merger

The integration of Authentidate and AEON following the merger will require significant resources and may not be successful. The failure to integrate successfully the businesses of Authentidate and AEON in the expected timeframe could adversely affect the combined company’s future results following the completion of the merger.

There is no history of Authentidate and AEON as a combined company. Additionally, various decisions regarding management restructuring, operational staffing and reporting systems following the merger have not yet been finalized. As a result, there can be no guarantee that Authentidate and AEON will operate together successfully as a combined company. Integration of the companies and their operations will require considerable management time, which could result in the diversion of management resources from other important matters. The success of the merger will depend, in large part, on the ability of the combined company following the completion of the merger to realize the anticipated benefits from combining the businesses of Authentidate and AEON. The continued operation of the two companies will be complex and the integration of Authentidate and AEON will be a time consuming and expensive process and may disrupt their operations if it is not completed in a timely and efficient manner. The failure to integrate successfully and to manage successfully the challenges presented by the integration process may result in the combined company’s failure to achieve some or all of the anticipated benefits of the merger. In addition, we may not achieve anticipated synergies or other benefits of the merger. Following the transaction we must operate as a combined organization with AEON utilizing common information and communication systems, operating procedures, financial controls and human resources practices. We may encounter the following difficulties, costs and delays involved in integrating these operations:

 

    using the combined company’s cash and other assets efficiently to develop the business of the combined company;

 

    appropriately managing the liabilities of the combined company;

 

    potential unknown or currently unquantifiable liabilities associated with the merger and the operations of the combined company;

 

    potential unknown and unforeseen expenses, delays or regulatory conditions associated with the merger;

 

    failure to successfully manage relationships with customers and other important relationships;

 

    difficulties in successfully integrating the management teams and employees of the two entities;

 

    challenges encountered in managing larger operations;

 

    the loss of key employees;

 

    diversion of the attention of management from other ongoing business concerns;

 

28


Table of Contents
    potential incompatibility of technologies and systems;

 

    potential impairment charges incurred to write down the carrying amount of intangible assets generated as a result of the merger; and

 

    potential incompatibility of business cultures.

If the combined company’s operations after the merger do not meet the expectations of existing customers of either Authentidate or AEON, then these customers may cease doing business with the combined company altogether, which would harm our results of operations and financial condition. If the management team is not able to develop strategies and implement a business plan that successfully addresses these difficulties, we may not realize the anticipated benefits of the merger.

The merger will result in changes to our board of directors that may affect the combined company’s operations.

The composition of our board will change in accordance with the Merger Agreement. Following the completion of the merger, our board will consist of nine members and will be comprised of two representatives of the current AEON members, with AEON’s current chairman to serve as the chairman of our board following the merger. This new composition of the board may affect the business strategy and operating decisions of the combined company upon completion of the merger.

Authentidate and AEON have incurred substantial expenses in connection with the merger.

Authentidate and AEON have each incurred and will incur additional substantial expenses in connection with the transactions contemplated by the Merger Agreement. These costs include fees for financial advisors, attorneys and accountants, filing fees and financial printing costs. The amount of transaction costs will, in effect, reduce the cash reserves available for the combined enterprise to pursue its plan of business. If the total costs of the transaction exceed estimates, or the benefits of the transaction do not exceed its total costs, our financial results could be adversely affected.

Our success will depend in part on relationships with third parties, which relationships may be affected by third-party preferences or public attitudes about the merger. Any adverse changes in these relationships could adversely affect our business, financial condition or results of operations.

Our success will be dependent on our ability to maintain and renew the business relationships of both Authentidate and AEON and to establish new business relationships. There can be no assurance that our management will be able to maintain such business relationships, or enter into or maintain new business contracts and other business relationships, on acceptable terms, if at all. The failure to maintain important business relationships could have a material adverse effect on our business, financial condition or results of operations.

Authentidate’s stockholders will be substantially diluted as a result of the transaction and following completion of the transaction, the AEON members could own at least 85% our of common stock.

The merger contemplates that the members of AEON will have a controlling interest of our outstanding common stock if all of the earn-out targets are achieved. Pursuant to the Merger Agreement, at the closing the AEON members were issued such number of shares of common stock as is equal to 19.9% of the outstanding shares of our common stock as of the close of business on the business day immediately prior to the closing, and an additional 5% of the outstanding shares of the company’s common stock upon approval of the merger transaction by our stockholders. Further, the Merger Agreement provides that additional shares of common stock will be issued to AEON members in 2016 and 2020 if AEON achieves certain financial results. First, in the event AEON achieves at least $16,000,000 in EBITDA for the calendar year ending December 31, 2015, then on September 1, 2016, the company will issue to the former AEON members shares of common stock representing an additional 24% of the issued and outstanding shares of common stock (rounded to the nearest whole share) as of close of business on the business day immediately prior to the closing date. If AEON achieves at least $65,900,000 in EBITDA, in the aggregate, for the three (3) calendar years ending December 31, 2016, 2017 and 2018, then, on October 1, 2019, subject to the completion of the audited financial statements of AEON for the calendar year ending December 31, 2018, the company will issue to the former AEON members shares of the common stock representing an additional 36.1% of the issued and outstanding shares of the company’s common stock (rounded to the nearest whole share) as of the close of business on the business day immediately prior to the closing date; provided, however, the company will issue to the former AEON members such number of additional shares of common stock so that the total number of shares of the company’s common stock held by the former AEON members shall equal 85% of the issued and outstanding the company’s common stock on a post issuance basis (rounded to the nearest whole share) on a Fully Diluted Basis. Additionally, the former AEON members would be entitled to receive such number of additional shares of common stock as will equal an additional 5% of the issued and outstanding shares of the company’s common stock on a post issuance basis (rounded to the nearest whole share), on a Fully Diluted Basis (resulting in the AEON members potentially owning 90% of the issued and outstanding shares of common stock on a post issuance basis and Fully Diluted Basis if all the additional tranches are earned). The former AEON members will also granted the right to nominate and elect one director for each 10% of the outstanding shares of the company’s common stock issued to them under the Merger Agreement.

 

29


Table of Contents

If our stockholders do not approve the issuance of the Earn-out Consideration described in the Merger Agreement, the merger may be rescinded and our business could suffer materially and our stock price could decline.

Under the Merger Agreement, we are obligated to seek the approval of our stockholders of the issuance of the additional shares of common stock that may be issued to the former AEON members following the closing. The Merger Agreement contemplates that no later than May 31, 2016, we will seek stockholder approval for the issuance of any shares of the company’s common stock in excess of 19.9% of the issued and outstanding shares of common stock as of the date of the initial closing. Pursuant to the Merger Agreement, in the event that the company is unable, for any reason, to receive approval by its stockholders of the issuance of the additional shares of its common stock which may be issued to the former AEON members in excess of the initial 19.9% tranche under the Merger Agreement by May 31, 2016, then AHC or AEON shall have the rights to rescind the merger and all related transactions. In such circumstances, our board of directors may elect to, among other things, divest all or a portion of our business, or take the steps necessary to liquidate all of our business and assets, and in either such case, the consideration that we receive may be less attractive than the consideration to be received by us pursuant to the merger agreement. Further, if our board of directors were to approve and recommend, and our stockholders were to approve, a dissolution and liquidation of our company, we would be required under Delaware corporate law to pay our outstanding obligations, as well as to make reasonable provision for contingent and unknown obligations, prior to making any distributions in liquidation to our stockholders. Our commitments and contingent liabilities may include (i) obligations under our outstanding indebtedness; (ii) obligations under our employment and separation agreements with certain members of its management that provide for severance and other payments following a termination of employment occurring for various reasons, including a change in control of our company, (iii) other various claims and legal actions arising in the ordinary course of business and (iv) non-cancelable lease obligations. As a result of this requirement, a portion of our assets may need to be reserved pending the resolution of such obligations. In addition, we may be subject to litigation or other claims related to a dissolution and liquidation of our company. If a dissolution and liquidation were pursued, our board of directors, in consultation with its advisors, would need to evaluate these matters and make a determination about a reasonable amount to reserve. Accordingly, holders of our common stock may lose their entire investment in the event of a bankruptcy, liquidation, dissolution or winding up of our company.

Risks Related to Authentidate’s Financial Condition

Failure to increase our revenue and keep our expenses consistent with revenues could prevent us from achieving and maintaining profitability in the near term as we seek to generate new business revenues to offset the loss of our largest customer.

We incurred net losses of approximately $9,700,000, $7,143,000 and $11,349,000 for the fiscal years ended June 30, 2015, 2014 and 2013, respectively and had an accumulated deficit of approximately $206,485,000 at June 30, 2015. We also had a net loss of $8,228,000 for the six months ended December31, 2015 and had an accumulated deficit of approximately $214,915,000 at December 31, 2015. We have expended, and will continue to be required to expend, substantial funds to pursue product development projects, enhance our marketing and sales efforts and to otherwise operate our business. Therefore, we will need to generate higher revenues to achieve and maintain profitability and cannot assure you that we will be profitable in any future period. Further, our ability to generate the level of revenues we require to achieve profitability was adversely impacted by the decision of the Department of Veterans Affairs not to exercise the remaining renewal period of our contract. The loss of this customer has increased and accelerated our need to diversify our business by adding new customers. Our prospects should be considered in light of the difficulties frequently encountered in connection with the establishment of a new business line, which characterizes our business, such as the difficulty in creating a viable market, the significant related development and marketing costs and the overall competitive environment in which we operate. Accordingly, there can be no assurance that we will be able to achieve profitable operations in future operating periods. Our business results are likely to remain uncertain as we are unable to reliably predict revenues from our current customers. Revenue levels achieved from our customers, the mix of products and solutions that we offer, our ability to introduce new products as planned and our ability to reduce and manage our operating expenses will affect our financial results. Consequently, we may not be profitable in any future period. Unless we can generate additional revenues from sales or rentals of products and services to existing customers or obtain new customers, we will continue to generate substantial operating losses and may need to curtail our business and incur additional restructuring or exit costs, which may be material. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

30


Table of Contents

Our capital requirements have been significant and until our revenues can sufficiently support our operating costs, we expect to raise additional capital to finance our operations and repay outstanding debt obligations.

Our capital requirements have been and will continue to be significant. We have been substantially dependent upon private placements and registered offerings of our securities and on short-term and long-term debt transactions to fund such requirements. We are expending significant amounts of capital to develop, promote and market our software, services and products. Due to these expenditures, we have incurred significant losses to date. We used approximately $4,951,000, $4,726,000 and $5,214,000 in cash for operating activities for the fiscal years ended June 30, 2015, 2014 and 2013, respectively and $1,913,000 for the six months ended December 31, 2015. Our available cash and cash equivalents as of December 31, 2015 totaled approximately $119,000. Our current estimated monthly operational requirements after giving effect to our cost cutting measures, but not to any special or one-time events is approximately $350,000. Since June 2015, we have completed a number of debt financing transactions resulting in total proceeds of approximately $1.7 million, and have extended the maturity dates on approximately $1.8 million of our short-term debt obligations. We also completed the acquisition of AEON Clinical Laboratories in January 2016. In light of these events, we expect our existing resources and revenues generated from consolidated operations to satisfy our working capital requirements for at least the next twelve months; however, no assurances can be given, that we will be able to attain sales levels and support our costs through revenues derived from operations or generate sufficient cash flow to satisfy our other obligations. These factors, among others, raise substantial doubt about our ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments to the recoverability and classification of assets carrying amounts or the amounts and classifications of liabilities that might result from the outcome of these uncertainties. Raising additional funds by issuing equity or convertible debt securities may cause our stockholders to experience substantial dilution in their ownership interests and new investors may have rights superior to the rights of our other stockholders. Raising additional funds through debt financing or preferred stock, if available, may involve covenants that restrict our business activities and options and such additional securities may have powers, designations, preferences or rights senior to our currently outstanding securities. We may also enter into financing transactions which involve the granting of liens on our assets or which grant preferences of payment from our revenue streams, all of which could adversely impact our ability to rely on our revenue from operations to support our ongoing operating costs. Alternatively, we may seek to obtain new financing from existing security holders, which may include reducing the exercise or conversion prices of outstanding securities, or the issuance of additional equity securities. Currently, the company does not have any definitive agreements with any third-parties for such transactions and there can be no assurance that we will be successful in raising additional capital or securing financing when needed or on terms satisfactory to the company. Our future capital requirements will depend on, and could increase substantially as a result of many factors, including:

 

    the costs of integrating our operations with those of AEON;

 

    our need to utilize cash to support research and development activities and to make incremental investments in our organization;

 

    our ability to achieve targeted revenue, gross profit margins and cost management objectives;

 

    our ability to reach break-even or profitability;

 

    the success of our sales and marketing efforts;

 

    our need to repay indebtedness;

 

    the extent and terms of any development, marketing or other arrangements; and

 

    changes in economic, regulatory or competitive conditions, including the continuing economic weakness and federal budgetary uncertainty.

Risks Related to the Business of AEON Clinical Laboratories

The clinical testing business is highly competitive, and if AEON fails to provide an appropriately priced level of service or otherwise fail to compete effectively it could have a material adverse effect on its revenues and profitability.

The clinical testing business remains a fragmented and highly competitive industry. AEON competes with various types of clinical testing providers: other commercial clinical laboratories, hospital-affiliated laboratories and physician-office laboratories as well as anatomic pathology practices and large physician group practices. Hospitals may seek to leverage their relationships with community physicians and encourage the physicians to send their outreach testing to the hospital’s laboratory. In addition, hospitals that own physician practices may require the practices to refer testing to the hospital’s laboratory. In recent years, there has been a trend of hospitals acquiring physician practices, and as a result, an increased percentage of physician practices are owned by hospitals. As a result of this affiliation between hospitals and community physicians, we compete against hospital-affiliated laboratories primarily based on quality and scope of service as well as pricing. Increased hospital acquisitions of physician practices enhance physician ties to hospital-affiliated laboratories and may strengthen their competitive position.

 

31


Table of Contents

The diagnostic information services industry also is faced with changing technology and new product introductions. Competitors may compete using advanced technology, including technology that enables more convenient or cost-effective testing. Competitors also may offer testing to be performed outside of a commercial clinical laboratory, such as (1) point-of-care testing that can be performed by physicians in their offices; (2) complex testing that can be performed by hospitals in their own laboratories; and (3) home testing that can be carried out without requiring the services of outside providers.

AEON’s operations may be adversely impacted by the effect of trends in the U.S. healthcare system, including healthcare utilization and increased patient financial responsibility for services.

AEON’s operations may be adversely impacted by the effects of trends in the utilization of the healthcare system in the United States. Trends in the utilization of the U.S. healthcare system can be influenced by such factors as unemployment, under-employed workers, decisions to delay medical care and increased patient financial responsibility for medical care. Declining utilization of the U.S. healthcare system may result in a decline in the number of patients who seek clinical testing services. In the current environment, patients are encouraged to take increased interest in and responsibility for, and often are bearing increased financial responsibility for, their healthcare. AEON’s operations also may be adversely impacted by the recent trend to increased patient responsibility for payment for healthcare services, including diagnostic information services.

Government payers, such as Medicare and Medicaid, have taken steps to control the utilization and reimbursement of healthcare services, including clinical testing services.

AEON faces efforts by government payers to reduce utilization of and reimbursement for diagnostic information services. AEON expects efforts to reduce reimbursements, to impose more stringent cost controls and to reduce utilization of clinical test services will continue. From time to time, Congress has legislated reductions in, or frozen updates to, the Medicare Clinical Laboratory Fee Schedule. In addition, CMS has adopted policies limiting or excluding coverage for clinical tests that we perform. AEON also provides physician services which are reimbursed by Medicare under a physician fee schedule, which is subject to adjustment on an annual basis. In recent years, reductions in the Medicare Physician Fee Schedule for anatomic pathology services adversely impacted our business relative to the business of some of our competitors whose anatomic pathology business was not as sizable as ours. Medicaid reimbursement varies by state and is subject to administrative and billing requirements and budget pressures. The 2010 federal healthcare reform legislation includes further provisions that are designed to control utilization and payment levels.

In addition, over the last several years, the federal government has continued to expand its contracts with private health insurance plans for Medicare beneficiaries, called “Medicare Advantage” programs, and has encouraged such beneficiaries to switch from the traditional programs to the private programs. There has been continued growth of health insurance plans offering Medicare Advantage programs, and of beneficiary enrollment in these programs. Also in recent years, states have mandated that Medicaid beneficiaries enroll in private managed care arrangements. Recently, state budget pressures have encouraged states to consider several courses of action that may impact our business, such as delaying payments, reducing reimbursement, restricting coverage eligibility, service coverage restrictions and imposing taxes on our services.

From time to time, the federal government has considered whether competitive bidding can be used to provide clinical testing services for Medicare beneficiaries at attractive rates while maintaining quality and access to care. Congress periodically considers cost-saving initiatives as part of its deficit reduction discussions. These initiatives have included coinsurance for clinical laboratory services, co-payments for clinical laboratory testing and further laboratory fee schedule reductions.

Third parties, including health plans, have taken steps to control the utilization and reimbursement of health services, including clinical testing services.

AEON faces efforts by non-governmental third-party payers, including health plans, to reduce utilization of and reimbursement for clinical testing services. For example, in light of health care reform, there is increased market activity regarding alternative payment models, including bundled payment models. AEON expects continuing efforts by third-party payers, including in their rules, practices and policies, to reduce reimbursements, to impose more stringent cost controls and to reduce utilization of clinical test services. ACOs and IDNs also may undertake efforts to reduce utilization of, or reimbursement for, diagnostic information services.

The healthcare industry has experienced a trend of consolidation among health insurance plans, resulting in fewer but larger insurance plans with significant bargaining power to negotiate fee arrangements with healthcare providers, including clinical testing providers. These health plans, and independent physician associations, may demand that clinical testing providers accept discounted fee structures or assume all or a portion of the financial risk associated with providing testing services to their members through capitated payment arrangements. In addition, some health plans have been willing to limit the PPO or POS laboratory network to only a single national laboratory to obtain improved fee-for-service pricing; AEON may cease to be a contracted provider to a health plan. Some health plans also are reviewing test coding, evaluating coverage decisions and considering steps such as requiring preauthorization of testing. There are also an increasing number of patients enrolling in consumer driven products and high deductible plans that involve greater patient cost-sharing.

 

32


Table of Contents

The increased consolidation among health plans also has increased pricing transparency and bargaining power and the potential adverse impact of ceasing to be a contracted provider with any such insurer. The 2010 federal healthcare reform legislation includes provisions, including ones regarding the creation of healthcare exchanges, that may encourage health insurance plans to increase exclusive contracting.

AEON is subject to numerous legal and regulatory requirements governing our activities, and it may face substantial fines and penalties, and its business activities may be impacted, if it does not comply.

AEON’s business is subject to or impacted by extensive and frequently changing laws and regulations in the United States (including at both the federal and state levels) and the other jurisdictions in which we engage in business. While AEON seeks to conduct business in compliance with all applicable laws, many of the laws and regulations applicable to it are vague or indefinite and have not been interpreted by the courts, including many of those relating to:

 

    billing and reimbursement of clinical testing;

 

    certification or licensure of clinical laboratories;

 

    the anti-self-referral and anti-kickback laws and regulations;

 

    the laws and regulations administered by the FDA;

 

    operational, personnel and quality requirements intended to ensure that clinical testing services are accurate, reliable and timely;

 

    safety and health of laboratory employees; and

 

    handling, transportation and disposal of medical specimens, infectious and hazardous waste and radioactive materials.

These laws and regulations may be interpreted or applied by a prosecutorial, regulatory or judicial authority in a manner that could require AEON to make changes in its operations, including its pricing and/or billing practices. AEON may not be able to maintain, renew or secure required permits, licenses or any other regulatory approvals needed to operate its business or commercialize its services. If AEON fails to comply with applicable laws and regulations, or if it fails to maintain, renew or obtain necessary permits, licenses and approvals, it could suffer civil and criminal penalties, fines, exclusion from participation in governmental healthcare programs and the loss of various licenses, certificates and authorizations necessary to operate our business, as well as incur additional liabilities from third-party claims. If any of the foregoing were to occur, its reputation could be damaged and important business relationships with third parties could be adversely affected.

AEON’s business could be adversely impacted by the FDA’s approach to regulation.

The FDA has regulatory responsibility over, among other areas, instruments, test kits, reagents and other devices used by clinical laboratories to perform diagnostic testing in the United States. The FDA has announced guidance initiatives that may impact the clinical laboratory testing business. These initiatives could have a significant impact on AEON’s business, including the application of medical device excise taxes to its business. The approach may hinder its ability to develop and market new services, cause an increase in the cost of its services, delay its ability to introduce new tests or hinder its ability to perform testing.

Failure to accurately bill for its services could have a material adverse effect on AEON’s business.

Billing for diagnostic information services is complex and subject to extensive and non-uniform rules and administrative requirements. Depending on the billing arrangement and applicable law, we bill various payers, such as patients, insurance companies, Medicare, Medicaid, physicians, hospitals and employer groups. Failure to comply with applicable laws relating to billing government healthcare programs could lead to various penalties, including: (1) exclusion from participation in Medicare/Medicaid programs; (2) asset forfeitures; (3) civil and criminal fines and penalties; and (4) the loss of various licenses, certificates and authorizations necessary to operate AEON’s business.

The development of new, more cost-effective solutions that can be performed by AEON’s customers or by patients, and the continued internalization of testing by hospitals or physicians, could negatively impact its testing volume and revenues.

The diagnostic information services industry is faced with changing technology and new product introductions, including technology that enables more convenient or cost-effective testing. Competitors also may offer testing to be performed outside of a

 

33


Table of Contents

commercial clinical laboratory, such as (1) point-of-care testing that can be performed by physicians in their offices; (2) complex testing that can be performed by hospitals in their own laboratories; and (3) home testing that can be carried out without requiring the services of outside providers. Advances in technology also may lead to the need for less frequent testing. Further, diagnostic tests approved or cleared by the FDA for home use are automatically deemed to be “waived” tests under CLIA and may be performed by patients in their homes; test kit manufacturers could seek to increase sales to patients of such test kits.

Failure to establish, and perform to, appropriate quality standards to assure that the highest level of quality is observed in the performance of AEON’s diagnostic information services could adversely affect the results of its operations and adversely impact its reputation.

The provision of diagnostic information services involves certain inherent risks. The services that we provide are intended to provide information for healthcare providers in providing patient care. Therefore, users of our services may have a greater sensitivity to errors than the users of services or products that are intended for other purposes. Negligence in performing services can lead to injury or other adverse events. AEON may be sued under physician liability or other liability law for acts or omissions by its pathologists, laboratory personnel and employees. AEON is subject to the attendant risk of substantial damages awards and risk to its reputation.

AEON’s operations and reputation may be impaired if it does not comply with privacy laws or information security policies.

In AEON’s business, it generates or maintains sensitive information, such as patient data and other personal information. If it does not adequately safeguard that information and it were to become available to persons or entities that should not have access to it, AEON’s business could be impaired, its reputation could suffer and it could be subject to fines, penalties and litigation.

AEON’s clinical testing business is subject to numerous risks which could impact its financial results.

The business of companies operating in the clinical testing business, such as AEON, are subject to numerous risks and uncertainties that could cause its plans and expectations, including actual results, to differ materially from the company’s expectations. The following important factors could cause our actual financial results to differ materially from those projected, forecasted or estimated by us in forward-looking statements:

 

    Heightened competition from commercial clinical testing companies, hospitals, physicians and others.

 

    Increased pricing pressure from customers and payers.

 

    Impact of changes in payer mix, including any shift from fee-for-service to discounted or capitated fee arrangements.

 

    Adverse actions by government or other third-party payers, including healthcare reform that focuses on reducing healthcare costs but does not recognize the value and importance to healthcare of diagnostic testing, unilateral reduction of fee schedules payable to us, competitive bidding, and an increase in the practice of negotiating for exclusive arrangements that involve aggressively priced capitated or fee-for-service payments by health insurers or other payers.

 

    The impact upon our testing volume and collected revenue or general or administrative expenses resulting from our compliance with Medicare and Medicaid administrative policies and requirements of third-party payers. These include: (1) the requirements of Medicare carriers to provide diagnosis codes for many commonly ordered tests (and the transition to a new coding set) and the possibility that third-party payers will increasingly adopt similar requirements; (2) inability to obtain from patients a valid advance beneficiary notice form for tests that cannot be billed without prior receipt of the form; (3) increased challenges in operating as a non-contracted provider with respect to health plans; (4) the impact of additional or expanded limited coverage policies and limits on the allowable number of test units; and (5) the impact of increased prior authorization programs for clinical testing.

 

    Adverse results from pending or future government investigations, lawsuits or private actions. These include, in particular, monetary damages, loss or suspension of licenses, and/or suspension or exclusion from the Medicare and Medicaid programs and/or criminal penalties.

 

    Denial, suspension or revocation of CLIA certification or other licenses for any of our clinical laboratories under the CLIA standards, revocation or suspension of the right to bill the Medicare and Medicaid programs or other adverse regulatory actions by federal, state and local agencies.

 

34


Table of Contents
    Changes in federal, state or local laws or regulations, including changes that result in new or increased federal or state regulation of commercial clinical laboratories, tests developed by commercial clinical laboratories or other products or services that we offer or activities in which we are engaged, including regulation by the FDA and general changes in the healthcare system and healthcare delivery.

 

    Any adverse events which negatively impact our ability to perform testing, report test results or properly bill customers, or result in the disclosure of confidential information, including potential failures resulting from implementing common IT systems and other system conversions, telecommunications failures, malicious human acts (such as electronic break-ins or computer viruses) or natural disasters.

 

    Development of technologies that substantially alter the practice of clinical testing, including technology changes that lead to the development of more convenient or cost-effective testing, or testing to be performed outside of a commercial clinical laboratory.

 

    Inability to properly bill for our services or to obtain appropriate payments for services that we do bill.

Risks Related to Authentidate’s Business

We depend on a limited number of customers for a substantial portion of our revenues, and the loss of the VA as a customer and the loss, or a significant reduction in purchases by, one or more of our other important customers will adversely affect our operating results.

We receive a significant amount of our revenues from a limited number of customers. Over recent years, the Department of Veterans Affairs (VA) had been our largest customer, generating approximately 45% of our total consolidated revenues for the fiscal year ended June 30, 2015. On March 6, 2015, the company announced that the VA informed the company that it was not exercising the fourth and final option year under the contract for telehealth services. Our VA revenue included both recurring services revenue as well as hardware sales. Due to this, the company expects to report significantly reduced revenues over the next several quarters and the loss of this business will materially adversely affect our business, results of operations and financial condition until we are able to replace the revenues that had been generated through our VA contract. We will need to attract new clients and attempt to diversify our customer base from a limited number of potential customers. In general, most of our customer orders for our telehealth business have been and are expected to continue to be made on a purchase order basis, which does not generally require any long-term commitments nor any minimum purchase requirements. Therefore, these customers may alter their past purchasing behavior with little or no notice to us for various reasons. If our customers alter their past (or expected) purchasing behavior, or if we encounter any problems collecting amounts due from them, our financial condition and results of operations could be negatively impacted.

Our revenues may be affected by changes in technology spending levels.

In the past, unfavorable or uncertain macroeconomic conditions and reduced global technology spending rates have adversely affected the markets in which we operate. Current economic conditions and ongoing uncertainty about the economic recovery could reduce the demand for our products and services and negatively impact revenues and operating profit. We are unable to predict changes in general macroeconomic conditions and when global spending rates will be affected. Furthermore, even if spending rates increase, we cannot be certain that the market for our products and services will be positively impacted. If there are future reductions in spending rates, or if spending rates do not increase, our revenues, operating results and financial condition may be adversely affected.

We depend on growth in the software as a service market, and lack of growth or contraction in this market could materially adversely affect our sales and financial condition.

Our hosted software and web-based solutions compete with other “software as a service” solutions. Demand for our solutions and software offerings is driven by several factors, including an increased focus on protecting business-critical applications, government and industry regulations requiring data protection and integrity, and the growth in the market for software as a service. Segments of the computer and software industry have in the past experienced significant economic downturns and decreases in demand as a result of changing market factors. A change in the market factors that are driving demand for offerings of software as a service could adversely affect our sales, profitability and financial condition.

We depend on third parties for the supply and manufacture of our telehealth products, which may result in delays and quality-control issues could adversely impact our business.

 

35


Table of Contents

We do not own or lease any manufacturing facilities. Accordingly, in order to market our telehealth solution we purchase finished products and components from unaffiliated suppliers and use a contract manufacturer to produce our Electronic House Call device. In addition, we may use unaffiliated third parties to provide products and distribution services for this solution. If the agreements with these third parties are terminated or if they are unable to perform their obligations under such agreements, it could take several months to establish and qualify alternative suppliers and manufacturing and distribution partners for our products and we may not be able to fulfill our customers’ orders in a timely manner. At the present time we believe that if existing third party relationships terminate, alternative providers are available on commercially reasonable terms. However, there can be no assurance that the future production capacity of our current manufacturer will be sufficient to satisfy our requirements or that alternative providers of components or manufacturing or distribution services will be available on commercially reasonable terms, or at all. The failure to identify suitable alternative suppliers, manufacturers or distributors could adversely impact our customer relationships and our financial condition. In addition, due to our use of third-party manufacturers and distributors, we do not have control over the timing of product shipments. Delays in shipment could result in the deferral or cancellation of purchases of our products, which would harm our results of operations in any particular quarter. Revenue for a period may be lower than predicted if large orders forecasted for that period are delayed or are not realized, which could impact cash flow or result in a decline in our stock price.

Our business may be adversely affected by legal proceedings.

We have been in the past, and may become in the future, involved in legal proceedings. You should carefully review and consider the various disclosures we make in our reports filed with the SEC regarding legal matters that may affect our business. During fiscal 2009, the company purchased certain inventory components under arrangements that required payment only after such components where actually used in production. The company determined that these components will not be used and it offset the inventory balance for undelivered items against the related accounts payable balance during the quarter ended March 31, 2015. Additionally, it intends to return approximately $0.2 million of such items that are included in the inventory and accounts payable balances as of December 31, 2015. The vendor that provided these components is currently disputing this arrangement and is requesting payment for these items. In December 2015, the vendor served a summons and complaint against the company seeking to recover an alleged amount due of approximately $2.1 million. The company believes the amount at issue is approximately $1.2 million and intends to vigorously contest this assertion. The caption of the litigation is Eurotech, Inc. vs. Authentidate Holding Corp. and the venue is Circuit Court of Howard County, State of Maryland, Case N. 13-C-15105926. Plaintiff has alleged breach of contract and equitable relief.

The expense of defending such litigation may be substantial and the time required to defend the actions could divert management’s attention from the day-to-day operations of our business, which could adversely affect our business, results of operations and cash flows. We cannot predict with certainty the outcome of any legal proceedings in which we become involved and it is difficult to estimate the possible costs to us stemming from any such matters. In addition, an unfavorable outcome in such litigation could have a material adverse effect on our business, results of operations, financial position and cash flows.

Our success is dependent on the performance of our management and the cooperation, performance and retention of our executive officers and key employees.

Our business and operations are substantially dependent on the performance of our senior management team and executive officers. If our management team is unable to perform it may adversely impact our results of operations and financial condition. We do not maintain “key person” life insurance on any of our executive officers. The loss of one or several key employees could seriously harm our business. Any reorganization or reduction in the size of our employee base could harm our ability to attract and retain other valuable employees critical to the success of our business.

If we lose key personnel or fail to integrate replacement personnel successfully, our ability to manage our business could be impaired.

Our future success depends upon the continued service of our key management, technical, sales, finance, and other critical personnel. Other than with respect to employment agreements that we entered into with our executive officers, our key personnel do not have employment agreements and we cannot assure you that we will be able to retain them. Key personnel have left our company in the past and there likely will be additional departures of key personnel from time to time in the future. Further, following the non-renewal of our telehealth contract with the VA, in order to reduce our operating costs, we have implemented several reductions in staff and the use of external resources and to date have eliminated a number of positions throughout the company, or more than 50% of our workforce. The loss of any key employee could result in significant disruptions to our operations, including adversely affecting the timeliness of product releases, the successful implementation and completion of company initiatives, the effectiveness of our disclosure controls and procedures and our internal control over financial reporting, and the results of our operations. In addition, hiring, training, and successfully integrating replacement sales and other personnel could be time consuming, may cause additional disruptions to our operations, and may be unsuccessful, which could negatively impact future revenues.

 

36


Table of Contents

Developing and implementing new or updated software and services and other product offerings may take longer and cost more than expected.

We rely on a combination of internal development, strategic relationships, licensing and acquisitions to develop our products and services. The cost of developing new software, services and other product offerings, such as Inscrybe Healthcare and related modules, and our telehealth offerings is inherently difficult to estimate. Our development and implementation of proposed software, services or other product offerings may take longer than originally expected, require greater investment of cash resources than initially expected, require more testing than originally anticipated and require the acquisition of additional personnel and other resources. Accordingly, we expect to face substantial uncertainties with respect to the performance and market acceptance of new software and services and other product offerings. If we are unable to develop new or updated software, services or other product offerings on a timely basis and implement them without significant disruptions to the existing systems and processes of our customers, we may lose potential revenues and harm our relationships with current or potential customers.

The success of any of our product acquisition and licensing activities is subject to uncertainty and any completed acquisitions or licenses may reduce our earnings, be difficult to integrate, not perform as expected or require us to obtain additional financing.

We regularly evaluate selective acquisitions and look to continue to enhance our product line by acquiring rights to additional products and services. Such acquisitions may be carried out through the purchase of assets, joint ventures and licenses or by acquiring other companies. However, we cannot assure you that we will be able to complete acquisitions or in-licensing arrangements that meet our target criteria on satisfactory terms, if at all. Successfully integrating a product or service acquisition or in-licensing arrangement can be a lengthy and complex process. The diversion of our management’s attention and any delays or difficulties encountered in connection with any of our acquisitions or arrangements could result in the disruption of our ongoing business or inconsistencies in standards, controls, procedures and policies that could negatively affect our ability to maintain relationships with customers, suppliers, employees and others with whom we have business dealings. In addition, other companies, including those with substantially greater resources than ours, may compete with us for the acquisition of product or in-licensing candidates and approved products, resulting in the possibility that we devote resources to potential acquisitions or arrangements that are never completed. If we do engage in any such acquisition or arrangement, we will incur a variety of costs, and we may never realize the anticipated benefits of the acquisition or arrangement in light of those costs. If we fail to realize the expected benefits from acquisitions or arrangements we may consummate in the future, whether as a result of unidentified risks, integration difficulties, regulatory setbacks or other events, our business, results of operations and financial condition could be adversely affected.

In addition, our product acquisition and licensing activities may require us to obtain additional debt or equity financing, resulting in increased debt obligations or dilution of ownership to our existing stockholders, as applicable. Therefore, we may not be able to finance acquisitions on terms satisfactory to us, if at all.

New or updated software, services and product offerings will not become profitable unless they achieve sufficient levels of market acceptance, which may require significant efforts and costs.

There can be no assurance that customers and potential customers will accept from us new or updated software, services and other products. The future results of our business will depend, in significant part, on the success of our software, services or other product offerings. Current and potential customers may choose to use similar products and services offered by our competitors or may not purchase new or updated software, services or products, especially when they are initially offered and if they require changes in equipment or workflow. For software, services and products we are developing or may develop in the future, there can be no assurance that we will attract sufficient customers or that such offerings will generate sufficient revenues to cover their associated development, marketing and maintenance costs. Furthermore, there can be no assurance that any pricing strategy that we implement for any new software and services or other product offerings will be economically viable or acceptable to the target markets. Failure to achieve broad penetration in target markets with respect to new or updated software, services and product offerings could have a material adverse effect on our business prospects. Further, achieving market acceptance for new or updated software, services and product offerings is likely to require substantial marketing efforts and expenditure of significant funds to create awareness and demand by potential customers.

We do not have patents on all the technology we use, which could harm our competitive position.

Presently, we have one issued U.S. patent and one pending patent application. We also have been granted a license to one issued U.S. patent by Authentidate International AG, two issued U.S. patents by our former joint venture partner and their affiliate and one issued U.S. patent by a third party. We also entered into a license and settlement agreement with Robert Bosch Healthcare Systems, Inc. providing for the resolution and dismissal, with prejudice, of the purported patent infringement lawsuit filed by Bosch against Express MD in January 2012 and a license to the various asserted patents. Some of the technology embodied in some of our current

 

37


Table of Contents

products cannot be patented. We have registered the trademarks “Authentidate”, “Inscrybe”, “InscrybeMD”, “AuthentiProof” and “Inscrybe Office” in the U.S., the trademark “Authentidate” in the European Community and Canada, “AuthentiProof” in Canada, Mexico and the European Community, “Inscrybe” in the European Community and Canada, “Inscrybe Office,” and a number of other trademarks as Madrid Protocol international registrations. We continue to take steps to protect our intellectual property rights including filing additional trademark and patent applications where appropriate. We rely on confidentiality agreements with our key employees to the extent we deem it to be necessary. We further intend to file patent applications for any new products we may develop, to the extent that we believe that any technology included in such products is patentable. There can be no assurance that any patents in fact, will be issued or that any such patents that do issue will be effective to protect our products and services from duplication by other manufacturers or developers or to prevent our competitors from offering similar products and services. Other companies operating within our business segments may independently develop substantially equivalent proprietary information or otherwise obtain access to our know-how, much of which is maintained as trade secrets and there can be no assurance that we will be able to afford the expense of any litigation which may be necessary to enforce our rights under any patent.

In addition, with respect to our telehealth offerings, in connection with the termination of the joint venture, our former joint venture partner and an affiliate licensed to us certain intellectual property assets to enable us to continue to commercialize and develop the ExpressMD Solutions remote patient monitoring products and services. Accordingly, our right to utilize any such intellectual property is subject to the terms of this agreement. Further, and similar to the intellectual property owned by us, there can be no assurance that the intellectual property licensed to us will be effective to protect our products and services from duplication by other manufacturers or developers or to prevent our competitors from offering similar products and services.

We have investigated patents held by third parties of which we are aware and we believe that our products and services, including our telehealth offerings, do not infringe on the claims of these patents. However, we cannot provide any assurances that our products and services do not infringe upon any third party patents or violate the proprietary rights of others, including the patents we have investigated, and it is possible that such infringement or violation has occurred or may occur. As previously reported, we recently settled a claim with Robert Bosch Healthcare Systems, Inc. regarding a purported patent infringement lawsuit filed by Bosch against Express MD in January 2012. While the company does not believe that it was or is infringing any of the asserted patents, in order to mitigate its risk and avoid further costs and distractions of litigation, it entered into the license and settlement agreement.

In the event that products we sell or services we provide are deemed to infringe upon the patents or proprietary rights of others, we could be required to modify our products and/or services or obtain a license for the manufacture, use and/or sale of such products and services. There can be no assurance that, in such an event, we would be able to do so in a timely manner, upon acceptable terms and conditions, or at all, and the failure to do any of the foregoing could have a material adverse effect upon our business. Moreover, there can be no assurance that we will have the financial or other resources necessary to defend against a patent infringement or proprietary rights violation action. In addition, if our products, services or proposed products or services are deemed to infringe upon the patents or proprietary rights of others, we could, under certain circumstances, become liable for damages or subject to an injunction, which could also have a material adverse effect on our business.

Because we currently derive our revenues from a few telehealth products and services, hosted software and web-based service offerings, any decline in demand for these offerings could severely harm our ability to generate revenues.

We currently derive our revenues from a limited number of telehealth products and services, hosted software and web-based service offerings. In addition, our focus on building our business is concentrated on markets for telehealth solutions, hosted software and web-based services where content integrity, workflow automation, electronic signatures, time and date stamping and web-based services are important to customers. As a result, we are particularly vulnerable to fluctuations in demand for these offerings, whether as a result of competition, product obsolescence, technological change, customer spending, or other factors. If our revenues derived from our offerings were to decline significantly, our business and operating results would be adversely affected. As occurred following the end of our business relationship with the VA, if our relationships with significant customers were disrupted we could lose a significant percentage of our anticipated revenues which could have material adverse effect on our business.

Some of our hosted software and web-based service offerings have long and unpredictable sales cycles, which may impact our quarterly operating results.

Transactions for some of our hosted software and web-based service offerings may require customers to undertake customized installations to integrate the solutions into their legacy systems and require them to modify existing business practices. The period from our initial contact with a potential customer until the execution of an agreement is difficult to predict and can be in excess of six to twelve months. The sales cycles for these transactions can be long and unpredictable due to a number of uncertainties such as:

 

    customers’ budgetary constraints;

 

38


Table of Contents
    the need to educate potential customers about our software and service offerings;

 

    the timing of customers’ budget cycles;

 

    delays caused by customers’ internal review processes;

 

    customers’ willingness to invest resources and modify their network infrastructures to make use of our offerings; and

 

    for sales to government customers, governmental regulatory approval and purchasing requirements.

We are unable to control or influence many of these factors. Further, we have experienced delays in the pace of adoption and use by our customers of our transaction-based offerings, such as Inscrybe Healthcare, which has adversely affected our earnings. We may experience similar delays with our other products and services and products and services currently under development. During the sales cycle and the implementation period, we may expend substantial time, effort and money preparing contract proposals, negotiating contracts and implementing solutions without receiving any related revenue. In addition, many of our expenses are relatively fixed in the short term, including personnel costs and technology and infrastructure costs. Accordingly, our inability to generate sufficient revenues from these offerings has a direct impact on our results of operations.

The failure to properly manage our growth could cause our business to lose money.

We are using our sales and marketing efforts in order to develop and pursue existing and potential market opportunities. This growth is expected to place a significant demand on management and operational resources. In order to manage growth effectively, we must implement and improve our operational systems and controls on a timely basis. If we fail to implement these systems and controls, our business, financial condition, results of operations and cash flows may be materially and adversely affected.

Our hosted software and web-based services and web site may be subject to intentional disruption.

Although we believe we have sufficient controls in place to prevent intentional disruptions, such as software viruses specifically designed to impede the performance of our software and web-based services, we may be affected by such efforts in the future. Further, despite the implementation of security measures, this infrastructure or other systems that we interface with, including the Internet and related systems, may be vulnerable to physical break-ins, hackers, improper employee or contractor access, programming errors, attacks by third parties or similar disruptive problems, resulting in the potential misappropriation of our proprietary information or interruptions of our services. Any compromise of our security, whether as a result of our own systems or systems that they interface with, could substantially disrupt our operations, harm our reputation and reduce demand for our services.

Performance problems with our systems, security breaches and other disruptions could cause us to lose business or incur liabilities.

Our customer satisfaction and our business could be harmed if we experience transmission delays or failures or loss of data in the systems we use to provide services to our customers, including transaction-related services. Further, in the ordinary course of our business, we collect and store sensitive data, including our proprietary information and that of our customers in our data center and on our networks. These systems are complex and, despite testing and quality control and security measures, we cannot be certain that problems will not occur or that they will be detected and corrected promptly if they do occur, and our information technology systems may be vulnerable to attacks by hackers or breached due to error or malfeasance. In providing these services, we rely on internal systems as well as communications and hosting services provided by third parties, such as the Internet. To operate without interruption, both we and the service providers we use must guard against:

 

    damage from fire, power loss and other natural disasters;

 

    communications failures;

 

    software and hardware errors, failures or crashes;

 

    security breaches, computer viruses and similar disruptive problems; and

 

    other potential interruptions.

We have experienced periodic system interruptions in the past, and we cannot guarantee that they will not occur again. In the event of a catastrophic event at our data center or any third party facility we use, we may experience an extended period of system unavailability, which could negatively impact our business. Further, any compromise of our electronic systems, including the unauthorized access, use or disclosure of sensitive information, the disruption or breach of our networks or security measures, the loss of stored data, could have a material adverse impact on our business, expose us to reputational damage, result in legal claims and cause us to incur material liabilities. Such events would also be likely to require us to incur significant costs to improve cyber security, including through organizational changes, deploying additional personnel and protection technologies, further training of employees, and engaging third party experts and consultants. In addition, any real or perceived compromise of our security or disclosure of sensitive information may result in lost revenues by, deterring clients from using or purchasing our products and services in the future

 

39


Table of Contents

or by clients electing to use competing suppliers. Although we maintain insurance for our business, we cannot guarantee that our insurance will be adequate to compensate us for all losses that may occur or that this coverage will continue to be available on acceptable terms or in sufficient amounts.

In addition, some of our web-based services may, at times, be required to accommodate higher than expected volumes of traffic. At those times, we may experience slower response times or system failures. Any sustained or repeated interruptions or disruptions in these systems or slowdown in their response times could damage our relationships with customers. Further, the Internet has experienced, and is likely to continue to experience, significant growth in the number of users and the amount of traffic. If the Internet continues to experience increased usage, the Internet infrastructure may be unable to support the demands placed on it which could harm its reliability and performance. Any significant interruptions in our services or increases in response time could result in a loss of potential or existing users of services and, if sustained or repeated, could reduce the attractiveness of our services.

If we are unable to generate sufficient demand for our current telehealth products and services, we may not be able to recover our inventory and other investments.

In connection with our manufacturing and sales plans for our current telehealth products, we purchased certain components and contract manufacturing services for the production of our Electronic House Call monitoring appliance. Our ability to recover our investment in building inventories of our current telehealth products is subject to risks. If we are unable to generate sufficient demand for our products, or incur regulatory penalties relating to our telehealth products, we may not be able to recover the cost of our investments in our telehealth business and our financial condition and results of operations could be negatively impacted. As described in greater detail in Note 10 of Notes to Condensed Consolidated Financial Statements, we have determined that certain components that were held in inventory will not be used in production and we offset the inventory balance for undelivered items against the related accounts payable balance during the quarter ended March 31, 2015. Although to the company’s knowledge, no formal legal proceedings have been commenced regarding this matter, we are currently disputing the payment arrangements regarding these items with the relevant vendor. The company believes the amount at issue is approximately $1.2 million and intends to vigorously contest demands by the vendor for payment. Management does not believe that the ultimate resolution of this matter will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Our hosted software and web-based services and other product offerings may not be accepted by the market, which would seriously harm our business.

Demand and market acceptance for our currently available hosted software and web-based services and other product offerings remain subject to a high level of uncertainty. Achieving widespread acceptance of these or future offerings will continue to require substantial marketing efforts and the expenditure of significant funds to create and maintain brand recognition and customer demand for such offerings. Demand for our software, services and other product offerings depends on, among other things:

 

    the perceived ability of our offerings to address real customer problems;

 

    the perceived quality, price, ease-of-use and interoperability of our offerings as compared to our competitors’ offerings;

 

    the market’s perception of the ease or difficulty in deploying our software or services, especially in complex network environments;

 

    the continued evolution of electronic commerce as a viable means of conducting business;

 

    market acceptance and use of new technologies and standards;

 

    the ability of network infrastructures to support an increasing number of users and services;

 

    the pace of technological change and our ability to keep up with these changes; and

 

    general economic conditions, which influence how much money our customers and potential customers are willing to allocate to their information technology budgets.

There can be no assurance that adequate marketing arrangements will be made and continued for our products and services and there can be no assurance that any of these offerings will ever achieve or maintain widespread market acceptance or that such offerings will be profitable.

If we cannot continuously enhance our hosted software and web-based service offerings in response to rapid changes in the market, our business will be harmed.

The software-based services industry and computer industry are characterized by extensive research and development efforts which result in the frequent introduction of new products and services which render existing products and services obsolete. Our ability to compete successfully in the future will depend in large part on our ability to maintain a technically competent research and development staff and our ability to adapt to technological changes in the industry and enhance and improve our hosted software and

 

40


Table of Contents

web-based service offerings and successfully develop and market new offerings that meet the changing needs of our customers. Although we are dedicated to continued improvement of our offerings with a view towards satisfying market needs with the most advanced capabilities, there can be no assurance that we will be able to continue to do so on a regular basis and remain competitive with products offered by other manufacturers. At the present time, we do not have a targeted level of expenditures for research and development. We will evaluate all opportunities but believe the majority of our research and development will be devoted to enhancements of our existing offerings.

If our hosted software and web-based service offerings and telehealth solutions are not competitive, our business will suffer.

We are engaged in the highly competitive businesses of developing hosted software and web-based workflow management services and telehealth solutions. These markets are continually evolving and, in some cases, subject to rapid technological change. Many of our competitors have greater financial, technical, product development, marketing and other resources than we do. These organizations may be better known than we are and have more customers than we do. We cannot provide assurance that we will be able to compete successfully against these organizations. We believe that the principal competitive factors affecting our markets include performance, ease of use, quality/reliability of our offerings, scalability, features and functionality, price and customer service and support. There can be no assurance that we will be able to successfully incorporate these factors into our software and web-based services or telehealth solutions and compete against current or future competitors or that competitive pressure we face will not harm our business. If we are unable to develop and market products to compete with the products of competitors, our business will be materially and adversely affected.

Our business, including Inscrybe Healthcare and our telehealth products and services are relatively new business lines and although the level of competition for these offerings is uncertain at this point in time, the field of software-based solutions in which we compete, particularly with respect to healthcare information technology solutions, is highly competitive. There can be no assurances, however, that any of our offerings will achieve market acceptance.

We also expect that competition will increase as a result of industry consolidations and the formation of new companies with new, innovative offerings. Current and potential competitors have established or may establish cooperative relationships among themselves or with third parties to increase the ability of their software and service offerings to address the needs of our prospective customers. Accordingly, it is possible that new competitors or alliances among competitors may emerge and rapidly acquire significant market share. Increased competition is likely to result in price reductions, reduced operating margins and loss of market share, any of which could harm our business.

Our hosted software and web-based services are complex and are operated in a wide variety of computer configurations, which could result in errors or product failures.

Our hosted software and web-based services are complex and may contain undetected errors, failures or bugs that may arise when they are first introduced or when new versions are released. These offerings may be used in large-scale computing environments with different operating systems, system management software and equipment and networking configurations, which may cause errors or failures in our offerings or may expose undetected errors, failures or bugs in such offerings. Our customers’ computer environments are often characterized by a wide variety of configurations that make pre-release testing for programming or compatibility errors difficult and time-consuming. Despite testing by us and by others, errors, failures or bugs may not be found in new products or releases after commencement of commercial use. Errors, failures or bugs in our offerings could result in negative publicity, returns, loss of or delay in market acceptance of our hosted software or web-based services or claims by customers or others. Alleviating these problems could require significant expenditures of our capital and resources and could cause interruptions, delays or cessation of our licenses which could cause us to lose existing or potential customers and would adversely affect our financial conditions, results of operations and cash flows. Most of our license agreements with customers contain provisions designed to limit our exposure to potential product liability claims. It is possible, however, that these provisions may not prove effective in limiting our liability.

We have a significant amount of net operating loss carry forwards which we may not be able to utilize in certain circumstances.

At June 30, 2015, we had net operating loss, or NOL, carry forwards for federal income tax purposes of approximately $162,000,000 available to offset future taxable income. Under Section 382 of the Internal Revenue Code, following an “ownership change,” special limitations apply to the use by a “loss corporation” of its (i) NOL carry forwards arising before the ownership change and (ii) net unrealized built-in losses (if such losses existed immediately before the ownership change and exceed a statutory threshold amount) recognized during the five years following the ownership change ((i) and (ii) are referred to collectively as the “Applicable Tax Attributes”). After an ownership change, the amount of the loss corporation’s taxable income for each post-change taxable year that may be offset by the Applicable Tax Attributes is limited to the product of the “long-term tax-exempt rate” (published by the IRS for the month of the ownership change) multiplied by the value of the loss corporation’s stock (the “Section 382 Limitation”). To the extent that the loss corporation’s Section 382 Limitation in a given taxable year exceeds its taxable income for the year, that excess increases the Section 382 Limitation in future taxable years.

 

41


Table of Contents

Regulatory and Other Risks Related to the Healthcare Industry

Healthcare policy changes, including recent laws to reform the U.S. healthcare system, may have a material adverse effect on us.

Healthcare costs have risen significantly over the past decade. There have been, and continue to be, proposals by legislators, regulators, and third-party payers to keep these costs down. Certain proposals, if passed, could impose limitations on the prices we will be able to charge for our products, or the amounts of reimbursement available for our products from governmental agencies or third-party payers. These limitations could have a material adverse effect on our financial position and results of operations.

On March 23, 2010, the Patient Protection and Affordable Care Act was signed into law and on March 30, 2010, the Health Care and Education Reconciliation Act of 2010 was signed into law. Together, the two measures make the most sweeping and fundamental changes to the U.S. healthcare system since the creation of Medicare and Medicaid. The Health Care Reform laws include a large number of health-related provisions to take effect over the next four years, including expanding Medicaid eligibility, requiring most individuals to have health insurance, establishing new regulations on health plans, establishing health insurance exchanges, requiring manufacturers to report payments or other transfers of value made to physicians and teaching hospitals, and modifying certain payment systems to encourage more cost-effective care and a reduction of inefficiencies and waste, including through new tools to address fraud and abuse. In 2013, a 2.3% excise tax on the sale by manufacturers, producers and importers of certain medical devices that are not exempted from such tax was imposed under these health care reform laws. As part of the appropriations act passed in December 2015, this tax was suspended for a two year period expiring December 31, 2017. Further, as administrative rules implementing healthcare reform under the legislation are not yet finalized or have been modified, the impact of the healthcare reform legislation on our business is unknown, and there can be no assurances that healthcare reform legislation will not adversely impact either our operational results or the manner in which we operate our business. Healthcare industry participants may respond by reducing their investments or postponing investment decisions, including investments in our solutions and services.

In addition, various healthcare reform proposals have also emerged at the state level. We cannot predict the exact effect newly enacted laws or any future legislation or regulation will have on us. However, the implementation of new legislation and regulation may lower reimbursements for our products, reduce medical procedure volumes and adversely affect our business, possibly materially. In addition, the enacted excise tax may materially and adversely affect our operating expenses and results of operations.

Healthcare industry consolidation could impose pressure on our price, reduce our potential client base and reduce demand for our offerings.

Many hospitals and health care centers have consolidated to create larger healthcare enterprises with greater market power. If this consolidation trend continues, it could reduce the size of our potential customer base and give the resulting enterprises greater bargaining power, which may lead to erosion of the prices for our products and services. In addition, this consolidation could also erode our revenue base.

We are subject to product liability risks associated with the production, marketing and sale of products used in the healthcare industry.

The production, marketing and sale of devices used in the healthcare industry have inherent risks of liability in the event of product failure or claim of harm caused by product operation. Furthermore, even meritless claims of product liability may be costly to defend against. The commercialization of the telehealth device exposes us to such claims. These types of product liability claims may result in decreased demand for this product, injury to our reputation, related litigation costs, and substantial monetary awards to plaintiffs. We attempt to limit by contract our liability, however, the limitations of liability set forth in the contracts may not be enforceable in certain jurisdictions or may not otherwise protect us from liability for damages. We may also be subject to claims that are not covered by contract, such as a claim directly by a patient. Although we currently maintain product liability insurance, we may not have sufficient insurance coverage, and we may not be able to obtain sufficient coverage at a reasonable cost. Our inability to obtain product liability insurance at an acceptable cost or to otherwise protect against potential product liability claims could inhibit the commercialization of any products that we develop. If we are sued for any injury caused by our products or processes, then our liability could exceed our product liability insurance coverage and our total assets.

 

42


Table of Contents

We need to comply with ongoing regulatory requirements applicable to our telehealth product and our results of operations may be adversely impacted by any failure to comply with these requirements. Further, modifications to our current telehealth products may require new marketing clearances or approvals or require us to cease marketing or recall the modified products until such clearances or approvals are obtained.

Our telehealth product is a medical device that is subject to extensive regulation in the United States. Unless an exemption applies, each medical device that we wish to market in the United States must receive either 510(k) clearance or premarket approval from the U.S. Food and Drug Administration, or the FDA, before the product can be sold. Either process can be lengthy and expensive. The FDA’s 510(k) clearance procedure, also known as “premarket notification,” is the process we have used for our current telehealth product. The regulatory clearance for our telehealth product provides for its use for its intended purposes. In addition, we are subject to inspection and marketing surveillance by the FDA to determine our compliance with all regulatory requirements and the manufacturing, labeling, packaging, adverse event reporting, storage, advertising, promotion, distribution and record-keeping for approved products are subject to extensive regulation. If the FDA determines that our promotional materials or activities constitute promotion of an unapproved use or we otherwise fail to comply with other FDA regulations, we may be subject to regulatory enforcement actions, including a public warning letter, injunction, civil fines, suspensions, loss of regulatory clearance, product recalls or product seizures. In the more egregious cases, criminal prosecution, civil penalties, or disgorgement of profits are possible. The subsequent discovery of previously unknown problems may also result in restrictions on the marketing of our products, and could include voluntary or mandatory recall or withdrawal of products from the market. Further, we cannot predict the likelihood, nature or extent of adverse government regulation that may arise from future legislation or administrative action. In addition, the FDA has increased its focus on regulating computer software intended for use in a healthcare setting, including applications meant to run on a mobile platform or on a browser tailored for use on a mobile platform. If our software solutions or applications are deemed to be actively regulated medical devices by the FDA, we could be subject to more extensive requirements governing pre- and post-marketing activities. As described above, complying with these regulations could be time consuming and expensive, and may require FDA clearance or pre-market approval. If we are not able to maintain regulatory compliance with any of our products, we may be subject to regulatory enforcement actions as described above and may not be permitted to market our products, which would have a material adverse impact on our results of operations, cash flows and financial condition.

Further, any modification to an FDA-cleared medical device that could significantly affect its safety or effectiveness, or that would constitute a major change or modification in its intended use, requires a new FDA 510(k) clearance or, possibly, a premarket approval. The FDA requires every manufacturer to make its own determination as to whether a modification requires a new 510(k) clearance or premarket approval, but the FDA may review and disagree with any decision reached by the manufacturer. In the future, we may make modifications to our telehealth products and, in appropriate circumstances, determine that new clearance or approval is unnecessary. Regulatory authorities may disagree with our decisions not to seek new clearance or approval and may require us to obtain clearance or approval for modifications to our products. If that were to occur for a previously cleared or approved product, we may be required to cease marketing or recall the modified device until we obtain the necessary clearance or approval. Under these circumstances, we may also be subject to significant regulatory fines or other penalties.

In February 2014, the FDA conducted a routine inspection of our business premises related to our telehealth products and upon the completion of their inspection issued us inspectional observations on FDA Form 483. We have provided the FDA with written responses to the Form 483 that describes the actions we have taken to address their observations and we believe that we have responded to the observations noted by the FDA. In February 2015, the FDA issued an Establishment Inspection Report (EIR) and considered the inspection “closed”. We would expect another inspection in 2016 based on the typical biennial inspections cycle from the FDA. Beyond incurring compliance-related expenses, we are presently unable to predict what impact, if any, these matters or ensuing proceedings, if any, will have on our financial condition, results of operations or cash flows.

Our ability to generate revenues from our telehealth products is subject to our ability to obtain acceptable prices or an adequate level of reimbursement from payers of healthcare costs.

Our ability to commercialize our telehealth product successfully will depend in part on the extent to which appropriate coverage and reimbursement levels for the cost of this product are obtained by us or by our direct customers from governmental authorities, private health insurers and other organizations. The ability of customers to obtain appropriate reimbursement for their products and services from private and governmental payers is critical to the success of medical technology device companies as the availability of reimbursement affects which products customers purchase and the prices they are willing to pay. The cost containment measures that healthcare payers and providers are instituting and the effect of any healthcare reform could materially and adversely affect our ability to generate revenues from this product and our profitability. In addition, given ongoing federal and state government initiatives directed at lowering the total cost of healthcare, the United States Congress and state legislatures will likely continue to focus on healthcare reform and the reform of the Medicare and Medicaid payment systems. While we cannot predict whether any proposed cost-containment measures will be adopted, the announcement or adoption of these proposals could reduce the price that we receive for our telehealth product in the future. We cannot predict the outcomes of any of legislative or regulatory efforts at reducing costs of providing healthcare and regulatory changes in this regard may have a material adverse effect on our business.

 

43


Table of Contents

The healthcare industry is highly regulated at the local, state and federal level.

In addition to regulatory requirements concerning the commercialization of medical devices, we are subject to a significant and wide-ranging number of regulations both within the United States and elsewhere, such as regulations in the areas of healthcare fraud and the security and privacy of patient data. Existing and new laws and regulations affecting the health care industry could create unexpected liabilities for us, cause us to incur additional costs, and restrict our operations. Many health care laws are complex, and their application to specific services and relationships may not be clear and these laws and regulations may be applied to us in ways that we do not anticipate, particularly as we develop and release new and more sophisticated products and services. Our failure to accurately anticipate the application of these laws and regulations, or our other failure to comply with them, could create liability for us, result in adverse publicity, and negatively affect our business. Some of the risks we face from health care regulation are described below:

Healthcare Fraud. Federal and state governments continue to enhance regulation of and increase their scrutiny over practices involving healthcare fraud affecting healthcare providers whose services are reimbursed by Medicare, Medicaid and other government healthcare programs. Our healthcare provider clients are subject to laws and regulations on fraud and abuse which, among other things, prohibit the direct or indirect payment or receipt of any remuneration for patient referrals, or arranging for or recommending referrals or other business paid for in whole or in part by these federal or state healthcare programs. Federal enforcement personnel have substantial funding, powers and remedies to pursue suspected or perceived fraud and abuse. The effect of this government regulation on our clients is difficult to predict. Many of the regulations applicable to our clients and that may be applicable to us, including those relating to marketing incentives offered in connection with medical device sales, are vague or indefinite and have not been interpreted by the courts. They may be interpreted or applied by a prosecutorial, regulatory or judicial authority in a manner that could broaden their applicability to us or require our clients to make changes in their operations or the way in which they deal with us. If such laws and regulations are determined to be applicable to us and if we fail to comply with any applicable laws and regulations, we could be subject to civil and criminal penalties, sanctions or other liability, including exclusion from government health programs, which could have a material adverse effect on our business, results of operations and financial condition.

Security and Privacy of Patient Information. Federal, state and local laws regulate the confidentiality of patient records and the circumstances under which those records may be released. These regulations govern both the disclosure and use of confidential patient medical record information and require the users of such information to implement specified security measures. United States regulations currently in place governing electronic health data transmissions continue to evolve and are often unclear and difficult to apply. Similarly, laws in non-U.S. jurisdictions may have similar or even stricter requirements related to the treatment of patient information. In the United States, HIPAA regulations require national standards for some types of electronic health information transactions and the data elements used in those transactions, security standards to ensure the integrity and confidentiality of health information and standards to protect the privacy of individually identifiable health information. Covered entities under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), which include healthcare organizations such as our clients, and our claims transmission services, are required to comply with the privacy standards, the transaction regulations and the security regulations. Moreover, the Health Information Technology for Economic and Clinical Health Act (HITECH) provisions of the American Recovery and Reinvestment Act of 2009 (ARRA) and associated regulatory requirements, extend many of the HIPAA obligations, formerly imposed only upon covered entities, to business associates as well. As a business associate of our clients who are covered entities, we were in most instances already contractually required to ensure compliance with the HIPAA regulations as they pertain to handling of covered client data. However, the extension of these HIPAA obligations to business associates by law has created additional liability risks related to the privacy and security of individually identifiable health information. Evolving HIPAA and HITECH related laws or regulations and regulations in non-U.S. jurisdictions could restrict the ability of our clients to obtain, use or disseminate patient information. This could adversely affect demand for our solutions if they are not re-designed in a timely manner in order to meet the requirements of any new interpretations or regulations that seek to protect the privacy and security of patient data or enable our clients to execute new or modified healthcare transactions. We may need to expend additional capital, software development and other resources to modify our solutions and devices to address these evolving data security and privacy issues. Furthermore, our failure to maintain confidentiality of sensitive personal information in accordance with the applicable regulatory requirements could damage our reputation and expose us to breach of contract claims (although we contractually limit liability, when possible and where permitted), fines and penalties.

Electronic Health Records Laws and Associated Interoperability Standards. A number of federal and state laws govern the use and content of electronic health record systems. For example, ARRA requires “meaningful use of certified electronic health record technology” by health care providers in order to receive incentive payments. Regulations have been issued that identify standards and implementation specifications and establish the certification standards for qualifying electronic health record technology. Nevertheless, these standards and specifications are subject to interpretation by the entities designated to certify such technology.

 

44


Table of Contents

While we have not sought to obtain certification of our software solutions for “meaningful use” under the criteria adopted by the U.S. Department of Health and Human Services regarding electronic health records, our software solutions operate in the framework of facilitating the electronic exchange of health care information by our customers and our solutions must be designed in a manner that facilitates our customers’ compliance with these laws. Further, there is increasing demand among customers, industry groups and government authorities that healthcare software and systems provided by various vendors be compatible with each other. Market forces or governmental/regulatory authorities could create software interoperability standards that would apply to our solutions, health care devices or solutions, and if our software solutions, health care devices or services are not consistent with those standards, we could be forced to incur substantial additional development costs to conform. We may incur increased development costs and delays in delivering solutions if we need to upgrade our software solutions to either obtain compliance with these varying and evolving standards or to facilitate such compliance by our customers. In addition, any standards applicable to our products and solutions may lengthen our sales and implementation cycle. To the extent that any such standards are narrowly construed or delayed in publication, or that we are delayed in achieving any certification that is necessary or desirable, our sales could be impaired and we may have to invest significantly in changes to our software solutions or devices. Because this is a topic of increasing state and federal regulation, we expect additional and continuing modification of the current legal and regulatory environment. We cannot predict the content or effect of possible future regulation on our business activities.

In addition, in accordance with requirements under HIPAA, the U.S. Department of Health and Human Services (“HHS”) is implementing a new version of the standards for HIPAA-covered electronic transactions, including claims, remittance advices, and requests and responses for eligibility. These standards are called ANSI-5010. Additionally, HIPAA required all entities that are covered by HIPAA to upgrade to the tenth revision of the International Statistical Classification of Diseases and Related Health Problems promulgated by the World Health Organization, also known as ICD-10, for use in reporting medical diagnoses and inpatient procedures.

If our manufacturer and suppliers for our telehealth products fail to comply with the FDA’s Quality System Regulation, or QSR, and other applicable post market requirements, our operations could be disrupted, our product sales and profitability could suffer, and we may be subject to a wide variety of FDA enforcement actions.

After a device is placed on the market, numerous regulatory requirements also apply to our manufacturer and suppliers. The manufacturing processes of some of our vendors must comply with the FDA’s Quality System Regulation, or QSR, which governs the methods used in, and the facilities and controls used for, the design, testing, manufacture, control, quality assurance, installation, servicing, labeling, packaging, storage and shipping of medical devices. The FDA enforces the QSR through unannounced inspections. If one of our suppliers fails a QSR inspection, or if a corrective action plan adopted by a supplier is not sufficient, the FDA may bring an enforcement action, and our operations could be disrupted and the manufacturing of our products delayed. We are also subject to the FDA’s general prohibition against promoting our products for unapproved or “off-label” uses, the FDA’s adverse event reporting requirements and the FDA’s reporting requirements for field correction or product removals. The FDA has recently placed increased emphasis on its scrutiny of compliance with the QSR and these other post market requirements. If we or our manufacturer or suppliers violate the FDA’s requirements or fail to take adequate corrective action in response to any significant compliance issue raised by the FDA, the FDA can take various enforcement actions which could cause our product sales and profitability to suffer.

Risks Related to Our Common Stock and Other Securities

Our stock price is volatile and could decline.

The price of our common stock has been, and is likely to continue to be, volatile. Our stock price during the fiscal year ended June 30, 2015 traded as low as $1.44 per share and as high as $10.80 per share and during the six months ended December 31, 2015, our common stock traded within a range of $0.81 to $8.01. We cannot assure you that your initial investment in our common stock will not fluctuate significantly. The market price of our common stock may fluctuate significantly in response to a number of factors, some of which are beyond our control, including:

 

    quarterly variations in our operating results;

 

    announcements we make regarding significant contracts, acquisitions, dispositions, strategic partnerships, or joint ventures;

 

    additions or departures of key personnel;

 

    the introduction of competitive offerings by existing or new competitors;

 

    uncertainty about and customer confidence in the current economic conditions and outlook;

 

    reduced demand for any given product on web-based service offering; and

 

    sales of our common stock.

 

45


Table of Contents

In addition, the stock market in general has experienced extreme price and volume fluctuations that have often been disproportionate to the operating performance of these companies. Broad market and industry factors may negatively affect the market price of our common stock, regardless of our actual operating performance.

Our common stock is now quoted on the OTCQB, which could adversely affect the market price and liquidity of our common stock.

Our common stock is currently traded on The OTCQB Market under the symbol “ADAT”. Our common stock had been listed on The NASDAQ Capital Market until January 28, 2016, when it was suspended for failure to comply with The NASDAQ Capital Market continued listing standards. On January 29, 2016, our common stock began trading on the OTC Markets’ OTCQB market tier under the trading symbol “ADAT.” On January 27, 2016, the company received notification from The Nasdaq Stock Market LLC that trading in the company’s common stock would be suspended on Nasdaq effective with the open of business on Friday, January 29, 2016, due to the company’s continuing non-compliance with the stockholders’ equity requirement set forth in NASDAQ Listing Rule 5550(b)(1) and minimum bid price requirement in NASDAQ Listing Rule 5550(a)(2).

As previously reported, the Nasdaq Listing Qualifications Hearing Panel (the “Panel”) had issued a decision on September 16, 2015 and had determined to grant the request of the company to remain listed on The NASDAQ Stock Market, subject to the condition that, on or before January 25, 2016, the company would announce and inform the Panel that the proposed business combination transaction has closed and that NASDAQ’s Listing Qualifications Staff (the “Staff”) has approved an initial listing application for the resulting entity. As we did not complete the AEON transaction prior to January 25, 2016, NASDAQ issued a delisting notice to us on January 27, 2016. The company understands that its common stock will be formally delisted from Nasdaq via Nasdaq’s filing of a Form 25 “Notification of Delisting” with the Securities and Exchange Commission after all applicable appeal periods have lapsed.

Trading on the OTCQB Market is expected to reduce the market liquidity of our common stock. As a result, an investor may find it more difficult to dispose of, or obtain accurate quotations for the price of, our common stock and the price of our common stock could suffer a significant decline. Delisting may also impair our ability to raise capital. If our common stock trading price remains below $5.00 per share, trading in our common stock might also become subject to the requirements of certain rules promulgated under the Exchange Act, which require additional disclosure by broker-dealers in connection with any trade involving a stock defined as a “penny stock” (generally, any equity security not listed on a national securities exchange or quoted on Nasdaq that has a market price of less than $5.00 per share, subject to certain exceptions). Many brokerage firms are reluctant to recommend low-priced stocks to their clients. Moreover, various regulations and policies restrict the ability of shareholders to borrow against or “margin” low-priced stocks, and declines in the stock price below certain levels may trigger unexpected margin calls. Additionally, because brokers’ commissions on low-priced stocks generally represent a higher percentage of the stock price than commissions on higher priced stocks, the current price of the common stock can result in an individual shareholder paying transaction costs that represent a higher percentage of total share value than would be the case if our share price were higher. This factor may also limit the willingness of institutions to purchase our common stock. Finally, the additional burdens imposed upon broker-dealers by these requirements could discourage broker-dealers from facilitating trades in our common stock, which could severely limit the market liquidity of the stock and the ability of investors to trade our common stock.

Since we have not paid dividends on our common stock, you may not receive income from this investment.

We have not paid any dividends on our common stock since our inception and do not contemplate or anticipate paying any dividends on our common stock in the foreseeable future. Earnings, if any, will be used to finance the development and expansion of our business. Accordingly, you may have to sell some or all of your common stock in order to generate cash from your investment. You may not receive a gain on your investment when you sell our common stock and may lose the entire amount of your investment.

Trading in our stock over the last twelve months has been limited, so investors may not be able to sell as much stock as they want at prevailing prices.

The average daily trading volume in our common stock for the six months ended December 31, 2015 was approximately 27,000 shares. If limited trading in our stock continues, it may be difficult for investors to sell their shares in the public market at any given time at prevailing prices. Moreover, the market price for shares of our common stock may be made more volatile because of the relatively low volume of trading in our common stock. When trading volume is low, significant price movement can be caused by the trading in a relatively small number of shares. Volatility in our common stock could cause stockholders to incur substantial losses.

 

46


Table of Contents

Additional financings could result in dilution to existing stockholders and otherwise adversely impact the rights of our common stockholders.

As stated above, we may require additional financings in order to obtain additional capital with which to operate our business. Any such financings will dilute the percentage ownership interests of our stockholders and may adversely affect our earnings and net book value per share. In addition, we may not be able to secure any such additional financing on terms acceptable to us, if at all. We have the authority to issue additional shares of common stock and preferred stock, as well as additional classes or series of warrants or debt obligations which may be convertible into any one or more classes or series of ownership interests. We are authorized to issue 190 million shares of common stock and 5 million shares of preferred stock. Such securities may be issued without the approval or other consent of our stockholders.

In the event that any future financing should be in the form of, be convertible into or exchangeable for, equity securities, and upon the conversion or exercise of such securities, investors may experience additional dilution. Moreover, we may issue undesignated shares of preferred stock, the terms of which may be fixed by our board of directors and which terms may be preferential to the interests of our common stockholders. We have issued preferred stock in the past, and our board of directors has the authority, without stockholder approval, to create and issue one or more additional series of such preferred stock and to determine the voting, dividend and other rights of holders of such preferred stock. Any debt financing, if available, may involve restrictive covenants that impact our ability to conduct our business. The issuance of any of such series of preferred stock or debt securities may have an adverse effect on the holders of common stock.

The number of shares of our common stock outstanding has increased substantially as a result of our recent financings and the merger, and the exercise or conversion of the warrants and shares of preferred stock issued in these transactions could result in further dilution to holders of our common stock and adversely impact the market price of our common stock.

During our fiscal year ended June 30, 2015 and the first half of fiscal year 2016, we completed several transactions that have resulted in our issuance of a substantial number of shares of common stock and securities convertible into, or exercisable for, additional shares of common stock. The issuance of these securities has resulted in substantial dilution to stockholders who held our common stock prior to such transactions and will result in additional dilution in the future if shares of convertible preferred stock are converted into common stock and common stock purchase warrants are exercised. The conversion of preferred shares and the exercise of warrants could also adversely affect the market price of our common stock if the holders of these securities immediately sell some or all of the shares of common stock issued upon conversion or exercise or there is a perception in the market that the holders of a large number of shares intend to sell their shares. The details of these transactions and other items are discussed more fully in Notes 7, 8 and 15 of Notes to Condensed Consolidated Financial Statements in this Form 10-Q.

Further, pursuant to the merger with AEON, we issued the former AEON members 958,030 shares of common stock at the closing of the transaction and will issue such persons an additional 5% of the issued and outstanding shares of our common stock following stockholder approval of the transactions contemplated by the Merger Agreement. Further, pursuant to the Merger Agreement, we will issue the former AEON member a substantial number of additional shares of common stock in the event that certain financial performance goals are achieved during the next four years. Accordingly, in the event that all of the EBITDA targets are satisfied, the AEON members would be entitled to receive an aggregate of 86,420,722 total shares of common stock on a post-reverse split basis. To the extent that these additional common shares are issued, substantial dilution to our stockholders will occur, which may adversely impact the trading price of our common stock and the terms on which we could raise additional equity capital.

Our executive officers, directors and significant stockholders will be able to influence matters requiring stockholder approval

As of the date of this report, our executive officers, directors (including the former AEON members) and largest shareholder (Lazarus Investment Partners, LLLP) possess beneficial ownership (after giving effect to limitations on the ability of such persons to convert shares of Series D preferred stock or exercise warrants) of approximately 32.9% of our common stock and within this amount, Lazarus Investment Partners beneficially owns approximately 15.90% of our outstanding common stock. Due to such ownership position, these persons have increased influence over the outcome of future stockholder votes, including the election of directors and other significant business matters that require stockholder approval, and their interests may differ from the interests of other stockholders. This concentration of ownership may also have the effect of delaying, preventing or deterring a change in control of our company, could deprive our stockholders of an opportunity to receive a premium for their common stock as part of a sale or merger of our company and may negatively affect the market price of our common stock. These transactions might include proxy contests, tender offers, mergers or other business combinations or purchases of common stock that could give our stockholders the opportunity to realize a premium over the then-prevailing market price for shares of our common stock. In addition, the sale of these shares of common stock may adversely affect the market price of our common stock and our stock price may decline substantially.

 

47


Table of Contents

The exercise of our outstanding options and warrants, or conversion of our outstanding shares of convertible preferred stock, may depress our stock price and dilute your ownership of the company.

As of December 31, 2015, the following options, restricted stock units and warrants were outstanding:

 

    Stock options to purchase 634,000 shares of common stock at exercise prices ranging from $1.62 to $81.00 per share, not all of which are immediately exercisable. The weighted average exercise price of the outstanding stock options is $8.92 per share. These stock options are employee and non-executive director options.

 

    Warrants to purchase 4,313,000 shares of common stock with a weighted average exercise price of 5.247 per share.

 

    An aggregate of 41,000 unvested restricted stock units.

In addition, there are currently outstanding 28,000 shares of our Series B convertible preferred stock which the holder may convert into shares of our common stock at a conversion price equal to $25.20 per share. Accordingly, the outstanding 28,000 shares of Series B convertible preferred stock are presently convertible into an aggregate of 27,778 shares of our common stock, which will be available for immediate resale in accordance with the provisions of Rule 144 under the Securities Act. Further, as of December 31, 2015, there are outstanding 625,000 shares of Series D preferred stock, which are initially convertible into an aggregate of 639,622 shares of common stock at the initial conversion rate of $9.77139 per share commencing six months after the original issue date of the Series D preferred stock (exclusive of any additional shares of common stock that we may elect to issue in lieu of paying cash dividends on the Series D preferred stock). Shares of common stock issued upon conversion of Series D preferred stock may be resold from time to time by a holder in accordance with Rule 144 under the Securities Act.

Further, on June 8, 2015, we issued a principal amount of $900,000 of senior secured convertible debentures and common stock purchase warrants. Subject to certain limitations, the debentures are convertible at any time at the option of the holder into an initial amount of 400,000 shares of our common stock at an initial conversion price of $2.25 per share. On December 17, 2015, we issued a principal amount of $950,000 of senior secured convertible debentures and common stock purchase warrants. Subject to certain limitations, the debentures are convertible at any time at the option of the holder into an initial amount of 422,222 shares of our common stock at an initial conversion price of $2.25 per share. The conversion rate of these debentures is subject to adjustment, including if we issue or sell shares of its common stock or other equity securities for a price per share that is less than the conversion price then in effect, in which event the conversion price will be decreased to equal 85% of such lower price. Also, on January 15, 2016, we modified the terms of a principal amount of $320,000 of senior secured debentures to incorporate a conversion feature applicable to such debt, such that, subject to certain limitations, are convertible at any time at the option of the holder into an initial amount of 65,844 shares of our common stock at an initial conversion price of $4.86 per share

To the extent that these securities are exercised or converted, or we issue additional common shares, dilution to our stockholders will occur. Moreover, the terms upon which we will be able to obtain additional equity capital may be adversely affected, since the holders of these securities can be expected to exercise or convert them at a time when we would, in all likelihood, be able to obtain any needed capital on terms more favorable to us than the exercise and conversion terms provided by those securities. Further, in the event the conversion price of our outstanding convertible debentures or shares of convertible preferred stock is lower than the actual trading price on the day of conversion, the holders could immediately sell their converted common shares, which would have a dilutive effect on the value of the outstanding common shares. Furthermore, the significant downward pressure on the trading price of our common stock as preferred stock or debentures holders converted these securities and sell the common shares received on conversion could encourage short sales by the holders of preferred stock or other security holders. This would place further downward pressure on the trading price of our common stock. Even the mere perception of eventual sales of common shares issued on the conversion of the shares of preferred stock or debentures could lead to a decline in the trading price of our common stock.

Our currently outstanding shares of convertible preferred stock or the issuance of additional shares of preferred stock could adversely affect the rights of the holders of shares of our common stock.

We have issued a total of 28,000 shares of Series B preferred stock and 665,000 shares of Series D preferred stock and our board is authorized to issue up to an additional 4,307,000 shares of preferred stock without any further action on the part of our stockholders. Pursuant to our certificate of incorporation, our board has the authority to fix and determine the voting rights, rights of redemption and other rights and preferences of preferred stock. Our board may, at any time, authorize the issuance of a series of preferred stock that would grant to holders the preferred right to our assets upon liquidation, the right to receive dividend payments before dividends are distributed to the holders of common stock, and the right to the redemption of the shares, before the redemption of our common stock, which may have a material adverse effect on the rights of the holders of our common stock. In addition, our board, without further stockholder approval may, at any time, issue large blocks of preferred stock. Pursuant to the certificates of designations governing the rights and preferences of our outstanding shares of Series B preferred stock and Series D preferred stock, each share of preferred stock has certain rights and preferences, including the right to receive dividends in preference to our common stockholders. In addition, we

 

48


Table of Contents

must obtain the approval of the holders of a majority of the shares of outstanding convertible preferred stock in order to: (i) amend, alter or repeal any provisions of our Certificate of Incorporation which would materially adversely affect any of the preferences, rights, powers or privileges of such preferred stock (ii) create, authorize or issue any other class or series of preferred stock on a parity with, or having greater or preferential rights than, the outstanding convertible preferred stock, (iii) redeem, repurchase or otherwise acquire for value, or set aside for payment or make available for a sinking fund for the purchase or redemption of, any stock ranking junior to on a parity with the outstanding convertible preferred stock, or (iv) enter into any agreement which would prohibit or restrict our right to pay dividends on the outstanding convertible preferred stock. The need to obtain the approval of holders of our convertible preferred stock before taking these actions could impede our ability to take certain actions that management or our board may consider to be in the best interests of our stockholders. Any failure to obtain such approval could limit our business flexibility, harm our business and result in a decrease in the value of our common stock or convertible preferred stock.

We have granted liens on all of our assets to the holders of the certain debt instruments and the senior secured convertible debentures we have issued include additional provisions that could adversely affect the interests of the holders of our common stock. If we are required to repay our outstanding debt securities on their scheduled due date, our financial condition may be adversely affected.

On June 8, 2015, we entered into definitive agreements relating to a private placement of up to a principal amount of $3.0 of senior secured convertible debentures and common stock purchase warrants. An initial closing for an aggregate principal amount of $900,000 of these debentures and warrants to purchase 402,963 shares of common stock was held on June 8, 2015. A final closing of up to $2.1 million of these debentures and warrants to purchase 933,333 shares of common stock was expected to occur prior to June 24, 2015, but did not transpire.

Subject to certain exceptions, the convertible debentures rank senior to our existing and future indebtedness. Subject to certain limitations, the convertible debentures are convertible at any time at the option of the holder into shares of our common stock at an initial conversion price of $2.25 per share. If we issue or sell shares of our common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price then in effect, the conversion price will be decreased to equal 85% of such lower price. Similarly, the warrants issued with the convertible debentures have an initial exercise price of $2.70, but such exercise price is subject to adjustment if we issue or sell shares of our common stock or other securities convertible into or exercisable for shares of common stock for a price per share that is less than the conversion price of the Convertible Debentures. The convertible debentures bear interest at 9% per annum with interest payable upon maturity or on any earlier redemption date. If we are unable to consummate an additional financing prior to the maturity date of the convertible debentures, we will be required to repay these securities, which may have an adverse effect on our cash position. In addition, the $900,000 of convertible debentures are secured by a first priority lien on our assets related to our “Inscrybe Referral and Order Management” and “Inscrybe Hospital Discharge” solutions (the “Inscrybe Solutions Business”) in accordance with, and subject to, a security agreement between us and the investors. The $950,000 of convertible debentures are secured by a first priority lien on certain of our assets, as described in a security agreement entered into between the company and the purchaser, which collateral consists of those of our assets other than those covered by the security agreement we entered into with the holders of the $900,000 convertible debentures.

The convertible debentures contain covenants and events of default customary for similar transactions. Accordingly, without the consent of the holders of the convertible debentures we must comply with certain restrictions against incurring additional indebtedness and granting additional security interests on our assets. Among the defined events of default are defaults of our payment obligations, breach of any material covenant or representation of the convertible debentures or the related transaction agreements, and the commencement of proceedings under applicable U.S. federal or state bankruptcy, insolvency, reorganization or other similar laws either against us or by us. Upon the occurrence of an event of default under the convertible debentures, a holder may require us to repay all or a portion of the convertible debentures in cash, at a price equal to 110% of the principal and accrued and unpaid interest. If we are unable to repay the convertible debentures when due, or upon an event of default, the holders could foreclose on our encumbered assets.

In addition, in August 2015, we issued a senior secured promissory note in the aggregate principal amount of $320,000 to MKA 79, LLC, in a private transaction. Following an extension of the maturity date of the senior secured note to January 15, 2016, on such date we entered into a note amendment with the investor pursuant to which we agreed to modify certain of the terms of the senior secured note to extend the maturity date to April 15, 2016 and to allow the investor to elect to further extend the note for an additional 90 days. In consideration for such agreements, the company agreed that the senior secured note would be further modified so that it would be convertible into shares of common stock of the company at an initial conversion price of $4.86 per share, which was equal to the most recent consolidated closing bid price of the company’s common stock immediately prior to the execution of the amendment agreement. Accordingly, without the consent of the holder of the note we must comply with certain restrictions against incurring additional indebtedness and granting additional security interests on our assets. The events of default defined in the note include

 

49


Table of Contents

customary terms, including a default of our payment obligation, a breach of material terms of the note and the commencement of bankruptcy proceedings. The note is secured by a first priority lien on certain of our assets, as described in a security agreement entered into between the company and the purchaser, which collateral consists of those of our assets other than those covered by the security agreement we entered into with the holders of the $900,000 convertible debentures. The purchaser is an entity affiliated with J. David Luce, a former member of the company’s board of directors. On December 11, 2015, we entered into an exchange agreement with the holder of the $950,000 note pursuant to which the company agreed to issue such holder, in consideration of the cancellation of the original note, a new convertible note in the aggregate principal amount of $950,000 and warrants to purchase 422,222 shares of common stock. The closing of the exchange transaction occurred on December 17, 2015. The new $950,000 principal amount convertible note is secured to the extent and as provided in an amended security agreement entered into between the company and the holder and MKA 79, LLC, which agreed to amend such security agreement to provide that the new convertible note shall be secured by the collateral defined in such security agreement.

Provisions in our charter documents and Delaware law could discourage or prevent a takeover, even if an acquisition would be beneficial to our stockholders.

Provisions of our certificate of incorporation and bylaws, as well as provisions of Delaware law, could make it more difficult for a third party to acquire us, even if doing so would be beneficial to our stockholders. These provisions include:

 

    authorizing the issuance of “blank check” preferred that could be issued by our board of directors to increase the number of outstanding shares and thwart a takeover attempt;

 

    prohibiting cumulative voting in the election of directors, which would otherwise allow less than a majority of stockholders to elect director candidates; and

 

    advance notice provisions in connection with stockholder proposals that may prevent or hinder any attempt by our stockholders to bring business to be considered by our stockholders at a meeting or replace our board of directors.

Together these provisions may delay, deter or prevent a change in control of us, adversely affecting the market price of our common stock.

In addition, at the special meeting of stockholders held on January 20, 2016, our stockholders approved an amendment to the company’s Amended Certificate of Incorporation to restrict certain transfers of our common stock (the “Protective Amendment”). The Protective Amendment is designed to prevent certain transfers of common stock that could result in an ownership change under Section 382 of the Internal Revenue Code and, therefore, materially inhibit the company’s ability to utilize its net operating losses under federal tax laws. As a result of the Protective Amendment, the company’s shares of common stock are subject to transfer restrictions such that holders of common stock are restricted from attempting to transfer (which includes any direct or indirect acquisition, sale, transfer, assignment, conveyance, pledge or other disposition) any of the shares of common stock (or options, warrants or other rights to acquire the common stock, or securities convertible or exchangeable into common stock), to the extent that such transfer would (i) create or result in an individual or entity becoming a 4.9-percent shareholder of the common stock for purposes of Section 382 of the Internal Revenue Code of 1986, as amended and the related Treasury Regulations (which are referred to as a “4.9 Percent Shareholder”) or (ii) increase the stock ownership percentage of any existing 4.9 Percent Shareholder. Transfers that violate the provisions of the Protective Amendment shall be null and void ab initio and shall not be effective to transfer any record, legal, beneficial or any other ownership of the number of shares which result in the violation of the Protective Amendment (which shares are referred to as “Excess Securities”). Instead, the purported transferee would be required, upon demand by the company, to transfer the Excess Securities to an agent designated by the company for the limited purpose of consummating an orderly arm’s-length sale of such shares. The net proceeds of the sale will be distributed first to reimburse the agent for any costs associated with the sale, second to the purported transferee to the extent of the price it paid, and finally any additional amount will be distributed to a charitable beneficiary. If the excess stock is sold by the purported transferee, such person will be treated as having sold the excess stock on behalf of the agent, and will be required to remit all proceeds to our agent. To the extent permitted by law, any stockholder who knowingly violates the Protective Amendment will be liable for any and all damages we suffer as a result of such violation. The Protective Amendment has an “anti-takeover” effect because, among other things, it restricts the ability of a person, entity or group to accumulate more than five percent of the company’s common stock and the ability of persons, entities or groups now owning more than five percent of the outstanding shares of common stock from acquiring additional shares of the company’s common stock without the approval of the board. The company filed the Certificate of Amendment for the Protective Amendment with the Secretary of State of Delaware on January 21, 2016.

 

50


Table of Contents
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

  a) Sales of Unregistered Securities

Except as previously disclosed in reports filed with the SEC pursuant to the Securities and Exchange Act of 1934, as amended, and as described elsewhere in this Quarterly Report on Form 10-Q, we did not sell unregistered securities during the quarter ended December 31, 2015.

As of December 31, 2015 we issued options to purchase an aggregate of 14,148 shares of common stock to our non-executive directors that elected to receive options and in January 2016, we issued an aggregate of 1,643 restricted shares of our common stock to non-executive directors that elected to receive shares of common stock in lieu of the cash fees earned for their service as members of our board of directors pursuant to our 2011 Omnibus Equity Incentive Plan. The options are exercisable for a period of ten years at an exercise price of $6.39 per share. Such securities were issued for service on our board during the quarter ended December 31, 2015. These securities were issued pursuant to the exemption from registration provided by Section 4 (a)(2) of the Securities Act of 1933, as amended.

During the quarter ended December 31, 2015, we issued 40,935 shares of common stock upon the conversion of 40,000 shares of Series D preferred stock upon our receipt of a notice of conversion of such preferred shares from the holder. Subsequently, in January 2016, we issued 20,467 shares of common stock upon the conversion of 20,000 shares of Series D preferred stock upon our receipt of a notice of conversion of such preferred shares from the holder. The shares of common stock issued upon conversion of the Series D preferred stock was issued pursuant to the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended.

 

  b) Not applicable

 

  c) Repurchase of Equity Securities

We did not repurchase any of our equity securities during the three months ended December 31, 2015.

 

Item 3. Defaults Upon Senior Securities

We have two classes of preferred stock outstanding, the Series B convertible preferred stock and the Series D convertible preferred stock. The Series B preferred stock bears a 10% dividend per annum, payable semi-annually in cash. As of December 31, 2015, the company has accrued a cumulative dividend of $35,000 on the Series B preferred stock. The Series D preferred stock bears a 5% dividend per annum, payable semi-annually in cash, or shares of common stock, at the company’s option. At December 31, 2015, the company has accrued a cumulative dividend in the amount of approximately $166,000 on the Series D preferred stock.

 

Item 4. Mine Safety Disclosures

Not applicable.

 

Item 5. Other Information

On February 5, 2016, the company filed and mailed an Information Statement on Schedule 14F-1 (the “Schedule 14F-1”) in connection with the merger transaction contemplated by the Agreement and Plan of Merger dated November 18, 2015 among the Company, AEON and RMS Merger Sub LLC (the “Original Merger Agreement”), as amended and restated on January 26, 2016 (the “Amended Merger Agreement”, as together with the Original Merger Agreement, the “Merger Agreement”). The Merger Agreement provides that effective at closing of the merger, (i) Mr. Hanif A. Roshan, was appointed the chairman of the company, which shall be an executive officer position, and (ii) Mr. Richard Hersperger was appointed as the chief executive officer of the company. The Merger Agreement also provides that the former AEON members, as holders of shares of the company’s common stock issued pursuant to the Merger Agreement, will have the right to nominate one person to the board of directors of the company for each 10% of the outstanding shares of the company’s common stock beneficially owned by them and that effective as of the closing of the merger, each of Messrs. Roshan and Hersperger will also be elected directors of the company, effective 10 days after the later of the filing or mailing of the Schedule 14F-1. Accordingly, effective February 15, 2016, Messrs. Roshan and Hersperger became members of the board of directors of the company.

 

Item 6. Exhibits

The following exhibits are filed herewith or incorporated by reference. A management contract or compensation plan or arrangement is indicated with (*).

 

51


Table of Contents
          Incorporated by Reference     

Exhibit
Number

  

Exhibit Description

  

Form

  

Filing

Date

  

Exhibit

  

Filed
Herewith

    2.1    Agreement and Plan of Merger dated as of November 18, 2015, by and among, Authentidate Holding Corp., RMS Merger Sub LLC, and Peachstate Health Management LLC, d/b/a AEON Clinical Laboratories (The schedules and exhibits to the agreement and plan of merger are omitted pursuant to Item 601(b)(2) of Regulation S-K. Authentidate Holding Corp. agrees to furnish supplementally to the SEC, upon request, a copy of any omitted schedule or exhibit)    8-K    11/19/15    2.1   
    2.2    Amended and Restated Agreement and Plan of Merger dated as of January 26, 2016, by and among, Authentidate Holding Corp., RMS Merger Sub, LLC, and Peachstate Health Management LLC, d/b/a AEON Clinical Laboratories (The schedules and exhibits to the agreement and plan of merger are omitted pursuant to Item 601(b)(2) of Regulation S-K. Authentidate Holding Corp. agrees to furnish supplementally to the SEC, upon request, a copy of any omitted schedule or exhibit)    8-K    2/1/16    2.1   
    3.1    Certificate of Amendment to the Amended Certificate of Incorporation of the Company for the Reverse Split    8-K    1/22/16    3.1   
    3.2    Certificate of Amendment to the Amended Certificate of Incorporation of the Company for the Protective Amendment    8-K    1/22/16    3.2   
    4.1    Form of Promissory Note issued to Peachstate Health Management LLC d/b/a AEON Clinical Laboratories dated October 28, 2015    10-Q    11/13/15    4.6   
    4.2    Form of Warrant issued to Peachstate Health Management LLC d/b/a AEON Clinical Laboratories dated October 28, 2015    10-Q    11/13/15    4.7   
    4.3    Form of New Convertible Note issued to VER 83, LLC    8-K    12/17/15    4.1   
    4.4    Form of Warrant issued to VER 83, LLC    8-K    12/17/15    4.2   
    4.5    Form of New Note issued to Lazarus Investment Partners, LLLP    8-K    12/17/15    4.3   
    4.6    Form of New Warrant issued to Lazarus Investment Partners, LLLP    8-K    12/17/15    4.4   
  10.1    Form of Note Purchase Agreement dated October 28, 2015    10-Q    11/13/15    10.8   
  10.2    Second Amendment to Securities Purchase Agreement and Registration Rights Agreement, entered into on November 12, 2015    10-Q    11/13/15    10.9   
  10.3    Exchange Agreement between the Company and VER83, LLC(including Form of Lockup Agreement)    8-K    12/17/15    10.1   

 

52


Table of Contents
  10.4    Exchange Agreement between the Company and Lazarus Investment Partners, LLLP (including Form of Lockup Agreement)    8-K    12/17/15    10.2   
  10.5    Amended Security Agreement dated December 11, 2015    8-K    12/17/15    10.3   
  10.6    Form of Voting Agreement    8-K    12/17/15    10.4   
  10.7    Form of Lockup Agreement    8-K    1/21/16    10.2   
  10.8    Amendment Agreement dated January 15, 2016    8-K    1/21/16    10.1   
  10.9    Form of Registration Rights Agreement by and among Authentidate Holding Corp. and the AEON Members, dated as of January 26, 2016    8-K    2/1/16    10.1   
  10.10    Lease Agreement dated as of March 1, 2014, as amended January 20, 2016, between Centennial Properties of Georgia, LLC and Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories    8-K    2/1/16    10.2   
  31.1    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002             X
  31.2    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002             X
  32.1    Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002             X
101.1   

The following financial information from the Authentidate Holding Corp.’s Quarterly Report on Form 10-Q for the fiscal quarter December 31, 2015, formatted in XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) the Condensed Consolidated Balance Sheets; (ii) the Condensed Consolidated Statements of Operations and Comprehensive Operations; (iii) the Condensed Consolidated Statements of Cash Flows; and, (iv) the Notes to Condensed Consolidated Financial Statements.

   X

 

53


Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

    AUTHENTIDATE HOLDING CORP.

February 22, 2016

   

/s/ Richard Hersperger

Date     Richard Hersperger
    Chief Executive Officer and President
   

/s/ William A. Marshall

    William A. Marshall
    Chief Financial Officer and Treasurer

 

54

EX-31.1 2 d102937dex311.htm EX-31.1 EX-31.1

Exhibit 31.1

CERTIFICATION

I, Richard Hersperger, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Authentidate Holding Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:  

February 22, 2016

    Name:  

/s/ Richard Hersperger

      Title:   Chief Executive Officer
        (Principal Executive Officer)
EX-31.2 3 d102937dex312.htm EX-31.2 EX-31.2

Exhibit 31.2

CERTIFICATION

I, William A. Marshall, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Authentidate Holding Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:  

February 22, 2016

    Name:  

/s/ William A. Marshall

      Title:   Chief Financial Officer
        (Principal Accounting Officer)
EX-32.1 4 d102937dex321.htm EX-32.1 EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Authentidate Holding Corp. (the “company”) on Form 10-Q for the period ending December 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, being, Richard Hersperger, Chief Executive Officer and President of the company, and William A. Marshall, Chief Financial Officer of the company, respectively, do each hereby certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the company.

 

Dated:  

February 22, 2016

   

/s/ Richard Hersperger

   

/s/ William A. Marshall

Chief Executive Officer     Chief Financial Officer
(Principal Executive Officer)     (Principal Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to the company and will be retained by the company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-101.INS 5 adat-20151231.xml XBRL INSTANCE DOCUMENT 750000 0.06 200000 9.09 0.08 8889 100000 9.091 0.0576 11056 950000 100000 3000000 4.05 2.70 2.25 0.09 402963 900000 933333 1.53 608314 0.100 320000 0.20 400000 0.290 2.70 0.20 450000 5772256 2.25 0.09 422222 950000 422222 950000 2.70 0.0499 0.20 111111 532811 623000 2.79 351852 0.12 2.25 0.293 0.0576 500000 692626 2.70 0.20 525000 190000000 4792000 0.001 5000000 4792000 0.10 -6141000 208704000 1908000 2992000 1800000 3683000 3047000 2690000 63000 -214915000 9555000 3414000 72000 5000 9483000 65000 2170000 3683000 302000 326000 3414000 348000 440000 1732000 356000 197000 296000 208000 395000 269000 277000 325000 1172000 4926000 121000 1934000 50000 379000 119000 304000 31000 2690000 1200000 0.39 100000 0.65 950000 4078000 913000 0.20 400000 0.63 4.86 0.0499 65844 320000 0.54 525000 1.71 2513000 4245000 1732000 288000 357000 69000 113000 229000 116000 78000 95000 17000 2690000 2690000 200000 207000 18.18 7.29 126000 25.38 64000 4000 99000 130000 427000 4.41 413000 4.32 1151000 1151000 4313000 11437000 8629000 5.22 3496000 4.05 40935 625000 625000 10.00 167000 6500000 40000 639622 28000 25.00 35000 28000 28000 28000 41000 0.71 0.12 500000 761000 0.36 800000 2690000 2.70 0.0499 5000 -214915000 65000 208704000 2690000 12.06 8.55 1084000 18.00 7.92 190000000 4680000 0.001 5000000 4680000 0.10 -465000 205946000 1450000 2764000 2150000 2109000 214000 67000 -206485000 4628000 4163000 88000 5000 4540000 69000 900000 2150000 356000 4163000 1904000 603000 274000 301000 200000 342000 1602000 4878000 256000 2114000 50000 222000 247000 261000 214000 2308000 4212000 1904000 276000 357000 81000 108000 214000 106000 72000 95000 23000 214000 214000 237000 20.43 243000 5.58 3741000 7.56 665000 665000 28000 28000 5000 -206485000 69000 205946000 214000 378000 200000 100000 92000 P6M P54M 900000 940000 P54M 950000 1.10 P20D P1Y P54M 2100000 0.85 2019-12-13 (i) August 26, 2016, or (ii) within 30 days of the closing of the contemplated acquisition, merger or similar transaction with Peachstate Health Management, LLC (d/b/a AEON Clinical Laboratories) as described above, or a similar alternative acquisition, merger or similar transaction with an unaffiliated third party, or (iii) the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. 958030 2015-01-27 16000000 100000000 0.199 0.10 0.05 0.90 1.10 0.85 2015-12-17 (i) twelve months from the date of issuance, (ii) June 8, 2016 if the company has not consummated the closing with AEON by such date, or (iii) within 5 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. 32811 5000000 P54M 2015-07-02 2015-03-19 2015-07-02 900000 -2483000 -0.98 4.50 0 4500000 -4199000 -4401000 2399000 -4199000 18000 168000 -48000 340000 -4199000 -181000 -84000 1410000 126000 -4199000 989000 0 202000 -11000 -461000 -84000 6598000 2106000 739000 541000 293000 0 16000 0 4116000 190000 399000 210000 2124000 1344000 165000 263000 10000 20000 444000 98000 3075000 681000 28000 Q2 Historical averages over the past five years and estimates of expected future behavior. -1913000 <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>12.</b></td> <td valign="top" align="left"><b>Other Expense</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Other expense consists of the following (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="72%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center"> <b>Three&#xA0;Months&#xA0;Ended</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center"> <b>Six&#xA0;Months&#xA0;Ended</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Amortization of debt discount</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(244</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(371</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Amortization of deferred financing costs</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(49</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(92</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Loss on entinguishment of notes</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(2,977</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(2,977</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Interest expense</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(64</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(144</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Change in fair value of warrant liability</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(941</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(1,100</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Total other expense</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(4,275</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(4,684</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The amortization of debt discount and deferred financing costs and the loss on extinguishment of notes for fiscal 2016 relates to the notes discussed in Note 7 of Notes to Condensed Consolidated Financial Statements.</p> </div> P48M <div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The changes in shareholders&#x2019; equity for the six months ended December&#xA0;31, 2015 are summarized as follows (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="59%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" colspan="2">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>Additional</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" colspan="2" align="center"><b>Total</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>Preferred</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" colspan="2" align="center"><b>Common</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"><b>Paid-in</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>Accumulated</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>Shareholders&#x2019;</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Stock</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Stock</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Capital</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Deficit</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Deficit</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b>Balance, June&#xA0;30, 2015</b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">69</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">5</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">205,946</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(206,485</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(465</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Preferred stock dividends</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(202</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(202</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Share-based compensation expense</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">210</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">210</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Restricted shares and stock options issued for services</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">363</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">363</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Exercise of stock options</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Conversion of Series D preferred stock</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(4</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Warrants issued for services</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">12</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">12</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Warrants and conversion features releted to debt</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,166</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,166</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Net loss</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(8,228</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(8,228</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b>Balance, December&#xA0;31, 2015</b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">65</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">5</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">208,704</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(214,915</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(6,141</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 2016 <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>14.</b></td> <td valign="top" align="left"><b>Accounting Standards Adopted in Fiscal 2016</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The company has not adopted any FASB Accounting Standards Updates (ASU) during fiscal 2016.</p> </div> false <div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Amortization expense for the next five fiscal years and thereafter is expected to be as follows (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="68%" align="center" border="0"> <tr> <td width="89%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b><u>June&#xA0;30,</u></b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> 2016</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">296</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> 2017</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">440</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> 2018</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">348</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> 2019</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">304</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> 2020</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">277</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Thereafter</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">269</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,934</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> </tr> </table> </div> 0.016 <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>4.</b></td> <td valign="top" align="left"><b>Acquisition</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> On January&#xA0;27, 2015 the company completed the acquisition of Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories, an expanding clinical laboratory based in Gainesville, GA (&#x201C;AEON&#x201D;). The transaction was structured as a tax-free exchange, with the former AEON members receiving shares of common stock of AHC at the closing, and potential further issuances of common stock tied primarily to the earnings of AEON during the five calendar years ending December 2019. The AEON members received an aggregate of 19.9% (958,030 shares) of common stock of AHC effective at the closing and can receive an additional 5% of the outstanding common stock of the company, as defined, upon approval of the merger transaction by the shareholders of the company. The AEON members can also earn additional shares of common stock to increase their aggregate holdings to up to 90% of the outstanding stock of AHC, as defined, based upon meeting the benchmark targets in the merger agreement, including delivering $16,000,000 in EBITDA for the calendar year ended 2015 and $100,000,000 in aggregate EBITDA for the calendar years 2016 through 2019. In connection with the completion of the merger, Hanif A. (&#x201C;Sonny&#x201D;) Roshan, founder of AEON, will become Chairman of AHC and Richard Hersperger, the CEO of AEON, will become CEO of the combined companies. Both men will also serve on the board of directors of AHC and the AEON members will have the right to elect one director for each 10% of the outstanding shares of the company&#x2019;s common stock they hold as a group. Under the provisions of ASC 805-40 Business Combinations &#x2013; Reverse Acquisitions, the transaction will be accounted for as a reverse acquisition with AEON becoming the acquirer for accounting purposes and AHC becoming the accounting acquiree.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> AEON provides health care professionals with four primary tests: Medical Toxicology, Pharmacogenomics, Cancer Genetic Testing, and Molecular Biology.</p> </div> <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>7.</b></td> <td valign="top" align="left"><b>Notes Payable</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> On January&#xA0;29, 2015, the company received a short-term loan of $200,000 from a strategic lender pursuant to which we issued a secured promissory note to the lender in the aggregate principal amount of $200,000. The note was secured by a first priority lien on certain equipment owned by the company with a net present value equivalent to the face value of the note, was due and payable on March&#xA0;30, 2015 and accrued interest at the rate of 6%&#xA0;per annum. The note and accrued interest was repaid on the maturity date.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> On February&#xA0;17, 2015, the company entered into a securities purchase agreement with an accredited investor pursuant to which we issued a promissory note in the aggregate principal amount of $100,000 and common stock purchase warrants to purchase up to 8,889 shares of common stock for gross proceeds of $100,000. The note was an unsecured obligation of the company, was not convertible into equity securities of the company and accrued interest at a rate of 8%&#xA0;per annum. The note was due and payable on the six month anniversary of the issue date, subject to the right of the investor to extend the maturity date for up to an additional six months. The net proceeds from this transaction were approximately $92,000. The warrants vested in equal monthly installments over twelve months if the notes were outstanding and, subject to vesting requirements, were exercisable for a period of 54 months commencing on the six month anniversary of the issuance date at an initial exercise price of $9.09 per share. Although the securities purchase agreement that the company entered into with this investor contemplated a second closing for $900,000 of additional proceeds, the second closing did not occur and the company did not receive the additional funds. This note and the vested portion of the warrants were exchanged for notes and warrants issued in the June&#xA0;8, 2015 transaction discussed below and the warrants issued for this transaction were cancelled.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> On February&#xA0;17, 2015, in a separate transaction, the company issued a short-term promissory note in the aggregate principal amount of $950,000 and warrants to purchase 11,056 shares of common stock to an accredited investor for gross proceeds of $950,000. The holder of the short-term note is an entity controlled by Douglas B. Luce, the brother of J. David Luce, a former member of the board of directors of the company. The short-term note was an unsecured obligation of the company, was not convertible into equity securities of the company and accrued interest at a rate of 5.76%&#xA0;per annum. The short-term note was due and payable on the first to occur of the one month anniversary of the issue date or the date on which the company received at least $950,000 in proceeds from equity or debt financing. The note contained covenants and events of default customary for similar transactions. The net proceeds from this transaction were approximately $940,000. The warrants are exercisable for a period of 54 months commencing on the six month anniversary of the issuance date at an initial exercise price of $9.091 per share. On April&#xA0;3, 2015, the company entered into an amendment agreement with the holder of the $950,000 short-term promissory note in order to amend such note to extend its maturity date from March&#xA0;19, 2015 to July&#xA0;2, 2015. In addition, pursuant to the amendment agreement, the company also agreed to grant the holder the right to exchange the principal amount of the short-term note (and unpaid interest thereon) into the securities of the company sold in the next financing, as defined in the amendment agreement. This investor subsequently agreed not to participate in the convertible debt financing for which a closing was held June&#xA0;8, 2015 and in consideration of such election, the participation right was modified to allow him to exchange such note for comparable securities in an alternative transaction. In consideration of waivers previously granted by the holder of potential events of default under the short-term note and the amendment to extend the maturity date, the company agreed to issue the holder warrants to purchase 351,852 shares of common stock of the company. The warrants are exercisable for a period of 54 months commencing six months following the date of issuance and have an exercise price equal to $2.79 per share. Through a series of amendment agreements, the maturity date of this note was further extended and the interest rate was increased to 12%&#xA0;per annum in connection with such extensions.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> On December&#xA0;11, 2015, we entered into an exchange agreement with the holder of the $950,000 note pursuant to which the company agreed to issue such holder, in consideration of the cancellation of the original note, a new convertible note in the aggregate principal amount of $950,000 and warrants to purchase 422,222 shares of common stock. The closing of the exchange transaction occurred on December&#xA0;17, 2015. The new convertible note is convertible into shares of common stock at an initial conversion price of $2.25 per share, subject to adjustment. The new convertible note is convertible beginning July&#xA0;1, 2016 and is due one year from the closing date. Based on the initial conversion price, the note will be convertible into up to 422,222 shares of common stock. If the company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price then in effect, such conversion price will be decreased to equal 85% of such lower price. The foregoing adjustments to the conversion price will not apply to certain exempt issuances, including issuances pursuant to certain employee benefit plans. In addition, the conversion price is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. The new convertible note bears interest at 9%&#xA0;per annum with interest payable upon maturity or on any earlier redemption date. Following the date on which the new convertible note first becomes convertible, the company will have the right to redeem all or any portion of the outstanding principal balance of the note, plus all accrued but unpaid interest at a price equal to 110% of such amount. The holder of the new convertible note shall have the right to convert any or all of the amount to be redeemed into common stock prior to redemption. Subject to certain exceptions, the new convertible note is senior to existing and future indebtedness of the company and will be secured to the extent and as provided in the amended security agreement entered into between the company and the holder. To provide for the collateral to secure the repayment of the new convertible note, MKA 79, LLC, an entity affiliated with J. David Luce agreed to an amendment to the security agreement entered into in August 2015 to provide that the new convertible note shall be secured by the collateral defined in such earlier security agreement. Subject to certain exceptions, the new convertible note contains customary covenants against incurring additional indebtedness and granting additional liens and contains customary events of default. Upon the occurrence of an event of default under the new convertible note, the holder may require the company to repay all or a portion of the note in cash, at a price equal to 110% of the principal and accrued and unpaid interest.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Subject to certain limitations, the additional warrants are exercisable on or after the first business day following the twelve-month anniversary of the issue date; provided, however, if the company consummates the closing with AEON, then the initial exercise date of the additional warrants shall be the date that is the three year anniversary date of such closing. The initial exercise price of the additional warrants is $2.70 per share and is subject to adjustment for certain events. If the company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price of the new note, the exercise price of the additional warrants will be decreased to a lower price based on the amount by which the conversion price of the new note was reduced due to such transaction. The foregoing adjustments to the exercise price for future stock issues will not apply to certain exempt issuances, including issuances pursuant to certain employee benefit plans. In addition, the exercise price of the additional warrants is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. In addition, the additional warrants provide that, after their initial exercise date, the company shall have the right to cause the holder to exercise the additional warrants provided that that the following conditions are satisfied: (i)&#xA0;the closing bid price of the company&#x2019;s common stock is at least $4.05 for the 20 consecutive trading days prior to the date of the mandatory exercise notice and (ii)&#xA0;the holder is not prevented from exercising the additional warrants pursuant to a lockup agreement. The additional warrants will expire 54 months from their initial exercise date. The holder shall not have the right to convert the new convertible note or exercise the additional warrants to the extent that such conversion or exercise would result in the holder being the beneficial owner in excess of 4.99% of the company&#x2019;s common stock. In addition, the holder shall have no right to convert the new convertible note or exercise the additional warrants if the issuance of the shares of common stock upon such conversion or exercise would exceed the aggregate number of shares the company may issue without breaching the company&#x2019;s obligations under Nasdaq listing rules.</p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> On April&#xA0;24, 2015, the company issued a promissory note in the aggregate principal amount of $500,000 to Lazarus Investment Partners LLLP, the beneficial owner of approximately 29.3% of the company&#x2019;s common stock at the time, in a private transaction. The note was unsecured and was not convertible into equity securities of the company. The note was originally due and payable on the first to occur of July&#xA0;2, 2015 or the date on which the company received at least $900,000 in proceeds from equity or debt financing transactions. Interest on the note was originally 5.76%&#xA0;per annum payable at maturity. The note contained terms and events of default customary for similar transactions. In consideration of the loan, the company and Lazarus entered into a warrant amendment agreement pursuant to which the company agreed to amend certain of the terms of the existing 692,626 common stock purchase warrants held by Lazarus to reduce the exercise price of such warrants to $2.25, which was above the most recently reported closing consolidated bid price of the company&#x2019;s common stock prior to the execution of the transaction documents, and to extend the expiration date of the warrants to October&#xA0;25, 2019. The warrants amended were issued in various transactions from 2010 through 2014 at exercise prices ranging between $7.92 and $18.00. The fair value related to the warrant modifications was recorded as a debt discount and amortized over the term of the agreement. Through a series of amendment agreements, the maturity date of this note was further extended and the interest rate was increased to 12%&#xA0;per annum in connection with such extensions. On December&#xA0;15, 2015, we entered into an exchange agreement with Lazarus Investment Partners pursuant to which we agreed to issue such holder, in consideration of the cancellation of the original note, a new note in the aggregate principal amount of $532,811, which amount includes $32,811 in accrued interest on their original note, and warrants to purchase 111,111 shares of common stock. The closing of the exchange transaction with Lazarus Investment Partners occurred on December&#xA0;15, 2015. The new note bears interest at 20%&#xA0;per annum, payable in arrears, and is due upon the earlier of (i)&#xA0;twelve months from the date of issuance, (ii)&#xA0;June&#xA0;8, 2016 if the company has not consummated the closing with AEON by such date, or (iii)&#xA0;within 5 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The new note is neither secured by any of the company&#x2019;s assets nor convertible into equity securities of the company. The new note contains certain events of default that are customary for similar transactions. Subject to certain limitations, the new warrants are exercisable on or after the first business day following the twelve-month anniversary of the issue date; provided, however, if the company consummates the closing of the transaction with AEON, then the initial exercise date of the new warrant shall be the date that is the three year anniversary date of such closing. The initial exercise price of the new warrants is $2.70 per share and is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. Pursuant to the exchange agreement entered into between the company and Lazarus Investment Partners, the expiration date of all warrants held by Lazarus Investment Partners shall be amended to be December&#xA0;15, 2022. Further, the holder shall not have the right to exercise the warrants to the extent that such exercise would result in it being the beneficial owner of in excess of 4.99% of the company&#x2019;s common stock. In addition, the holder shall have no right to exercise the warrants if the issuance of the shares of common stock upon such exercise would exceed the aggregate number of shares the company may issue without breaching the company&#x2019;s obligations under Nasdaq listing rules. The company agreed to grant the holder piggyback registration rights with respect to the shares of common stock issuable upon conversion of the new warrants.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> On June&#xA0;8, 2015, the company entered into definitive agreements relating to a private placement of up to $3.0 million in principal amount of senior secured convertible notes and common stock purchase warrants. An initial closing for an aggregate principal amount of $900,000 of notes and warrants to purchase 402,963 shares of common stock was held on June&#xA0;8, 2015. Subject to certain limitations, the warrants are exercisable on or after the six month anniversary of the date of issuance at an initial exercise price of $2.70 per share and will expire 54 months from the initial exercise date. In addition, subject to certain limitations, the warrants provide that, beginning six months from issuance, the company shall have the right to cause the holder to exercise the warrants provided that the following conditions are satisfied: (i)&#xA0;the closing bid price of the company&#x2019;s common stock is at least $4.05 for the 20 consecutive trading days prior to the date of the mandatory exercise notice and (ii)&#xA0;all of the warrants issued in the transaction are called by the company for a mandatory exercise. A final closing for up to $2.1 million of debentures and warrants to purchase 933,333 shares of common stock did not occur. As a condition of the initial closing, the holder of an aggregate principal amount of $100,000 of previously issued promissory notes was required to exchange such notes and certain warrants held by it for senior secured notes and warrants issued in this transaction. These notes, subject to certain exceptions, rank senior to existing and future indebtedness of the company and are secured to the extent and as provided in the security agreement entered into between the company and the purchasers. Each note matures on the one-year anniversary of the issuance date thereof and, subject to certain limitations, is convertible at any time at the option of the holder into shares of the company&#x2019;s common stock at an initial conversion price of $2.25 per share. Subject to certain exemptions, if the company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price then in effect, the conversion price then in effect will be decreased to equal 85% of such lower price and the exercise price of the warrants will be decreased to a lower price based on the amount by which the conversion price of the notes was reduced due to such transaction. The foregoing adjustments to the conversion price will not apply to certain exempt issuances, including issuances pursuant to certain employee benefit plans. In addition, the conversion price is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. The senior secured notes bear interest at 9%&#xA0;per annum with interest payable upon maturity or on any earlier redemption date. At any time after the issuance date, the company will have the right to redeem all or any portion of the outstanding principal balance of the notes, plus all accrued but unpaid interest at a price equal to 110% of such amount and the holders shall have the right to convert any or all of the amount to be redeemed into common stock prior to redemption. The notes are secured by a first priority lien on the company&#x2019;s assets related to its &#x201C;Inscrybe Referral and Order Management&#x201D; and &#x201C;Inscrybe Hospital Discharge&#x201D; solutions. Subject to certain exceptions, the notes contain customary covenants against incurring additional indebtedness and granting additional liens and contain customary events of default. Upon the occurrence of an event of default under the notes, a holder may require the company to repay all or a portion of its notes in cash, at a price equal to 110% of the principal and accrued and unpaid interest.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The company also agreed to file a registration statement covering the resale of the shares of the company&#x2019;s common stock issuable upon conversion of the June&#xA0;8, 2015 notes and exercise of the warrants and to use commercially reasonable efforts to have the registration declared effective in a timely manner. The Company will be subject to certain monetary penalties, as defined in the agreement if the registration statement is not filed, does not become effective on a timely basis, or does not remain available for the resale, as such term is defined in the registration rights agreement.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> On August&#xA0;7, 2015, the company issued a senior secured promissory note in the aggregate principal amount of $320,000 to an accredited investor in a private transaction. The note was due and payable on December&#xA0;31, 2015 and interest shall accrue on the note at the rate of 10.0%&#xA0;per annum. The note was not convertible into equity securities of the company and it contains terms and events of default customary for similar transactions. The note is secured by a first priority lien on certain of our assets, as described in a security agreement entered into between the company and the purchaser dated as of August&#xA0;7, 2015. Subject to certain exceptions, the note contains customary covenants against incurring additional indebtedness and granting additional liens and contains customary events of default. In consideration of the loan, the company and the purchaser entered into a warrant amendment agreement pursuant to which the company agreed to amend certain of the terms of the existing 608,314 common stock purchase warrants currently held by the purchaser and an affiliate to reduce the exercise price of such warrants to $1.53 and to extend the expiration date of the warrants to December&#xA0;13, 2019. The warrants amended were issued in various transactions from 2012 through 2013 at exercise prices ranging between $8.55 and $12.06. The fair value related to the warrant modifications was recorded as a debt discount and is being amortized over the term of the new agreement. The purchaser is an entity affiliated with J. David Luce. Following an extension of the maturity date of the senior secured note to January&#xA0;15, 2016, on such date we entered into a note amendment with the investor pursuant to which we agreed to modify certain of the terms of the senior secured note to extend the maturity date to April&#xA0;15, 2016 and to allow the investor to elect to further extend the note for an additional 90 days. In consideration for such agreements, the company agreed that the senior secured note would be further modified so that it would be convertible into shares of common stock of the company at an initial conversion price of $4.86 per share, which was equal to the most recent consolidated closing bid price of the company&#x2019;s common stock immediately prior to the execution of the amendment agreement. Based on the conversion price, the principal amount of the note will be convertible into up to 65,844 shares of common stock. The conversion price is only subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. The holder shall not have the right to convert the note to the extent that such conversion would result in the holder being the beneficial owner in excess of 4.99% of the company&#x2019;s common stock. The other terms and conditions of the note were not amended.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> On August&#xA0;26, 2015, the company issued promissory notes in the aggregate principal amount of $400,000 to Lazarus Investment Partners LLLP, the beneficial owner of approximately 29.0% of the company&#x2019;s common stock at the time, and an entity affiliated with J. David Luce in a private transaction. The notes are unsecured obligations of the company and are not convertible into equity securities of the company. The notes bear interest at 20%&#xA0;per annum, payable in arrears, and are due upon the earlier of (i)&#xA0;August&#xA0;26, 2016, or (ii)&#xA0;within 30 days of the closing of the contemplated acquisition, merger or similar transaction with Peachstate Health Management, LLC (d/b/a AEON Clinical Laboratories) as described above, or a similar alternative acquisition, merger or similar transaction with an unaffiliated third party, or (iii)&#xA0;the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The holders have the right, at their option, to convert interest and principal due on the note into any alternative financing that may be undertaken by the company while the notes are outstanding.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In September 2015, the company issued promissory notes in the aggregate principal amount of $525,000 to accredited investors in a private transaction. The notes are unsecured and are not convertible into equity securities of the company. The notes bear interest at 20%&#xA0;per annum, payable in arrears, and are due upon the earlier of (i)&#xA0;September&#xA0;18, 2016, or (ii)&#xA0;within 30 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The company also issued the investors warrants to purchase an aggregate of 116,667 shares of common stock. The warrants are exercisable commencing twelve months following their issuance for a period of 54 months at an exercise price of $2.70 per share.&#xA0;These closings are part of an offering of up to $1 million of notes and 222,222 warrants.</p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Except for the June&#xA0;8, 2015,&#xA0;December&#xA0;11, 2015 and December&#xA0;15, 2015 transactions, the company allocated the proceeds from the initial note transactions to the notes and the related warrants based on the relative fair values of such instruments using the fair value of the notes at a market rate of interest and the fair value of the warrants based on the Black-Scholes option pricing model and the applicable assumptions set forth in Note 3 of Notes to Condensed Consolidated Financial Statements. These allocations resulted in effective interest rates for the $100,000 note of approximately 39%&#xA0;per annum, for the $950,000 note of approximately 65%&#xA0;per annum, for the $500,000 note of approximately 71%&#xA0;per annum for the $800,000 senior secured note of approximately 36%&#xA0;per annum, for the $320,000 secured note of approximately 63%, for the $400,000 note of approximately 20% and for the $525,000 notes of approximately 54%, respectively. However, since the subjective nature of the inputs for the option pricing and other models used to calculate fair values can materially affect fair value estimates, in management&#x2019;s opinion, such models may not provide a reliable single measure of the fair value of the warrants and the resulting effective interest rates. In connection with the note transactions the company recorded promissory notes of $4,078,000, debt discount of $913,000, a warrant liability of $2,690,000, non-cash loss on extinguishments discussed below of $3,534,000 and additional paid-in-capital of $3,068,000 related to the fair value of the warrants.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In October 2015, the company issued a promissory note in the aggregate principal amount of $450,000 to Peachstate Medical Holdings LLC, d/b/a AEON Clinical Laboratories in a private transaction. The note is unsecured and is not convertible into equity securities of the company. The note bears interest at 20%&#xA0;per annum, payable in arrears, and is due upon the earlier of (i)&#xA0;October&#xA0;28, 2016, or (ii)&#xA0;within 30 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The company also issued the investor warrants to purchase an aggregate of 111,111 shares of common stock. The warrants are exercisable commencing twelve months following their issuance for a period of 54 months at an exercise price of $2.70 per share.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> As a result of the ratchet provision included in the June&#xA0;8, 2015 transaction, the company recorded a warrant liability and a debt discount based on the fair value of the warrants issued in connection with the new senior secured note. As a result of similar provisions included in the December&#xA0;11, 2015 transaction, the company recorded a warrant liability and a loss on extinguishment based on the difference between the reacquisition cost and the carrying amount of the old note. As discussed more fully in Note 13 of Notes to Condensed Consolidated Financial Statements, the company is required to revalue these warrants at the end of each reporting period. In connection with the modifications of the $100,000, $950,000 and $500,000 short-term notes discussed above, the company issued additional warrants and agreed to certain modifications that, for accounting purposes, resulted in the extinguishment of certain old notes and the creation of new notes. Accordingly, the company recorded non-cash losses on extinguishment of approximately $557,000 as other expense in the fourth quarter of fiscal 2015 ended June&#xA0;30, 2015 and $2,977,000 in the second quarter of fiscal 2016 ended December&#xA0;31, 2015. The modification of the $320,000 note on January&#xA0;15, 2016 will be accounted as an extinguishment in the third quarter of fiscal 2016. The non-cash amortization of the debt discount of $244,000 and $371,000 and deferred financing costs of $49,000 and $92,000 is included in other expense for the three and six months ended December&#xA0;31, 2015, respectively. There was no amortization for the three and six months ended December&#xA0;31, 2014.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The following table sets forth the notes and unamortized debt discount (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="76%" align="center" border="0"> <tr> <td width="76%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"> <b>December&#xA0;31,</b><br /> <b>2015</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>June&#xA0;30,</b><br /> <b>2015</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b>Notes payable</b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Secured notes payable</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,170</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">900</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Unsecured notes payable</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,908</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,450</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Unamortized debt discount</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(395</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(200</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Notes payable</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">3,683</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,150</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <br class="Apple-interchange-newline" /></div> <div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Other expense consists of the following (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="72%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center"> <b>Three&#xA0;Months&#xA0;Ended</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="6" align="center"> <b>Six&#xA0;Months&#xA0;Ended</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Amortization of debt discount</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(244</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(371</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Amortization of deferred financing costs</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(49</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(92</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Loss on entinguishment of notes</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(2,977</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(2,977</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Interest expense</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(64</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(144</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Change in fair value of warrant liability</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(941</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(1,100</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Total other expense</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(4,275</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(4,684</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <br class="Apple-interchange-newline" /> </div> <div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> A schedule of common stock warrant activity is as follows (in thousands, except per share and average life data):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="57%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Number&#xA0;of<br /> Shares</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Exercise&#xA0;Price<br /> Per Share</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual&#xA0;Life<br /> (Years)</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Aggregate<br /> Intrinsic<br /> Value</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding, June&#xA0;30, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3,741</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">7.56</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Issued</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">772</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2.70</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Expired</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(200</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">5.67</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding, December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,313</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">5.22</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4.81</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">11,437</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Exercisable, December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3,496</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">5.67</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4.71</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">8,629</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> </table> <br class="Apple-interchange-newline" /> </div> -1.79 <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>8.</b></td> <td valign="top" align="left"><b>Preferred Stock</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> As of December&#xA0;31, 2015, there are 28,000 shares of Series B preferred stock outstanding. The Series B preferred stock was originally issued in a private financing in October 1999 and the conversion and redemption features were amended in October 2002 to provide for the rights and obligations described in this note. The company has the right to repurchase the outstanding Series B preferred stock at a redemption price equal to $25.00 per share, plus accrued and unpaid dividends. The holder of such shares has the right to convert shares of preferred stock into an aggregate of approximately 28,000 shares of our common stock at a conversion rate of $25.20 per share. In the event the company elects to redeem these securities, the holder will be able to exercise its conversion right subsequent to the date that we issue a notice of redemption but prior to the deemed redemption date as would be set forth in such notice. At December&#xA0;31, 2015, the company has accrued dividends in the amount of $35,000 which remain unpaid for the period ended December&#xA0;31, 2015.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> As of December&#xA0;31, 2015, there are 625,000 shares of Series D convertible preferred stock outstanding. The Series D preferred stock was issued in June 2013 in connection with the cancelation of an aggregate principal amount of $6,500,000 of senior secured notes and can be converted by the holders into an aggregate of 639,622 shares of common stock at an initial conversion rate of $9.77139 per share. During the quarter ended December&#xA0;31, 2015, 40,000 shares of Series D preferred stock were converted into 40,935 shares of common stock. The holders of such shares have the right to convert the preferred shares at any time commencing on the six month anniversary of the issue date; however, the shares received upon conversion may not be offered or sold except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The company has the right to repurchase the outstanding Series D preferred stock at a redemption price equal to $10.00 per share, plus accrued and unpaid dividends, beginning two years after issuance and to require holders to convert their Series D preferred stock beginning three years after issuance. Dividends on the Series D preferred stock accrue at a rate of 5%&#xA0;per annum and are payable semi-annually in cash or stock at the company&#x2019;s option. At December&#xA0;31, 2015, the company has accrued dividends in the amount of approximately $167,000 which remain unpaid for the period ended December&#xA0;31, 2015.</p> </div> P30D 10-Q 0000885074 Smaller Reporting Company <div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The following table sets forth licenses, net and other intangible assets that are included in other assets as follows (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="51%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><b>December&#xA0;31, 2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><b>June&#xA0;30, 2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Gross<br /> Carrying<br /> Amount</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Accumulated<br /> Amortization</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Net&#xA0;Book<br /> Value</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Gross<br /> Carrying<br /> Amount</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Accumulated<br /> Amortization</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Net&#xA0;Book<br /> Value</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" align="center"><b>Useful&#xA0;Life<br /> In Years</b></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="2"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Patents</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">357</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">288</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">69</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">357</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">276</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">81</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" align="center">17</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Trademarks</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">229</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">113</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">116</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">214</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">108</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">106</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" align="center">20</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Acquired technologies</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">95</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">78</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">17</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">95</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">72</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">23</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" align="center">2</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Licenses</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,245</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,513</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,732</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,212</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,308</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,904</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="center"><font style="WHITE-SPACE: nowrap">3&#xA0;-&#xA0;10</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Total</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,926</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,992</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,934</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,878</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,764</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,114</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> </tr> </table> <br class="Apple-interchange-newline" /></div> <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>1.</b></td> <td valign="top" align="left"><b>Basis of Presentation and Liquidity</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The accompanying unaudited condensed consolidated financial statements have been prepared by the company pursuant to the rules and regulations of the Securities and Exchange Commission and, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The condensed consolidated financial statements include the accounts of Authentidate Holding Corp. (AHC) and its subsidiaries (collectively, the &#x201C;company&#x201D;) prior to the business combination described below since the business combination was not completed until after the period covered by the financial statements included in this Quarterly Report on Form 10-Q. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations for the period ended December&#xA0;31, 2015 are not necessarily indicative of the results to be expected for the full year. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and notes thereto included in the company&#x2019;s Form 10-K for the fiscal year ended June&#xA0;30, 2015 and the corresponding Management&#x2019;s Discussion and Analysis of Financial Condition and Results of Operations.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The company has incurred significant recurring losses and negative cash flows from operations and our product development activities have required substantial capital investment to date. These factors, among others, raise substantial doubt about our ability to continue as a going concern.&#xA0;Our condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Additionally, on March&#xA0;6, 2015 we announced that the Department of Veterans Affairs (VA) informed the company that it did not intend to exercise the fourth and final option year under our contract for telehealth products and services and our contract expired on May&#xA0;15, 2015. Our VA revenue included both recurring service revenues as well as hardware sales and we expect to report significantly reduced revenues over the next several quarters as a result of the non-renewal of our VA contract. We have taken steps to reduce our operating costs and have implemented a number of changes to our business plan with the ultimate goal to increase revenues and generate positive cash flow from operations. These changes include cost reductions from reducing our workforce and use of consultants that we made in the third quarter of fiscal 2015 and additional workforce reductions through August&#xA0;31, 2015. These reductions are expected to reduce operating expenses on an annualized basis. The company has also taken actions to realign our data center operations and relocated its corporate offices in November 2015, which are expected to result in additional annualized savings.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Since June 2015, the company has completed debt financing transactions resulting in total proceeds of approximately $1.7 million and has extended the maturity dates on approximately $1.8 million of its short-term debt obligations. Based on its business plan and the completion of the business combination described below, the company expects its existing resources and revenues generated from consolidated operations to satisfy its working capital requirements for at least the next twelve months. As discussed more fully in Note 4 of Notes to Condensed Consolidated Financial Statements, on January&#xA0;27, 2016, the company completed its business combination with Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories, whereby AEON became a wholly-owned subsidiary of the company. Under the provisions of ASC 805-40 Business Combinations &#x2013; Reverse Acquisitions, the transaction will be accounted for as a reverse acquisition with AEON becoming the acquirer for accounting purposes and AHC becoming the accounting acquiree.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Effective January&#xA0;22, 2016, the company completed a one-for-nine reverse stock split of its common stock. The reverse stock split was approved at the special meeting of stockholders held on January&#xA0;20, 2016, where the stockholders authorized the board of directors to proceed with a reverse split and to determine the ratio of the split within an approved range. All common stock, preferred stock and debt conversion rates, option, warrant and restricted stock unit amounts and related per share amounts have been restated for all periods presented to give effect to the reverse stock split.</p> </div> <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>6.</b></td> <td valign="top" align="left"><b>Other Intangible Assets</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The following table sets forth licenses, net and other intangible assets that are included in other assets as follows (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="51%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><b>December&#xA0;31, 2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="10" align="center"><b>June&#xA0;30, 2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Gross<br /> Carrying<br /> Amount</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Accumulated<br /> Amortization</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Net&#xA0;Book<br /> Value</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Gross<br /> Carrying<br /> Amount</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Accumulated<br /> Amortization</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>Net&#xA0;Book<br /> Value</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" align="center"><b>Useful&#xA0;Life<br /> In Years</b></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="2"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Patents</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">357</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">288</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">69</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">357</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">276</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">81</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" align="center">17</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Trademarks</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">229</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">113</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">116</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">214</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">108</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">106</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" align="center">20</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Acquired technologies</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">95</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">78</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">17</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">95</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">72</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">23</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" align="center">2</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Licenses</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,245</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,513</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,732</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,212</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,308</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,904</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="center"><font style="WHITE-SPACE: nowrap">3&#xA0;-&#xA0;10</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Total</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,926</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,992</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,934</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,878</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,764</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,114</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> As of December&#xA0;31, 2015 and June&#xA0;30, 2015 goodwill amounted to approximately $50,000 and is included in other assets. The company amortizes licenses and other intangible assets under the straight line method. Amortization expense was approximately $115,000 and $228,000 for the three and six months ended December&#xA0;31, 2015 and $102,000 and $190,000 for the prior year periods, respectively. Amortization expense for the next five fiscal years and thereafter is expected to be as follows (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="68%" align="center" border="0"> <tr> <td width="89%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b><u>June&#xA0;30,</u></b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> 2016</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">296</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> 2017</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">440</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> 2018</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">348</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> 2019</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">304</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> 2020</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">277</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Thereafter</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">269</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,934</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <br class="Apple-interchange-newline" /></div> <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>13.</b></td> <td valign="top" align="left"><b>Fair Value Measurements</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The company measures fair value for financial assets and liabilities in accordance with the provisions of the accounting guidance regarding fair value measurements. The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. A brief description of those three levels is as follows:</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 6pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.</td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 6pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">Level 2: Inputs other than quoted prices for identical assets or liabilities that are observable for the asset or liability, either directly or indirectly.</td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 6pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td width="5%">&#xA0;</td> <td valign="top" width="2%" align="left">&#x2022;</td> <td valign="top" width="1%">&#xA0;</td> <td valign="top" align="left">Level 3: Significant unobservable inputs.</td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The company&#x2019;s assets and liabilities subject to fair value measurements as of December&#xA0;31, 2015 and June&#xA0;30, 2015 are as follows (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="70%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="14" align="center"><b>Fair Value Measurements</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="14" align="center"><b>Using Fair Value Hierarchy</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Fair&#xA0;value</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Level&#xA0;1</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Level&#xA0;2</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Level 3</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b><u>December&#xA0;31, 2015</u></b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Warrant liability</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,690</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,690</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Total</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,690</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,690</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b><u>June&#xA0;30, 2015</u></b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Warrant liability</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">214</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">214</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Total</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">214</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">214</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The warrant liability represents the fair value of the warrants issued by the company in June 2015 and December 2015 that have reset features. The company is required to revalue the warrant liability at the end of each reporting period and record a non-cash gain or loss in the statement of operations for the change in the fair value of the warrant liability in the period in which the change occurs. The fair value of the warrant liability is estimated using an adjusted Black-Scholes model and the applicable level 1 and level 2 inputs disclosed in Note 3 of Notes to Condensed Consolidated Financial Statements and an unobservable level 3 input regarding the likelihood of a reset occurring. Since the company uses a level 3 input, the warrant liability in included in the level 3 category in the table above. Estimating fair value requires the input of highly subjective assumptions and because changes in such assumptions can materially affect the fair value estimate, in management&#x2019;s opinion, the existing models may not provide a reliable single measure of the fair value of the related assets or liabilities.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> For the three and six months ended December&#xA0;31, 2015, the company recorded non-cash losses of approximately $941,000 and $1,100,000 in other expense for the change in fair value of the warrant liability. The company also recorded a warrant liability of $1,376,000 in December 2015 in connection with the extinguishment of the related note. For the three and six months ended December&#xA0;31, 2014, there were no gains or losses resulting from the fair value measurement of assets or liabilities.</p> </div> 0.85 one-for-nine <div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The following table sets forth the calculation of basic and diluted loss per share for the periods presented (in thousands, except per share data):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="68%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>Three Months Ended<br /> December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>Six Months Ended<br /> December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Net loss</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(6,165</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(2,088</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(8,228</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(4,199</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Preferred stock dividends</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(101</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(101</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(202</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(202</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Net loss applicable to common shareholders</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(6,266</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(2,189</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(8,430</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(4,401</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Weighted average shares</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,754</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,623</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,721</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Basic and diluted loss per common share</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(1.32</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(0.47</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(1.79</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(0.98</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Share-based compensation by category is as follows (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="73%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>Three&#xA0;Months&#xA0;Ended<br /> December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>Six&#xA0;Months&#xA0;Ended<br /> December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> SG&amp;A</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">72</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">124</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">180</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">263</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Product development</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">10</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">20</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">20</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">20</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Cost of revenues</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">5</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">10</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">10</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">10</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Share-based compensation expense</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">87</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">154</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">210</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">293</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> These inventory amounts are stated at the lower of cost or market and consist of the following (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="76%" align="center" border="0"> <tr> <td width="76%"></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>June&#xA0;30,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Purchased components, net</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">31</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">261</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Finished goods</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">325</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">342</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 3em; TEXT-INDENT: -1em"> Total inventory</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">356</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">603</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 0.00 --06-30 AUTHENTIDATE HOLDING CORP <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>5.</b></td> <td valign="top" align="left"><b>Inventory</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In connection with our manufacturing and sales plans for our telehealth service, the company has purchased certain components and contract manufacturing services for the production of the monitoring appliances. These inventory amounts are stated at the lower of cost or market and consist of the following (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="76%" align="center" border="0"> <tr> <td width="76%"></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>June&#xA0;30,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 1pt"> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Purchased components, net</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">31</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">261</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Finished goods</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">325</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">342</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 3em; TEXT-INDENT: -1em"> Total inventory</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">356</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">603</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <br class="Apple-interchange-newline" /></div> <div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The company&#x2019;s assets and liabilities subject to fair value measurements as of December&#xA0;31, 2015 and June&#xA0;30, 2015 are as follows (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="70%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="14" align="center"><b>Fair Value Measurements</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="14" align="center"><b>Using Fair Value Hierarchy</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Fair&#xA0;value</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Level&#xA0;1</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Level&#xA0;2</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Level 3</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b><u>December&#xA0;31, 2015</u></b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Warrant liability</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,690</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,690</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Total</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,690</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,690</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b><u>June&#xA0;30, 2015</u></b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Warrant liability</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">214</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">214</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Total</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">214</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">$</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">214</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>11.</b></td> <td valign="top" align="left"><b>Income Taxes</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The company continues to recognize its tax benefits which are fully offset by a valuation allowance due to the uncertainty that the deferred tax assets will be realized. We will continue to evaluate the realizability of our net deferred tax assets and may record additional benefits in future earnings if we determine the realization of these assets is more likely than not.</p> </div> <div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> Stock option activity under the company&#x2019;s stock option plans for employees and non-executive directors for the period ended December&#xA0;31, 2015 is as follows (in thousands, except per share and average life data):</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; MARGIN-TOP: 0pt"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="63%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom" nowrap="nowrap"> <p style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; WIDTH: 80.55pt"> <b>Employees Information</b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Number&#xA0;of<br /> Options</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Exercise<br /> Price</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life&#xA0;(Years)</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Aggregate<br /> Intrinsic<br /> Value</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding June&#xA0;30, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">237</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">20.43</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Granted</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">36</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2.97</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Exercised</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(1</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">6.21</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Expired/Forfeited</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(65</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">18.09</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">207</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">18.18</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">6.08</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">130</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Exercisable December&#xA0;31 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">126</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">25.38</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3.46</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Expected to vest at December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">64</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">7.29</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">7.94</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">99</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; MARGIN-TOP: 0pt"> &#xA0;</p> <br class="Apple-interchange-newline" /> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="63%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom" nowrap="nowrap"> <p style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; WIDTH: 124.75pt"> <b>Non-Executive Director Information</b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Number&#xA0;of<br /> Options</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Exercise<br /> Price</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life&#xA0;(Years)</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Aggregate<br /> Intrinsic<br /> Value</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding June&#xA0;30, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">243</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">5.58</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Granted</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">186</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3.24</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Expired</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(1</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">54.00</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">427</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4.41</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">8.24</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,151</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Exercisable December&#xA0;31 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">413</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">4.32</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">8.18</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,151</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom"></td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom">&#xA0;&#xA0;</td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom">&#xA0;&#xA0;</td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom"></td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom"></td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom"></td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom">&#xA0;&#xA0;</td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom"></td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom"></td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom"></td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom">&#xA0;&#xA0;</td> <td style="WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; LETTER-SPACING: normal; BACKGROUND-COLOR: rgb(255,255,255); TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" valign="bottom"></td> </tr> </table> </div> <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>10.</b></td> <td valign="top" align="left"><b>Commitments and Contingencies</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> During fiscal 2009, the company purchased certain inventory components under arrangements that required payment only after such components where actually used in production. Based on the company&#x2019;s current production plans we have determined that these components will not be used and we offset the inventory balance for undelivered items against the related accounts payable balance during the quarter ended March&#xA0;31, 2015. Additionally, we intend to return approximately $0.2 million of such items that are included in the inventory and accounts payable balances as of December&#xA0;31, 2015. The vendor that provided these components is currently disputing this arrangement and is requesting payment for these items. In December 2015, the vendor served a summons and complaint against the Company seeking to recover an alleged amount due of approximately $2.1 million. The company believes the amount at issue is approximately $1.2 million and intends to vigorously contest this assertion. The caption of the litigation is Eurotech, Inc. vs. Authentidate Holding Corp. and the venue is Circuit Court of Howard County, State of Maryland, Case N. 13-C-15105926. Plaintiff has alleged breach of contract and equitable relief. Management does not believe that the ultimate resolution of this matter will have a material adverse effect on our consolidated financial position, results of operations or cash flows.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> We are also subject to claims and litigation arising in the ordinary course of business. Our management considers that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would not have a material adverse effect on our consolidated financial position, results of operations or cash flows.</p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> We are not currently engaged in any other litigation which would be anticipated to have a material adverse effect on our financial condition or results of operations.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> We have entered into employment agreements with our chief executive officer, chief financial officer and interim chief strategy officer that specify the executive&#x2019;s current compensation, benefits and perquisites, the executive&#x2019;s entitlements upon termination of employment, and other employment rights and responsibilities. The employment period for our chief executive officer and interim chief strategy officer ended on January&#xA0;27, 2016 in connection with the completion of the merger transaction discussed more fully in Note 4 of Notes to Condensed Consolidated Financial Statements. In connection with the termination of the company&#x2019;s employment relationship with its former chief executive officer and president in February 2015, the company is presently reviewing its severance obligations to him and the vesting and other post-termination provisions of certain of the unexercised stock options and other unvested stock options and unvested restricted stock units held by him as of the effective date of his separation from the company.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> We have entered into various agreements by which we may be obligated to indemnify the other party with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business under which we customarily agree to hold the indemnified party harmless against losses arising from a breach of representations related to such matters as intellectual property rights. Payments by us under such indemnification clauses are generally conditioned on the other party making a claim. Such claims are generally subject to challenge by us and to dispute resolution procedures specified in the particular contract. Further, our obligations under these arrangements may be limited in terms of time and/or amount and, in some instances, we may have recourse against third parties for certain payments made by us. It is not possible to predict the maximum potential amount of future payments under these indemnification agreements due to the conditional nature of our obligations and the unique facts of each particular agreement. Historically, we have not made any payments under these agreements that have been material individually or in the aggregate. As of December&#xA0;31, 2015, we are not aware of any obligations under such indemnification agreements that would require material payments.</p> </div> 1.71 2015-12-31 <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>9.</b></td> <td valign="top" align="left"><b>Shareholder&#x2019;s Equity</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The changes in shareholders&#x2019; equity for the six months ended December&#xA0;31, 2015 are summarized as follows (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="59%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" colspan="2">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>Additional</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" colspan="2" align="center"><b>Total</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>Preferred</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" colspan="2" align="center"><b>Common</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"><b>Paid-in</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>Accumulated</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" colspan="2" align="center"> <b>Shareholders&#x2019;</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Stock</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Stock</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Capital</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Deficit</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Deficit</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b>Balance, June&#xA0;30, 2015</b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">69</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">5</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">205,946</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(206,485</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(465</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Preferred stock dividends</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(202</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(202</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Share-based compensation expense</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">210</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">210</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Restricted shares and stock options issued for services</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">363</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">363</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Exercise of stock options</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Conversion of Series D preferred stock</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(4</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;</td> <td valign="bottom" nowrap="nowrap" align="right"> &#x2014;&#xA0;&#xA0;</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Warrants issued for services</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">12</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">12</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Warrants and conversion features releted to debt</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,166</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2,166</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Net loss</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(8,228</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(8,228</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b>Balance, December&#xA0;31, 2015</b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">65</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">5</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">208,704</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(214,915</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(6,141</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> During the six months ended December&#xA0;31, 2015 there were 518 stock options and no warrants exercised.</p> </div> 0.1111 518 <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>3.</b></td> <td valign="top" align="left"><b>Share-Based Compensation</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Share-based compensation by category is as follows (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="73%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>Three&#xA0;Months&#xA0;Ended<br /> December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>Six&#xA0;Months&#xA0;Ended<br /> December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> SG&amp;A</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">72</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">124</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">180</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">263</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Product development</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">10</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">20</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">20</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">20</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Cost of revenues</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">5</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">10</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">10</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">10</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Share-based compensation expense</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">87</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">154</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">210</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">293</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> We computed the estimated fair values of all option-based compensation using the Black-Scholes option pricing model and the assumptions set forth in the following table. We based our estimate of the life of these options on historical averages over the past five years and estimates of expected future behavior. The expected volatility was based on the company&#x2019;s historical stock volatility. The assumptions used in the company&#x2019;s Black-Scholes calculations for fiscal 2016 and 2015 are as follows:</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="63%"></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Risk&#xA0;Free<br /> Interest&#xA0;Rate</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Dividend<br /> Yield</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Volatility<br /> Factor</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Expected<br /> Option&#xA0;Life<br /> (Months)</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Fiscal year 2016</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1.6</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">0</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">85</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">48</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Fiscal year 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">0.6</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">0</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">84</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">48</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The Black-Scholes option-pricing model requires the input of highly subjective assumptions. Because the company&#x2019;s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management&#x2019;s opinion, the existing models may not provide a reliable single measure of the fair value of share-based compensation for employee stock options. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of share-based compensation as circumstances change and additional data becomes available over time, which may result in changes to these assumptions and methodologies. Such changes could materially impact the company&#x2019;s fair value determination.</p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> On August&#xA0;23, 2011, the stockholders approved the 2011 Omnibus Equity Incentive Plan (the 2011 Plan). The 2011 Plan replaces the 2010 Employee Stock Option Plan and the 2001 Non-Executive Director Stock Option Plan. On May&#xA0;1, 2014, the stockholders approved an amendment to the 2011 Plan to increase the number of shares of common stock available for issuance under the plan by approximately 378,000 shares. As amended, the 2011 Plan provides for the issuance of up to approximately 750,000 shares of the company&#x2019;s common stock in connection with stock options, restricted share awards and other stock compensation vehicles.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Stock option activity under the company&#x2019;s stock option plans for employees and non-executive directors for the period ended December&#xA0;31, 2015 is as follows (in thousands, except per share and average life data):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="63%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom" nowrap="nowrap"> <p style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; WIDTH: 80.55pt"> <b>Employees Information</b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Number&#xA0;of<br /> Options</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Exercise<br /> Price</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life&#xA0;(Years)</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Aggregate<br /> Intrinsic<br /> Value</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding June&#xA0;30, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">237</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">20.43</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Granted</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">36</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2.97</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Exercised</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(1</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">6.21</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Expired/Forfeited</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(65</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">18.09</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">207</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">18.18</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">6.08</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">130</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Exercisable December&#xA0;31 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">126</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">25.38</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3.46</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">4</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Expected to vest at December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">64</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">7.29</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">7.94</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">99</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="63%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom" nowrap="nowrap"> <p style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'; BORDER-BOTTOM: rgb(0,0,0) 1pt solid; WIDTH: 124.75pt"> <b>Non-Executive Director Information</b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Number&#xA0;of<br /> Options</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Exercise<br /> Price</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life&#xA0;(Years)</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Aggregate<br /> Intrinsic<br /> Value</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding June&#xA0;30, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">243</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">5.58</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Granted</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">186</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3.24</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Expired</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(1</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">54.00</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">427</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4.41</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">8.24</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,151</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Exercisable December&#xA0;31 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">413</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">4.32</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">8.18</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,151</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> Non-executive director options are granted at market price and vest on the grant date. Certain options granted to a director serving as an interim officer vest thirty (30)&#xA0;days from the grant date.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> As of December&#xA0;31, 2015, there were approximately 41,000 restricted stock units outstanding that were granted to employees as of January&#xA0;15, 2013 and January&#xA0;28, 2014 in connection with the company&#x2019;s compensation modification program. These restricted stock units vest when the company achieves cash flow breakeven, as defined.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> As of December&#xA0;31, 2015, there was approximately $326,000 of total unrecognized compensation expense related to unvested share-based compensation arrangements that is expected to be recognized over a weighted-average period of 15 months.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> There were 518 options exercised for approximately $3,200 during the six month period ended December&#xA0;31, 2015 and no options were exercised during the six month period ended December&#xA0;31, 2014. The intrinsic value of the options exercised was not material. The weighted average grant date fair value of options granted during the six month periods ended December&#xA0;31, 2015 and 2014 was approximately $1.71 and $4.50, respectively. These values were calculated using the Black-Scholes option-pricing model.</p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The total fair value of options vested was $321,000 and $340,000 for the six month periods ended December&#xA0;31, 2015 and 2014, respectively. In December 2012, the board of directors agreed that all non-employee directors would receive all of their cash director compensation, including amounts payable for committee service, service as a committee chair and per meeting fees, in restricted shares of our common stock or stock options issued at fair value in accordance with the terms of the 2011 Plan for periods ending after December 2012. During the six months ended December&#xA0;31, 2015, the company issued 13,647 shares of restricted common stock and 69,344 stock options (with a total fair value of approximately $363,000) to certain non-executive directors in connection with this program. In January 2016 the company issued 1,643 shares of restricted common stock (with a fair value of approximately $10,500) to a director under this program for the quarter ended December&#xA0;31, 2015. During the six months ended December&#xA0;31, 2015, the board of directors also issued 108,333 stock options (with a total fair value of approximately $153,000) to the interim chief strategy officer for services.</p> </div> ADAT <div> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The following table sets forth the notes and unamortized debt discount (in thousands):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="76%" align="center" border="0"> <tr> <td width="76%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"> <b>December&#xA0;31,</b><br /> <b>2015</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" rowspan="2" colspan="2" align="center"><b>June&#xA0;30,</b><br /> <b>2015</b></td> <td valign="bottom" rowspan="2">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> <b>Notes payable</b></p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Secured notes payable</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,170</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">900</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Unsecured notes payable</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,908</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1,450</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Unamortized debt discount</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(395</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(200</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Notes payable</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">3,683</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,150</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 4721000 <div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt; TEXT-INDENT: 4%"> volatility. The assumptions used in the company&#x2019;s Black-Scholes calculations for fiscal 2016 and 2015 are as follows:</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 12pt; MARGIN-TOP: 0pt"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="63%"></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>Risk&#xA0;Free<br /> Interest&#xA0;Rate</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>Dividend<br /> Yield</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>Volatility<br /> Factor</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td style="BORDER-BOTTOM: #000000 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Expected<br /> Option&#xA0;Life<br /> (Months)</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Fiscal year 2016</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">1.6</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">0</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">85</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">48</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Fiscal year 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">0.6</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">0</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">84</td> <td valign="bottom" nowrap="nowrap">%&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">48</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> </table> </div> <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>2.</b></td> <td valign="top" align="left"><b>Loss Per Share</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The following table sets forth the calculation of basic and diluted loss per share for the periods presented (in thousands, except per share data):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="68%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>Three Months Ended<br /> December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="6" align="center"><b>Six Months Ended<br /> December&#xA0;31,</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2015</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>2014</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Net loss</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(6,165</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(2,088</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(8,228</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(4,199</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Preferred stock dividends</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(101</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(101</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(202</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(202</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Net loss applicable to common shareholders</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(6,266</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(2,189</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(8,430</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(4,401</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Weighted average shares</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,754</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,623</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,721</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,500</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Basic and diluted loss per common share</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(1.32</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(0.47</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(1.79</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">(0.98</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> All common stock equivalents were excluded from the loss per share calculation for all periods presented because the impact is antidilutive. At December&#xA0;31, 2015, options (634,000), restricted stock units (41,000), warrants (4,313,000), convertible debt (822,000), Series D preferred stock (640,000)&#xA0;and Series B preferred stock (28,000)&#xA0;were outstanding. At December&#xA0;31, 2014, options (444,000), restricted stock units (98,000), warrants (3,075,000), Series D preferred stock (681,000)&#xA0;and Series B preferred stock (28,000)&#xA0;were outstanding.</p> </div> P15M -8228000 3000 -8430000 797000 210000 -8228000 48000 157000 321000 -3544000 -17000 -4684000 12000 -77000 51000 -2977000 -8228000 746000 363000 2100000 202000 1100000 -20000 463000 -128000 144000 87000 4341000 1698000 259000 1700000 135000 676000 210000 92000 12000 371000 3300000 1695000 228000 367000 3000 415000 363000 0 2016-01-22 <div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>15.</b></td> <td valign="top" align="left"><b>Common Stock Warrants</b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> During the six months ended December&#xA0;31, 2015, the company issued warrants to purchase shares of its common stock as follows. The company issued 11,111 warrants to a consultant for services with an exercise price of $1.71 per share. These warrants have a five year life and, are exercisable beginning six months after the grant date. Under this consulting arrangement, the company may grant up to an additional 88,888 warrants to this consultant based on the achievement of performance targets. Unless such performance targets are achieved, no additional warrants would be issued under this arrangement. The fair value of these warrants, as determined by the Black Scholes Model, was charged to operations on the grant date. Further, as discussed more fully in Notes 7 of Notes to Condensed Consolidated Financial Statements, the company issued warrants to purchase approximately 761,000 shares of the company&#x2019;s common stock in connection with the issuance of short-term notes in September and October 2015 and the modification of certain short-term notes in December 2015.</p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 12px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> A schedule of common stock warrant activity is as follows (in thousands, except per share and average life data):</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 12pt 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="57%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> </tr> <tr style="FONT-SIZE: 8pt; FONT-FAMILY: 'Times New Roman'"> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Number&#xA0;of<br /> Shares</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Exercise&#xA0;Price<br /> Per Share</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual&#xA0;Life<br /> (Years)</b></td> <td valign="bottom">&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1pt solid" valign="bottom" colspan="2" align="center"><b>Aggregate<br /> Intrinsic<br /> Value</b></td> <td valign="bottom">&#xA0;</td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding, June&#xA0;30, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3,741</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">7.56</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Issued</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">772</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">2.70</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Expired</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">(200</td> <td valign="bottom" nowrap="nowrap">)&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">5.67</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Outstanding, December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4,313</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">5.22</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4.81</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">11,437</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'" bgcolor="#CCEEFF"> <td valign="top"> <p style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; MARGIN-LEFT: 1em; TEXT-INDENT: -1em"> Exercisable, December&#xA0;31, 2015</p> </td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">3,496</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">5.67</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom" align="right">4.71</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom">$</td> <td valign="bottom" align="right">8,629</td> <td valign="bottom" nowrap="nowrap">&#xA0;&#xA0;</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> </table> <br class="Apple-interchange-newline" /></div> 2166000 230000 3068000 -3534000 (i) October 28, 2016, or (ii) within 30 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. 11111 P5Y 88888 0 P10Y P3Y P17Y P20Y P2Y 1376000 180000 10000 20000 P6Y29D P3Y5M16D 2.97 36000 65000 6.21 1000 18.09 P7Y11M9D 1000 P8Y2M27D P8Y2M5D 54.00 3.24 186000 69344 363000 363000 13647 108333 153000 772000 200000 5.67 2.70 P4Y9M22D P4Y8M16D 5.67 2015-03-30 822000 634000 41000 4313000 640000 0.05 P3Y 9.77139 P2Y 28000 25.20 2019-10-25 P20D P54M -8228000 202000 -4000 3000 210000 12000 4000 363000 2166000 2016-10-28 111111 P12M P54M 5000000 10500 1643 1000000 116667 222222 P12M P54M P48M 0.006 0.84 0.00 -557000 -320000 -0.47 4623000 -2088000 -2189000 1347000 -2088000 -2088000 866000 -2088000 481000 0 101000 3435000 369000 154000 0 0 2105000 102000 210000 751000 124000 10000 20000 -1.32 4754000 -6165000 -6266000 399000 -6165000 -1890000 -4275000 35000 -2977000 -6165000 364000 101000 941000 64000 2289000 97000 87000 49000 244000 1799000 115000 185000 208000 -2977000 72000 5000 10000 0000885074 adat:ProductDevelopmentExpensesMember 2015-10-01 2015-12-31 0000885074 us-gaap:CostOfSalesMember 2015-10-01 2015-12-31 0000885074 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2015-10-01 2015-12-31 0000885074 adat:PromissoryNoteWithFivePointSevenSixAndEightPercentInterestRateMember 2015-10-01 2015-12-31 0000885074 2015-10-01 2015-12-31 0000885074 adat:ProductDevelopmentExpensesMember 2014-10-01 2014-12-31 0000885074 us-gaap:CostOfSalesMember 2014-10-01 2014-12-31 0000885074 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2014-10-01 2014-12-31 0000885074 2014-10-01 2014-12-31 0000885074 adat:PromissoryNoteWithFivePointSevenSixAndEightPercentInterestRateMember us-gaap:ScenarioForecastMember 2016-01-01 2016-03-31 0000885074 adat:PromissoryNoteWithFivePointSevenSixAndEightPercentInterestRateMember 2015-04-04 2015-06-30 0000885074 2014-07-01 2015-06-30 0000885074 2015-08-27 2015-09-30 0000885074 us-gaap:RestrictedStockMember adat:TwoThousandElevenPlanMember us-gaap:SubsequentEventMember 2016-01-01 2016-01-31 0000885074 adat:TwoThousandElevenPlanMember us-gaap:SubsequentEventMember 2016-01-01 2016-01-31 0000885074 2015-10-01 2015-10-31 0000885074 us-gaap:AdditionalPaidInCapitalMember 2015-07-01 2015-12-31 0000885074 us-gaap:PreferredStockMember 2015-07-01 2015-12-31 0000885074 us-gaap:RetainedEarningsMember 2015-07-01 2015-12-31 0000885074 adat:ConvertibleNotesMember adat:AdditionalWarrantMember 2015-07-01 2015-12-31 0000885074 adat:LazarusInvestmentPartnersLimitedLiabilityLimitedPartnershipMember 2015-07-01 2015-12-31 0000885074 adat:SeriesBConvertiblePreferredStockMember 2015-07-01 2015-12-31 0000885074 us-gaap:SeriesDPreferredStockMember 2015-07-01 2015-12-31 0000885074 us-gaap:WarrantMember 2015-07-01 2015-12-31 0000885074 us-gaap:RestrictedStockUnitsRSUMember 2015-07-01 2015-12-31 0000885074 us-gaap:EmployeeStockOptionMember 2015-07-01 2015-12-31 0000885074 us-gaap:ConvertibleDebtSecuritiesMember 2015-07-01 2015-12-31 0000885074 adat:SecuredPromissoryNoteMember 2015-07-01 2015-12-31 0000885074 us-gaap:WarrantMember 2015-07-01 2015-12-31 0000885074 adat:TwoThousandElevenPlanMember adat:ChiefStrategyOfficerMember 2015-07-01 2015-12-31 0000885074 us-gaap:RestrictedStockMember adat:TwoThousandElevenPlanMember adat:NonExecutiveMember 2015-07-01 2015-12-31 0000885074 adat:TwoThousandElevenPlanMember adat:NonExecutiveMember 2015-07-01 2015-12-31 0000885074 adat:NonExecutiveDirectorMember 2015-07-01 2015-12-31 0000885074 adat:EmployeeMember 2015-07-01 2015-12-31 0000885074 adat:ProductDevelopmentExpensesMember 2015-07-01 2015-12-31 0000885074 us-gaap:CostOfSalesMember 2015-07-01 2015-12-31 0000885074 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2015-07-01 2015-12-31 0000885074 adat:ConvertibleNotesMember 2015-07-01 2015-12-31 0000885074 adat:TechnologyFiniteLivedIntangibleAssetMember 2015-07-01 2015-12-31 0000885074 us-gaap:TrademarksMember 2015-07-01 2015-12-31 0000885074 us-gaap:PatentsMember 2015-07-01 2015-12-31 0000885074 us-gaap:LicensingAgreementsMember us-gaap:MinimumMember 2015-07-01 2015-12-31 0000885074 us-gaap:LicensingAgreementsMember us-gaap:MaximumMember 2015-07-01 2015-12-31 0000885074 adat:AgreementWithConsultantForServicesMember 2015-07-01 2015-12-31 0000885074 adat:TwentyPercentPromissoryNoteMember us-gaap:CommercialPaperMember 2015-07-01 2015-12-31 0000885074 adat:PromissoryNoteWithFivePointSevenSixPercentInterestRateMember adat:LucePromissoryNoteMember 2015-07-01 2015-12-31 0000885074 2015-07-01 2015-12-31 0000885074 adat:SeriesBConvertiblePreferredStockMember 2014-07-01 2014-12-31 0000885074 us-gaap:SeriesDPreferredStockMember 2014-07-01 2014-12-31 0000885074 us-gaap:WarrantMember 2014-07-01 2014-12-31 0000885074 us-gaap:RestrictedStockUnitsRSUMember 2014-07-01 2014-12-31 0000885074 us-gaap:EmployeeStockOptionMember 2014-07-01 2014-12-31 0000885074 adat:ProductDevelopmentExpensesMember 2014-07-01 2014-12-31 0000885074 us-gaap:CostOfSalesMember 2014-07-01 2014-12-31 0000885074 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2014-07-01 2014-12-31 0000885074 2014-07-01 2014-12-31 0000885074 adat:LazarusInvestmentPartnersLimitedLiabilityLimitedPartnershipMember 2015-04-24 2015-04-24 0000885074 adat:PromissoryNoteWithFivePointSevenSixPercentInterestRateMember adat:LucePromissoryNoteMember adat:PriorToAmendmentMember 2015-04-03 2015-04-03 0000885074 adat:PromissoryNoteWithFivePointSevenSixPercentInterestRateMember adat:LucePromissoryNoteMember adat:PostAmendmentMember 2015-04-03 2015-04-03 0000885074 adat:PromissoryNoteWithFivePointSevenSixPercentInterestRateMember adat:LucePromissoryNoteMember 2015-04-03 2015-04-03 0000885074 adat:LazarusInvestmentPartnersLimitedLiabilityLimitedPartnershipMember 2015-12-15 2015-12-15 0000885074 2015-12-11 2015-12-11 0000885074 adat:PeachstateHealthManagementLLCMember 2015-01-27 2015-01-27 0000885074 adat:TwentyPercentPromissoryNoteMember us-gaap:CommercialPaperMember 2015-08-26 2015-08-26 0000885074 2015-08-07 2015-08-07 0000885074 adat:SeniorSecuredConvertibleNotesMember 2015-06-08 2015-06-08 0000885074 adat:PromissoryNoteWithFivePointSevenSixPercentInterestRateMember adat:LucePromissoryNoteMember 2015-02-17 2015-02-17 0000885074 adat:PromissoryNoteWithEightPercentInterestRateMember 2015-02-17 2015-02-17 0000885074 adat:SecuredPromissoryNoteMember 2015-01-29 2015-01-29 0000885074 adat:TwentyElevenOmnibusEquityIncentivePlanMember 2014-05-01 2014-05-01 0000885074 adat:WarrantyLiabilityMember 2015-06-30 0000885074 us-gaap:AdditionalPaidInCapitalMember 2015-06-30 0000885074 us-gaap:PreferredStockMember 2015-06-30 0000885074 us-gaap:RetainedEarningsMember 2015-06-30 0000885074 us-gaap:CommonStockMember 2015-06-30 0000885074 adat:SeriesBRedeemableConvertiblePreferredStockMember 2015-06-30 0000885074 us-gaap:SeriesDPreferredStockMember 2015-06-30 0000885074 us-gaap:WarrantMember 2015-06-30 0000885074 adat:NonExecutiveDirectorMember 2015-06-30 0000885074 adat:EmployeeMember 2015-06-30 0000885074 us-gaap:FairValueInputsLevel3Member adat:WarrantyLiabilityMember 2015-06-30 0000885074 us-gaap:FairValueInputsLevel3Member 2015-06-30 0000885074 adat:TechnologyFiniteLivedIntangibleAssetMember 2015-06-30 0000885074 us-gaap:TrademarksMember 2015-06-30 0000885074 us-gaap:PatentsMember 2015-06-30 0000885074 us-gaap:LicensingAgreementsMember 2015-06-30 0000885074 2015-06-30 0000885074 us-gaap:MinimumMember adat:LazarusInvestmentPartnersLimitedLiabilityLimitedPartnershipMember 2014-06-30 0000885074 us-gaap:MaximumMember adat:LazarusInvestmentPartnersLimitedLiabilityLimitedPartnershipMember 2014-06-30 0000885074 2014-06-30 0000885074 us-gaap:MinimumMember 2013-06-30 0000885074 us-gaap:MaximumMember 2013-06-30 0000885074 adat:WarrantyLiabilityMember 2015-12-31 0000885074 us-gaap:AdditionalPaidInCapitalMember 2015-12-31 0000885074 us-gaap:PreferredStockMember 2015-12-31 0000885074 us-gaap:RetainedEarningsMember 2015-12-31 0000885074 us-gaap:CommonStockMember 2015-12-31 0000885074 adat:ConvertibleNotesMember adat:AdditionalWarrantMember 2015-12-31 0000885074 adat:SeniorSecuredNotesMember 2015-12-31 0000885074 us-gaap:CommercialPaperMember 2015-12-31 0000885074 adat:LazarusInvestmentPartnersLimitedLiabilityLimitedPartnershipMember 2015-12-31 0000885074 us-gaap:RestrictedStockUnitsRSUMember 2015-12-31 0000885074 adat:SeriesBRedeemableConvertiblePreferredStockMember 2015-12-31 0000885074 adat:SeriesBConvertiblePreferredStockMember 2015-12-31 0000885074 us-gaap:SeriesDPreferredStockMember 2015-12-31 0000885074 adat:ConvertibleNotesMember us-gaap:MinimumMember adat:AdditionalWarrantMember 2015-12-31 0000885074 us-gaap:WarrantMember 2015-12-31 0000885074 adat:NonExecutiveDirectorMember 2015-12-31 0000885074 adat:EmployeeMember 2015-12-31 0000885074 adat:InventoryAndAccountsPayableMember 2015-12-31 0000885074 us-gaap:FairValueInputsLevel3Member adat:WarrantyLiabilityMember 2015-12-31 0000885074 us-gaap:FairValueInputsLevel3Member 2015-12-31 0000885074 adat:TechnologyFiniteLivedIntangibleAssetMember 2015-12-31 0000885074 us-gaap:TrademarksMember 2015-12-31 0000885074 us-gaap:PatentsMember 2015-12-31 0000885074 us-gaap:LicensingAgreementsMember 2015-12-31 0000885074 adat:AgreementWithConsultantForServicesMember 2015-12-31 0000885074 adat:UnsecuredPromissoryNoteWithTwentyPercentageInterestRateMember 2015-12-31 0000885074 adat:SeniorSecuredPromissoryNoteWithTenPointZeroPercentageInterestRateMember 2015-12-31 0000885074 adat:TwentyPercentPromissoryNoteMember 2015-12-31 0000885074 adat:PromissoryNoteWithFivePointSevenSixPercentInterestRateMember adat:LucePromissoryNoteMember 2015-12-31 0000885074 adat:PromissoryNoteWithEightPercentInterestRateMember 2015-12-31 0000885074 2015-12-31 0000885074 adat:TwentyPercentPromissoryNoteMember us-gaap:CommercialPaperMember 2015-09-30 0000885074 2015-09-30 0000885074 adat:LazarusInvestmentPartnersLimitedLiabilityLimitedPartnershipMember 2015-04-24 0000885074 adat:PromissoryNoteWithTwelvePercentInterestRateMember 2015-04-03 0000885074 adat:PromissoryNoteWithFivePointSevenSixPercentInterestRateMember adat:LucePromissoryNoteMember 2015-04-03 0000885074 2014-12-31 0000885074 adat:LazarusInvestmentPartnersLimitedLiabilityLimitedPartnershipMember 2015-12-15 0000885074 adat:ConvertibleNotesMember 2015-12-11 0000885074 2015-12-11 0000885074 2016-02-10 0000885074 adat:PeachstateMedicalHoldingsLlcMember us-gaap:CommercialPaperMember 2015-10-31 0000885074 adat:TwentyPercentPromissoryNoteMember us-gaap:CommercialPaperMember 2015-10-31 0000885074 2015-10-31 0000885074 adat:LazarusInvestmentPartnersLimitedLiabilityLimitedPartnershipMember 2015-08-26 0000885074 adat:TwentyPercentPromissoryNoteMember us-gaap:CommercialPaperMember 2015-08-26 0000885074 adat:SeniorSecuredPromissoryNoteWithTenPointZeroPercentageInterestRateMember 2015-08-07 0000885074 2015-08-07 0000885074 adat:SeniorSecuredConvertibleNotesMember 2015-06-08 0000885074 adat:SeniorSecuredConvertibleNotesMember us-gaap:MinimumMember 2015-06-08 0000885074 us-gaap:PrivatePlacementMember 2015-06-08 0000885074 adat:PromissoryNoteWithEightPercentInterestRateMember 2015-06-08 0000885074 adat:PromissoryNoteWithFivePointSevenSixPercentInterestRateMember adat:LucePromissoryNoteMember 2015-02-17 0000885074 adat:PromissoryNoteWithEightPercentInterestRateMember 2015-02-17 0000885074 adat:SecuredPromissoryNoteMember 2015-01-29 0000885074 adat:TwentyElevenOmnibusEquityIncentivePlanMember 2014-05-01 shares pure iso4217:USD iso4217:USD shares EX-101.SCH 6 adat-20151231.xsd XBRL TAXONOMY EXTENSION SCHEMA 101 - Document - Document and Entity Information link:calculationLink link:presentationLink link:definitionLink 103 - Statement - Condensed Consolidated Balance Sheets link:calculationLink link:presentationLink link:definitionLink 104 - Statement - Condensed Consolidated Balance Sheets (Parenthetical) link:calculationLink link:presentationLink link:definitionLink 105 - Statement - Condensed Consolidated Statements of Operations and Comprehensive Operations link:calculationLink link:presentationLink link:definitionLink 106 - Statement - Condensed Consolidated Statements of Cash Flows link:calculationLink link:presentationLink link:definitionLink 107 - Disclosure - Basis of Presentation and Liquidity link:calculationLink link:presentationLink link:definitionLink 108 - Disclosure - Loss Per Share link:calculationLink link:presentationLink link:definitionLink 109 - Disclosure - Share-Based Compensation link:calculationLink link:presentationLink link:definitionLink 110 - Disclosure - Acquisition link:calculationLink link:presentationLink link:definitionLink 111 - Disclosure - Inventory link:calculationLink link:presentationLink link:definitionLink 112 - Disclosure - Other Intangible Assets link:calculationLink link:presentationLink link:definitionLink 113 - Disclosure - Notes Payable link:calculationLink link:presentationLink link:definitionLink 114 - Disclosure - Preferred Stock link:calculationLink link:presentationLink link:definitionLink 115 - Disclosure - Shareholder's Equity link:calculationLink link:presentationLink link:definitionLink 116 - Disclosure - Commitments and Contingencies link:calculationLink link:presentationLink link:definitionLink 117 - Disclosure - Income Taxes link:calculationLink link:presentationLink link:definitionLink 118 - Disclosure - Other Expense link:calculationLink link:presentationLink link:definitionLink 119 - Disclosure - Fair Value Measurements link:calculationLink link:presentationLink link:definitionLink 120 - Disclosure - Accounting Standards Adopted in Fiscal 2016 link:calculationLink link:presentationLink link:definitionLink 121 - Disclosure - Common Stock Warrants link:calculationLink link:presentationLink link:definitionLink 122 - Disclosure - Loss Per Share (Tables) link:calculationLink link:presentationLink link:definitionLink 123 - Disclosure - Share-Based Compensation (Tables) link:calculationLink link:presentationLink link:definitionLink 124 - Disclosure - Inventory (Tables) link:calculationLink link:presentationLink link:definitionLink 125 - Disclosure - Other Intangible Assets (Tables) link:calculationLink link:presentationLink link:definitionLink 126 - Disclosure - Notes Payable (Tables) link:calculationLink link:presentationLink link:definitionLink 127 - Disclosure - Shareholder's Equity (Tables) link:calculationLink link:presentationLink link:definitionLink 128 - Disclosure - Other Expense (Tables) link:calculationLink link:presentationLink link:definitionLink 129 - Disclosure - Fair Value Measurements (Tables) link:calculationLink link:presentationLink link:definitionLink 130 - Disclosure - Common Stock Warrants (Tables) link:calculationLink link:presentationLink link:definitionLink 131 - Disclosure - Basis of Presentation and Liquidity - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 132 - Disclosure - Loss Per Share - Calculation of Basic and Diluted Loss Per Share (Detail) link:calculationLink link:presentationLink link:definitionLink 133 - Disclosure - Loss Per Share - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 134 - Disclosure - Share-Based Compensation - Summary of Share-Based Compensation Expense by Category (Detail) link:calculationLink link:presentationLink link:definitionLink 135 - Disclosure - Share-Based Compensation - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 136 - Disclosure - Share-Based Compensation - Summary of Estimated Fair Value of Share-Based Compensation using Black-Scholes Option Pricing Model and Assumptions (Detail) link:calculationLink link:presentationLink link:definitionLink 137 - Disclosure - Share-Based Compensation - Summary of Stock Option Activity under Stock Option Plans for Employees and Non-Executive Directors (Detail) link:calculationLink link:presentationLink link:definitionLink 138 - Disclosure - Acquisition - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 139 - Disclosure - Inventory - Schedule of Inventory (Detail) link:calculationLink link:presentationLink link:definitionLink 140 - Disclosure - Other Intangible Assets - Net Licenses and Other Intangible Assets (Detail) link:calculationLink link:presentationLink link:definitionLink 141 - Disclosure - Other Intangible Assets - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 142 - Disclosure - Other Intangible Assets - Amortization Expense (Detail) link:calculationLink link:presentationLink link:definitionLink 143 - Disclosure - Notes Payable - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 144 - Disclosure - Notes Payable - Schedule of Notes and Unamortized Debt Discount (Detail) link:calculationLink link:presentationLink link:definitionLink 145 - Disclosure - Preferred Stock - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 146 - Disclosure - Shareholder's Equity - Changes in Shareholders' Equity (Detail) link:calculationLink link:presentationLink link:definitionLink 147 - Disclosure - Shareholder's Equity - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 148 - Disclosure - Commitments and Contingencies - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 149 - Disclosure - Other Expense - Summary of Other Expense (Detail) link:calculationLink link:presentationLink link:definitionLink 150 - Disclosure - Fair Value Measurements - Assets and Liabilities Subject To Fair Value Measurements (Detail) link:calculationLink link:presentationLink link:definitionLink 151 - Disclosure - Fair Value Measurements - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 152 - Disclosure - Common Stock Warrants - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 153 - Disclosure - Common Stock Warrants - Schedule of Common Stock Warrant Activity (Detail) link:calculationLink link:presentationLink link:definitionLink EX-101.CAL 7 adat-20151231_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 8 adat-20151231_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 9 adat-20151231_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE EX-101.PRE 10 adat-20151231_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 11 R1.htm IDEA: XBRL DOCUMENT v3.3.1.900
Document and Entity Information - shares
6 Months Ended
Dec. 31, 2015
Feb. 10, 2016
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Dec. 31, 2015  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q2  
Trading Symbol ADAT  
Entity Registrant Name AUTHENTIDATE HOLDING CORP  
Entity Central Index Key 0000885074  
Current Fiscal Year End Date --06-30  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   5,772,256
XML 12 R2.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2015
Jun. 30, 2015
Current assets    
Cash and cash equivalents $ 119 $ 247
Restricted cash 121 256
Accounts receivable, net 197 274
Inventory, net 356 603
Prepaid expenses and other current assets 379 222
Total current assets 1,172 1,602
Property and equipment, net 208 301
Other assets    
Licenses, net 1,732 1,904
Other assets, net 302 356
Total assets 3,414 4,163
Current liabilities    
Accounts payable, accrued expenses and other liabilities 3,047 2,109
Notes payable, net of unamortized discount 3,683 2,150
Warrant liability 2,690 214
Deferred revenue 63 67
Total current liabilities 9,483 4,540
Long-term deferred revenue 72 88
Total liabilities $ 9,555 $ 4,628
Commitments and contingencies (Note 10)
Shareholders' deficit    
Preferred stock, $.10 par value; 5,000 shares authorized, Series B, 28 shares and Series D, 625 and 665 shares issued and outstanding on December 31, 2015 and June 30, 2015, respectively $ 65 $ 69
Common stock, $.001 par value; 190,000 shares authorized, 4,792 and 4,680 shares issued and outstanding on December 31, 2015 and June 30, 2015, respectively 5 5
Additional paid-in capital 208,704 205,946
Accumulated deficit (214,915) (206,485)
Total shareholders' deficit (6,141) (465)
Total liabilities and shareholders' deficit $ 3,414 $ 4,163
XML 13 R3.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2015
Jun. 30, 2015
Preferred stock, par value $ 0.10 $ 0.10
Preferred stock, shares authorized 5,000,000 5,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 190,000,000 190,000,000
Common stock, shares issued 4,792,000 4,680,000
Common stock, shares outstanding 4,792,000 4,680,000
Series B Redeemable Convertible Preferred Stock [Member]    
Preferred stock, shares issued 28,000 28,000
Preferred stock, shares outstanding 28,000 28,000
Series D Preferred Stock [Member]    
Preferred stock, shares issued 625,000 665,000
Preferred stock, shares outstanding 625,000 665,000
XML 14 R4.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Consolidated Statements of Operations and Comprehensive Operations - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Revenues        
Hosted software services $ 364 $ 481 $ 746 $ 989
Telehealth products and services 35 866 51 1,410
Total revenues 399 1,347 797 2,399
Operating expenses        
Cost of revenues 208 751 415 1,344
Selling, general and administrative 1,799 2,105 3,300 4,116
Product development 97 369 259 739
Depreciation and amortization 185 210 367 399
Total operating expenses 2,289 3,435 4,341 6,598
Operating loss (1,890) (2,088) (3,544) (4,199)
Other expense (4,275)   (4,684)  
Net loss $ (6,165) $ (2,088) $ (8,228) $ (4,199)
Basic and diluted loss per common share $ (1.32) $ (0.47) $ (1.79) $ (0.98)
Comprehensive operations        
Net loss $ (6,165) $ (2,088) $ (8,228) $ (4,199)
Comprehensive loss $ (6,165) $ (2,088) $ (8,228) $ (4,199)
XML 15 R5.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities    
Net loss $ (8,228) $ (4,199)
Adjustments to reconcile net loss to net cash used in operating activities    
Amortization of debt discount and deferred financing costs 463  
Loss on extinguishment of notes 2,977  
Change in warrant liability 1,100  
Depreciation and amortization 367 399
Inventory reserve 230  
Share-based compensation 210 293
Warrants issued for services 12 16
Restricted shares and stock options issued for services 363 165
Changes in assets and liabilities    
Accounts receivable 77 84
Inventory 17 181
Prepaid expenses and other current assets (157) 48
Accounts payable, accrued expenses and other liabilities 676 541
Deferred revenue (20) (11)
Net cash used in operating activities (1,913) (2,483)
Cash flows from investing activities    
Decrease in restricted cash 135  
Purchases of property and equipment and other assets   (126)
Other intangible assets acquired (48) (168)
Sale of marketable securities   210
Net cash provided (used) by investing activities 87 (84)
Cash flows from financing activities    
Net proceeds from issuance of preferred and common stock and exercise of warrants 3 2,124
Proceeds from issuance of short-term promissory notes 1,695  
Dividends paid   (18)
Net cash provided by financing activities 1,698 2,106
Net decrease in cash and cash equivalents (128) (461)
Cash and cash equivalents, beginning of period 247 1,084
Cash and cash equivalents, end of period $ 119 $ 623
XML 16 R6.htm IDEA: XBRL DOCUMENT v3.3.1.900
Basis of Presentation and Liquidity
6 Months Ended
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Liquidity
1. Basis of Presentation and Liquidity

The accompanying unaudited condensed consolidated financial statements have been prepared by the company pursuant to the rules and regulations of the Securities and Exchange Commission and, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The condensed consolidated financial statements include the accounts of Authentidate Holding Corp. (AHC) and its subsidiaries (collectively, the “company”) prior to the business combination described below since the business combination was not completed until after the period covered by the financial statements included in this Quarterly Report on Form 10-Q. All significant intercompany transactions and balances have been eliminated in consolidation. The results of operations for the period ended December 31, 2015 are not necessarily indicative of the results to be expected for the full year. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and notes thereto included in the company’s Form 10-K for the fiscal year ended June 30, 2015 and the corresponding Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The company has incurred significant recurring losses and negative cash flows from operations and our product development activities have required substantial capital investment to date. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Additionally, on March 6, 2015 we announced that the Department of Veterans Affairs (VA) informed the company that it did not intend to exercise the fourth and final option year under our contract for telehealth products and services and our contract expired on May 15, 2015. Our VA revenue included both recurring service revenues as well as hardware sales and we expect to report significantly reduced revenues over the next several quarters as a result of the non-renewal of our VA contract. We have taken steps to reduce our operating costs and have implemented a number of changes to our business plan with the ultimate goal to increase revenues and generate positive cash flow from operations. These changes include cost reductions from reducing our workforce and use of consultants that we made in the third quarter of fiscal 2015 and additional workforce reductions through August 31, 2015. These reductions are expected to reduce operating expenses on an annualized basis. The company has also taken actions to realign our data center operations and relocated its corporate offices in November 2015, which are expected to result in additional annualized savings.

Since June 2015, the company has completed debt financing transactions resulting in total proceeds of approximately $1.7 million and has extended the maturity dates on approximately $1.8 million of its short-term debt obligations. Based on its business plan and the completion of the business combination described below, the company expects its existing resources and revenues generated from consolidated operations to satisfy its working capital requirements for at least the next twelve months. As discussed more fully in Note 4 of Notes to Condensed Consolidated Financial Statements, on January 27, 2016, the company completed its business combination with Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories, whereby AEON became a wholly-owned subsidiary of the company. Under the provisions of ASC 805-40 Business Combinations – Reverse Acquisitions, the transaction will be accounted for as a reverse acquisition with AEON becoming the acquirer for accounting purposes and AHC becoming the accounting acquiree.

Effective January 22, 2016, the company completed a one-for-nine reverse stock split of its common stock. The reverse stock split was approved at the special meeting of stockholders held on January 20, 2016, where the stockholders authorized the board of directors to proceed with a reverse split and to determine the ratio of the split within an approved range. All common stock, preferred stock and debt conversion rates, option, warrant and restricted stock unit amounts and related per share amounts have been restated for all periods presented to give effect to the reverse stock split.

XML 17 R7.htm IDEA: XBRL DOCUMENT v3.3.1.900
Loss Per Share
6 Months Ended
Dec. 31, 2015
Earnings Per Share [Abstract]  
Loss Per Share
2. Loss Per Share

The following table sets forth the calculation of basic and diluted loss per share for the periods presented (in thousands, except per share data):

 

     Three Months Ended
December 31,
     Six Months Ended
December 31,
 
     2015      2014      2015      2014  

Net loss

   $ (6,165    $ (2,088    $ (8,228    $ (4,199

Preferred stock dividends

     (101      (101      (202      (202
  

 

 

    

 

 

    

 

 

    

 

 

 

Net loss applicable to common shareholders

   $ (6,266    $ (2,189    $ (8,430    $ (4,401
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares

     4,754         4,623         4,721         4,500   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic and diluted loss per common share

   $ (1.32    $ (0.47    $ (1.79    $ (0.98
  

 

 

    

 

 

    

 

 

    

 

 

 

All common stock equivalents were excluded from the loss per share calculation for all periods presented because the impact is antidilutive. At December 31, 2015, options (634,000), restricted stock units (41,000), warrants (4,313,000), convertible debt (822,000), Series D preferred stock (640,000) and Series B preferred stock (28,000) were outstanding. At December 31, 2014, options (444,000), restricted stock units (98,000), warrants (3,075,000), Series D preferred stock (681,000) and Series B preferred stock (28,000) were outstanding.

XML 18 R8.htm IDEA: XBRL DOCUMENT v3.3.1.900
Share-Based Compensation
6 Months Ended
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
3. Share-Based Compensation

Share-based compensation by category is as follows (in thousands):

 

     Three Months Ended
December 31,
     Six Months Ended
December 31,
 
     2015      2014      2015      2014  

SG&A

   $ 72       $ 124       $ 180       $ 263   

Product development

     10         20         20         20   

Cost of revenues

     5         10         10         10   
  

 

 

    

 

 

    

 

 

    

 

 

 

Share-based compensation expense

   $ 87       $ 154       $ 210       $ 293   
  

 

 

    

 

 

    

 

 

    

 

 

 

We computed the estimated fair values of all option-based compensation using the Black-Scholes option pricing model and the assumptions set forth in the following table. We based our estimate of the life of these options on historical averages over the past five years and estimates of expected future behavior. The expected volatility was based on the company’s historical stock volatility. The assumptions used in the company’s Black-Scholes calculations for fiscal 2016 and 2015 are as follows:

 

     Risk Free
Interest Rate
    Dividend
Yield
    Volatility
Factor
    Weighted
Average
Expected
Option Life
(Months)
 

Fiscal year 2016

     1.6     0     85     48   

Fiscal year 2015

     0.6     0     84     48   

The Black-Scholes option-pricing model requires the input of highly subjective assumptions. Because the company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models may not provide a reliable single measure of the fair value of share-based compensation for employee stock options. Management will continue to assess the assumptions and methodologies used to calculate estimated fair value of share-based compensation as circumstances change and additional data becomes available over time, which may result in changes to these assumptions and methodologies. Such changes could materially impact the company’s fair value determination.

 

On August 23, 2011, the stockholders approved the 2011 Omnibus Equity Incentive Plan (the 2011 Plan). The 2011 Plan replaces the 2010 Employee Stock Option Plan and the 2001 Non-Executive Director Stock Option Plan. On May 1, 2014, the stockholders approved an amendment to the 2011 Plan to increase the number of shares of common stock available for issuance under the plan by approximately 378,000 shares. As amended, the 2011 Plan provides for the issuance of up to approximately 750,000 shares of the company’s common stock in connection with stock options, restricted share awards and other stock compensation vehicles.

Stock option activity under the company’s stock option plans for employees and non-executive directors for the period ended December 31, 2015 is as follows (in thousands, except per share and average life data):

 

Employees Information

   Number of
Options
     Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual
Life (Years)
     Aggregate
Intrinsic
Value
 

Outstanding June 30, 2015

     237       $ 20.43         

Granted

     36         2.97         

Exercised

     (1      6.21         

Expired/Forfeited

     (65      18.09         
  

 

 

          

Outstanding December 31, 2015

     207       $ 18.18         6.08       $ 130   
  

 

 

          

Exercisable December 31 2015

     126       $ 25.38         3.46       $ 4   
  

 

 

          

Expected to vest at December 31, 2015

     64       $ 7.29         7.94       $ 99   
  

 

 

          

 

Non-Executive Director Information

   Number of
Options
     Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual
Life (Years)
     Aggregate
Intrinsic
Value
 

Outstanding June 30, 2015

     243       $ 5.58         

Granted

     186         3.24         

Expired

     (1      54.00         
  

 

 

          

Outstanding December 31, 2015

     427         4.41         8.24       $ 1,151   
  

 

 

          

Exercisable December 31 2015

     413       $ 4.32         8.18       $ 1,151   
  

 

 

          

Non-executive director options are granted at market price and vest on the grant date. Certain options granted to a director serving as an interim officer vest thirty (30) days from the grant date.

As of December 31, 2015, there were approximately 41,000 restricted stock units outstanding that were granted to employees as of January 15, 2013 and January 28, 2014 in connection with the company’s compensation modification program. These restricted stock units vest when the company achieves cash flow breakeven, as defined.

As of December 31, 2015, there was approximately $326,000 of total unrecognized compensation expense related to unvested share-based compensation arrangements that is expected to be recognized over a weighted-average period of 15 months.

There were 518 options exercised for approximately $3,200 during the six month period ended December 31, 2015 and no options were exercised during the six month period ended December 31, 2014. The intrinsic value of the options exercised was not material. The weighted average grant date fair value of options granted during the six month periods ended December 31, 2015 and 2014 was approximately $1.71 and $4.50, respectively. These values were calculated using the Black-Scholes option-pricing model.

 

The total fair value of options vested was $321,000 and $340,000 for the six month periods ended December 31, 2015 and 2014, respectively. In December 2012, the board of directors agreed that all non-employee directors would receive all of their cash director compensation, including amounts payable for committee service, service as a committee chair and per meeting fees, in restricted shares of our common stock or stock options issued at fair value in accordance with the terms of the 2011 Plan for periods ending after December 2012. During the six months ended December 31, 2015, the company issued 13,647 shares of restricted common stock and 69,344 stock options (with a total fair value of approximately $363,000) to certain non-executive directors in connection with this program. In January 2016 the company issued 1,643 shares of restricted common stock (with a fair value of approximately $10,500) to a director under this program for the quarter ended December 31, 2015. During the six months ended December 31, 2015, the board of directors also issued 108,333 stock options (with a total fair value of approximately $153,000) to the interim chief strategy officer for services.

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.3.1.900
Acquisition
6 Months Ended
Dec. 31, 2015
Business Combinations [Abstract]  
Acquisition
4. Acquisition

On January 27, 2015 the company completed the acquisition of Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories, an expanding clinical laboratory based in Gainesville, GA (“AEON”). The transaction was structured as a tax-free exchange, with the former AEON members receiving shares of common stock of AHC at the closing, and potential further issuances of common stock tied primarily to the earnings of AEON during the five calendar years ending December 2019. The AEON members received an aggregate of 19.9% (958,030 shares) of common stock of AHC effective at the closing and can receive an additional 5% of the outstanding common stock of the company, as defined, upon approval of the merger transaction by the shareholders of the company. The AEON members can also earn additional shares of common stock to increase their aggregate holdings to up to 90% of the outstanding stock of AHC, as defined, based upon meeting the benchmark targets in the merger agreement, including delivering $16,000,000 in EBITDA for the calendar year ended 2015 and $100,000,000 in aggregate EBITDA for the calendar years 2016 through 2019. In connection with the completion of the merger, Hanif A. (“Sonny”) Roshan, founder of AEON, will become Chairman of AHC and Richard Hersperger, the CEO of AEON, will become CEO of the combined companies. Both men will also serve on the board of directors of AHC and the AEON members will have the right to elect one director for each 10% of the outstanding shares of the company’s common stock they hold as a group. Under the provisions of ASC 805-40 Business Combinations – Reverse Acquisitions, the transaction will be accounted for as a reverse acquisition with AEON becoming the acquirer for accounting purposes and AHC becoming the accounting acquiree.

AEON provides health care professionals with four primary tests: Medical Toxicology, Pharmacogenomics, Cancer Genetic Testing, and Molecular Biology.

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.3.1.900
Inventory
6 Months Ended
Dec. 31, 2015
Inventory Disclosure [Abstract]  
Inventory
5. Inventory

In connection with our manufacturing and sales plans for our telehealth service, the company has purchased certain components and contract manufacturing services for the production of the monitoring appliances. These inventory amounts are stated at the lower of cost or market and consist of the following (in thousands):

 

     December 31,      June 30,  
     2015      2015  

Purchased components, net

   $ 31       $ 261   

Finished goods

     325         342   
  

 

 

    

 

 

 

Total inventory

   $ 356       $ 603   
  

 

 

    

 

 

 

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.3.1.900
Other Intangible Assets
6 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Other Intangible Assets
6. Other Intangible Assets

The following table sets forth licenses, net and other intangible assets that are included in other assets as follows (in thousands):

 

     December 31, 2015      June 30, 2015       
     Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Useful Life
In Years
                    

Patents

   $ 357       $ 288       $ 69       $ 357       $ 276       $ 81       17

Trademarks

     229         113         116         214         108         106       20

Acquired technologies

     95         78         17         95         72         23       2

Licenses

     4,245         2,513         1,732         4,212         2,308         1,904       3 - 10
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

   $ 4,926       $ 2,992       $ 1,934       $ 4,878       $ 2,764       $ 2,114      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

As of December 31, 2015 and June 30, 2015 goodwill amounted to approximately $50,000 and is included in other assets. The company amortizes licenses and other intangible assets under the straight line method. Amortization expense was approximately $115,000 and $228,000 for the three and six months ended December 31, 2015 and $102,000 and $190,000 for the prior year periods, respectively. Amortization expense for the next five fiscal years and thereafter is expected to be as follows (in thousands):

 

June 30,

  

2016

   $ 296   

2017

     440   

2018

     348   

2019

     304   

2020

     277   

Thereafter

     269   
  

 

 

 
   $ 1,934   
  

 

 

 

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.3.1.900
Notes Payable
6 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Notes Payable
7. Notes Payable

On January 29, 2015, the company received a short-term loan of $200,000 from a strategic lender pursuant to which we issued a secured promissory note to the lender in the aggregate principal amount of $200,000. The note was secured by a first priority lien on certain equipment owned by the company with a net present value equivalent to the face value of the note, was due and payable on March 30, 2015 and accrued interest at the rate of 6% per annum. The note and accrued interest was repaid on the maturity date.

On February 17, 2015, the company entered into a securities purchase agreement with an accredited investor pursuant to which we issued a promissory note in the aggregate principal amount of $100,000 and common stock purchase warrants to purchase up to 8,889 shares of common stock for gross proceeds of $100,000. The note was an unsecured obligation of the company, was not convertible into equity securities of the company and accrued interest at a rate of 8% per annum. The note was due and payable on the six month anniversary of the issue date, subject to the right of the investor to extend the maturity date for up to an additional six months. The net proceeds from this transaction were approximately $92,000. The warrants vested in equal monthly installments over twelve months if the notes were outstanding and, subject to vesting requirements, were exercisable for a period of 54 months commencing on the six month anniversary of the issuance date at an initial exercise price of $9.09 per share. Although the securities purchase agreement that the company entered into with this investor contemplated a second closing for $900,000 of additional proceeds, the second closing did not occur and the company did not receive the additional funds. This note and the vested portion of the warrants were exchanged for notes and warrants issued in the June 8, 2015 transaction discussed below and the warrants issued for this transaction were cancelled.

On February 17, 2015, in a separate transaction, the company issued a short-term promissory note in the aggregate principal amount of $950,000 and warrants to purchase 11,056 shares of common stock to an accredited investor for gross proceeds of $950,000. The holder of the short-term note is an entity controlled by Douglas B. Luce, the brother of J. David Luce, a former member of the board of directors of the company. The short-term note was an unsecured obligation of the company, was not convertible into equity securities of the company and accrued interest at a rate of 5.76% per annum. The short-term note was due and payable on the first to occur of the one month anniversary of the issue date or the date on which the company received at least $950,000 in proceeds from equity or debt financing. The note contained covenants and events of default customary for similar transactions. The net proceeds from this transaction were approximately $940,000. The warrants are exercisable for a period of 54 months commencing on the six month anniversary of the issuance date at an initial exercise price of $9.091 per share. On April 3, 2015, the company entered into an amendment agreement with the holder of the $950,000 short-term promissory note in order to amend such note to extend its maturity date from March 19, 2015 to July 2, 2015. In addition, pursuant to the amendment agreement, the company also agreed to grant the holder the right to exchange the principal amount of the short-term note (and unpaid interest thereon) into the securities of the company sold in the next financing, as defined in the amendment agreement. This investor subsequently agreed not to participate in the convertible debt financing for which a closing was held June 8, 2015 and in consideration of such election, the participation right was modified to allow him to exchange such note for comparable securities in an alternative transaction. In consideration of waivers previously granted by the holder of potential events of default under the short-term note and the amendment to extend the maturity date, the company agreed to issue the holder warrants to purchase 351,852 shares of common stock of the company. The warrants are exercisable for a period of 54 months commencing six months following the date of issuance and have an exercise price equal to $2.79 per share. Through a series of amendment agreements, the maturity date of this note was further extended and the interest rate was increased to 12% per annum in connection with such extensions.

On December 11, 2015, we entered into an exchange agreement with the holder of the $950,000 note pursuant to which the company agreed to issue such holder, in consideration of the cancellation of the original note, a new convertible note in the aggregate principal amount of $950,000 and warrants to purchase 422,222 shares of common stock. The closing of the exchange transaction occurred on December 17, 2015. The new convertible note is convertible into shares of common stock at an initial conversion price of $2.25 per share, subject to adjustment. The new convertible note is convertible beginning July 1, 2016 and is due one year from the closing date. Based on the initial conversion price, the note will be convertible into up to 422,222 shares of common stock. If the company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price then in effect, such conversion price will be decreased to equal 85% of such lower price. The foregoing adjustments to the conversion price will not apply to certain exempt issuances, including issuances pursuant to certain employee benefit plans. In addition, the conversion price is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. The new convertible note bears interest at 9% per annum with interest payable upon maturity or on any earlier redemption date. Following the date on which the new convertible note first becomes convertible, the company will have the right to redeem all or any portion of the outstanding principal balance of the note, plus all accrued but unpaid interest at a price equal to 110% of such amount. The holder of the new convertible note shall have the right to convert any or all of the amount to be redeemed into common stock prior to redemption. Subject to certain exceptions, the new convertible note is senior to existing and future indebtedness of the company and will be secured to the extent and as provided in the amended security agreement entered into between the company and the holder. To provide for the collateral to secure the repayment of the new convertible note, MKA 79, LLC, an entity affiliated with J. David Luce agreed to an amendment to the security agreement entered into in August 2015 to provide that the new convertible note shall be secured by the collateral defined in such earlier security agreement. Subject to certain exceptions, the new convertible note contains customary covenants against incurring additional indebtedness and granting additional liens and contains customary events of default. Upon the occurrence of an event of default under the new convertible note, the holder may require the company to repay all or a portion of the note in cash, at a price equal to 110% of the principal and accrued and unpaid interest.

Subject to certain limitations, the additional warrants are exercisable on or after the first business day following the twelve-month anniversary of the issue date; provided, however, if the company consummates the closing with AEON, then the initial exercise date of the additional warrants shall be the date that is the three year anniversary date of such closing. The initial exercise price of the additional warrants is $2.70 per share and is subject to adjustment for certain events. If the company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price of the new note, the exercise price of the additional warrants will be decreased to a lower price based on the amount by which the conversion price of the new note was reduced due to such transaction. The foregoing adjustments to the exercise price for future stock issues will not apply to certain exempt issuances, including issuances pursuant to certain employee benefit plans. In addition, the exercise price of the additional warrants is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. In addition, the additional warrants provide that, after their initial exercise date, the company shall have the right to cause the holder to exercise the additional warrants provided that that the following conditions are satisfied: (i) the closing bid price of the company’s common stock is at least $4.05 for the 20 consecutive trading days prior to the date of the mandatory exercise notice and (ii) the holder is not prevented from exercising the additional warrants pursuant to a lockup agreement. The additional warrants will expire 54 months from their initial exercise date. The holder shall not have the right to convert the new convertible note or exercise the additional warrants to the extent that such conversion or exercise would result in the holder being the beneficial owner in excess of 4.99% of the company’s common stock. In addition, the holder shall have no right to convert the new convertible note or exercise the additional warrants if the issuance of the shares of common stock upon such conversion or exercise would exceed the aggregate number of shares the company may issue without breaching the company’s obligations under Nasdaq listing rules.

 

On April 24, 2015, the company issued a promissory note in the aggregate principal amount of $500,000 to Lazarus Investment Partners LLLP, the beneficial owner of approximately 29.3% of the company’s common stock at the time, in a private transaction. The note was unsecured and was not convertible into equity securities of the company. The note was originally due and payable on the first to occur of July 2, 2015 or the date on which the company received at least $900,000 in proceeds from equity or debt financing transactions. Interest on the note was originally 5.76% per annum payable at maturity. The note contained terms and events of default customary for similar transactions. In consideration of the loan, the company and Lazarus entered into a warrant amendment agreement pursuant to which the company agreed to amend certain of the terms of the existing 692,626 common stock purchase warrants held by Lazarus to reduce the exercise price of such warrants to $2.25, which was above the most recently reported closing consolidated bid price of the company’s common stock prior to the execution of the transaction documents, and to extend the expiration date of the warrants to October 25, 2019. The warrants amended were issued in various transactions from 2010 through 2014 at exercise prices ranging between $7.92 and $18.00. The fair value related to the warrant modifications was recorded as a debt discount and amortized over the term of the agreement. Through a series of amendment agreements, the maturity date of this note was further extended and the interest rate was increased to 12% per annum in connection with such extensions. On December 15, 2015, we entered into an exchange agreement with Lazarus Investment Partners pursuant to which we agreed to issue such holder, in consideration of the cancellation of the original note, a new note in the aggregate principal amount of $532,811, which amount includes $32,811 in accrued interest on their original note, and warrants to purchase 111,111 shares of common stock. The closing of the exchange transaction with Lazarus Investment Partners occurred on December 15, 2015. The new note bears interest at 20% per annum, payable in arrears, and is due upon the earlier of (i) twelve months from the date of issuance, (ii) June 8, 2016 if the company has not consummated the closing with AEON by such date, or (iii) within 5 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The new note is neither secured by any of the company’s assets nor convertible into equity securities of the company. The new note contains certain events of default that are customary for similar transactions. Subject to certain limitations, the new warrants are exercisable on or after the first business day following the twelve-month anniversary of the issue date; provided, however, if the company consummates the closing of the transaction with AEON, then the initial exercise date of the new warrant shall be the date that is the three year anniversary date of such closing. The initial exercise price of the new warrants is $2.70 per share and is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. Pursuant to the exchange agreement entered into between the company and Lazarus Investment Partners, the expiration date of all warrants held by Lazarus Investment Partners shall be amended to be December 15, 2022. Further, the holder shall not have the right to exercise the warrants to the extent that such exercise would result in it being the beneficial owner of in excess of 4.99% of the company’s common stock. In addition, the holder shall have no right to exercise the warrants if the issuance of the shares of common stock upon such exercise would exceed the aggregate number of shares the company may issue without breaching the company’s obligations under Nasdaq listing rules. The company agreed to grant the holder piggyback registration rights with respect to the shares of common stock issuable upon conversion of the new warrants.

On June 8, 2015, the company entered into definitive agreements relating to a private placement of up to $3.0 million in principal amount of senior secured convertible notes and common stock purchase warrants. An initial closing for an aggregate principal amount of $900,000 of notes and warrants to purchase 402,963 shares of common stock was held on June 8, 2015. Subject to certain limitations, the warrants are exercisable on or after the six month anniversary of the date of issuance at an initial exercise price of $2.70 per share and will expire 54 months from the initial exercise date. In addition, subject to certain limitations, the warrants provide that, beginning six months from issuance, the company shall have the right to cause the holder to exercise the warrants provided that the following conditions are satisfied: (i) the closing bid price of the company’s common stock is at least $4.05 for the 20 consecutive trading days prior to the date of the mandatory exercise notice and (ii) all of the warrants issued in the transaction are called by the company for a mandatory exercise. A final closing for up to $2.1 million of debentures and warrants to purchase 933,333 shares of common stock did not occur. As a condition of the initial closing, the holder of an aggregate principal amount of $100,000 of previously issued promissory notes was required to exchange such notes and certain warrants held by it for senior secured notes and warrants issued in this transaction. These notes, subject to certain exceptions, rank senior to existing and future indebtedness of the company and are secured to the extent and as provided in the security agreement entered into between the company and the purchasers. Each note matures on the one-year anniversary of the issuance date thereof and, subject to certain limitations, is convertible at any time at the option of the holder into shares of the company’s common stock at an initial conversion price of $2.25 per share. Subject to certain exemptions, if the company issues or sells shares of its common stock, rights to purchase shares of its common stock, or securities convertible into shares of its common stock for a price per share that is less than the conversion price then in effect, the conversion price then in effect will be decreased to equal 85% of such lower price and the exercise price of the warrants will be decreased to a lower price based on the amount by which the conversion price of the notes was reduced due to such transaction. The foregoing adjustments to the conversion price will not apply to certain exempt issuances, including issuances pursuant to certain employee benefit plans. In addition, the conversion price is subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. The senior secured notes bear interest at 9% per annum with interest payable upon maturity or on any earlier redemption date. At any time after the issuance date, the company will have the right to redeem all or any portion of the outstanding principal balance of the notes, plus all accrued but unpaid interest at a price equal to 110% of such amount and the holders shall have the right to convert any or all of the amount to be redeemed into common stock prior to redemption. The notes are secured by a first priority lien on the company’s assets related to its “Inscrybe Referral and Order Management” and “Inscrybe Hospital Discharge” solutions. Subject to certain exceptions, the notes contain customary covenants against incurring additional indebtedness and granting additional liens and contain customary events of default. Upon the occurrence of an event of default under the notes, a holder may require the company to repay all or a portion of its notes in cash, at a price equal to 110% of the principal and accrued and unpaid interest.

The company also agreed to file a registration statement covering the resale of the shares of the company’s common stock issuable upon conversion of the June 8, 2015 notes and exercise of the warrants and to use commercially reasonable efforts to have the registration declared effective in a timely manner. The Company will be subject to certain monetary penalties, as defined in the agreement if the registration statement is not filed, does not become effective on a timely basis, or does not remain available for the resale, as such term is defined in the registration rights agreement.

On August 7, 2015, the company issued a senior secured promissory note in the aggregate principal amount of $320,000 to an accredited investor in a private transaction. The note was due and payable on December 31, 2015 and interest shall accrue on the note at the rate of 10.0% per annum. The note was not convertible into equity securities of the company and it contains terms and events of default customary for similar transactions. The note is secured by a first priority lien on certain of our assets, as described in a security agreement entered into between the company and the purchaser dated as of August 7, 2015. Subject to certain exceptions, the note contains customary covenants against incurring additional indebtedness and granting additional liens and contains customary events of default. In consideration of the loan, the company and the purchaser entered into a warrant amendment agreement pursuant to which the company agreed to amend certain of the terms of the existing 608,314 common stock purchase warrants currently held by the purchaser and an affiliate to reduce the exercise price of such warrants to $1.53 and to extend the expiration date of the warrants to December 13, 2019. The warrants amended were issued in various transactions from 2012 through 2013 at exercise prices ranging between $8.55 and $12.06. The fair value related to the warrant modifications was recorded as a debt discount and is being amortized over the term of the new agreement. The purchaser is an entity affiliated with J. David Luce. Following an extension of the maturity date of the senior secured note to January 15, 2016, on such date we entered into a note amendment with the investor pursuant to which we agreed to modify certain of the terms of the senior secured note to extend the maturity date to April 15, 2016 and to allow the investor to elect to further extend the note for an additional 90 days. In consideration for such agreements, the company agreed that the senior secured note would be further modified so that it would be convertible into shares of common stock of the company at an initial conversion price of $4.86 per share, which was equal to the most recent consolidated closing bid price of the company’s common stock immediately prior to the execution of the amendment agreement. Based on the conversion price, the principal amount of the note will be convertible into up to 65,844 shares of common stock. The conversion price is only subject to adjustment upon stock splits, reverse stock splits, and similar capital changes. The holder shall not have the right to convert the note to the extent that such conversion would result in the holder being the beneficial owner in excess of 4.99% of the company’s common stock. The other terms and conditions of the note were not amended.

On August 26, 2015, the company issued promissory notes in the aggregate principal amount of $400,000 to Lazarus Investment Partners LLLP, the beneficial owner of approximately 29.0% of the company’s common stock at the time, and an entity affiliated with J. David Luce in a private transaction. The notes are unsecured obligations of the company and are not convertible into equity securities of the company. The notes bear interest at 20% per annum, payable in arrears, and are due upon the earlier of (i) August 26, 2016, or (ii) within 30 days of the closing of the contemplated acquisition, merger or similar transaction with Peachstate Health Management, LLC (d/b/a AEON Clinical Laboratories) as described above, or a similar alternative acquisition, merger or similar transaction with an unaffiliated third party, or (iii) the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The holders have the right, at their option, to convert interest and principal due on the note into any alternative financing that may be undertaken by the company while the notes are outstanding.

In September 2015, the company issued promissory notes in the aggregate principal amount of $525,000 to accredited investors in a private transaction. The notes are unsecured and are not convertible into equity securities of the company. The notes bear interest at 20% per annum, payable in arrears, and are due upon the earlier of (i) September 18, 2016, or (ii) within 30 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The company also issued the investors warrants to purchase an aggregate of 116,667 shares of common stock. The warrants are exercisable commencing twelve months following their issuance for a period of 54 months at an exercise price of $2.70 per share. These closings are part of an offering of up to $1 million of notes and 222,222 warrants.

 

Except for the June 8, 2015, December 11, 2015 and December 15, 2015 transactions, the company allocated the proceeds from the initial note transactions to the notes and the related warrants based on the relative fair values of such instruments using the fair value of the notes at a market rate of interest and the fair value of the warrants based on the Black-Scholes option pricing model and the applicable assumptions set forth in Note 3 of Notes to Condensed Consolidated Financial Statements. These allocations resulted in effective interest rates for the $100,000 note of approximately 39% per annum, for the $950,000 note of approximately 65% per annum, for the $500,000 note of approximately 71% per annum for the $800,000 senior secured note of approximately 36% per annum, for the $320,000 secured note of approximately 63%, for the $400,000 note of approximately 20% and for the $525,000 notes of approximately 54%, respectively. However, since the subjective nature of the inputs for the option pricing and other models used to calculate fair values can materially affect fair value estimates, in management’s opinion, such models may not provide a reliable single measure of the fair value of the warrants and the resulting effective interest rates. In connection with the note transactions the company recorded promissory notes of $4,078,000, debt discount of $913,000, a warrant liability of $2,690,000, non-cash loss on extinguishments discussed below of $3,534,000 and additional paid-in-capital of $3,068,000 related to the fair value of the warrants.

In October 2015, the company issued a promissory note in the aggregate principal amount of $450,000 to Peachstate Medical Holdings LLC, d/b/a AEON Clinical Laboratories in a private transaction. The note is unsecured and is not convertible into equity securities of the company. The note bears interest at 20% per annum, payable in arrears, and is due upon the earlier of (i) October 28, 2016, or (ii) within 30 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. The company also issued the investor warrants to purchase an aggregate of 111,111 shares of common stock. The warrants are exercisable commencing twelve months following their issuance for a period of 54 months at an exercise price of $2.70 per share.

As a result of the ratchet provision included in the June 8, 2015 transaction, the company recorded a warrant liability and a debt discount based on the fair value of the warrants issued in connection with the new senior secured note. As a result of similar provisions included in the December 11, 2015 transaction, the company recorded a warrant liability and a loss on extinguishment based on the difference between the reacquisition cost and the carrying amount of the old note. As discussed more fully in Note 13 of Notes to Condensed Consolidated Financial Statements, the company is required to revalue these warrants at the end of each reporting period. In connection with the modifications of the $100,000, $950,000 and $500,000 short-term notes discussed above, the company issued additional warrants and agreed to certain modifications that, for accounting purposes, resulted in the extinguishment of certain old notes and the creation of new notes. Accordingly, the company recorded non-cash losses on extinguishment of approximately $557,000 as other expense in the fourth quarter of fiscal 2015 ended June 30, 2015 and $2,977,000 in the second quarter of fiscal 2016 ended December 31, 2015. The modification of the $320,000 note on January 15, 2016 will be accounted as an extinguishment in the third quarter of fiscal 2016. The non-cash amortization of the debt discount of $244,000 and $371,000 and deferred financing costs of $49,000 and $92,000 is included in other expense for the three and six months ended December 31, 2015, respectively. There was no amortization for the three and six months ended December 31, 2014.

The following table sets forth the notes and unamortized debt discount (in thousands):

 

     December 31,
2015
     June 30,
2015
 
       

Notes payable

     

Secured notes payable

   $ 2,170       $ 900   

Unsecured notes payable

     1,908         1,450   

Unamortized debt discount

     (395      (200
  

 

 

    

 

 

 

Notes payable

   $ 3,683       $ 2,150   
  

 

 

    

 

 

 

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.3.1.900
Preferred Stock
6 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Preferred Stock
8. Preferred Stock

As of December 31, 2015, there are 28,000 shares of Series B preferred stock outstanding. The Series B preferred stock was originally issued in a private financing in October 1999 and the conversion and redemption features were amended in October 2002 to provide for the rights and obligations described in this note. The company has the right to repurchase the outstanding Series B preferred stock at a redemption price equal to $25.00 per share, plus accrued and unpaid dividends. The holder of such shares has the right to convert shares of preferred stock into an aggregate of approximately 28,000 shares of our common stock at a conversion rate of $25.20 per share. In the event the company elects to redeem these securities, the holder will be able to exercise its conversion right subsequent to the date that we issue a notice of redemption but prior to the deemed redemption date as would be set forth in such notice. At December 31, 2015, the company has accrued dividends in the amount of $35,000 which remain unpaid for the period ended December 31, 2015.

As of December 31, 2015, there are 625,000 shares of Series D convertible preferred stock outstanding. The Series D preferred stock was issued in June 2013 in connection with the cancelation of an aggregate principal amount of $6,500,000 of senior secured notes and can be converted by the holders into an aggregate of 639,622 shares of common stock at an initial conversion rate of $9.77139 per share. During the quarter ended December 31, 2015, 40,000 shares of Series D preferred stock were converted into 40,935 shares of common stock. The holders of such shares have the right to convert the preferred shares at any time commencing on the six month anniversary of the issue date; however, the shares received upon conversion may not be offered or sold except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The company has the right to repurchase the outstanding Series D preferred stock at a redemption price equal to $10.00 per share, plus accrued and unpaid dividends, beginning two years after issuance and to require holders to convert their Series D preferred stock beginning three years after issuance. Dividends on the Series D preferred stock accrue at a rate of 5% per annum and are payable semi-annually in cash or stock at the company’s option. At December 31, 2015, the company has accrued dividends in the amount of approximately $167,000 which remain unpaid for the period ended December 31, 2015.

XML 24 R14.htm IDEA: XBRL DOCUMENT v3.3.1.900
Shareholder's Equity
6 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Shareholder's Equity
9. Shareholder’s Equity

The changes in shareholders’ equity for the six months ended December 31, 2015 are summarized as follows (in thousands):

 

                  Additional            Total  
     Preferred     Common      Paid-in      Accumulated     Shareholders’  
     Stock     Stock      Capital      Deficit     Deficit  

Balance, June 30, 2015

   $ 69      $ 5       $ 205,946       $ (206,485   $ (465

Preferred stock dividends

             (202     (202

Share-based compensation expense

          210           210   

Restricted shares and stock options issued for services

          363           363   

Exercise of stock options

       —           3           3   

Conversion of Series D preferred stock

     (4        4           —     

Warrants issued for services

          12           12   

Warrants and conversion features releted to debt

          2,166           2,166   

Net loss

             (8,228     (8,228
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Balance, December 31, 2015

   $ 65      $ 5       $ 208,704       $ (214,915   $ (6,141
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

During the six months ended December 31, 2015 there were 518 stock options and no warrants exercised.

XML 25 R15.htm IDEA: XBRL DOCUMENT v3.3.1.900
Commitments and Contingencies
6 Months Ended
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
10. Commitments and Contingencies

During fiscal 2009, the company purchased certain inventory components under arrangements that required payment only after such components where actually used in production. Based on the company’s current production plans we have determined that these components will not be used and we offset the inventory balance for undelivered items against the related accounts payable balance during the quarter ended March 31, 2015. Additionally, we intend to return approximately $0.2 million of such items that are included in the inventory and accounts payable balances as of December 31, 2015. The vendor that provided these components is currently disputing this arrangement and is requesting payment for these items. In December 2015, the vendor served a summons and complaint against the Company seeking to recover an alleged amount due of approximately $2.1 million. The company believes the amount at issue is approximately $1.2 million and intends to vigorously contest this assertion. The caption of the litigation is Eurotech, Inc. vs. Authentidate Holding Corp. and the venue is Circuit Court of Howard County, State of Maryland, Case N. 13-C-15105926. Plaintiff has alleged breach of contract and equitable relief. Management does not believe that the ultimate resolution of this matter will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

We are also subject to claims and litigation arising in the ordinary course of business. Our management considers that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

 

We are not currently engaged in any other litigation which would be anticipated to have a material adverse effect on our financial condition or results of operations.

We have entered into employment agreements with our chief executive officer, chief financial officer and interim chief strategy officer that specify the executive’s current compensation, benefits and perquisites, the executive’s entitlements upon termination of employment, and other employment rights and responsibilities. The employment period for our chief executive officer and interim chief strategy officer ended on January 27, 2016 in connection with the completion of the merger transaction discussed more fully in Note 4 of Notes to Condensed Consolidated Financial Statements. In connection with the termination of the company’s employment relationship with its former chief executive officer and president in February 2015, the company is presently reviewing its severance obligations to him and the vesting and other post-termination provisions of certain of the unexercised stock options and other unvested stock options and unvested restricted stock units held by him as of the effective date of his separation from the company.

We have entered into various agreements by which we may be obligated to indemnify the other party with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business under which we customarily agree to hold the indemnified party harmless against losses arising from a breach of representations related to such matters as intellectual property rights. Payments by us under such indemnification clauses are generally conditioned on the other party making a claim. Such claims are generally subject to challenge by us and to dispute resolution procedures specified in the particular contract. Further, our obligations under these arrangements may be limited in terms of time and/or amount and, in some instances, we may have recourse against third parties for certain payments made by us. It is not possible to predict the maximum potential amount of future payments under these indemnification agreements due to the conditional nature of our obligations and the unique facts of each particular agreement. Historically, we have not made any payments under these agreements that have been material individually or in the aggregate. As of December 31, 2015, we are not aware of any obligations under such indemnification agreements that would require material payments.

XML 26 R16.htm IDEA: XBRL DOCUMENT v3.3.1.900
Income Taxes
6 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
11. Income Taxes

The company continues to recognize its tax benefits which are fully offset by a valuation allowance due to the uncertainty that the deferred tax assets will be realized. We will continue to evaluate the realizability of our net deferred tax assets and may record additional benefits in future earnings if we determine the realization of these assets is more likely than not.

XML 27 R17.htm IDEA: XBRL DOCUMENT v3.3.1.900
Other Expense
6 Months Ended
Dec. 31, 2015
Other Income and Expenses [Abstract]  
Other Expense
12. Other Expense

Other expense consists of the following (in thousands):

 

     Three Months Ended      Six Months Ended  
     December 31,      December 31,  
     2015      2014      2015      2014  

Amortization of debt discount

   $ (244    $ —         $ (371    $ —     

Amortization of deferred financing costs

     (49      —           (92      —     

Loss on entinguishment of notes

     (2,977         (2,977   

Interest expense

     (64      —           (144      —     

Change in fair value of warrant liability

     (941      —           (1,100      —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other expense

   $ (4,275    $ —         $ (4,684    $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

The amortization of debt discount and deferred financing costs and the loss on extinguishment of notes for fiscal 2016 relates to the notes discussed in Note 7 of Notes to Condensed Consolidated Financial Statements.

XML 28 R18.htm IDEA: XBRL DOCUMENT v3.3.1.900
Fair Value Measurements
6 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Fair Value Measurements
13. Fair Value Measurements

The company measures fair value for financial assets and liabilities in accordance with the provisions of the accounting guidance regarding fair value measurements. The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. A brief description of those three levels is as follows:

 

    Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.

 

    Level 2: Inputs other than quoted prices for identical assets or liabilities that are observable for the asset or liability, either directly or indirectly.

 

    Level 3: Significant unobservable inputs.

The company’s assets and liabilities subject to fair value measurements as of December 31, 2015 and June 30, 2015 are as follows (in thousands):

 

     Fair Value Measurements  
     Using Fair Value Hierarchy  
     Fair value      Level 1      Level 2      Level 3  

December 31, 2015

           

Warrant liability

   $ 2,690       $ —         $ —         $ 2,690   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 2,690       $ —         $ —         $ 2,690   
  

 

 

    

 

 

    

 

 

    

 

 

 

June 30, 2015

           

Warrant liability

   $ 214       $ —         $ —         $ 214   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 214       $ —         $ —         $ 214   
  

 

 

    

 

 

    

 

 

    

 

 

 

The warrant liability represents the fair value of the warrants issued by the company in June 2015 and December 2015 that have reset features. The company is required to revalue the warrant liability at the end of each reporting period and record a non-cash gain or loss in the statement of operations for the change in the fair value of the warrant liability in the period in which the change occurs. The fair value of the warrant liability is estimated using an adjusted Black-Scholes model and the applicable level 1 and level 2 inputs disclosed in Note 3 of Notes to Condensed Consolidated Financial Statements and an unobservable level 3 input regarding the likelihood of a reset occurring. Since the company uses a level 3 input, the warrant liability in included in the level 3 category in the table above. Estimating fair value requires the input of highly subjective assumptions and because changes in such assumptions can materially affect the fair value estimate, in management’s opinion, the existing models may not provide a reliable single measure of the fair value of the related assets or liabilities.

For the three and six months ended December 31, 2015, the company recorded non-cash losses of approximately $941,000 and $1,100,000 in other expense for the change in fair value of the warrant liability. The company also recorded a warrant liability of $1,376,000 in December 2015 in connection with the extinguishment of the related note. For the three and six months ended December 31, 2014, there were no gains or losses resulting from the fair value measurement of assets or liabilities.

XML 29 R19.htm IDEA: XBRL DOCUMENT v3.3.1.900
Accounting Standards Adopted in Fiscal 2016
6 Months Ended
Dec. 31, 2015
Accounting Changes and Error Corrections [Abstract]  
Accounting Standards Adopted in Fiscal 2016
14. Accounting Standards Adopted in Fiscal 2016

The company has not adopted any FASB Accounting Standards Updates (ASU) during fiscal 2016.

XML 30 R20.htm IDEA: XBRL DOCUMENT v3.3.1.900
Common Stock Warrants
6 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Common Stock Warrants
15. Common Stock Warrants

During the six months ended December 31, 2015, the company issued warrants to purchase shares of its common stock as follows. The company issued 11,111 warrants to a consultant for services with an exercise price of $1.71 per share. These warrants have a five year life and, are exercisable beginning six months after the grant date. Under this consulting arrangement, the company may grant up to an additional 88,888 warrants to this consultant based on the achievement of performance targets. Unless such performance targets are achieved, no additional warrants would be issued under this arrangement. The fair value of these warrants, as determined by the Black Scholes Model, was charged to operations on the grant date. Further, as discussed more fully in Notes 7 of Notes to Condensed Consolidated Financial Statements, the company issued warrants to purchase approximately 761,000 shares of the company’s common stock in connection with the issuance of short-term notes in September and October 2015 and the modification of certain short-term notes in December 2015.

 

A schedule of common stock warrant activity is as follows (in thousands, except per share and average life data):

 

     Number of
Shares
     Weighted
Average
Exercise Price
Per Share
     Weighted
Average
Remaining
Contractual Life
(Years)
     Aggregate
Intrinsic
Value
 

Outstanding, June 30, 2015

     3,741       $ 7.56         

Issued

     772         2.70         

Expired

     (200      5.67         
  

 

 

          

Outstanding, December 31, 2015

     4,313         5.22         4.81       $ 11,437   
  

 

 

          

Exercisable, December 31, 2015

     3,496       $ 5.67         4.71       $ 8,629   
  

 

 

          

XML 31 R21.htm IDEA: XBRL DOCUMENT v3.3.1.900
Loss Per Share (Tables)
6 Months Ended
Dec. 31, 2015
Earnings Per Share [Abstract]  
Calculation of Basic and Diluted Loss Per Share

The following table sets forth the calculation of basic and diluted loss per share for the periods presented (in thousands, except per share data):

 

     Three Months Ended
December 31,
     Six Months Ended
December 31,
 
     2015      2014      2015      2014  

Net loss

   $ (6,165    $ (2,088    $ (8,228    $ (4,199

Preferred stock dividends

     (101      (101      (202      (202
  

 

 

    

 

 

    

 

 

    

 

 

 

Net loss applicable to common shareholders

   $ (6,266    $ (2,189    $ (8,430    $ (4,401
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares

     4,754         4,623         4,721         4,500   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic and diluted loss per common share

   $ (1.32    $ (0.47    $ (1.79    $ (0.98
  

 

 

    

 

 

    

 

 

    

 

 

 
XML 32 R22.htm IDEA: XBRL DOCUMENT v3.3.1.900
Share-Based Compensation (Tables)
6 Months Ended
Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Share-Based Compensation Expense by Category

Share-based compensation by category is as follows (in thousands):

 

     Three Months Ended
December 31,
     Six Months Ended
December 31,
 
     2015      2014      2015      2014  

SG&A

   $ 72       $ 124       $ 180       $ 263   

Product development

     10         20         20         20   

Cost of revenues

     5         10         10         10   
  

 

 

    

 

 

    

 

 

    

 

 

 

Share-based compensation expense

   $ 87       $ 154       $ 210       $ 293   
  

 

 

    

 

 

    

 

 

    

 

 

 
Summary of Estimated Fair Value of Share-Based Compensation Using Black-Scholes Option Pricing Model and Assumptions

volatility. The assumptions used in the company’s Black-Scholes calculations for fiscal 2016 and 2015 are as follows:

 

     Risk Free
Interest Rate
    Dividend
Yield
    Volatility
Factor
    Weighted
Average
Expected
Option Life
(Months)
 

Fiscal year 2016

     1.6     0     85     48   

Fiscal year 2015

     0.6     0     84     48   
Summary of Stock Option Activity under Stock Option Plans for Employees and Non-Executive Directors

Stock option activity under the company’s stock option plans for employees and non-executive directors for the period ended December 31, 2015 is as follows (in thousands, except per share and average life data):

 

Employees Information

   Number of
Options
     Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual
Life (Years)
     Aggregate
Intrinsic
Value
 

Outstanding June 30, 2015

     237       $ 20.43         

Granted

     36         2.97         

Exercised

     (1      6.21         

Expired/Forfeited

     (65      18.09         
  

 

 

          

Outstanding December 31, 2015

     207       $ 18.18         6.08       $ 130   
  

 

 

          

Exercisable December 31 2015

     126       $ 25.38         3.46       $ 4   
  

 

 

          

Expected to vest at December 31, 2015

     64       $ 7.29         7.94       $ 99   
  

 

 

          

 


Non-Executive Director Information

   Number of
Options
     Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual
Life (Years)
     Aggregate
Intrinsic
Value
 

Outstanding June 30, 2015

     243       $ 5.58         

Granted

     186         3.24         

Expired

     (1      54.00         
  

 

 

          

Outstanding December 31, 2015

     427         4.41         8.24       $ 1,151   
  

 

 

          

Exercisable December 31 2015

     413       $ 4.32         8.18       $ 1,151   
  

 

 

          
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.3.1.900
Inventory (Tables)
6 Months Ended
Dec. 31, 2015
Inventory Disclosure [Abstract]  
Schedule of Inventory

These inventory amounts are stated at the lower of cost or market and consist of the following (in thousands):

 

     December 31,      June 30,  
     2015      2015  

Purchased components, net

   $ 31       $ 261   

Finished goods

     325         342   
  

 

 

    

 

 

 

Total inventory

   $ 356       $ 603   
  

 

 

    

 

 

 
XML 34 R24.htm IDEA: XBRL DOCUMENT v3.3.1.900
Other Intangible Assets (Tables)
6 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Net Licenses and Other Intangible Assets

The following table sets forth licenses, net and other intangible assets that are included in other assets as follows (in thousands):

 

     December 31, 2015      June 30, 2015       
     Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Gross
Carrying
Amount
     Accumulated
Amortization
     Net Book
Value
     Useful Life
In Years
                    

Patents

   $ 357       $ 288       $ 69       $ 357       $ 276       $ 81       17

Trademarks

     229         113         116         214         108         106       20

Acquired technologies

     95         78         17         95         72         23       2

Licenses

     4,245         2,513         1,732         4,212         2,308         1,904       3 - 10
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

   $ 4,926       $ 2,992       $ 1,934       $ 4,878       $ 2,764       $ 2,114      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Amortization Expense

Amortization expense for the next five fiscal years and thereafter is expected to be as follows (in thousands):

 

June 30,

  

2016

   $ 296   

2017

     440   

2018

     348   

2019

     304   

2020

     277   

Thereafter

     269   
  

 

 

 
   $ 1,934   
  

 

 

XML 35 R25.htm IDEA: XBRL DOCUMENT v3.3.1.900
Notes Payable (Tables)
6 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Schedule of Notes and Unamortized Debt Discount

The following table sets forth the notes and unamortized debt discount (in thousands):

 

     December 31,
2015
     June 30,
2015
 
       

Notes payable

     

Secured notes payable

   $ 2,170       $ 900   

Unsecured notes payable

     1,908         1,450   

Unamortized debt discount

     (395      (200
  

 

 

    

 

 

 

Notes payable

   $ 3,683       $ 2,150   
  

 

 

    

 

 

 
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.3.1.900
Shareholder's Equity (Tables)
6 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Changes in Shareholders' Equity

The changes in shareholders’ equity for the six months ended December 31, 2015 are summarized as follows (in thousands):

 

                  Additional            Total  
     Preferred     Common      Paid-in      Accumulated     Shareholders’  
     Stock     Stock      Capital      Deficit     Deficit  

Balance, June 30, 2015

   $ 69      $ 5       $ 205,946       $ (206,485   $ (465

Preferred stock dividends

             (202     (202

Share-based compensation expense

          210           210   

Restricted shares and stock options issued for services

          363           363   

Exercise of stock options

       —           3           3   

Conversion of Series D preferred stock

     (4        4           —     

Warrants issued for services

          12           12   

Warrants and conversion features releted to debt

          2,166           2,166   

Net loss

             (8,228     (8,228
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Balance, December 31, 2015

   $ 65      $ 5       $ 208,704       $ (214,915   $ (6,141
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 
XML 37 R27.htm IDEA: XBRL DOCUMENT v3.3.1.900
Other Expense (Tables)
6 Months Ended
Dec. 31, 2015
Other Income and Expenses [Abstract]  
Summary of Other Expense

Other expense consists of the following (in thousands):

 

     Three Months Ended      Six Months Ended  
     December 31,      December 31,  
     2015      2014      2015      2014  

Amortization of debt discount

   $ (244    $ —         $ (371    $ —     

Amortization of deferred financing costs

     (49      —           (92      —     

Loss on entinguishment of notes

     (2,977         (2,977   

Interest expense

     (64      —           (144      —     

Change in fair value of warrant liability

     (941      —           (1,100      —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other expense

   $ (4,275    $ —         $ (4,684    $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

XML 38 R28.htm IDEA: XBRL DOCUMENT v3.3.1.900
Fair Value Measurements (Tables)
6 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Assets and Liabilities Subject To Fair Value Measurements

The company’s assets and liabilities subject to fair value measurements as of December 31, 2015 and June 30, 2015 are as follows (in thousands):

 

     Fair Value Measurements  
     Using Fair Value Hierarchy  
     Fair value      Level 1      Level 2      Level 3  

December 31, 2015

           

Warrant liability

   $ 2,690       $ —         $ —         $ 2,690   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 2,690       $ —         $ —         $ 2,690   
  

 

 

    

 

 

    

 

 

    

 

 

 

June 30, 2015

           

Warrant liability

   $ 214       $ —         $ —         $ 214   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 214       $ —         $ —         $ 214   
  

 

 

    

 

 

    

 

 

    

 

 

 
XML 39 R29.htm IDEA: XBRL DOCUMENT v3.3.1.900
Common Stock Warrants (Tables)
6 Months Ended
Dec. 31, 2015
Equity [Abstract]  
Schedule of Common Stock Warrant Activity

A schedule of common stock warrant activity is as follows (in thousands, except per share and average life data):

 

     Number of
Shares
     Weighted
Average
Exercise Price
Per Share
     Weighted
Average
Remaining
Contractual Life
(Years)
     Aggregate
Intrinsic
Value
 

Outstanding, June 30, 2015

     3,741       $ 7.56         

Issued

     772         2.70         

Expired

     (200      5.67         
  

 

 

          

Outstanding, December 31, 2015

     4,313         5.22         4.81       $ 11,437   
  

 

 

          

Exercisable, December 31, 2015

     3,496       $ 5.67         4.71       $ 8,629   
  

 

 

          

XML 40 R30.htm IDEA: XBRL DOCUMENT v3.3.1.900
Basis of Presentation and Liquidity - Additional Information (Detail)
$ in Millions
6 Months Ended
Dec. 31, 2015
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Proceeds from debt financing transactions $ 1.7
Short term debt obligation $ 1.8
Reverse stock split one-for-nine
Reverse stock split ratio 0.1111
Reverse stock split effective date Jan. 22, 2016
XML 41 R31.htm IDEA: XBRL DOCUMENT v3.3.1.900
Loss Per Share - Calculation of Basic and Diluted Loss Per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Earnings Per Share [Abstract]        
Net loss $ (6,165) $ (2,088) $ (8,228) $ (4,199)
Preferred stock dividends (101) (101) (202) (202)
Net loss applicable to common shareholders $ (6,266) $ (2,189) $ (8,430) $ (4,401)
Weighted average shares 4,754 4,623 4,721 4,500
Basic and diluted loss per common share $ (1.32) $ (0.47) $ (1.79) $ (0.98)
XML 42 R32.htm IDEA: XBRL DOCUMENT v3.3.1.900
Loss Per Share - Additional Information (Detail) - shares
6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Convertible Debt [Member]    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Antidilutive securities outstanding (822,000)  
Options [Member]    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Antidilutive securities outstanding (634,000) (444,000)
Restricted Stock Units [Member]    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Antidilutive securities outstanding (41,000) (98,000)
Warrants [Member]    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Antidilutive securities outstanding (4,313,000) (3,075,000)
Series D Preferred Stock [Member]    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Antidilutive securities outstanding (640,000) (681,000)
Series B Preferred Stock [Member]    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Antidilutive securities outstanding (28,000) (28,000)
XML 43 R33.htm IDEA: XBRL DOCUMENT v3.3.1.900
Share-Based Compensation - Summary of Share-Based Compensation Expense by Category (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense $ 87 $ 154 $ 210 $ 293
SG&A [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense 72 124 180 263
Product Development [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense 10 20 20 20
Cost of Revenues [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense $ 5 $ 10 $ 10 $ 10
XML 44 R34.htm IDEA: XBRL DOCUMENT v3.3.1.900
Share-Based Compensation - Additional Information (Detail) - USD ($)
1 Months Ended 6 Months Ended
May. 01, 2014
Jan. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Assumptions for estimated fair value of share based compensation     Historical averages over the past five years and estimates of expected future behavior.  
Stock option vesting period     30 days  
Unrecognized compensation expense related to unvested share-based compensation arrangements     $ 326,000  
Unrecognized compensation expense expected to be recognized over a weighted average period     15 months  
Stock options exercised     518 0
Value of stock option exercised     $ 3,000  
Weighted average grant date fair value of options granted     $ 1.71 $ 4.50
Total fair value of options vested     $ 321,000 $ 340,000
Restricted Stock Units [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Restricted stock units outstanding     41,000  
2011 Omnibus Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common stock shares available for issuance 750,000      
Increase the number of shares of common stock available for issuance 378,000      
2011 Plan [Member] | Non-Executive [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock options issued     69,344  
Fair value of stock options issued     $ 363,000  
Fair value of restricted common stock issued     $ 363,000  
2011 Plan [Member] | Non-Executive [Member] | Restricted Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Restricted common stock shares issued     13,647  
2011 Plan [Member] | Chief Strategy Officer [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock options issued     108,333  
Fair value of stock options issued     $ 153,000  
2011 Plan [Member] | Subsequent Event [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Fair value of restricted common stock issued   $ 10,500    
2011 Plan [Member] | Subsequent Event [Member] | Restricted Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Restricted common stock shares issued   1,643    
XML 45 R35.htm IDEA: XBRL DOCUMENT v3.3.1.900
Share-Based Compensation - Summary of Estimated Fair Value of Share-Based Compensation using Black-Scholes Option Pricing Model and Assumptions (Detail)
6 Months Ended 12 Months Ended
Dec. 31, 2015
Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Risk Free Interest Rate 1.60% 0.60%
Dividend Yield 0.00% 0.00%
Volatility Factor 85.00% 84.00%
Weighted Average Expected Option Life (Months) 48 months 48 months
XML 46 R36.htm IDEA: XBRL DOCUMENT v3.3.1.900
Share-Based Compensation - Summary of Stock Option Activity under Stock Option Plans for Employees and Non-Executive Directors (Detail) - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Number of Options    
Exercised (518) 0
Employees Information [Member]    
Number of Options    
Outstanding, Balance 237,000  
Granted 36,000  
Exercised (1,000)  
Expired/Forfeited (65,000)  
Outstanding, Balance 207,000  
Exercisable, Balance 126,000  
Expected to vest, Balance 64,000  
Weighted Average Exercise Price    
Outstanding, Balance $ 20.43  
Granted 2.97  
Exercised 6.21  
Expired/Forfeited 18.09  
Outstanding, Balance 18.18  
Exercisable, Balance 25.38  
Expected to vest, Balance $ 7.29  
Weighted Average Remaining Contractual Life (Years)    
Outstanding, Balance 6 years 29 days  
Exercisable, Balance 3 years 5 months 16 days  
Expected to vest, Balance 7 years 11 months 9 days  
Aggregate Intrinsic Value    
Outstanding December 31, 2015 $ 130  
Exercisable, Balance 4  
Expected to vest, Balance $ 99  
Non-Executive Director Information [Member]    
Number of Options    
Outstanding, Balance 243,000  
Granted 186,000  
Expired (1,000)  
Outstanding, Balance 427,000  
Exercisable, Balance 413,000  
Weighted Average Exercise Price    
Outstanding, Balance $ 5.58  
Granted 3.24  
Expired 54.00  
Outstanding, Balance 4.41  
Exercisable, Balance $ 4.32  
Weighted Average Remaining Contractual Life (Years)    
Outstanding, Balance 8 years 2 months 27 days  
Exercisable, Balance 8 years 2 months 5 days  
Aggregate Intrinsic Value    
Outstanding December 31, 2015 $ 1,151  
Exercisable, Balance $ 1,151  
XML 47 R37.htm IDEA: XBRL DOCUMENT v3.3.1.900
Acquisition - Additional Information (Detail) - Peachstate Health Management, LLC [Member]
Jan. 27, 2015
USD ($)
shares
Business Acquisition [Line Items]  
Common stock percentage on approval of merger transaction 5.00%
Common stock minimum holding percentage for preferential rights 10.00%
Additional common stock percentage on closing of merger transaction 90.00%
Date of acquisition Jan. 27, 2015
Common stock percentage on closing of merger transaction 19.90%
EBITDA target $ 16,000,000
Number of common stock shares received on acquisition | shares 958,030
EBITDA target for four fiscal years $ 100,000,000
XML 48 R38.htm IDEA: XBRL DOCUMENT v3.3.1.900
Inventory - Schedule of Inventory (Detail) - USD ($)
$ in Thousands
Dec. 31, 2015
Jun. 30, 2015
Inventory Disclosure [Abstract]    
Purchased components, net $ 31 $ 261
Finished goods 325 342
Total inventory $ 356 $ 603
XML 49 R39.htm IDEA: XBRL DOCUMENT v3.3.1.900
Other Intangible Assets - Net Licenses and Other Intangible Assets (Detail) - USD ($)
$ in Thousands
6 Months Ended
Dec. 31, 2015
Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 4,926 $ 4,878
Accumulated Amortization 2,992 2,764
Net Book Value 1,934 2,114
Patents [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 357 357
Accumulated Amortization 288 276
Net Book Value $ 69 81
Useful Life In Years 17 years  
Trademarks [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 229 214
Accumulated Amortization 113 108
Net Book Value $ 116 106
Useful Life In Years 20 years  
Acquired Technologies [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 95 95
Accumulated Amortization 78 72
Net Book Value $ 17 23
Useful Life In Years 2 years  
Licenses [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 4,245 4,212
Accumulated Amortization 2,513 2,308
Net Book Value $ 1,732 $ 1,904
Minimum [Member] | Licenses [Member]    
Finite-Lived Intangible Assets [Line Items]    
Useful Life In Years 3 years  
Maximum [Member] | Licenses [Member]    
Finite-Lived Intangible Assets [Line Items]    
Useful Life In Years 10 years  
XML 50 R40.htm IDEA: XBRL DOCUMENT v3.3.1.900
Other Intangible Assets - Additional Information (Detail) - USD ($)
3 Months Ended 6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]          
Goodwill $ 50,000   $ 50,000   $ 50,000
Amortization expense $ 115,000 $ 102,000 $ 228,000 $ 190,000  
XML 51 R41.htm IDEA: XBRL DOCUMENT v3.3.1.900
Other Intangible Assets - Amortization Expense (Detail) - USD ($)
$ in Thousands
Dec. 31, 2015
Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]    
2016 $ 296  
2017 440  
2018 348  
2019 304  
2020 277  
Thereafter 269  
Net Book Value $ 1,934 $ 2,114
XML 52 R42.htm IDEA: XBRL DOCUMENT v3.3.1.900
Notes Payable - Additional Information (Detail) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
Dec. 15, 2015
Dec. 11, 2015
Aug. 26, 2015
Aug. 07, 2015
Jun. 08, 2015
Apr. 24, 2015
Apr. 03, 2015
Feb. 17, 2015
Jan. 29, 2015
Oct. 31, 2015
Sep. 30, 2015
Mar. 31, 2016
Dec. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Jun. 30, 2014
Jun. 30, 2013
Debt Instrument [Line Items]                                      
Proceeds from issuance of short-term promissory notes                               $ 1,695,000      
Issuance of secured promissory notes                         $ 1,800,000     $ 1,800,000      
Debt instrument interest rate   9.00%                                  
Aggregate principal amount of promissory notes   $ 950,000                                  
Issuance of warrants   422,222   608,314                              
Net proceeds from issuance of short term promissory notes                     $ 1,000,000                
Warrants, exercisable period                   54 months 54 months                
Exercise price of warrants       $ 1.53           $ 2.70 $ 2.70                
Exchange transaction, closing date   Dec. 17, 2015                                  
Debt instrument conversion price   $ 2.25                                  
Debt instrument conversion price percentage decreased   85.00%                                  
Debt instrument redemption price percentage   110.00%                                  
Common stock price per share                         $ 0.001 $ 0.001   $ 0.001      
Warrant expiration date       Dec. 13, 2019           Oct. 28, 2016                  
Proceeds from notes payable                   $ 5,000,000                  
Issuance of warrants to purchase common stock                   111,111 116,667                
Warrants exercisable commencing period                   12 months 12 months                
Warrants offered or issued                     222,222                
Debt discount                         $ 395,000 $ 200,000   $ 395,000      
Gain or loss on the extinguishment                         2,977,000     2,977,000      
Additional paid-in-capital related to issuance of warrants                               12,000      
Warrant liability                         2,690,000 214,000   2,690,000      
Amortization of debt discount                         244,000   $ 0 371,000 $ 0    
Amortization of deferred financing costs                         $ 49,000   $ 0 $ 92,000 $ 0    
Senior Secured Convertible Notes [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument interest rate         9.00%                            
Aggregate principal amount of promissory notes         $ 900,000                            
Issuance of warrants         402,963                            
Debt instrument expiration period         1 year                            
Warrants, exercisable period         54 months                            
Exercise price of warrants         $ 2.70                            
Debt instrument conversion price         $ 2.25                            
Debt instrument conversion price percentage decreased         85.00%                            
Debt instrument redemption price percentage         110.00%                            
Debt instrument consecutive trading days         20 days                            
Class of warrant of right exercised         $ 2,100,000                            
Issuance of warrants to purchase common stock         933,333                            
Promissory Note [Member]                                      
Debt Instrument [Line Items]                                      
Issuance of warrants                         761,000     761,000      
Promissory Note [Member] | Peachstate Medical Holdings LLC [Member]                                      
Debt Instrument [Line Items]                                      
Aggregate principal amount of promissory notes                   $ 450,000                  
Senior Secured Notes [Member]                                      
Debt Instrument [Line Items]                                      
Aggregate principal amount of promissory notes                         $ 800,000     $ 800,000      
Effective interest rate of notes                         36.00%     36.00%      
Warrant liability                         $ 2,690,000     $ 2,690,000      
Convertible Notes [Member]                                      
Debt Instrument [Line Items]                                      
Aggregate principal amount of promissory notes   $ 950,000                                  
Issuance of warrants   422,222                                  
Convertible Notes [Member] | Additional Warrant [Member]                                      
Debt Instrument [Line Items]                                      
Warrants, exercisable period                               54 months      
Exercise price of warrants                         $ 2.70     $ 2.70      
Debt instrument consecutive trading days                               20 days      
Ownership percentage by noncontrolling owners                         4.99%     4.99%      
Lazarus Investment Partners LLLP [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument maturity date           Jul. 02, 2015                          
Debt instrument interest rate 20.00%         5.76%             12.00%     12.00%      
Aggregate principal amount of promissory notes $ 532,811         $ 500,000             $ 500,000     $ 500,000      
Issuance of warrants 111,111                                    
Exercise price of warrants $ 2.70         $ 2.25                          
Proceeds to be raised from other financing sources to repay the note           $ 900,000                          
Ownership percentage by noncontrolling owners 4.99%   29.00%     29.30%                          
Warrants held by related party           692,626                          
Warrant expiration date                               Oct. 25, 2019      
Accrued interest $ 32,811                                    
Proceeds from notes payable $ 5,000,000                                    
Maturity date, description (i) twelve months from the date of issuance, (ii) June 8, 2016 if the company has not consummated the closing with AEON by such date, or (iii) within 5 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds.                                    
Effective interest rate of notes                         71.00%     71.00%      
Private Placement [Member]                                      
Debt Instrument [Line Items]                                      
Aggregate principal amount of promissory notes         $ 3,000,000                            
Promissory Note, With 8% [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument interest rate               8.00%                      
Aggregate principal amount of promissory notes         $ 100,000     $ 100,000         $ 100,000     $ 100,000      
Issuance of warrants               8,889                      
Gross proceeds from issuance of common stock and warrants               $ 100,000                      
Debt instrument expiration period               6 months                      
Net proceeds from issuance of short term promissory notes               $ 92,000                      
Warrants, exercisable period               54 months                      
Exercise price of warrants               $ 9.09                      
Additional proceeds from notes payable               $ 900,000                      
Effective interest rate of notes                         39.00%     39.00%      
Promissory Note 5.76% Interest Rate [Member] | Luce Promissory Note [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument interest rate               5.76%                      
Aggregate principal amount of promissory notes               $ 950,000         $ 950,000     $ 950,000      
Issuance of warrants             351,852 11,056                      
Net proceeds from issuance of short term promissory notes               $ 940,000                      
Warrants, exercisable period             54 months 54 months                      
Exercise price of warrants             $ 2.79 $ 9.091                      
Proceeds to be raised from other financing sources to repay the note               $ 950,000                      
Effective interest rate of notes                         65.00%     65.00%      
Debt instrument carrying amount                         $ 4,078,000     $ 4,078,000      
Debt discount                         913,000     913,000      
Gain or loss on the extinguishment                               3,534,000      
Additional paid-in-capital related to issuance of warrants                               3,068,000      
Promissory Note 5.76% Interest Rate [Member] | Prior to Amendment [Member] | Luce Promissory Note [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument maturity date             Mar. 19, 2015                        
Promissory Note 5.76% Interest Rate [Member] | Post Amendment [Member] | Luce Promissory Note [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument maturity date             Jul. 02, 2015                        
Promissory Note 12% Interest Rate [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument interest rate             12.00%                        
Senior Secured Promissory Note 10.0% Interest Rate [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument interest rate       10.00%                              
Aggregate principal amount of promissory notes       $ 320,000                 $ 320,000     $ 320,000      
Issuance of warrants                         65,844     65,844      
Debt instrument conversion price                         $ 4.86     $ 4.86      
Ownership percentage by noncontrolling owners                         4.99%     4.99%      
Effective interest rate of notes                         63.00%     63.00%      
20% Promissory Note [Member]                                      
Debt Instrument [Line Items]                                      
Aggregate principal amount of promissory notes                         $ 400,000     $ 400,000      
Effective interest rate of notes                         20.00%     20.00%      
20% Promissory Note [Member] | Promissory Note [Member]                                      
Debt Instrument [Line Items]                                      
Debt instrument interest rate     20.00%             20.00% 20.00%                
Aggregate principal amount of promissory notes     $ 400,000               $ 525,000                
Maturity date, description     (i) August 26, 2016, or (ii) within 30 days of the closing of the contemplated acquisition, merger or similar transaction with Peachstate Health Management, LLC (d/b/a AEON Clinical Laboratories) as described above, or a similar alternative acquisition, merger or similar transaction with an unaffiliated third party, or (iii) the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds.                         (i) October 28, 2016, or (ii) within 30 days of the closing of a sale of equity or debt securities of the company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds.      
Unsecured Promissory Note 20% Interest Rate [Member]                                      
Debt Instrument [Line Items]                                      
Aggregate principal amount of promissory notes                         $ 525,000     $ 525,000      
Effective interest rate of notes                         54.00%     54.00%      
Promissory Note 5.76% and 8% Interest Rate[Member]                                      
Debt Instrument [Line Items]                                      
Gain or loss on the extinguishment                         $ 2,977,000 $ 557,000          
Promissory Note 5.76% and 8% Interest Rate[Member] | Forecast [Member]                                      
Debt Instrument [Line Items]                                      
Gain or loss on the extinguishment                       $ 320,000              
Minimum [Member]                                      
Debt Instrument [Line Items]                                      
Exercise price of warrants                                     $ 8.55
Minimum [Member] | Senior Secured Convertible Notes [Member]                                      
Debt Instrument [Line Items]                                      
Common stock price per share         $ 4.05                            
Minimum [Member] | Convertible Notes [Member] | Additional Warrant [Member]                                      
Debt Instrument [Line Items]                                      
Common stock price per share                         $ 4.05     $ 4.05      
Minimum [Member] | Lazarus Investment Partners LLLP [Member]                                      
Debt Instrument [Line Items]                                      
Exercise price of warrants                                   $ 7.92  
Maximum [Member]                                      
Debt Instrument [Line Items]                                      
Exercise price of warrants                                     $ 12.06
Maximum [Member] | Lazarus Investment Partners LLLP [Member]                                      
Debt Instrument [Line Items]                                      
Exercise price of warrants                                   $ 18.00  
Secured Promissory Note [Member]                                      
Debt Instrument [Line Items]                                      
Proceeds from issuance of short-term promissory notes                 $ 200,000                    
Issuance of secured promissory notes                 $ 200,000                    
Debt instrument maturity date                               Mar. 30, 2015      
Debt instrument interest rate                 6.00%                    
XML 53 R43.htm IDEA: XBRL DOCUMENT v3.3.1.900
Notes Payable - Schedule of Notes and Unamortized Debt Discount (Detail) - USD ($)
$ in Thousands
Dec. 31, 2015
Jun. 30, 2015
Notes payable    
Secured notes payable $ 2,170 $ 900
Unsecured notes payable 1,908 1,450
Unamortized debt discount (395) (200)
Notes payable $ 3,683 $ 2,150
XML 54 R44.htm IDEA: XBRL DOCUMENT v3.3.1.900
Preferred Stock - Additional Information (Detail) - USD ($)
6 Months Ended
Dec. 31, 2015
Jun. 30, 2015
Preferred Stock [Line Items]    
Principal amount of senior secured notes $ 2,170,000 $ 900,000
Series B Preferred Stock [Member]    
Preferred Stock [Line Items]    
Preferred stock, shares outstanding 28,000  
Preferred stock redemption price per share $ 25.00  
Conversion rate of common stock per share $ 25.20  
Conversion of preferred stock and accrued dividends into common stock shares 28,000  
Accrued dividend $ 35,000  
Series D Preferred Stock [Member]    
Preferred Stock [Line Items]    
Preferred stock, shares outstanding 625,000 665,000
Preferred stock redemption price per share $ 10.00  
Conversion rate of common stock per share $ 9.77139  
Conversion of preferred stock and accrued dividends into common stock shares 639,622  
Accrued dividend $ 167,000  
Accrued dividend rate 5.00%  
Preferred stock repurchased period 2 years  
Preferred stock conversion period 3 years  
Principal amount of senior secured notes $ 6,500,000  
Number of preferred stock, shares converted 40,000  
Number of common stock issued upon conversion 40,935  
XML 55 R45.htm IDEA: XBRL DOCUMENT v3.3.1.900
Shareholder's Equity - Changes in Shareholders' Equity (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Stockholders Equity [Line Items]        
Beginning balance     $ (465)  
Preferred stock dividends $ (101) $ (101) (202) $ (202)
Share-based compensation expense     210  
Restricted shares and stock options issued for services     363  
Exercise of stock options     3  
Warrants issued for services     12  
Warrants and conversion features related to debt     2,166  
Net loss (6,165) $ (2,088) (8,228) $ (4,199)
Ending balance (6,141)   (6,141)  
Preferred Stock [Member]        
Stockholders Equity [Line Items]        
Beginning balance     69  
Conversion of Series D preferred stock     (4)  
Ending balance 65   65  
Common Stock [Member]        
Stockholders Equity [Line Items]        
Beginning balance     5  
Ending balance 5   5  
Additional Paid-in Capital [Member]        
Stockholders Equity [Line Items]        
Beginning balance     205,946  
Share-based compensation expense     210  
Restricted shares and stock options issued for services     363  
Exercise of stock options     3  
Conversion of Series D preferred stock     4  
Warrants issued for services     12  
Warrants and conversion features related to debt     2,166  
Ending balance 208,704   208,704  
Accumulated Deficit [Member]        
Stockholders Equity [Line Items]        
Beginning balance     (206,485)  
Preferred stock dividends     (202)  
Net loss     (8,228)  
Ending balance $ (214,915)   $ (214,915)  
XML 56 R46.htm IDEA: XBRL DOCUMENT v3.3.1.900
Shareholder's Equity - Additional Information (Detail) - shares
6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Equity [Abstract]    
Stock options exercised 518 0
Warrants exercised 0  
XML 57 R47.htm IDEA: XBRL DOCUMENT v3.3.1.900
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
6 Months Ended
Dec. 31, 2015
USD ($)
Contingencies And Commitments [Line Items]  
Amount at issue with regard to purchase arrangement $ 1.2
Alleged amount due 2.1
Inventory and Accounts Payable [Member]  
Contingencies And Commitments [Line Items]  
Amount intended to be returned $ 0.2
XML 58 R48.htm IDEA: XBRL DOCUMENT v3.3.1.900
Other Expense - Summary of Other Expense (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Other Income and Expenses [Abstract]        
Amortization of debt discount $ (244) $ 0 $ (371) $ 0
Amortization of deferred financing costs (49) $ 0 (92) $ 0
Loss on extinguishment of notes (2,977)   (2,977)  
Interest expense (64)   (144)  
Change in fair value of warrant liability (941)   (1,100)  
Total other expense $ (4,275)   $ (4,684)  
XML 59 R49.htm IDEA: XBRL DOCUMENT v3.3.1.900
Fair Value Measurements - Assets and Liabilities Subject To Fair Value Measurements (Detail) - USD ($)
$ in Thousands
Dec. 31, 2015
Jun. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrant liability $ 2,690 $ 214
Warranty Liability [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrant liability 2,690 214
Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrant liability 2,690 214
Level 3 [Member] | Warranty Liability [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrant liability $ 2,690 $ 214
XML 60 R50.htm IDEA: XBRL DOCUMENT v3.3.1.900
Fair Value Measurements - Additional Information (Detail) - USD ($)
3 Months Ended 6 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Gains or losses resulting from fair value measurement of financial assets included in earnings   $ 0   $ 0
Change in fair value of warrant liability $ 941,000   $ 1,100,000  
Convertible Notes [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Change in fair value of warrant liability     $ 1,376,000  
XML 61 R51.htm IDEA: XBRL DOCUMENT v3.3.1.900
Common Stock Warrants - Additional Information (Detail) - $ / shares
6 Months Ended
Dec. 31, 2015
Dec. 11, 2015
Oct. 31, 2015
Sep. 30, 2015
Aug. 07, 2015
Class of Warrant or Right [Line Items]          
Warrant exercise price per share     $ 2.70 $ 2.70 $ 1.53
Issuance of warrants to purchase common stock   422,222     608,314
Promissory Note [Member]          
Class of Warrant or Right [Line Items]          
Issuance of warrants to purchase common stock 761,000        
Consultant for Services [Member]          
Class of Warrant or Right [Line Items]          
Warrants issued to consultant for services 11,111        
Warrant exercise price per share $ 1.71        
Warrants life 5 years        
Class of warrant or right number of warrants issued based on achievement of performance targets 88,888        
Class of warrant or right number of warrants to be issued unless performance targets achieved 0        
XML 62 R52.htm IDEA: XBRL DOCUMENT v3.3.1.900
Common Stock Warrants - Schedule of Common Stock Warrant Activity (Detail) - Warrants [Member]
$ / shares in Units, shares in Thousands, $ in Thousands
6 Months Ended
Dec. 31, 2015
USD ($)
$ / shares
shares
Number of Shares  
Outstanding, Beginning balance | shares 3,741
Warrants issued | shares 772
Warrants expired | shares (200)
Outstanding, Ending balance | shares 4,313
Exercisable, December 31, 2015 | shares 3,496
Weighted Average Exercise Price Per Share  
Outstanding, Beginning balance | $ / shares $ 7.56
Warrants issued | $ / shares 2.70
Warrants expired | $ / shares 5.67
Outstanding, Ending balance | $ / shares 5.22
Exercisable, December 31, 2015 | $ / shares $ 5.67
Weighted Average Remaining Contractual Life (Years)  
Outstanding, December 31, 2015 4 years 9 months 22 days
Exercisable, December 31, 2015 4 years 8 months 16 days
Aggregate Intrinsic Value  
Outstanding, December 31, 2015 | $ $ 11,437
Exercisable, December 31, 2015 | $ $ 8,629
EXCEL 63 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; white-space: normal; /* word-wrap: break-word; */ } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; overflow: hidden; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 67 FilingSummary.xml IDEA: XBRL DOCUMENT 3.3.1.900 html 148 245 1 false 56 0 false 4 false false R1.htm 101 - Document - Document and Entity Information Sheet http://www.authentidate.com/taxonomy/role/DocumentandEntityInformation Document and Entity Information Cover 1 false false R2.htm 103 - Statement - Condensed Consolidated Balance Sheets Sheet http://www.authentidate.com/taxonomy/role/StatementOfFinancialPositionClassified Condensed Consolidated Balance Sheets Statements 2 false false R3.htm 104 - Statement - Condensed Consolidated Balance Sheets (Parenthetical) Sheet http://www.authentidate.com/taxonomy/role/StatementOfFinancialPositionClassifiedParenthetical Condensed Consolidated Balance Sheets (Parenthetical) Statements 3 false false R4.htm 105 - Statement - Condensed Consolidated Statements of Operations and Comprehensive Operations Sheet http://www.authentidate.com/taxonomy/role/StatementOfIncome Condensed Consolidated Statements of Operations and Comprehensive Operations Statements 4 false false R5.htm 106 - Statement - Condensed Consolidated Statements of Cash Flows Sheet http://www.authentidate.com/taxonomy/role/StatementOfCashFlowsDirect Condensed Consolidated Statements of Cash Flows Statements 5 false false R6.htm 107 - Disclosure - Basis of Presentation and Liquidity Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsOrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock Basis of Presentation and Liquidity Notes 6 false false R7.htm 108 - Disclosure - Loss Per Share Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsEarningsPerShareTextBlock Loss Per Share Notes 7 false false R8.htm 109 - Disclosure - Share-Based Compensation Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsDisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock Share-Based Compensation Notes 8 false false R9.htm 110 - Disclosure - Acquisition Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsBusinessCombinationDisclosureTextBlock Acquisition Notes 9 false false R10.htm 111 - Disclosure - Inventory Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsInventoryDisclosureTextBlock Inventory Notes 10 false false R11.htm 112 - Disclosure - Other Intangible Assets Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsIntangibleAssetsDisclosureTextBlock Other Intangible Assets Notes 11 false false R12.htm 113 - Disclosure - Notes Payable Notes http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsDebtDisclosureTextBlock Notes Payable Notes 12 false false R13.htm 114 - Disclosure - Preferred Stock Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsPreferredStockTextBlock Preferred Stock Notes 13 false false R14.htm 115 - Disclosure - Shareholder's Equity Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsStockholdersEquityNoteDisclosureTextBlock Shareholder's Equity Notes 14 false false R15.htm 116 - Disclosure - Commitments and Contingencies Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsCommitmentsAndContingenciesDisclosureTextBlock Commitments and Contingencies Notes 15 false false R16.htm 117 - Disclosure - Income Taxes Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsIncomeTaxDisclosureTextBlock Income Taxes Notes 16 false false R17.htm 118 - Disclosure - Other Expense Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsOtherIncomeAndOtherExpenseDisclosureTextBlock Other Expense Notes 17 false false R18.htm 119 - Disclosure - Fair Value Measurements Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsFairValueDisclosuresTextBlock Fair Value Measurements Notes 18 false false R19.htm 120 - Disclosure - Accounting Standards Adopted in Fiscal 2016 Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock Accounting Standards Adopted in Fiscal 2016 Notes 19 false false R20.htm 121 - Disclosure - Common Stock Warrants Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsCommonStockWarrantsDisclosureTextBlock Common Stock Warrants Notes 20 false false R21.htm 122 - Disclosure - Loss Per Share (Tables) Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsEarningsPerShareTextBlockTables Loss Per Share (Tables) Tables http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsEarningsPerShareTextBlock 21 false false R22.htm 123 - Disclosure - Share-Based Compensation (Tables) Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsDisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlockTables Share-Based Compensation (Tables) Tables http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsDisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock 22 false false R23.htm 124 - Disclosure - Inventory (Tables) Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsInventoryDisclosureTextBlockTables Inventory (Tables) Tables http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsInventoryDisclosureTextBlock 23 false false R24.htm 125 - Disclosure - Other Intangible Assets (Tables) Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsIntangibleAssetsDisclosureTextBlockTables Other Intangible Assets (Tables) Tables http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsIntangibleAssetsDisclosureTextBlock 24 false false R25.htm 126 - Disclosure - Notes Payable (Tables) Notes http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsDebtDisclosureTextBlockTables Notes Payable (Tables) Tables http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsDebtDisclosureTextBlock 25 false false R26.htm 127 - Disclosure - Shareholder's Equity (Tables) Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsStockholdersEquityNoteDisclosureTextBlockTables Shareholder's Equity (Tables) Tables http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsStockholdersEquityNoteDisclosureTextBlock 26 false false R27.htm 128 - Disclosure - Other Expense (Tables) Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsOtherIncomeAndOtherExpenseDisclosureTextBlockTables Other Expense (Tables) Tables http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsOtherIncomeAndOtherExpenseDisclosureTextBlock 27 false false R28.htm 129 - Disclosure - Fair Value Measurements (Tables) Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsFairValueDisclosuresTextBlockTables Fair Value Measurements (Tables) Tables http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsFairValueDisclosuresTextBlock 28 false false R29.htm 130 - Disclosure - Common Stock Warrants (Tables) Sheet http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsCommonStockWarrantsDisclosureTextBlockTables Common Stock Warrants (Tables) Tables http://www.authentidate.com/taxonomy/role/NotesToFinancialStatementsCommonStockWarrantsDisclosureTextBlock 29 false false R30.htm 131 - Disclosure - Basis of Presentation and Liquidity - Additional Information (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureBasisOfPresentationAndLiquidityAdditionalInformation Basis of Presentation and Liquidity - Additional Information (Detail) Details 30 false false R31.htm 132 - Disclosure - Loss Per Share - Calculation of Basic and Diluted Loss Per Share (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureLossPerShareCalculationOfBasicAndDilutedLossPerShare Loss Per Share - Calculation of Basic and Diluted Loss Per Share (Detail) Details 31 false false R32.htm 133 - Disclosure - Loss Per Share - Additional Information (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureLossPerShareAdditionalInformation Loss Per Share - Additional Information (Detail) Details 32 false false R33.htm 134 - Disclosure - Share-Based Compensation - Summary of Share-Based Compensation Expense by Category (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureShareBasedCompensationSummaryOfShareBasedCompensationExpenseByCategory Share-Based Compensation - Summary of Share-Based Compensation Expense by Category (Detail) Details 33 false false R34.htm 135 - Disclosure - Share-Based Compensation - Additional Information (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureShareBasedCompensationAdditionalInformation Share-Based Compensation - Additional Information (Detail) Details 34 false false R35.htm 136 - Disclosure - Share-Based Compensation - Summary of Estimated Fair Value of Share-Based Compensation using Black-Scholes Option Pricing Model and Assumptions (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureShareBasedCompensationSummaryOfEstimatedFairValueOfShareBasedCompensationUsingBlackScholesOptionPricingModelAndAssumptions Share-Based Compensation - Summary of Estimated Fair Value of Share-Based Compensation using Black-Scholes Option Pricing Model and Assumptions (Detail) Details 35 false false R36.htm 137 - Disclosure - Share-Based Compensation - Summary of Stock Option Activity under Stock Option Plans for Employees and Non-Executive Directors (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureShareBasedCompensationSummaryOfStockOptionActivityUnderStockOptionPlansForEmployeesAndNonExecutiveDirectors Share-Based Compensation - Summary of Stock Option Activity under Stock Option Plans for Employees and Non-Executive Directors (Detail) Details 36 false false R37.htm 138 - Disclosure - Acquisition - Additional Information (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureAcquisitionAdditionalInformation Acquisition - Additional Information (Detail) Details 37 false false R38.htm 139 - Disclosure - Inventory - Schedule of Inventory (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureInventoryScheduleOfInventory Inventory - Schedule of Inventory (Detail) Details 38 false false R39.htm 140 - Disclosure - Other Intangible Assets - Net Licenses and Other Intangible Assets (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureOtherIntangibleAssetsNetLicensesAndOtherIntangibleAssets Other Intangible Assets - Net Licenses and Other Intangible Assets (Detail) Details 39 false false R40.htm 141 - Disclosure - Other Intangible Assets - Additional Information (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureOtherIntangibleAssetsAdditionalInformation Other Intangible Assets - Additional Information (Detail) Details 40 false false R41.htm 142 - Disclosure - Other Intangible Assets - Amortization Expense (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureOtherIntangibleAssetsAmortizationExpense Other Intangible Assets - Amortization Expense (Detail) Details 41 false false R42.htm 143 - Disclosure - Notes Payable - Additional Information (Detail) Notes http://www.authentidate.com/taxonomy/role/DisclosureNotesPayableAdditionalInformation Notes Payable - Additional Information (Detail) Details 42 false false R43.htm 144 - Disclosure - Notes Payable - Schedule of Notes and Unamortized Debt Discount (Detail) Notes http://www.authentidate.com/taxonomy/role/DisclosureNotesPayableScheduleOfNotesAndUnamortizedDebtDiscount Notes Payable - Schedule of Notes and Unamortized Debt Discount (Detail) Details 43 false false R44.htm 145 - Disclosure - Preferred Stock - Additional Information (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosurePreferredStockAdditionalInformation Preferred Stock - Additional Information (Detail) Details 44 false false R45.htm 146 - Disclosure - Shareholder's Equity - Changes in Shareholders' Equity (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureShareholdersEquityChangesInShareholdersEquity Shareholder's Equity - Changes in Shareholders' Equity (Detail) Details 45 false false R46.htm 147 - Disclosure - Shareholder's Equity - Additional Information (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureShareholdersEquityAdditionalInformation Shareholder's Equity - Additional Information (Detail) Details 46 false false R47.htm 148 - Disclosure - Commitments and Contingencies - Additional Information (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureCommitmentsAndContingenciesAdditionalInformation Commitments and Contingencies - Additional Information (Detail) Details 47 false false R48.htm 149 - Disclosure - Other Expense - Summary of Other Expense (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureOtherExpenseSummaryOfOtherExpense Other Expense - Summary of Other Expense (Detail) Details 48 false false R49.htm 150 - Disclosure - Fair Value Measurements - Assets and Liabilities Subject To Fair Value Measurements (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureFairValueMeasurementsAssetsAndLiabilitiesSubjectToFairValueMeasurements Fair Value Measurements - Assets and Liabilities Subject To Fair Value Measurements (Detail) Details 49 false false R50.htm 151 - Disclosure - Fair Value Measurements - Additional Information (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureFairValueMeasurementsAdditionalInformation Fair Value Measurements - Additional Information (Detail) Details 50 false false R51.htm 152 - Disclosure - Common Stock Warrants - Additional Information (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureCommonStockWarrantsAdditionalInformation Common Stock Warrants - Additional Information (Detail) Details 51 false false R52.htm 153 - Disclosure - Common Stock Warrants - Schedule of Common Stock Warrant Activity (Detail) Sheet http://www.authentidate.com/taxonomy/role/DisclosureCommonStockWarrantsScheduleOfCommonStockWarrantActivity Common Stock Warrants - Schedule of Common Stock Warrant Activity (Detail) Details 52 false false All Reports Book All Reports adat-20151231.xml adat-20151231.xsd adat-20151231_cal.xml adat-20151231_def.xml adat-20151231_lab.xml adat-20151231_pre.xml true true ZIP 69 0001193125-16-471686-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001193125-16-471686-xbrl.zip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�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

V:0;=KUDFW M:Y2CR"9L_;AL*O8M^))&7'*;XX.)WK[)WY$'&TM9\PUG=Z3BC3:A;/IU)C$) M"PSL$O3\+Z<"&#R3EF-'UW?G26SGA--O[#^S-2_ M">FA 9P)]XX'6K%<<;Y-R:<@)OV$_#;_O$<\O0JU+O7V=$G*=;$_DL9&%!(Q M]AJ2O#B4(FLLJ6T:1@7'P#6,A)7N861)OW 947T+6?:25"5U+#K*;N.2 -^\ M+99]A M4([9HFJ ]=S9KYV':J0\,#;RH&OT#<,&&V]8W9ZH:9HNVCW)$G6KJQA61^FJ MLO%=H7+6K(\G:-SQ)FFG67$W?>:K&_TU# GY@"A6)(J_[G5Z=)612X.QH;_9 M;ER5-QUBD8P3K)J[DE\=LS.9_AYX\!H/UO!3L7O]V-".[%8WL-LZ1=^ W>FO MGM_YHTX7Y;:R4;DKYG:>^JK@L2PKQZHB_I-M;W:K*M]>1W4IY@%TW6SX"7N!X9U0C[8Z=Y#7TSAUU?% H+]FK?M?&MO&P"5N#UUN? M2*JDPDMD6S1U4P.J)4VT;+DG#DU9&0X,1;/-WG=EIPI%46KGFP:\04V!\I42 MC RDACZ7JZ$Z/4,VA:AWX\BFT@+-4(KQ_,/H.L6!B0HH+E=[1;)V/1Q1^$OG MR7$]]%N_!;D]%AZ9(6%$F7)1@DL/2(B*;-GE!+]-5H$E7\D3\9-]\GW[T-HQ M>IK2U_KBL(_MI-1>3^P87554NCVM:UG]H:%(*^J\@C^B%6U]-MS5*,?$C:M3 MT1VID+>(;%5'ET,N4/(93)J#AKKJ6;-I#XQ,^.K[[ MWS3_3P5Z42I+Y689Q7YF6TDHYO3 HPO)%)PZ]XDPAL L_3SYYKQ<5J#EAXO6 M!+J%A@*MW\AHZ@=>\/B:GN&(ZB#44HP6S2I6.I4.OT#D;WX(PG?_2\;H5J%R M?_81QS=-_YZ U$T!QIWPF[;XRCDRWR#@M(<(*U@/RS&JI*(\=SDPV NB..VV MC0@\ES6RI><^54W55V9D<=@K*WE$G' T15<.%-@+YBC8O2&4*B"P]+B3:M@K MJ_L6$BH%CMJ'ZMV0L[8X-?I*V>H!N%FS((S3Y>?S9.CZCC^B;0&BDYBBC8U! MS9XJ=?HB^&.ZJ)D#2;1-H!Q^,F0P0\.NIG_?@HR5IW?+X+=0B3O6OAN-:"E$ M2&9NLD=CB I(W<7HODE!,1Q&/ \8\3/QP9/R8!)TQC/7=Z,8_:HG4H>I7.H^ M*#1)G8]N[43,%GFO@"R>0J_7XR[6H#\PK+XIJ@.C"PLLMKH==I$+MJ0:EJ:H M766;K.65T^K;25@I2P'O:N2RH!^P)_?D146\Y>Q;,;ZTA8"UQ?;SI X^8>D) M"U.7UQ;:Q9#/M_!4A&JY)7HB*\>O1>?BR E!+;?L^>H':EG&D%-B6F[QKX_' MM#QQ:%D_66AYM^9WHMQ6E3J'EC.K1\4HK+8UR&O (T M=['0\DD)+H]3&LI*Q.L2H>7=:-UIR=_6G-U>W7N>-+)\4B*V1);75+2ZR/)I M22J?=2R]L4=D^5/@!\5;#EQC=Z/0ZFD#55,,45$4V#.8FB%V+%,2![8]L RS M(QD#[7LIE!R6<2KFBEDI(Z"Z /I)A5G>:;](Y^[Q\U-FZ4\OVBV)'ML\YG#" M"=,&IYVMY6F#-0-T]K3!:2DMCU467:#=T@8GBJ2?=/D_:21]>19I40NW/,5\ MT4E:6O=HK[2ZVTI"@=CLX& =EI=2QV9%3U?&?-(TR$EG7FD:1%%6SCN<+PUR M4@)+TR#VZAF'RV9!=B-ZM^!3N9I:1:(OG 39C>:=,@-;#*Q6U./+)4).2FZI M)Z]HVA9Z+Y,-.>F,+J]D,E=VEQ?/AFR@^\!LR!:!R[*^1>#GRH:<5,2EV1#9 M*M)ZEFS(24DKW: JTNI!H+)L2%7;M&H.E6\]17KRI"40CJF(RC$=\';8#:Z\2O[!7[%[6KL M3EP2"M%H2F;D7^^F<3S_^X\_/C\_MR,R:C\&3S_V/OS?=S\A 1;8<%/[YX_+ MQQ9OBL@C3O7L=[CR\A!Z8_?OY&7NN2,W_D@PYR&,W1E&.@+_7^^6.RZ,>=S' MP ]\Q:]I&\_.BQN]^XF64'X)@W$RBM>]^XB]]9\_;OS88G _%D;WSQ_S7/CG M?%&&R0B)G9 V8F$(#7(JHROG>\O.>?/R[?_,\?4S&> M1J1L$C=5I,5E$KM?W*H8Z>+4=#'NYJK?FH@+WEB-15QLB%NTN3,WBH+P%3M) M8".N(4CS2^#Z\3UZMO?N"X:4TH)];)"?+Q.^(6E7*]VF,:7LV$V-IT"-_0]M M)Y%JYQ8I]S^N0XS<_[A*$==F1;HT4_;J-U#C>7!))VV?<2YFZCU\R@'IK**IZ0!JO>V]AD4A+$"[=O>]8-KV\FW!)(&__^F]RL9%'+SU-)> MZ8=3'PLLF;OL":KB2J&=6EV8 N1:HF*^S12[&J8_D2M:[_7H UUB-N3[52)^REMWU63MV#+))E3#E#3R'&L^JQ=Z M]6?&=&?@8R>-HHJ7H$)4[SSNY"95M%%] RBK^5(M'HB^56%20+CF"_,KB1W7 M)^.LL//FQ+D-IK'&XOTU\!]A.S[#_?W2MUB%]*5]XZN+#&U6K10=*#/]:3'! MK2E6 2&VQHKTE7AX=ND+<.WU&P@JJ$ZI=[\W 671B,)M[P2O)0T7?JC[(=<_=G$,? M[7"H8!;$Z0A:5H3 MW,"/SK^#$ 48L6(\/*=!(S'-YRQW^/ W-T;TV@_^&)N? M)(Z7CRI.70(;R!!$]OCZ>3)Q1R2\386R;%67+'ZVXSKT^A-6:(+=1%>'ZS,W MD%R1#E77=T,RBH-;7> D535K71*T38Y9G.+69,-3F)8 M;RVKUN?H#Q+K%^"=']^N3"7%IL$J54*?2E--[7H,]>)XKSO"]_B/G<>04%_L M],=XO\)85B+ 'V&LLV3&58NJE@H7:GWNHU&JY;S!B$&?C#[0DU:_Y@6^I4V M@_CV#+^_IGT>#C@$LL\@-E>NY !49C ,%TL&Y[>785YHEHZHA/"[8=HOB-FH MU3L >$R;D7,TLRFI*Y$GKR&Y_P'/FNL [R&YT(U/+75"5[#:R_V M9N/ !X5TBIW54SZY0?@MZ,"?QWC+.::!I.XR#?"NFDP#U53J7:#$I\&QTP"< M8#X'> JP"3K?<,V3%5GG;NC%W%#88LCZ+NE.O*LR#:C3YHQ1NU,*6*YNNK;36Y:H&&_K%;NK*KV"7^MD/(%::8>YQNZJ MB">&9!7::^NJ+=7Z^.N6=MKWQ'?QJ"MMD'7^ZC@#1+4+XA/>59$T$?B>;TUN M;FL"[M4.=H3==4;-NQ9-NQRT7@T$*RLV;YYXO$]M[^13VQ6)49- D.DI&]HY MRM(TK=X^],;.4>@]LZ91GV>^^Y!$K)OB!Q^G)JX'N[:2.BI-J^^2D$SO.K4X MI2*ZJ:9)&KIMT[.0RQM.+TH7+#Y\HH"^F5VK M2D0<*JQQLN( 8/47$8?U:H"0%/ VKD!(&"T+_"N:1*RFQI8-Q:QU FG'6JFO M9$S(S'GPR!FKIBXG-UX+56LI\?;TC9 2;X7; .GP!K>UD8AF&G3M@?^:#0T] M+'[\!=[MA*/IZZ]8DU,TK),PFW&Q I*!)7G$:(C/?:O!89 M\@Z:31(6[XO9'$G5_"SN65L0UEIJESP"=C9:M:6&YONO-NKT^'%M3_?Z5*,/ MJN>42CNS4M'.JTU7JCT:GG*EJDJI:F*5JZ55W6R5FS9AJFH^G9.#>F8YU+Z% M]#D[-9]-#LN&JDT,)]8F<)=VOZA:1/PD4^-DQ4\RU5]$_"13 X3$3S+55#ZL M;HV"N2WE94J64>\NDEOJV XJ73NAKC LB<7B>)Y#'V=5%\.T9+W6ASYV+7.L MJ+;Q@J*I?77WA0NK+R&:Q@3WKB7B=C[)FKK>B$;KB/(.$<,XLK#0L7(L$NHKW CQ(/63;$['WX!(*[&E&9%G87EDRKUJU! M2WN^_N9'FSJ#HM@*+=N=1U)M ]B+24^V+4N2:NUUE$JO<"!F@P2)3_M$_W\D M#&Y!CHB6T$@Y'HN.T!P)\:[L5]B5_<(:=2T:=+YNZ^<66$TJ'"NF5;*SRCH. MWW.$3:O3*5/)KK(G@UVCZM^J:>5 TI<[49L"1%:F65D-2Y/IL"@P*L59="Q1I4P7D M"8YE7L6A_#V170^",9NR/' M^R6 U_J/T:_>Z*JWS2#K"A=@:5/:6-2*:5T@B'/G] )A%H;A M7;%DN=6[%JM7L;Y(*[C$_)1#=7)$G/HJY5B;U:M:6@W)*FS ==66:GT$;M=F M-6?>C4NP<;,JEU)9:?)M2VTOY^!+Z'[!$O)%\\9T8.MUR$@?HJF&0)39)-G[&XM8Z>(4AIBS+M:XYN)\&8?RMS,W:L)FK6CRRJ-B5(3F @%*G MV* ='#1-JW9C**I ],\8_B,.!$HV$_LZC]_S'ZGS^,SQ8?G\+?51_':FP^Z4:"A M)?WMOK_Z?/JGO\.?]GG-=Z#T>Y$8VF*#++B%3WT"(Q@Z<9!?Z][Z,&/DQJ?I M._O$A]GHE[QU R>7+UQ[])\_+@>=$=QB*O-3Z_\'4$L#!!0 ( ^$5DC# MR,&.W!( .'2 1 861A="TR,#$U,3(S,2YX A\()(2K+I M#5]F+**[T8VO 30:(/'E[R\+ASPQ(;GGGA\<'QX=$.9:GLW=V?G!MW%O,+Z\ MO3WX^_>__]V7/_1Z9#0B5Y[K,L=A*_*3Q1PFJ,_(A+YXKK=8D;$U9POZ%_)( M);.)YY*?+D9WY.3PF)"Y[R_/^OWGY^=#(>Q8R*'E+?JDUXLK^&>HRAGY='AR M\N5X+.Y3[ZS_@S$1Q^!\OB4C Y'AYI5?R1CSY5 O5A2=T4&CD-&R"7)B$DF MGIA]& F5RE@"+>C*\P/-ON?30T_,^E#%10.3W'@ MDYCGM,]=Z5/78AJ+P]U?#!Q8C&VN5Y)CB=0Z_OSY'_MAH49M@7?Z8I4FE\PZ MG'E/_:@0C3K-M845" %=KHPU*D7>#SE>F_%B-B@HYF OUKR8!4N*T>+N$Y-^ M,5=85FR92[DEB]E4$7(=Y[@DMXIYH*"$PU^*$A8HR?+X5,R8?T\73"ZIQ6JX M(8QV"RB]\<3BBDUIX$";_!I0AT\YLP\(]7W!'P.?I0@"=TWR/4KY0EW7\]6X MI7[CD^62NU,O^@D/L'.>"<]A$_!-@G]\&]V:-?6C(;B/U/TKSPI05^K:UT#E MKVY!OEBH6@\(M\\/C!2))K$N-IMRERN=CX^.28_$[/J?((J$LH@F[$L_*R$K M/("Y8NA^K_ZVJ&,%CF*\@]\1@QR?0P/5AE5Q;\#V0Q-LR7L&,FHS(S7QVIX)222>%,R7&+DS3%2Q6$7HU7!0&/)GYA6V,%8%<9+ M*N\YF<>,E@N6[&H9A1E_]7 M6;1N:?@Q<.T'S5IMI%TS7W%I.9X,!)NP%__"\:Q?-%]XQ4K-OO57#+P2+OAQ M0257#J17IL:&._YKP&V(RCJ':NA0UU2XW)W)!R;&G0;(CFNDUA0(=Y$X9D9=V(.3@>7WK2EZJ%+S")]4!7BJL>YMO68?:, MSUG/4*)Z2A;1J^M\I*&/7 22NTQ*:,Q'*$4%FTX,%449$3\^RB(^L&!0#U<' M'<@-0;YUG^ _3ZR:0FL48 ;T. MH(JN#LS&,MXS9">9B%5%1"8N2G@V0'9$$A8K$R9$,P> M^X!!/2#+>,U ?L@"F8@A2DX'94,H5>O-/<=F0EY#<.*OD+9I+ZTNS0SWQ\)0 M.13\)TE"T1WF#3&'F';!??7GP(55#FN2?TI7G(91!@ACB7" MEX9&4#M'F*50,6,.6A%ZH?EV_8%JA\8!> M3Z(9\UQF+(RO(WD=Z U!OZ%<_),Z@89(S;2768(9U%Q2"X41)8U\910?JCHZ M>!O">\^>!Y8ZB@0SWH, GL"U6#+3SF%MRF DUFDXB%@Z=;U@)Q49G>6D(!\6 M"\/]-->FPI9D8'M+W&'C+KD!8NJH(X*= VT1[7FNBLQ_I$+0+7;+*HHR.T$N MAQ9*#==Q));;P;WK7:\)ICSD=GM?D0PSP+D\6GH'C'P72ND.J[S15E@-1]A- M369WR>7HRK;%.L?9Y]9)#:^H(,8,>2Z;ETCL,'Z%_91:4%>59D8\E] KV5OI M\-_3)DN=0=\HP8QS+G67VG#IT'VU='T-O.O*-'M +K-7E+KO'.%54WTUG*&) M7+-#F--^G2?L-?]7 _DJ6*5Q7]'4LU.DDO]E69[H2BL&H>'4JIX&?&X(K$&G3_MQI\J M#1IU6,V>47SFK]@SNH'D50:2:^GS!6[T)&O#LF'@F^3N[,*AUB]C:PYUR.$2 M'S\(;D'!5\]F#L01 RF#A2J0-0>??6IB=LM<1K/:@)4HK"^"30,9OF\T(TKQ M7J0Y"54GD>Y$*:]B)$W]SNEW/7OB.C5L^8'E\R=8KWQS;8B+UL\?'.K*&T]< M+Y:.MV(,#\CN2?J>OE.JS:[=7&:=O,\K!;QD5_&.I( E4R7 M*3T)#,TDT51Y+NC:2Y0EB;:=%]?U8NU5PDH3]49ZL[_DLKB:O&Y"WAFJR48X M?GW.#AR&7R.)'F41-=*:TNGG?^<@.?*32<%Z#T^P' MN?QMN1]T@_P^45]XPH^^1!,E-:IA7L!G1KSJ>\Z(N"9\O6/;X5T/;[7M%AV! MJ=2Y-S.8$3:_]MSUY+T@NX["U%.8EK^Y-.P_S([/5.';#B:TJPLQ>T NS9KU M #W("\MP8MJ#*S&?/B!&7VP%V/1#7@:U5Z'7]*CN1U'K"M!U3?,:G 9D:]VC'+ MKKOO"FS#!PXJH5Z;WPQ_+AUG_$1"YP>[7;M%*Z$D;Z\_+%RT&1G,2.=2=>GC MLZGL?.9D;8=M/6R3O47]L&JTRL93(4?6 W8EUN@G M'W/YO++#M[UX>1\>R4MJ)U'U9.*5']SM7&H7+E5EPJC!:7:,7(+/X!C=)+&S M8"%SFKIRD%")SXQX+L%7? *[PWN/>*\3.?G">-^\ OR5Q)B](9<,+/,&/254 M1+/>[_\_'%4^<'DB^6#@1[X3,J+.0WW]O57PIOR03. MM?U8;"P@QYV^*$SY6Z;](JUB"7/!IN<'>$57+[[^Z&?@.'Q9.#&)SWVL13]Y MC8+D7PAUG(-^>RU/PUC!<& H,/PJ$?-.[';H(W,JF@RT!2;?H81W8FVVFU

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�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
/"7]^2CYXNRMULLBN%[LEODKV)AG%%"VV3$-,A<(N) MP#@%98$O*YW+.;-]PR)OFB/EMSOE[.%'.//&XM[<^=CC4$L%\6"6@A8H[+@1FN*6%/0DO6H.:^]?QR\ M-?"M=GTA4UOLDGT%D#!&5[\OH@@W)TZ")TT&DRI[]:ZVD[3:@.]@<#+PRB-+#STYY&M>NUXF=A ) +H'[="7&8*@0&*"<%CH&N M6E50P)9M+8%"U:\D8#C2'@P.?/I/6V KKM/6OV0:(%))U"_=&DZ<(E*2)2G6 M^]R:A5N-JCJGJ&H448VN68%6O8G@,<;^E+4>JBJ4@@'M+9F]-UXJ7GS$(O!+C%C/Z17*: M.GD?N-WR"5HXJEJ80H7078I>7U46QJM?V9+$S>:#1P])^VO91J/H2:,>7F&O MOBLWG(Y3/^=4V(TV*1V]SK[DNOCXB7S@=;V[GZK2A.J4O8SVKK>&]7FI,Y4] M7ZPWI/\_!! #:DPK1QJ^D14N( )5113C99 M/H!&CBZ%)WE"Y>4Z\L4$Y'(65B"KT4U%.*NWDA6HNPV#]8%VXVB)NLI[D*@[ M%D;9"6?SQ5*.NIRL;:@[46&&NELBZ+,;\4OF]B&M:8]?V=R.7L*R9Y?RT'\% MEJQR*[MN+1*%EM-R>.X6NZOGB&XU_16[V_CYL^N[3VS;Z?KZ4GZ:3N4UT\?K M%&12]+CE8KY<)-=EY501)XMRNH@0!KK+6;NR(WAEZX_K:=?8:=)XT*BRD3-] M+2":'?)3-9;F&/(9K[V5N_UKL%U[_E-TO5VIA!#I6W 11":2\IUHP_ER7@D@ M"564DK4B?NA1]3A\F%=5-7KHT?+36UW#H:$*F('+4&@ID&D ^S!=WAVNN MBR\]8C*Y+_!57HEK%[=R4<526,I=T"5REEV,>J0OIS[67J M1P\!^'3+*\'GL\6XXM6@UYZ?HLBQ9UMP=[G8;43>W?D65I$_66*F)0L;XDZ MR'8 $24]*%Q["C2L:5<[[6(8'MBY]43;D% $'>]:>&II%%2UCYZQL<3MVO/Q M58QWQ_.4VD>-CY%B.11]9CZ9TQ,>XS)4(DK*<%LR+7J(((]^I<00HP8R4NI0 MS.FBF)DALQXR^;!98P;XH;.^PDOT*-C0V+)2:CE+;^*JN ]LW=?)2HDQ84,9 M6(UKR<\"=GAM?7?W.V!#K;WM).ZTL>4O@R&&9E$RIO7SE2:4!+: M* CYT=$U8N1I5HD8 QNPI4=Y1Y B#-">*/]"B=J#MR;7E2.PUE#PF+S#:[S; MTSSP-O16[2 I>Q<,D1*!U'URM!Q* )F31HRV76C4HK@(C"C,]=XSO?=$[TBF M-PPX&WQ8CLTZL\%#D\D271SBYR"D_>*4/*'R$A@8CR51S\. ,85ET+]?.9D-JW' M%"=H#YZZ*%B+)4^J("2.RN[7A*&"46S!S\TACNB5-I[_U.+K%M\"1E)!%/6> M&8NY>/TC@U.!JCV8ZJQJ+;"">E4AT25PSB:('=NHARV !]I%MWE5ES\&N_3/ M9%!=51Y.)LNE?\/FE!4P0MNHE@8<\05MOJH$Y_>'"PE4ZE+\>?! ,%8Z_> MW'\ZD:T/,D(#BV91'3039WG_\\?1,%^2_SB17[T?(&>1 M_=U?I[__,$ S9\I^,YM-R[,R?C OS[Q0X*,/>,4VK]!X-* W8_)7_\_!QV@\ MY+\9($)BC]GQMRUHI\@:]Y>C-O]$0(BEQ_R3!BEIOQ1^BK#^PA&5-\TBNDD< M51Q,A_F!-TXU:PF4-PE*&]Z!WE&B76FGJ'1Z\4+AP&S24LZ&@[/JCGN$/26+ M:9KP>4'X$*B41(N?-#_M$XFA6GT[6K MY>1JQ:IJ&9H2UL&F,"N4V@!F)/5>:.WHUN676C?4?0D?-CI>BB1H<5%/7OO% M"*&,$GCUU^F*.>T5,S?NU;E9>:B3&@(&'\$*XW7TB:A#)T@N4?5F\P$_RA-, MZ0M&<2*30GE:M9S,TW.<"3%$ORE*R;'N880@%%[T*.A4%5P3(FC#&]:3Z5P< MNG[DKFCR 9PZ-GEB&4:U]K$'2K^X(3&PO-E1_4O@D$HE46_6O G15MTUO:U1G]8N!U[:S/D2G:S!G;A MO;LEPGW\Q\&+7]OX0?E%:/B5I%%>,QB-FT:V$%'"U#(+*_&I7'-= M<9^MH%(<5H")O^%PY47L46M!*O3M1J!6[0H-UN*]M0H>4GH<")A%&=KXYD($ MQ]*URO ([*Z; NZBYR",$9%G1Q_:D3\%X2OR*4M;\"5R1QFJ*K:"QA(%]X6_ M_NS&AY#@^V;SV0U_QS&5[QZOZ.\\K)*"JM$!0I^2<.JNZ^1EET6W92,C'0Q2 M/M1_[7.VH5FT(P+;R>1F2U2T(#G$:0A](!%5Q8F3E!/<'"3&7 ?&?U@"ET2"G.*I;2M)?' M6#P$[_&=2Q+W->7%-@\_I0M<]\P%HH?@#N_=U]O0([_=N]N+77"H[*+KH6E^ M?_ T@=4;L$Z'6>L(QI)N43UB%#*NW(GYCG2^O,CU9;VNZ2;O*SVJQIDCEW$W M7G]JTEC%($:W*=]CQ+DBRC8I6L@8HX0S?9+Q1AESQ+F#;&J:-%@Y+'9P+_)W M%B8!]TGUA*3"CJJ&#Z KVM*&YA_P"]X&K&M[>N-:70U%PSL T;)6(-5A?+%P MEI,L&E*2:)W3S,ITS( MS[^(X]![//"9-!FJZ#6P@1\3R;;TL2N?>#J.>AK=@]C=-DQH.JD_2]7?DE>! M)R5';G4T"RFJIVL@3*9D="7P%R]^_N@]/<=)A[KT<]ZQ=MPU V,[&@ #92L! MVR1ZHVS@3*>VE >B3!#CDO9IS+#!VC>"E2OV:8F1?99H''A[-( VV/Q M+U:,QIV@7QR=VUNOIZCUR7O!MX'GQ_003MM0:W>NV9>16D;6,TA# M^[)432!5MX8M(51KZ 0)F0]?\?8%GQ@GFXC !\<&"5NX\&A1B8ATBP1]I6 ? M.?]"[T/F7AS:%/BT&D >[3B;9(9>0&B!%D$Y:,Y 1HF#5/YK4 M=(IJEN_"'B!?K)_!%?5&/SQ:8Z^W"@28[LA'J+MU,O^[09AD3-4[T8Z'R583 M>Q?TKLF.TCLJTIOR[8I;%!VYK""8U]:>4B\^8=IS6Q[;GBP6BY+O@MXHV5D# M1TT#HQXL/V%^K":(%^,MO57AUB6#0NU%J8('3?ITA;NZ8RS3\KZ$"&)4H%W\ M1(6<=@H9\WBI.Y4<7ZP\M/\_Y ?LZ[*1FC> $'$DAK(GC6;SI0@:!7JP68PN M'05H4=,1 C<2-Y0!2&08BY"D/*A4WX%'4[O(/!F-Q\*AIN1KU@P[)^K9A"G+ M1B.I2RK@RLXQ*GK_6OQ+^R%+1 >S6"2P('$R/FV H6X.)GWXNCN_N?V^#CZ!TXG)0% M47:L^=P92_#"**+O"RI.5PBF\:!1D3=(H3U%F9):2(HT312E5]'V!+DH( M_P %-;T:,[P5U5MS*K 84W7.,M"4+&,#VAI&,.'#@*AJ&A4YVAU: $?CUZP?Y"V3\W^;!0%G*=R/)TL)O/4[_FK,+U&N@G. M.HT\4-HHK!'?G">7':+LNP4%(;WUXI'D=NY*GBL=/0;@O2EO]2Q\.#KR8O1K M2@0L;)^BB].$2-,N?>PU(MJOS-/ M\K!)' DE:%%UEK9R2PD-4$H*>$Z@0S,&&B5]C.&EUKU*&)'K#XF+GWUZL;6W M\'@.D0 UZD-&CG]--/].8D;J>"#9BD\ @YQFO M#W3 >W^(R-0^BBY6_SAXD9?4X17^]5!S'5!K,D9QUDXV]8G">#A+X<=9T/0G M98**7 ;H\;7X"_0K8P6&S#XMXFBWB#DL=P-#&>(=; N+?'KQ Y/E 7^+WQ.6 MOS?ZC> 5$$17Y5#.P<:3T:2*7DHP<45$:2)&%!RGI^I9P22_XHR6*_WLNSO: M#/F?;%6::/_!BU:R&PW,(U'NG&+422P%B[!TO?P6A_?/;HC?NY&WHL6 WO80 MXW5+\+6C!H++5B*VR W*[K; M1 =7.@I73$([;^=&LP/NG9 BC@3M[6MAD'C_>LFN0KW!BRV0A/]UL[O J>/)IZD>4 M\P+R7!2K1AF-O& BD3X%U&M!G*4H6B62H$04CKYWCU085)1F@')YZ(NY1(B+ MA)A,UL0M* M78YM!"P-$.?VPET1"S1_T341+]6F;9G[G'#6[3&O&QB*G5;-$ M2(/S0'K8[=R07;;-S?N^8M[TM"G+%-T8/P7AZYN*C8HSSAZ^%6R,_.1Z(3OF M=A%%.([([/G:3Y7HROO1>\OO)CXAL>$9!K M].D0$Q4N^#X(B\W)@-8JE&EA 1#)=,BM/D&;.X(I,!?@'9, Y2(D06V N!2H M*$:6<]@6Q*P_&+> M-F[8LA"FUPB5U:WN1@#(513=7)*(J!C2;ARWF!W'LMG($:SQ*'FW M/:-_;X9QTDN]K[T5NS*>S5=NXF<<5LUR'F!7G7ZT,B@L_*_\%S(Q#,+7I.=3 M2\PWO X"]'J9VBPH"JIE,^)9ERP+$:W3 I71.R-N!V;5'%@,5 4[P:*31#0QBW+MZ[Y_S9^Y=5_I[RZ^NN%: M;29^*GV06'&BT.KEZ.3K5,.';-\6%06@NXO%!Q,A$)/"EKF^43M6DHE^[6@^ M1FF"JCALZ?A4-D8R=G3]9L\.'%VL8N_%BU];YC:="5L4NYJE50;;<#H2;%K( MBTUX"X2$]P"EW"W,@,R8KE)'4K!/;IV#OZ:EQ\6_T6M+([0)PJS4AR][D&3C MW<=O>'4@KV+TP0OQBH#-DF6/4U'9)EHI?BE;PE0QB!9%I[O+//I&T6''?]J2N MB.[GB)7F;-W5[^^((D3A*(N#H;>B?_P-7>ACW%Y?FG7%T$]YY3\]MZHK;TH.)<>V$;+/8(CC%7>3V MKXCS8T>>!RAEB4A.P9G:&+SZM%9ETIB<[>*!/F&29666!)=NF)'$D0[6M2UD MM$V.F@A8$A0Z+KDZ2U%169%\&@3. >NG&(&?_'ZF*Q@1\GR>;!Q%0ELAW2H7 M4+$:"&AI$2QM'OXH:_!:?,(D['*VRGGM?)8V)T[>9AU"@!#35?[D!C'/7WE[ MER3/.]KR0*B1#6?MD3I1;<7'#X&/6DW% 4A&]:%+3(;']>,RW6P.M )"YN; MM)1%T1WF\]%H-/QM7/2&G!Q+?OOMF2F*/7IU&X'I)@U.>A5TNBK8-ZI5X44A MKF02F)%Y2V@^_07[.'2W%_[Z8KWS?(^VS*:KR/47B"J^;'0\5Y%(_3J_>3[4 M,\(#E)#FRTTEXK"WB_:AN5/2_*F@N5LB#CNFMG'@\G"K;#%[D5E_ 4X[&M;A MM.VM,K.I,VP-5^B;='HT!:1=-943* M7P8^F;S$M.":=8RLRZ:;7S.?53?*I)J@3?'_Q>'P2TF7YG@ MZPE?^>0#XBB^<^N7W_20!HT3W>56]-;E8D%$$R8>QPM$E#LB[!'CCZ@ *)< MI2(@*H,-.8HIVXF"F+VV:Q'[3!E0%"J/#3@:_CC\EQ9V,A](3X]>XKA[XE?0 M%*9##T?O"WG=+7D>JNG7=532M3B'R6BG]_1!!C/]BCLEQ=LH:R@BM0%J(> H6TIG/+G# M:XQW="NY>V11IP$48Y0%5!TT1S-GON31Y@..5J&W3[N.9GX99CQKXU )N(5W MCIY#^R"*Z/U*G%9$N=%%8/H&+X)%&^S21DC1C^CA&2=O/;N1Z!$4/[LQ6M,?L'$C(E9J1;TGV3 .^ 0)E#V],'*(3-G8GGT[,D:CFYKF ROK>/6 M<:!M9U28+3,JZ >%8*SRAM'M,*D8ZI6.H^&\A-,B!8:CH'+#L&S/[O;V1.Y_E/O('S2.80.EF81*M&N5O<3S--=Y\4CK/7 MGF8?)(?:$TF29N] 00',ECR*L) 1\&3O);''7FH/8_&C!_"5 HYNJY]5A.*E M\5=^%(=L,A2Q5BT/SZZ?GAE>K]E=I.Z67ONX#6@KY^CBD189K*0%[$#2G$/< M.TU%Y=)OQYF.M(7(Y&A,0>BD71&9"?J%+@:9Y*@@.OHU%1XJUSJ'3\6;-QYH MFI,= 88]MPL;4;1$: T?$"R8/S;K^]A>WZ>G$#^Y,=UK"#T_\E:\:[]". >1 MQW1 AU"R31GCPGA(3V5'F?!)GP(KHKK]WXMWWI=9$3S 0T:92H@'^YI_B"!_ MD!EE8N*1TYV^IK*@@3]O8H!_7T2T)/GRBU8I?'\H1#/44%X>6@WO$-_-E]J M],?X4@TE!&?SN=B@6R!JR: +;L5J 0/T)SV?X?873/M\X?7%"P[=)WR'=Z[G MDZSADI8ZD;GCP=T^X' '!AQ5^=[D<*RHO&H464R=H0,W/*?:H$0=E.F#"@HA MJM$;'+![^99@ SCTM[1@2._E@_[AA_B6XY'9(;_-)S^/%(!>)L?K.D!P5&#_ MY@;P7#?E\_?3Q7Q:')_Y.N>J&-/=\GIH5'ANG\1TE\5TS&.Z5XCI0;X<&B0Q M':>RTC:9O [*=#V[K=\!8FQEEWN"U.?9_2W8L)@UK0#,*K*B:&]O %326_5$SGCA+($&QR@?'-'7=.+C)A.? M]"&TI]J\N<&SAV\(,K!&^??68X4\:/LYWD$JF-D,%-\+_ANEL^GRA+32]L ZF]D0KR=.9)$ M0]4^+_/1W)D59D/O^I\-/64A-ID*;>B%?B]4ZC.[@9E*W:=\6W.2+[1O2D1\BQ]Z-)XU M'O-_$[.2(Z7:- $P?K0LDY7\R*1]:_.2DS[&\<2$1]Z#[]$$I/XLQOG/2B2Q MP6K&9WG M%#0 V;_A<]Z/_AI@[M/+UYM43O!]Y-9]=,GKO5KQ/G;#^*W8<5JQXWO\Y/E^ M@RG/?!;9NGMWR&73=L2KIGV2#1VYE;JZBK M6C>]6$SF8[,3ZS_*9%K_9S(ZDVZ8/8,U/3N[K\8/)318\Y:8GTG\!B>!;08, M S- Y2]\7N.P+*>P8DAN%.[-CLY-FBM7)BSGPP7P0!UFT[958=I&(O7NK0[: M>K\>[/@MGW3_0<9RO1]3/*R+C7SM;3#Z_N_8#:,?WOX KSH2F1_KE3S@K%9] ML[*HBR@Z[-(C'GM,"R4^>"_>&OMK>HFF[G4O9;[GL#JKJHQRVV?MJ/Z5ELSLSR=P]OS_/,0EMT:UG7;/5)SJI==)UF M=!BHO9"J'X;GT.JY40ME<([FCF,N+IKO*F6;J65+3XF!>)*49*>?24KT#).> MF@.VEF;+:A_IS:21?PNVA,R6)-JF$\DCSN>>2I;544;R?.'HZW[?S(=]: M.GF*^5D@+9CF$YDL!L(J_;/.*<50[SVK%'R9LX^>=U[T^Z<0TZZ_F!X>,Q4[ MA7S/-7**E%$&[G@^GO0>-ZF$B(J(4AG?2M@\W?;\W(ZZ@:P500]?3]?_;.<5:);I];>"QD9 M[4FP&M-S2)"5-%'. :<39ZQM68"(]DX:'-FJ:BJ?WNBXY.;VV<52PK/&5EI] MXO69H;G'1,3+=HLU>FK56J(AXEL M9[;.H-G6Y4LJSKBCJC)T>XY_Q:_P1F)?X>AH/SWAVK ^[WA8T4?Y>/5PNER: MBHRE ]P]]H"K[4]C[U>PL0N-O=:RM-<,1+SL>>@1?ZCS&H28W#>;B_7:HZ^X M6_9<='&(GX/0^V,/Q^A7+9SR\$U M&YLEX5?^*L2$$XJ?,?(SLT7<5N2G4JMG]\7UMNQ6VTT0LKS]? .I,N;UQ$^U MCW>68=-4L#SK$-D9JZ.YSL7:#.%O)1J>9E<6 R\%M[R\P4AG)+YIB&JZ2R"2 M<[ 73T\AVRNX\N/0\R-OQ4O*^N@-HVGD,F&,N&2@N#S[)[0A\G9B"(UU/F5/[2+GJ?7/[3X M)F=U\+9\]R3-+,J::3]XV\SP' [>-FJAO"Q(\#G2ED=G35Y+U4X*8#>445M@ MZFHQV'M+UEU[A:^6X[5JG^*L%@NJ*O6SJR?E0!K<;F2:>[G&>QT7#4R<9RIOF(N<0B$N%7'9&S4 M]QW>>L14O=$%XB.=^?18L6^A@7FSLB3G.:%65:]-H;OQ""SO['KVL_!^OH^] MD1DF?/0T;V_U\6H%0YG56>6Q&_Q5[U2%\-0"&B9A(AST=< MIK,[I*7-O!,>$<_W0%8S(O6FHF*#GV,0^Q2$&^S%!UJZX*_-A;1FOF<4X!J5 M4;_4;3S5=^H@"W<%^9#KK]]6^--M_&(P_"DA?MYA41GC.H.DVF=YDR$38'7T M-)G>4JC5LH(W<28];"8IA>$WNL9J\+LY?[P ;GHQ]O2O:45A+#L[G,F<]5KL MH]).QNK<"F$E>BAW2W*FXTFA /:=C@+8I^0PO8_XH4VTH?U:S[$$5HMU-9>^ MB1<7P<3<5%;J6O=QSC'F4%9 MG[^$0:2]L5<-IS/*X@7BMSCDONBAFO4OV1B2IN%,JO-,MD\V+PMP??;K(6GA M8V"Y$4:\5[ E@=U C-(Y0Y!9__S#^M'4AOWQ@QMCV?0!2HJS'0X:55-?T)TO M>UC&J0X5E14;]@BB0H-ERV?Q;6PK!R3.DO M1*M]V7,,WX4V/>6S)#TA1L[OC$*R5 E5@$]'TSYJX4J-K>PY=09O:>>H[9<= M# GL]>W:>[2-EPBM743G310]%:F^C*Z0>XU9;0-;4[&JR M2'^]'_781-#HT9(ZYCXB54\!_LS/Y!4T :@Z4>5^GH. CHJ$\60TUG?IN7AH M@*@7,3UFZ/L6;WTDT6>IMSZ^F"Z::?.1SO$$HUP_V=D?IZ>R(S3/C0>8*QZ\<[Q]G#WW!$U6,5G'A%?GP( MZ*\*)I TH^LIC>DNSQG-,#HKJ=Z$;-Y'#.=RIX7K3'(4!^S71P&^50](^Q?H M#7VPM&P]L^P+LZPMD1TRS.C,PD_[FF\SRO>Z)Z#,_DW%\)8W]XPGDQZ6B=1# M]CFWMNOG8_R1PW%_*^^MOM7;#+8 Z_0G"O6F K.6]='9=-Q##;IZN'Z31T1- M?KL_ZMX;N>XW)X:[5-]_G3*. 9+9[KT[K-J?0>FKJ<,%J\M05WJ&]J M^2ABA47[6*/7_+W/=W2I')WM=ZP0L#N[R%_501GS4V?6PW&B)(X7CA-9<60( MW- LN#X$,1F9Q*> 7AB;\X^RRGAFC5OTFUMS%Y>&%:/SOL90O_7+!U/55]G. MHKU+FT"KK=>+\C>R<2R2S1\,#DN-(ISY"-6DGVKR.)M.AHO>!ZLP6T%9%590 M2)3;G?? I?QWM1XIO>CB(5\C MG]+7M'+K.Y(IRO[O@1O4P*>;"=\ M_,?!BU^3*/DK)V,XWMEC$:>51:S9SCT!5*TV:;O:_[PB479#!Y]=]-J27:\0 M9Q&]NFC6XOJ%68LN"E'+V]/P&^BQ#OA=BI>F6=P3$M)S>6+-YI;Q672*["6* MZAF4.G^N,QVNC-PAHEN,\QJR>KEQ@E83]C-HO:&K04"_3?$VD#,>MOKTWO+ MA<_@'L"> JKFL:OO6U$L&;UJ^X@:&;A:2'!.8Y:Z6LJ 7TQG+4I1E8O$>>E9R&07A2@15(^%V-]@"@M,JP2:F [[2=KYG31 MS#@R1&XFQ$;%$%:@HZ$ 1OPT)$+:%EV,QM-:C #7HVC0K@XG5M26U+I<+5:@ M*SS(])+-Z"^W;A3=;%AB6S>>2)\WB1B9$.H;Q>0GCAE&@F9=?.H&.J#H4TJ]EJK#8#!1O>58+'>:*"8O%]AWPV] M0&665'H6 G5% =KX6UIWFKQNQV2HNS*.HC+&$2)R)B$D*KJ#8N#!?=Q**^[* M#T%X/>.L?N'E,ET$*$P'& EHA^^@Q_&T1JZ'<5\O.8W0R7-]8;P[6/W^'&S7 MY/OP)0;I]ZD\:-3+C[FK-Y9<3K+\*2?RKR@]V1K'H?=XB.E7H!TG;]V0?!3 M.QY/U)1=Q_B1WUC^:,%%C">JP^Y,?(^?/-_O6Z.8ML;K4Y=9WH"/=4C)7'&- M-][*$SJ=N8 EBP/EH"6T@!V!Z\I?;0_4[V^#D&7/!60_!%^(#6A_B&"[Y=?0 M8^(C<>/$4BL3T(!YBN3JN[S3^5@>; 06SJ!.5J]J M=\C0@<#Z<'.RS?54J%?DDNV#-#YNO-9<+HNB3\Y').6>)P7E!6II0M7[+HDH M[.G5K1+ C.G64/^M2T&GJX)F:KZ;X947=C>8Q([4Y$L0X[R\_ %_B]\3_K\K M#S6R]T$3"HE0RCFQX\PF-1,S2KYT\H)R0(R%-2F %A,MAZ#8-CW-<"O,/FXV M>!5[+_B#&Q]OBW6C 3\7KA=0T?46SG0Z' HFR)@/D*%@D, I'T0$,W[DNE<[ M2"?3@JB#,CZ(,K)BBJW3%M(DH?S]+9IYJ\&^9CJN8+Z>(I9HO[[V4?CXTVKO M>SE9+BPH(*=&G1;4+QPQ?J"?CB$ M=%> ;TK3M92HV-HAZ[-:EW>V(V1Z*M!*.O6IZWC6P[W;@@[!@/.)'BV7(SIK MG(/[:>F[Y!K[^(F,FLT%)'UZRZ2Q<['1F50G_%2 M,T8Y9ZLB7Q_&XN>42Y:X)\Q(]/^ ]L3Y<4B;X+#9CH7!HAUV%.)&"Q/;%D+$ M[0+_$@91E^!11\V2L%$CHC(&YOG%7,T!0Y9ET8Z?A*E]L4*;A9*ECR@./7:Y M.ZN C)#KKX\Z#_(^_V@3A"C"X8NW$H=0&\*& EY4 T:3G:T+%:?/KFKHV!(> M3LJ6)W/'40\,[)&TX62_]X*<%A!.MTGIZA/6**\8 ,"ZX_7L"$SKOZ5WKA=5 MKI\S6A'H3IQ+-1@1)+@='B/\CP/MK/%"_N\SIAU/9:XA?-9DD!()H+P3.I[/ M9DD@RN@@1@C]RDE!%52=KI;36BUC>*ISL!)FI%:P !=-;2DE3\-AHW4#Q]DH M.Q]V[$;PK2EUZ":&B"W-*>O=K08G\ TJJ_+4MZB4/@^+EI:-'$G87=3B!;9- MI1[]ZC!C0Z/*)M=KP UTLTHBD;?VW/#UWMUBA6:5TN<-(T"UU=^3.Q+ M%XXG04[K.B(XJYUI:2Z( M83D7\3Y9>*?%>_Y!UO1&_KS!85DJA/KVA+.<5F"7$D,)-9C169-R#%)_#2*V M[Q)LXJ_TYB,;-E<:/:XX0M<; P0P7DQ3A2M_[;UXZX.[KB&1V:YN640#-8#7HY[?4RAI Z%RNA0VH&*Y#QBQ<_W^$MO[[UV=L_ M!!_]V(M?:U=,VE*!1%.]:&W\,5E=*1*CC5$X.>#EE5[5=CJJ#89%-:>N1:F" M_4#P&[IKO'/#WZ/:C;'*8R81>,1;O3GF+%V&R4D ;X2=IHO30A=C6)$X4 D, M(JV[>WN$5S\^!2\_K;%''7U"?Z#^/2GX-_D58^OY3_>ON\?@^(-4_V[ HRM, MU1N4CYQI[LJTK(03,.O%)\KOJ,G?M^=*78.ZK%A%/:N"7[$?OW[8T4L_52 M%FA/")I>'NQ-\5%!<4X?)0S2XV09"T1Y@*X1]F8%%C0(F$8G*&]FR; #O/-% MP[;VTQB1;G%(>=QFE]?2CA]-8:CN)9C84R.1HLA8LFTVB*$<'#&L017T?>YJN=.44$26)OJ=$?T"!CPIT M83"F55F&-DHG0D&(MH08CA 1^["-Z4(9=6^T<;T0O; S13OLTM:JZ3UIF^R> M-%8<13MQT,[IK&X*83>DMVF ;OTK>G81FBKFA0%I1,]UXS6]"U[J&L5GC *P MP%C]8/_4F:5P2]Y'E 4KCKKX)1U\,E4*$)[]Y7V+8)U?X'/E)W]6&DO1%2QULQB9UVH)-=G,]W13:XF? MO[ Y3GSMN8_>UHM?+P\AO2].Y!RR1TW'/(DCW$GH+\5TOJJMSN'H-0../%&7/0HT'!W+H7R! M%2MY*PY'KX7H#9,P:U%I!*&2THATFEY.![U,CDTR[!R/34(K@(Q-V'MZCO'Z MX@6')-O]:L+?_W!VQYB:6^NCL1,CG:=)%0O M09Q.DT.7*2.4<$*<%3O1S)O5%=@-$&/(MCX2ED##J 'S."7SN(EY> <_T%'W M)"24AN?N5N102,QP30B3?Y-_D1]HFT?RC_\?4$L#!!0 ( ^$5DCW+#<> MRSH *ID! 5 861A="TR,#$U,3(S,5]P&UL[7U9D^,VEN[[1,Q_ MT*V)N#$3T;6EEVX[[)E0;M49-RN5H539W?/B8)*01)LBU0"9E?*OOP!W2EA) M4*! O72[E !XSH?M;#CGI_]YW023%P"1'X4_O_GX[L.;"0C=R//#U<]OOCR] MG3Y=W=V]^9___O=_^^G_O'T[F<\GUU$8@B N\D_7! Z,1@LG!>HS#:[":/ M$" 0QDZ,AYO<^^$?SPX"?YF0__4F^*=_7,[O)Q?O/DXFZSC>_OC^_=>O7]]! MZ!5COG.CS?O)V[?%]W[)*/MQ\OV[BXMWW];^,H^2T/MQ\DWMIRL(L@][F*8? M)Q:S#&K\ 5X[_)!@YS="88T1#^_ MJ7'X^@R#=Q%?^>9]T?#-O__;)&O\XROR&QV^?E,T__C^'Y_OG]PUV#AO M_1#%3N@V.I+!:%T__O###^_3OV:MD?\C2D>YC]P4)0D")\P6Y%]OBV9OR4]O M/UZ\_>;CNU?DO?EO\L&?8!2 .5A.4AI^C'=;\/,;Y&^V 7B3_[:&8/GS&P?/ M%D'^NX\76?__N([<9$-64>C=A+$?[^["900W*=5O)F3<+_.[!OE.$J]Q!Y], M?+J$XGQ!OB>MWW,'?-^5W#GN^=L37O. ?&.VO/5#/$F^$SQ&R">?N H'R-S*1?N23B"+G108C2+SPEFXT#=[,E_<\WK^0_P>7N"O.RBN"N(\>:B.@= MECYF6^5+QYOW&Q3[^*/ NW5\^(L3)( U#5\0%HTO \?] PMEF# TVY*?'Z'O MXC]\CCP0X"TY12C9I'] _:Z5/@D_XK:+(_>/C)ZI&_LO^"3_$GKX3*A^?PR< M$-U&\ 9_.-H!@#"Q#V17 #?!/4!VNT6P9[RU4JH1X*F+;\!,C.ICUPJ'U\C* M7?B":<(''-%ZO"0 1-3*?^K(!G=HC2S,,#WPCB@<*_\Y 'A3@1@]@/C>=\D9 M3E8$M4E']EI_MF_6^UB2"A_JG;U-!&/_S_HUW0MSE,]H9.TAB@%Z='8.^6 / M$R8>OR=FJLV>_HIWP9?0R; $WC5XCDFW* G;J5I=OZF1::P5+0&$P$MOHS[F M4.8+NL4&+*S@"Q;=X!LHWEVM\98 Z"X\_)..BU_Z6[TRV9O<+?$5C8QA 6KC MQ\0*0=;_583)Q'B&K@]ZN1"4/Z?[6LC/Y%)6K/^HXS[@CJ^1F5*5^ P<\N\, MTNP*(K86Y]D/,)P /27/OV-1=A%1>W1D61<5O0/3PU)6^)#F_8I5'7*R_^I MZ/3$G/1G^F6MNJ$/_UBH=OHYE?JJ'I-R*GC@75&8V4N;,)K!E1/F@B0^)U$4 M$%XR4VK=LEJST5>=*_86X#6^###]K6 Z(GE]XWGCP!#?-:45LR]@V-\QQN&" M"+OMCOKV7^N;V]J]NZQ;@>8@(*:VJPCAC5S:B;#$G_;J:]:[4C-PM'I907IH MZANYRP3Y(4 (4_B,_TH([/]TE?QHW[R7=K?^.>9^RB2?O2Q]B0_VSW/3<'6, M*19_<0!<]S3ALM_M_2;([5K]SC7K*X:XZ^?^XGZK;TZ;5KZ^YI'UE;ZY2S_7 ML(21MOVO6_GO#@:!7M:VZM?[1H-C-^Q_42A^O/\[C,2T+9S78US9G$_U;@') M_&N$@L(IFAM2CV#>4/KVH)#HY3QH0T'?J)0&V(J$WO1[_K>,Q;MX]R1$A\= M!N^];!FE3^GD2P M.0WY-]/G)0BX[U;1RWL/^._QS'Q+_H-,T;=O/WS,'Y?\!_[IMRG^M$<^?QLX MJV*XP'D&P<]O#O_^OG=ZKA)(WBO+E_SR M6S$M4\JT3)]1#!WRGJ!!E'R__G$LR,C0>030C[Q;_!NB ,EN>VPZR2S*45FU M/!Z-&3+L!4EO=SSZ%GA8#EGIG_NG)EOU5_B#D/B@/?#Z_\".0A:]W='HJZZ! MU'F!9DE,7@22UYIL8GF=CD7YK1\ 6+V>8)#:;'4LVN9@Y9,C+HP?G UM+5*; M]4_= CIDCIYVF^G\(F;0YTBX'P?QY<^LTWGGF+]]OT,=Y; M=^T'I;RPA-%&Y>XHJ(@HNWL200_ ]/'QQP\?WDRVA5WP/N.526!*70P@ FE+ MTM./(*;@YS<7;R8)PLQ%VRRLY+3@V9-O*GPNSOAP[K8*IV_..''EE JI;\]( M"23/"JOOSEA1[J4*G^_/^+"EB@JFOYYAXHC<%4Y_.^/$-RY44/UPAHJI:Y0H M8>'RC)*D+EF!UK=(_M/[?4/E$3LK>C?^.EI-R MK$DQV%\FM>%::XQ+!SVG&"?H[)^[.X1RXP'\A)#Z 6(XE:A3,:F:-3L%P;;8Q3*07J?EL35)/$ M1\1SBO^/A!F].$'J2XVO' AW^)9+?= ,+N3Z&N&*'3#$XH73PQ0'N>3!G8+] M9B9HO<[EGCEX 6$"^!N5T7@ =#]$H:M">JV]">J)-KCT0S\&]_X+D332]!73 M%03%RU(J$\)N9GC)P_&QC,&DN];$!(TU48Y!8KV%80KQ&78802HFF]YMB+P( M+ECI[H9YXY^5 ]$>#LF01W\(,DX]Y0@?<%I+$Q2G\9U2XCFMI6&*A?.<+:T?D1+)&H>IER(2SOZ *9YNU-2A7!VX/UWC,Z'D8W'>_1FJVP'H;F5YC: M*>KWCRGS<5<%K9TJ0O_0RD1L52C;J63TCS+?>-)&*5$1N0?\/O@QG9PUB'T7 MDVOB)14A):])?!UM\%Y@1(A1&AI^^86QF\$49B^]: MK>W&,!(#GA)Y+<&33 ^C+PGJ]%F6W-TH]%A/!'?Y/(=E5P_.[#)(VK'$4/"N ;#4=LPYK MMOF7+3;;_JRB#5J'PKBMV6"[HU2(^K:'F[9'B)XUT-+P4CF8I*Q#1Y&(E/+Y27%8(5]A6PTN_/"_C/@, MHPT&#;.-_!>0T?< ,(<+YY7M-&'V,.3W8=$C,(_)]#3#$<)4Y(&_3-KK;4Q1 M22+;\I>>['2C>\W,Y+_$$XWOPO00#;WIAH1"_)F5)Z23S>MA@H,BIJ50&2X= MY+N8L&L_2&*F^TG4RP0G?P=.$*^O,#4SN'+"'%3^:N?W,9/'DQP7Y>DN.&E8 MK8WD" 1Q1LX]OGH8]#;;F,ED&)*\,4Z<1B414O(#A$4QL[V1'($%*<6I)\IM MR&QOE'KA.J&U-)19;^G''$)K#0QES0-8_B9I2*[QH15$:08D_HKF]S'#17K> MLC N_VR2-L%&.VAF)@(@#;;\!$*\>P(B77@;/TS+0\58$N4O"\G.)OA: '<= M1D&TVCT!^.*[ /%O=79[HVY+>7VB\>RS>:W:GH>I)4I<==/V#$P"F;$9RKY_ MG-D>+: #D>ZLCU@H U*U&.IE0=\^&]C%?#A:!BV>\ 54*I+UMW**V'%]178 M_J9<^9AJ>H"Z/0\?OH3 LC+54>%806Q_XBT#C\#]8_O[;!F(*COK>-Y5D^S< MMT'T%5W[^/2M8,E#*_Y*1]ZD/-(F4Q=+"%E& M3Q-54[W?$Y3ER5Q$<^!&H>NGJ;4K_7P1$3:PRO7B8U0O=U\0\.["DH&*?E'1 MU3X^9:32;) .#KQ"R0(>T2;P;9,N2+ZE7+*S$;YJ0D49J1>NB@OUVD=9^D46 M9[+=SW5V3X:KWRX&Q->OX,-UKU?TX6^;I2%E' M+;^/"2X^.7Z(R!4.T Q?8N2V3GRTSBB[!L\LH4#. N ME4@^SPZS: M##8LOJNR*\I])+;2#.WW&P8WQ2&FL@#K?8;!12GCYYGGQ*&+L@,, M@[_'K !-L82HA6BD>94:3,NM2EYQ83$>$+M_(77D3^#R[*&S5&-'MQ$L#$LS M>!4X_D$"B^[C&9G)DN#LJ4WH%=>LF.-V8QB*OJ4IWJ4.)ZWCMQAHV/QFE4,2 M_%M^P."UV9EWZJ #PH%<#TC)MM-BH&'SVWW>90<=$ [J-KT6 PV;W^[S+COH M^94%,V[>V:568JP ^@3:T&,&T%-:FJ1X$4W=?R4^Q#):[(0KDF6)*]J)^PV" M&[S$O82L9D5N#OH9>H7A N"A6QAM2DD,/CD!EL>XU=DE.IKFAQ"#QSVAK/DE:Y$^>QXAUV, M5@_MT5/82$4O[86R/9KQ6(A+V&[;!4+^D$$=@A5Q>"[.B$O:_#N%5IY$WJ5C M 2T7-F=I,&;?( O\;K;';Q[M0I0,-[$]"O18>"N:?&TO/G244Z2;G\'V"%9U M=UFSY**,4[==B&M3PAL7B@W':[N8V#'#)^<1;?=B?O I0*SA6EJF\[04^S M^ QI]2ZG!FH+PU,&ZDUXFN>K1(!:TPO >FI3G9QVVDSUX"<1$%(!J;(8+;CJ MNT)Y&"E40:EBS1PAE.J!,!6T=K[CUP-LURC9"F4[,W*UCYZ52W5"84 MJIT%:3S9*%4Q[,=U9WLV2U6452REHZGUV&V7KU:DD10^ M)$@TB%"2I$MH[9.?*V"6KE.A'4ZV D_KMP)5Q&$$9?26Y65M@W MI:69B/7(_6,=!?AX0)D+Z2&*05:XB7<7 MGVT5G=+L'?;4\OY:XD-9 *;_ J[QEMVCM]T81E,]ZCP'A;[2@^AV._6&WD"E MGF^=](.3B%[O#T^9$\EV'>*(Z(KN-MM5#>U0M[RT1J..$)-+D9W_R@G<),CQ MW4O57V]G0ATI@S@>BZE(YXXA#K%:#Z$DI4 W8C8? NVG6T[S-!(--"B8OCA^ M0!Q&BZA6K3T_QE),9?B0&,4$I[\"?[7&BV&*SV%G!1Z2S3. LV6Z7FJEZ.46 M7,O!3%YTHE-!QC%CJ7*@ @WS6F@G\Y^2S[KU"I(Y5VPO@*4"7MNCRG99705# MA4)0(Q*X!V/LGQ+*R51@!:@*3[EY=8,$,TTL5.2!;U+H7@)\ M>OXL.)G1UV$:2IMU-E0Z6FF2#TA[5J"$YD>1E/"U>\MCHS" M;F_$CI1E0N$BWFQC-'5)_Q)E(]Q2*'Y5:I>=0;ZR FBS7J- <+(]WK0-:!SY MP'8[2!NX! *)]8DD6T"V=]+;7@F;K6XVRSQSQ _;XS+X$"G)G,+A5Q'< M&?$T6EJJFE0#P, [@="_LM_.2+G<5 M8R?F]1@0!UQ7+K^/%J](GKGF&KR (-J2K^3'&/TMCV#NE9;U+>K T?LN, M_RC 8ZX^@1! )R"Y<;V-'_KD3"2B-';-G"E(]1V[YTT?I+BA^U>!.7U1E'U M;'=Q]BK;29Q]XS/E]@NS]NO_F,;)0=K>AA/*_]6!W@)_A1=FWFBC18V]6OM@ M^42N7+#:S99+O*H@6X'EM#Z;PP9N#GN(TEQHP$M7$5J0QU[UOQ/&'J+XGR"N M#HTNAK%6W[,*O>S(O8U@_A-IQ\IS=&0B3.!1%0;3:$=D?H623 M569C("3=7"F?E'V>4AI922[6>"$) B+W-0W0D^?%+JB" - Y\4'D6.C,HJDM=. M3K"P#3D:89]?/$D$CX5;1[1TWPQ'//]M.N6IO'R"[)1G?7SI]!';R_B3_I'D MA60M0%-4&$/Z6OF4L9SH M)#\V\*X36*J%V7U5>VV*;EX!='W$OB+5!QH0O^FJU< N9QPCW";/"/PK(6$' M+T#PC)_>=@!4"[QMK-8#H9Q_C##;FZ!^XB3M8^($'-3I;0=!]:]^ MO$Z]@&3_K?WM(KH)8ZP=)L_P% MD!N"[==0ZJ^)XFBQCA+DA%[V61&![.9&'\C3O/C-0@=]B!*VQQ;V&7_SEPP5M M+ZS1#[X]N#AM?Z(UT(G@>>MM?P4VL"FAAMI9_\IL6'.@'C)E>Q;!?B:HQU(7TW\Y(=T6:YY*O@/[!TJ06 [NLV\9Q57;S MLTZM.$V]!(%5\W'6P8<@X^X_5ZGFYZR:FSK6\H#>:BI:J.0CO&/ZC4BO9N.L MG/<]%^W?C56S-%(-O4.$<9OZ)1]'JM'U _-A0(.E0A(_OE;@4A]+_) PEI># MT^%&;:&GG@!&W(AA;@R!*$C7]M75,FJYO-QIB4^JU6:G^:DK9KPD6M69W[?B M-\_2 M_SS9'F8W\$FA7XZVA]R=R*3LWQ&VA]WU-"T]B3['"\ ;M@Y6"WJ8NEC!QYQ\ MP1^&M=^);1/=1K"()4)8U:J;!*Y]B)&-X%GI:J5T,5X_%VBS'SSOM=">X[:8 M5[E>.?E-A^X/4SG1&OIPQET]4*IF66L8P+_1#Y;G:'T,^*HWSR MI P.S= YLLZ;7/65%XKSP9/:9X?L])._D_F=$T=K+T2P".$D1N*^LKS)?OW$ M]_$>;W- 7!Y^N+J*PO2<2IR@%XMB!TI.LF5VT'C8/-'4OCN.A)]VE#R2FNYNP9 M62;B97Z:B/Q48Y]A*^MI?;>GQT[T>[WLI#]O)[8&CN^.1)WBF:[,\K'-7!H) M'(0_A;>"^G2J2'UWB BQYO.(8 E)&.0)S/2V[F5SZ-60I9>($\7Y*"9#W62< M)-;<]!A'@5F! LVG;9T83&0M;TL5N2-W:"J--* :,BD'-M;,.=<%:5$7Q(YH MSW/YA4$D.!:DX+8W9?$Y:[3Q*= 6HDA)3*(F--@>K=\KU'W:"\Z9>_0Y$@8OVYH_]YBAWSKSP'&"5FS-K6%TJGJ*:+P85/6BVIA8^]4E4=,]U M2DM\GL9^;L2.KS1L36Y\TG,J'TW;+>UQ)N?=-IQ6$?VV5K.R95);/5&WM7"6+9.J,TZ[4^VNTYGK-O%P/8FO M!_4SV]0U.#5SG&G\^36%>L\R?MK8=ZF]>*%B%_DA@S9,G0^GH8&97MC4C!X5 M^BH6C#/Z?617J>9"Q1IQG@LM^0!JZ+>P))R6+<@T_I2L;!7Z5FN'II&7?YM< M38A=FIW4VXAS!:0>J_GL)^.U/>^]SHI1^VF$CY>>WG#F[:G[K\1'?CIMGN=G MI-V%RPANTD^KI#'@#S9:UO[ 2*R@.,A0^\\JV6;T4E)D89I#\?R5%YH^-\K\J M\-]B\('@RR,W">07H&N#[ MPO6SZS?TIIL(QOZ?Z3\7#C[KJ"^,=7]BB'S?1O !WY:W40)O\:7G!/\$#MR? MU2-^V.3ZKG$F*B[![:)EGFO7]6<_]#?)YN]1X&6FS?SRQA ^IH(7D62<8$X< M*M2I:SV6;DYJ@D=XA04L(G;(R3'J@_1(>P=Y[)A2&(.G1^"X:_R]&/P=.$&\ M_NR$3J;$W]]?L>N$R'0S6S"$FV>EHE M1?"Z]44"8=OM+3)B7U4JN=M!:;LMIBV6BE>_[54#E6#49E6Q/8V +*IM[0&V MO_;7<%!RI6';7^(KX:==[[?U3;W.W=W&"F9KW.T05BW+:F-K6*R*I8:>CDQ6 M-[1=J&^K+8MTH[&E%].*7NW<.&9^,,.NU;OP!;>+X*Y"M?S)1!7B\N/"_*,R M/4R8PDIZ;K':B#"HGZ+(0P\@GBWG>$KA"V#Y:V1Z&N7HX]\%(4ICNZE-3%RD9#7'X-Y_ =X^.5/7339) MFEVXKM4P#L@6 YFX #AD7NX^.[]'\"IPL,#'CO91&6%@'/)J6PJ[#8R7 _U= MGI^JZ\!XJE;/@[/AQ\VICC(P3MDBHJ#3L/CX@L R">[])OGJ M!P&^B_9AEE:IU,8PP65VXZ8Y""'(4C91@R;$[4U0_]EY)0Y%+L7--D:HS-R> M?"H;;4Q0^8BE#]'L-]N8H').GNAP9(_J[\:HXR)8;V$VOHASC '%.CM]VOW@.6>R:M-GYS%9.6+;C5-2;;/> M-?TZD'MB MJ^TV>0V('0H=MAOE.X"F+(/:'EZI80%R; ZV!U>V,BK18X#$^IOMDO.!+: . M5$,5'P42316RCL6> LR8=5,)"7O<"]J@&S4%G4RZ_ 3>O+&Y(T]13JZF MTG:+0&>H1+MW--FQZ(=L#1V2[B]$8&A1:(<43I<8=_**YA9W:!&.)AIQ6#$F M-'JS#.P>>:V!^30*\-VFX=7A]2QX,1$LYJ:4 VFWN\)BM,0D$54P\KQ\9J^ MM/HX1;AN6UFOP')-%'"5A_ C!QD\V4JX26C_SW.#3R G=M.0A MDO3Y['492#+PR/<;TL$P/XCH,.!8>X46^Z_&-),ZMV0KNQ>EB5^>#4BT78 M?#"S4.:K VZ"I30?H"LG"(!WN=L'464^%$;M;V;DB< "U"?-!F>('NA&>R>2 MQ((Z[&+D=(@V&_)](O9N >2^**2W-45UD4'6@3/X1+*Z>[\X04+N_30))X<' M44]-91/"%X#E5I(4 MEP8DCZ/P9%P[.[EUIS"9[-"!Q8,!S/-W M+\C_Q6IMGO+/3DPTLATQB4@1W^@P+/JO 7*AO^7D!93K:YXK8<8U9O,>;KY: MM8GEGI1Q#;)S5>(VE!K%//)SX(%-N@Q2TA2/*79O\YSQ,@W16IJG^$OH9$X, MX!5.&"GZ:?U,<)-5OR!U[Z,0D\7=T/2V6G;SS:N[)D\+:Z5A\J(QE$-?IH>1 MP$8,![J/$ )H%MZ\QIB6Q$=K,MV9FXX5S"CLIP7CM*))6#>G+Z+'!&(8$:@9 M3VA@RW;50N>]\Z<#$T1R(6<^7&+;"_%9?.]O?"Q5W?O.LQ_@E9C_N_CSVM^R M33'=!S62CC$*5UBHW)!%L, ?X]@_J$V'0#/W2&$TUK..$GR[P6CC(T0R:D.5I :X'RC0(JU Z9U_STZJ2YR[Q.@[=*(QA% 2D_%K:A,U1R_$TE^W] M##S?=8*\*"2Z#UR9JKW,7GJHBU \Q4O62S4R-CF49GJ^3R+N%I$,"?261A+( M0O\%S\QCX+B 2;2@L1FZJ\"\0[F'23^WDVD^.&&)PN:F:7]:8SUID'V31PJX>Q9-WIFC.$9/E),X\%1F2]FIDNAHI@ !"!VLM-Q&$+@.XFL) MC,8FZ?X2HBUP_:4//#[\S/9:;M;4@H+7IJ2YB]=<$STA5D3SS\@'S,ETTT^? M"E']4D*1;4"82FC_"V!4F6+D)"5=0QO97X46=QE!&'TE1AW6SJ*T-$JQA+&> MWG805/-/,49K(Y03NU\:P]9T2_)*$?+[&.6BN"!DJ&^T-4)U\HQ\SW?@KB96 M\"AGMM=3%.@K!F67GV&R=Z"XDQ;:OJ3!G_0#N$Z!]*G>;4 M/.5VS=)G>D7> MPM#-7*RF)I_:2[_R+#/^R[@GRO?UW]I9G$/PFK2>BD "8-M3L//?6]3!HD9 MC0$>^K,.-C1CJ@(F"-UM5+QA^TILS_JE@!)5G[ ]>Y<"/KR(:]M3<;6&B?]D MP/9$6ZUAJ[_PL3UIE@)(G9_SVYXBJ^6E2 OBZ)8,RPJHI-X/VEYQL.62:L;3 MV%Y 278Q"9/\V%Y;J>MA+\Z@4R$X6HE>.OM>A=5HI7M-T6L5DJ-5 *1>*54X MG25^^1P2%6JC50%:OVBML!N]R"_]1K;";+2R?RF%R&1;JO :O0[0/G=,!>)H M=00-3Y=*%"]&JT"T2ZU7 3=:O8&G>:GD<*V@'*U:P;*&,Y(?58B-6WWH_,"V M O*L7\AEV*D0&[=N(^+A"M/1*AIJB4+>I&5?B-6S-@QO)7 (U6(RB7E[A05X76:&5].EK[A< J MH,8@XQ\FR:V[Y153KU0O3,8@L2I!IY(9I8)Q#-J1$HS"="PE=M^-04;C8*?M MV7:%Z!@N#@ZB$H\X*ZQ&?G=T?%1:X7@^ 34D$2OA_'X,]W(C1SOUB54S 4*! MSH=QO-5CPE/+"%9 ,I+GBTQ(:*] "VPN1HX-)\5" =$W8X>(GCNC@.?;D<.C MD@JMP.R[D6-&3[A?H//]R-'A)CDL0/KKR$%BYLDH /K;R $2)&XJ8/IAY# Q M+:ZE0&VM1,TM2D1Y Y;[, X-?'8:J7A587B7V5B2I_ KT-!->*P/09C'15]!W=@;M2@(DW&#?V>EF/D@$?V 3.D#"TF.9 MDG1^[UE0O>Y2=?#:N6U$:#1K@%6[Q,Z0.W:Z__( T5 6L%I3=L;\2!0AD%#G MQR(F2A4\J)8?LYI@M:KLWYMR)158BVPL*TN^2$,SP1"]8%JUONR4D(2E%&KN M6GH=O HA.W40!81HE0HKX<'2[28#SW[C_8(C%4AVR@;<\@1<-_YH3FU^*82: MJL^IM5*%M]H96B-5=:&^G!BV7.L7$Z^N ^T\HAQ>UF,DJB+1P$E"ICH>8#^] MK^-UCXG-?M[_M0$C>(WQS0Q*- Z =))XC7O[^)0![]QH\SYV7J,PVNPR"JM\ M\O5$=T_N&G@) 2?]=1IZ]==5M;<*;PP4"N&GP0^R>1$T-E'@1.*Y&I,%?C\3 MW! 3K:"";J.)"1KK2UJP3JA-C93!R20!#JSU%B8H+ .%.30VVYCVC,L5S:"O M%MN3B?/V2..NK,]YIR(0+P ^1[; LK<9;*_^( N+RM-LI0H0I_386!:LYE5Z MO!(/A@7.QX*S3$8O(V_NPF4$-^G738B7>8*/E"ANX4)*0RV5T*K,K"1+:YG* M9AJD@Z0_9\D@JG2:#?I:#J*1]M0CWYQ>-HVTQOW2,EVM8'I^I(RC[/7^EVT4 M5J ID2LS7K\1*(:>B1/*S4ZHY*74WPE!D>!:KD7B,3=#871@$G M>5]8S[E$I5ZJJY9SH/FE^_WT#_6-SFIJ'MO#G."T*UFMKWFNLJ-DEL0H=D*2 M<%J*G\->/:R31FP[>XUDS6PSX##KO4,?H$OFS< KYR[5TPR.A+1K"4YD>ABM MPUW7%&1J<1^T-ZG%LO6AFO=2;OW97CV'#Y74PK:]+ Y=@JI%XU#.>EM]EC)2 M4#.82W!'VUJ;MQM03!'-5F.M+%QMK4VVUNYM@5M;ZY*M=7Q5=ZJ/13S:Y<:JK[E.$KMRMZ4\^*LK> K^JB:>4A ML+5VK\CP1\W]<6AFL39/G P^_ 5H?\8/H?F-4L&M8;H93>AO>L*02I.8YCRV M/JU)C.["PS^9B,E@I-_G6H/Y?4S8@V4J"J1X/Y-"O.1Y PA1.O=I33?D8YT2 MP)?,AH&EKSEPHU68CI*65V4"T?-GAXKE7G6&UN TQ]'BL5'^+,DC2W$I=1S, M3"1$:63B[M_#=F:C&'CA3*+6YU@%$9V,Q%Q47]XJ1Y?&E]C'#!9[]IKS' M(OV@X8G1^]N%INB+@Y$/]/Q&R 6G>4_T,&-F6$V-S60FGUPG$&_F3-I,1 CF7K8U)D)**F3[Q [SWMEE%U6&AZ)MV1KVH(R-P*ID:YB#,DXLB=S6( 8E MB7[$>4EDI=^FL^907N\4WK%-;W<\53"V!R6FU:E=;,9MHDT&G_5 !L*L#S]97 M,&T6X9X;Q=;7+WHDY=\NZ@BUT+DR6?DF/"T1L&O1)^L"G&1Q$J^Z8P:!#2[& M:3 99_KWU+,\152I?4INK56ZL2YW59-'9Y=65/WJ0"\CIDKPA&9X%N!B[83[ MXNM=F$EH5._3$3\_((]&%L^KP:7!&\B\89&;3*X%,N,PZ;,]0#&"T,7:HH;K@17\E[ZGG&:* =$+YF"%)VH1/>;/D&JS M2HWW4^EO)#BS^C[*GO(YU2_U?Z7LH[$%K/=]]SJ8JD_MQ21>3MZ8M].@3B&"51=L^P=_ M.YW);L0D#FA;5:;VH!W< ^V,:':O+($ T^ZM@MV0<6[M;KDHH]@)3D0]*I?- M9^"0?V<:)#Z?4CWRWG>>_2 -0GY*GG\';KR(J#U,*%'5BJ>0FQ/GS<(YB:,F ML1J97@R+?UXZR&=Z#?OYAEG%ICT'-,^E_O&-HG.Y*__S[SX^$Z"[WMV#%Q!P M'%B2G0WS54S'+DT5)\<.I8]1+JKS2J26<+L8Y>$NW"8Q2I?%-]SX$5X/HQSP M-W:ZD[^$T3,"\(5LZ)1\\C0-*P6!GUYD^RN+FS2I_^\:1;-^?1X>'W+(2(UA M)*JAFC+*CF2%-/ [:8F"R27B:CVP8U]834T*N;W(/ V?GF#B;'6$]B8N474T M@;1AK3?PV"C39)\"7.M"2(X+KIX#R'X7KIJ&085:3E*P-3)*2:6AXM>?W#H: MS#D*F.[3P?) OZ-K5650#5/TM=WCT$KEHBYKF@Y_O-#*09J*>WMM5$N%\1#% M@/[FAM?22%)HBDN/8W)C-A\*[20 C9_9FM_I',IS]FX,':41>#=.V'[^!:/I M!/Z?P".Q$R1T8A:2]PYY$AL&&Z)>1A],"^Z(1F9&P9ELNY0L=R?1RK4U9(;1 M2+A]F86%N]#6!T9'0U@Z?N=L=U$C(:IHMJ\2R5TX0 .]RMP^^"J,*H^I) ML,(CHOADEJ(K32DU"Z?X0 8O(+OZ'P%,3X#0!0L'KL !LSU]Y-B\7R<@#=4- MR!-(_5P+AS\^OU4ZMLZ\U88:S.[E6:DX'?J;AP*T>W])SVHD[&0J\16Y>$C* MXRV PDJ>AVW-4)V0-S!8P(QW#\X&<%P*U*;G.IZ\!$SA"@.V*4Q+'&RI38= M,]=%PVALID;FMLBN4@B_^^N5RXI\?Z,YD*2DR,IHV?:6L]WF)H]C1ZVEDW%M MT/4!="[)YH5ONTF]OTTLJY98GRJNQV-2I/QT*MUE%;;:3 :=GLR>[B'*-([3 M97;K'0YJ(-&%;^M#]!57DF SV^\WX>F_S8J?TOJ%]9$3PF(&O$5H.SH\I9]W M/HUE]? -#/N%FBD&-5MK)[:V9%2)9Z5=AL$@!2$G'_CU,W M]E](!=ZS59-)YV?G]PB2G8OR<))+ W0L\HT)\E,<)2B>>'JZ%,0)VDTZ@B2(Y)!C,TA[E1>DX'T5\! MT5.!-WT!T%F!.2!W=9IU-$PW:.($"ZRY&$-8EK[30!R@HKK>'E\-KYH1L"5) M&SC.M6-M. C+$G7&MC>B?KNP3,)F\\TZ(EG:Z;!H'/@>X*TQAHP]!(I."U76 MZA@$P$+B3NJ<.7!BZSH<[O46 FU-QT.4S^/!/->$3*T+2NZ+)[5*>"QM?9@. MHWT%R7W4$AP_$4L\N_)[?Q^T!+^:J)%%V1P/R<-/GS'5_NFARN],J[X&O=\0 M$2>*:/3QV1Z'HNC&KJ.LX"<^HTC)&K/N*I-A\F9NV[CB'XO(\WT]*!,=4IWN*=].!%YH%-NBD;?C7) MMKW"%9T'U12WN)[/4WQJ!W=3 &]Q4P]< !_7I+<^SEN8NZ6Y( M4Z))-+,]==XI3YGX/K4].5^/5Y89"W6GU'_#3U23EA);1+=^Z(0DT=$3_DYF MIIG!E1/Z?Z:?):E\HH",06 /O<<:2;,EI7-U_R\PA9=!Y/YA(J--)QX$61KT MC&TBYE3[S/8 $.TS)L\UK2NI?K3IGPS+BS:S3ZP;!Y*[%ST"F-X&1H^>?6)$ M:;58S8V4-V "*4?\,+:L: 8:5?38')^WTSXF:6PJ.F^JMMG/]LG"LK#OXN/^ MV@\2K$ND\(JV7-O13F5#MD9KM-NUD@72O)*EEC0' 0DBO(I0C Y4+V3TCI0F MN:[7B>3RCH.:.!JZ3EU'(!BCFCPJ]*R,^H'2&>/SP=(..7/2POEX.;A+-]L@ MV@&09V-F&.N"E)94YYP#-UJ%I#9ZYIU/V5.0331_;XA9:]/LS84U,<_>K"C" MM1YX*'C43:YULHDM-9MCA))-]EMK;#I\Q*ZKK,?];/L+V#XG0\]VL-U)?IP9 M4#V@C^<''YAP=YD@/P0(8<">\5_)UP?BNY&DC'Y_2'8V<7]22!/)G-PN)C>S M#"_UK2H[IZ/5M>["%_Q_$=P-9!-2Z!&L55X/$]N-BZ@T"\,0)25FH[[;^*R? M]Q@%%G/&BM/?:94<5E)VE4"RIA55/D'W$]J!\I",>#?&3KCRR;MBQ*11L4+4QS%R.8O!9AX^XI\F-VFK^FI>G!#3G78W;P2PPA0NI*U?,*L2,)A0%$ZD1_I MI,^_5M#9;C[6AJJ>37L\6_' KA^27W(@@F*3%)'SF-[82,P) T(9PH=QQ/&1 M;\1^L'@=K?S&0,1@K,:);J/JFDS+B:N)$I0NI[&A^%R/=E<]%IRF+D>SSP]. MI)8W"S(ZP:S6P\Z)S^1QM!LE!6(=!9A]E.%'V@Y$HCN5K2,/(N,>DNX_[.VE M@,-YPXDP,OBVYU2V715N= "J:FRC:("!;SP%)$:[\ZZBS<:/LR"VT"-Y(?QP M!7 C,!17EQ2%@GVI-H:);:LX#QW8',;V;36K]=VM"MAH=_A=B%N#A?,ZD/U, MH4<82<+N8<8MS4%4FH5A[$.)V6BZG7FLCW:/I6E[,FSP893^*_>)#&33-0G, M:1.FD.%W,I(;1@EH&;9$8QC-ZB(U:XUT+6KXG#>L#$[FE$Y;MFVEBJ7$/> Y MV@*213U<982V"?M0'.RT-G);Q$:[HV\='Z:Y\6JY78U>N32"!#N7V\7$ON6# M*L_$,':AS(S4]Z" ^_-6H^%B[K*T8"_&M0/(.*<<*:OC&*6UHS>B.]@!X %^GKALEJ(^2>B"TA:W M)FEOT5U8;^/C(;:!X2NY(BBGD0AC$$;P*L+SYLJ\=54:PL0)HF5NZ+QK&=KD M>=%F_NOGAQYL1WML$)-]GN\@KVS?W<=$$JBG6^'C1;X1TI3JDI]JKG.5GD;R MGG9Q00_*1:LT1^?]P@7H'!+1)22"H%^ .X-S4BY!(8&8ZGC#W(T:<#*\1W]Z M3Y@A*7GP/_X_4$L! A0#% @ #X162#Z4I0F&UL4$L! A0#% @ #X162,/( MP8[<$@ X=( !$ ( !R\H &%D870M,C Q-3$R,S$N>'-D M4$L! A0#% @ #X162"6+YVU+$ -^0 !4 ( !UMT M &%D870M,C Q-3$R,S%?8V%L+GAM;%!+ 0(4 Q0 ( ^$5DCK<6$E#"D M (/$ @ 5 " 53N !A9&%T+3(P,34Q,C,Q7V1E9BYX;6Q0 M2P$"% ,4 " /A%9(0";TT,QO #M@08 %0 @ &3%P$ M861A="TR,#$U,3(S,5]L86(N>&UL4$L! A0#% @ #X162/