Stockholders' Equity

12 Months Ended

Jun. 30, 2013

Stockholders' equity:

Stockholders' Equity

7.   Stockholders' Equity

Preferred stock—The Company's preferred stock consists of the following:

Authorized 5,000,000 shares of Series D preferred stock, $.01 par value. The stockholders of Series D preferred stock are entitled to one vote for each share held.

Common stock—The Company's common stock consists of the following:

Authorized 40,000,000 shares of Class A common stock, $.01 par value. The stockholders of Class A common stock are entitled to one vote for each share held.

In June 2012, the Company executed a Securities Purchase Agreement with nineteen institutional and private investors with respect to a private placement of an aggregate of 1,943,852 shares of our Class A common stock, at $1.02 per share and warrants to purchase 1,457,892 shares of our Common Stock at an initial exercise price of $1.32 per share (subsequently adjusted to $1.26). The warrants are exercisable for a period of five years beginning on December 11, 2012. We received aggregate gross cash proceeds from the issuance of the Common Stock (exclusive of proceeds from any future exercise of the warrants) in the amount $1,982,727.

Warrants

Warrants shares outstanding at June 30, 2013 equal 3,756,771 and include:

● a warrant to purchase up to 100,000 shares of Class A common stock at $3.20 per share at any time through September 29, 2013 issued to Robert Ripp on September 29, 2003 issued in connection with his providing a line of credit to the Company;

● warrants to purchase up to 605,771 shares of Class A common stock at $1.68 per share and warrants to purchase up to 332,843 shares of Class A common stock at $1.89 at any time through August 1, 2013 issued in connection with the sale of convertible debentures in fiscal 2009;

● warrants to purchase up to 332,102 shares of Class A common stock at $0.87 per share at any time through December 31, 2013 issued in connection with the conversion of 25% of the convertible debentures in fiscal 2009;

● warrants to purchase up to 582,229 shares of Class A common stock at $1.73 per share at any time through February 19, 2015 issued in connection with a private placement financing in fiscal 2010;

● warrants to purchase up to 101,549 shares of Class A common stock at $2.48 per share at any time through October 8, 2015 issued in connection with a private placement financing in fiscal 2010;

● warrants to purchase up to 1,652,277 shares of Class A common stock at $1.26 per share at any time through December 11, 2017 issued in connection with a private placement financing in fiscal 2012; and

● warrants to purchase up to 25,000 shares of Class A common stock at $1.03 per share at any time through December 29, 2015 and warrants to purchase up to 25,000 shares of Class A common stock at $0.95 per share at any time through April 30, 2016 issued in connection with an investor relations contract in fiscal 2012.

During July and August 2013 the Company received $1,304,678 in proceeds from the exercise of warrants. The Company issued 829,178 shares of common stock in connection with these exercises. The exercise prices ranged from $0.87 to $1.89 per share of common stock.