12. WARRANTS

All warrants outstanding as of June 30, 2017 were exercisable. The following table shows exercise prices and expiration dates for warrants outstanding as of June 30, 2017:


	Exercise
Warrants	Price		Expiration
Outstanding	Per Share		Date
23,978	$	5.00	March 29, 2021
23,978

The following table shows exercise prices and expiration dates for warrants outstanding as of June 30, 2016:


	Exercise
Warrants	Price		Expiration
Outstanding	Per Share		Date
2,376,675	$	2.61	September 18, 2016
45,000	$	2.10	December 31, 2017
23,978	$	5.00	March 29, 2021
2,445,653

Warrant activity for the years ended June 30, 2017, 2016, and 2015 was as follows:


		Warrants
Outstanding at June 30, 2015		4,309,000
Issued		23,978
Exercised		(1,887,325)
Expired		—
Outstanding at June 30, 2016		2,445,653
Issued		—
Exercised		(2,401,408)
Cancelled		(20,267)
Expired		—
Outstanding at June 30, 2017		23,978

On March 17, 2011, in conjunction with a private placement offering the Company issued warrants to purchase up to 4.3 million shares of Common Stock, exercisable at $2.6058 per share. The 4.3 million warrants were exercisable from September 17, 2011 through September 17, 2016. During the year ended June 30, 2017 and June 30, 2016, approximately 2.4 million and 1.9 million warrants were exercised and the Company received cash proceeds of $6.2 million and $4.9 million, respectively. Due to a change in control provision, the Company has recorded a liability of $0.0 million and $3.7 million at June 30, 2017 and 2016, respectively, for the estimated fair value of the warrants in its Consolidated Balance Sheet (see Note 11‑Fair Value of Financial Instruments). Period to period changes in the fair value of these warrants were reflected through income. As of June 30, 2017 all of these warrants have been exercised.

In conjunction with the Loan and Security agreement (Note 9 – Line of Credit) and as a condition of the Avid bank (“the Bank”) entering into the First Amendment, the Company issued to the Bank warrants to purchase up to 45 thousand shares of Common Stock of the Company. The warrants were exercisable at any time prior to December 31, 2017 at an exercise price of $2.10 per share. Upon issuance, the fair value of the warrants was $55 thousand using a Black Scholes model, which was recorded as prepaid interest and included in other assets on the Consolidated Balance Sheet, and was amortized as non-cash interest expense over the remaining term of the Line of Credit as amended in January 2013. During the year ended June 30, 2017, these options were converted into shares per the terms of the warrant agreement. As of June 30, 2017 all of these warrants have been exercised.

On March 29, 2016, the Company entered into a Loan and Security Agreement with a secondary bank (Note 9 – Line of Credit), providing a secured asset-based revolving line of credit in an amount of up to $12 million. In conjunction with the Loan and Security Agreement the company issued to the bank warrants to purchase up to 24 thousand shares of Common Stock of the Company. The warrants are exercisable at any time prior to March 29, 2021 at an exercise price of $5.00 per share. At the time of issuance the fair value of the warrants was estimated at $52 thousand using a Black Scholes model. This was recorded as a contra-debt item and is included in the line of credit on the Consolidated Balance Sheet, and is being amortized as a non-cash interest expense over the remaining term of the Line of Credit. Non-cash interest expense of $39 thousand and $13 thousand has been recognized for the year ending June 30, 2017 and 2016, respectively related to this warrant. As of June 30, 2017 all of the non-cash interest expense has been fully amortized.