SHAREHOLDERS' EQUITY

12 Months Ended

Jun. 30, 2014

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

7. SHAREHOLDERS’ EQUITY

Common Stock issuances

Year ended June 30, 2014

For exercise of options:

There were no options exercised during the year ended June 30, 2014.

For exercise of warrants:

There were no warrants exercised during the year ended June 30, 2014.

Year ended June 30, 2013

For exercise of options:

During the year ended June 30, 2013, 95,000 options were exercised for cash at an exercise price of $3.92 for total gross proceeds of $0.4 million.

For exercise of warrants:

There were no warrants exercised during the year ended June 30, 2013.

Shares Issued in Severance Agreement:

On May 16, 2013, we issued 84,375 shares of our common stock with a fair value of $0.4 million to a former employee as part of a severance agreement. Sale of the shares was restricted for the first 6 months after which 37,500 of the shares issued were to be eligible to be sold. The remaining 46,875 shares were to become eligible to be sold 12 months from the date the shares were issued, however on November 13, 2013, the company and the former employee agreed to an indefinite stop order on the trading of all of these shares until a mutually agreed upon release date, if any.

Year ended June 30, 2012

For cash:

On February 2, 2012, we closed the sale of 1,250,000 shares of our common stock and warrants to purchase 1,250,000 shares of our common stock in a registered direct public offering. The net proceeds to us from the offering were approximately $28,162,000. The warrants had an exercise price of $28.00 per share, became exercisable in August 2012, and expired in April 2013.

For exercise of options:

During the year ended June 30, 2012, 100,625 options were exercised for total gross proceeds of $670,000. The options were exercised at prices ranging from $2.48 to $16.00.

For exercise of warrants:

During the year ended June 30, 2012, we issued 42,526 shares of common stock upon the cashless exercise of warrants to purchase 53,750 shares of common stock.