Stockholders' Equity

6 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders' Equity

7. Stockholders’ Equity

In January 2016, the Company sold 4,440,000 shares of its common stock in an underwritten public offering at a price of $4.00 per share for gross proceeds of $17.8 million. Underwriter discounts and commissions and other share issue costs are expected to approximate $1.4 million.

In December 2013, the Company entered into an at-the-market (“ATM”) program pursuant to which the Company may offer and sell shares of its common stock from time to time for an aggregate offering price of up to $19.2 million, of which approximately $17.6 million remains unsold. The Company pays the sales agent a commission of up to 3.0% of the gross proceeds from the sale of such shares. The Company’s ability to sell shares under the ATM program is subject to an Australian Securities Exchange (“ASX”) rule limiting the number of shares the Company may issue in any 12-month period without shareholder approval, as well as other applicable rules and regulations of ASX and the NASDAQ Global Market. During the three and six-month periods ended December 31, 2015 and 2014, the Company did not sell any shares under this program.

Warrants to Purchase Common Shares

During each of the six-month periods ended December 31, 2015 and 2014, a total of 1,176,105 warrants to purchase common shares were outstanding and exercisable at a weighted-average exercise price of $3.67. At December 31, 2015, the remaining term of these warrants ranged from 24 days to 1.6 years, representing a weighted average period of 0.9 years. As of January 24, 2016, 552,500 of these warrants at an exercise price of $5.00 expired.

Incentive Plan

The Company’s 2008 Incentive Plan (the “2008 Plan”) provides for the issuance of stock options and other stock awards to directors, employees and consultants. At December 31, 2015, a total of 7,091,255 shares of common stock were authorized for issuance under the 2008 Plan, of which 1,027,791 were available for grant of future awards. Shares issuable under the 2008 Plan are subject to an annual increase pursuant to the terms of the plan. The following table provides a reconciliation of stock option activity under the 2008 Plan for the six months ended December 31, 2015:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number of			Exercise		Contractual		Intrinsic
	Options			Price		Life		Value
						(in years)		(in thousands)
Outstanding at July 1, 2015		4,447,975		$	3.36
Granted		846,000			4.09
Exercised		(215,554	)		1.57
Outstanding at December 31, 2015		5,078,421		$	3.55		6.47	$	6,539
Outstanding at December 31, 2015— vested or unvested and expected to vest		4,987,765		$	3.55		6.43	$	6,463
Exercisable at December 31, 2015		3,305,234		$	3.30		5.23	$	5,117

During the six months ended December 31, 2015, the Company granted 736,000 options to employees with ratable annual vesting over 4 years and 110,000 options to non-executive directors with 1-year cliff vesting. All option grants have a 10-year term. The weighted-average grant date fair value of these options was $2.74 per share. A total of 626,605 options vested during the six months ended December 31, 2015. In determining the grant date fair value of options, the Company uses the Black-Scholes option pricing model. The Company calculated the Black-Scholes value of options awarded during the six months ended December 31, 2015 based on the following key assumptions:

Option life (in years)	5.50 – 6.25
Stock volatility	76% – 80%
Risk-free interest rate	1.83% – 1.97%
Expected dividends	0%

Stock-Based Compensation Expense

The Company’s statements of comprehensive (loss) income included total compensation expense from stock-based payment awards for the three and six months ended December 31, 2015 and 2014, as follows (in thousands):

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2015		2014		2015		2014
Compensation expense included in:
Research and development	$	196	$	198	$	341	$	310
General and administrative		287		219		547		416
	$	483	$	417	$	888	$	726

At December 31, 2015, there was approximately $3.0 million of unrecognized compensation expense related to unvested options under the 2008 Plan, which is expected to be recognized as expense over a weighted average period of approximately 1.8 years.