Note 12 - Shareholders' Equity

9 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

1 2 . Shareholders’ Equity

Warrants

On

October 3, 2017,

the Company entered into a Media Advertising Agreement with Al & J Media Inc. (“Al & J”). As part of the compensation for the services, Al & J received

250,000

warrants upon execution of the Agreement, which vested immediately, entitling Al & J to purchase shares of IsoRay common stock, exercisable on or before

October 3, 2020,

at an exercise price of

$0.54

each. These warrants, using the Black-Scholes model, resulted in approximately

$72,000

of share based compensation during the

nine

months ended

March 31, 2018.

On

December 29, 2017,

the Company notified Al & J of its decision to terminate the Media Advertising Agreement.

The key assumptions used in the Black-Scholes valuation model to calculate the fair value of the warrants are as follows:

	October 3,
	2017
Grant date fair value	$	0.2874
Options issued		250,000
Exercise price	$	0.54
Expected term (in years)		3
Risk-free rate		1.62	%
Volatility		81.66	%

The following table summarizes all warrants outstanding as of the beginning of the fiscal year, all activity related to warrants issued, cancelled, exercised or expired during the period and weighted average prices by category.

			Weighted average
	Warrants		exercise price
Outstanding as of June 30, 2017		-	$	-
Warrants issued		250,000	$	0.54
Outstanding as of March 31, 2018		250,000	$	0.54

The following table summarizes additional information about the Company’s common warrants outstanding as of

March 31, 2018:

Number of Warrants	Exercise Price¹		Expiration Date
250,000	$	0.54	October 2020

1

– Exercise prices have been rounded to the nearest whole cent.