Stockholders' Equity

9 Months Ended

Mar. 31, 2014

Stockholders' Equity [Abstract]

Stockholders' Equity

5. Stockholders’ Equity

Common Stock

On January 30, 2014, the Company completed a private placement of the sale of 3,336,800 shares of its common stock at $2.00 per share, together with warrants to purchase up to an aggregate of 1,668,400 shares of common stock.  The warrants may be exercised by the holders at a price of $2.81 per share starting July 30, 2014 continuing through January 29, 2019.  Net proceeds after expenses from the offering were approximately $5.9 million.

Warrants

The following is a summary of warrant activity during the nine months ended March 31, 2014:

	Number of Shares		Weighted Average Exercise Price Per Share
Balance at June 30, 2013		1,125,000	$	2.64
Warrants granted		1,729,420	$	2.79
Outstanding at March 31, 2014		2,854,420	$	2.73
Exercisable at March 31, 2014		1,186,020	$	2.61

Stock Based Compensation

We recorded stock-based compensation of $178,000 and $462,000 for the three and nine months ended March 31, 2014, and $138,000 and $410,000 for the three and nine months ended March 31, 2013.

The following is a summary of option activity for our stock option plans:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding at June 30, 2013		1,063,750		$	2.36
Granted		419,735		$	2.08
Exercised		(9,375	)	$	2.32
Forfeited		(23,625	)	$	2.28
Expired		(191,250	)	$	3.43
Outstanding at March 31, 2014		1,259,235		$	2.11		2.7	$	231,000
Vested and Expected to Vest at March 31, 2014		1,067,000		$	2.05		2.4	$	195,000
Exercisable at March 31, 2014		587,007		$	2.40		1.5	$	85,000

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the 327,500 options that were in the money at March 31, 2014.  During the nine months ended March 31, 2014, the aggregate intrinsic value of options exercised under the Company’s stock option plans was $4,000.  There were no options exercised during the nine months ended March 31, 2013.

Common Stock Restricted Awards

The following is a summary of restricted stock activity during the nine months ended March 31, 2014:

				Weighted Average
	Number of Shares			Grant Date Fair Value
Balance at June 30, 2013		390,003		$	1.81
Granted		452,500		$	2.18
Vested		(181,665	)	$	1.84
Forfeited		(33,334	)	$	1.81
Outstanding at March 31, 2014		627,504		$	2.07

In connection with the vesting of the restricted stock awards, the election was made by some of the employees to satisfy the applicable federal income tax withholding obligation by a net share settlement, pursuant to which the Company withheld 57,680 shares and used the deemed proceeds from those shares to pay the income tax withholding.  The net share settlement is deemed to be a repurchase by the Company of its common stock.