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Other Liabilities
9 Months Ended
Mar. 31, 2012
Other Liabilities [Abstract]  
Other Liabilities

7. OTHER LIABILITIES:

During the year ended June 30, 2011, the Company entered into subscription agreements to sell 2011 UNITS for $2.50 each, with each 2011 UNIT consisting of one share (the "2011 Share") of the Company's restricted common stock and one warrant (the "2011 Warrant") to purchase one half of a common share for $3.00 per 2011 Share until December 31, 2016 (collectively the 2011 Shares and the 2011 Warrant are the 2011 UNITS. As of June 30, 2011, the Company had issued 306,000 2011 UNITS for total proceeds of $765,000, comprised of $565,000 in cash and $200,000 in subscriptions receivable, which were collected in July 2011. During the nine months ended March 31, 2012, the Company issued an additional 110,000 2011 UNITS for proceeds of $275,000, bringing the total proceeds from the sale of 2011 UNITS through March 31, 2012 to $1,040,000.

The 2011 UNIT holders, at their election, had the option to participate in the purchase of the Company's securities at the price of the Company's next private offering, by amending their subscription agreement to apply the purchase price to such purchase. In the event of such election, the 2011 Shares issued in the 2011 UNITS would be cancelled, but the 2011 UNIT holder retains the 2011 Warrants previously purchased.

The Company determined that the issuance of 2011 UNITS created a liability due to the option provision. The Company allocated the value of the 2011 Shares and the 2011 Warrants based upon their relative fair value of the total value of the issuances using the share price of the 2011Shares on the day each of the subscription agreements were entered into and the fair value of the 2011 Warrants, which was determined to be $0.20 per 2011 Warrant. As a result, $37,175 ($9,526 during the nine months ended March 31, 2012) was allocated to the 2011 Warrants, which was recorded as additional paid-in capital and $1,009,389 was allocated to the liability. During March 2012, the Company provided the 2011 UNIT holders the option to amend their existing subscription agreements to apply their original purchase price to the Company's 2012 UNIT offering. The Company's 2012 UNIT offering, for $2.50 each, consists of one share (the "2012 Share") of the Company's restricted common stock and one warrant (the "2012 Warrant") to purchase one half of a Share for $3.10 per Share until December 31, 2014 (collectively the 2012 Shares and the 2012 Warrants are the "2012 UNITS"). All of the 2011 UNIT holders, including Mr. Bassani and Mr. Smith, elected to amend their subscription agreements and as the 2011 UNIT and 2012 UNIT prices were both $2.50 per unit, the net effect of the amendments was the issuance of an additional 208,000 warrants to purchase shares at $3.10 per share until December 31, 2014. Mr. Bassani and Mr. Smith each received 30,000 additional warrants pursuant to their elections. The Company allocated the value of the 2012 Shares and the 2012 Warrants based upon their relative fair value of the total value of the issuances using the share price of the 2012 Shares on the day each of the subscription agreements were amended and the fair value of the 2012 Warrants, which was determined to be $0.10 per 2012 Warrant. As a result, $20,472 was allocated to the 2012 Warrants, which was recorded as interest expense and an increase in other liabilities to $1,029,861, was reclassified to additional paid in capital.