12. Common Stock Warrants

As discussed more fully in Notes 20 and 21 of Notes to Consolidated Financial Statements, during fiscal 2010 the company issued warrants to purchase 85,000 shares of the company’s common stock to the placement agent for the registered direct offering completed by the company in fiscal 2010 and 200,000 warrants to an accredited investor in connection with a standby commitment for financing. These warrants are fully vested and have an exercise price of $2.50 and $2.40 per share, respectively. The fair value of these warrants, as determined under the Black Scholes Model, was charged to operations in fiscal 2010.

In August 2010, the company issued warrants to purchase 50,000 shares of the company’s common stock to a consultant for services. These warrants have an exercise price of $1.40 per share, vest in equal monthly installments over the initial twelve month service period ending July 31, 2011 and expire in July 2015. The fair value of these warrants, as determined under the Black Scholes Model, has been charged to operations as the warrants vested.

As discussed more fully in Note 20 of Notes to Consolidated Financial Statements, during fiscal 2011 the company issued warrants to purchase 3,125,000 shares of the company’s common stock to institutional and accredited investors in a private placement of company securities. The warrants are fully vested and have an exercise price of $1.40 per share.

As discussed more fully in Notes 8, 11 and 20 of Notes to Consolidated Financial Statements, during fiscal 2012 the company issued warrants to purchase shares the company’s common stock as follows: 3,022,388 warrants to accredited investors in connection with the issuance of senior secured notes, 825,000 warrants to the holders of Series C preferred stock in connection with the extension of the maturity date for such securities and 1,468,752 warrants to institutional and accredited investors in a registered direct offering. These warrants are fully vested and have exercise prices of $1.34, $1.60 and $2.00, respectively.

All of the outstanding warrants are exercisable. A schedule of common stock warrant activity is as follows (in thousands, except per share and average life data):


	Number of Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding, June 30, 2009		75		$	0.78
Warrants issued		1,985			2.06
Warrants exercised		(350	)		2.00
Warrants expired		(1,350	)		2.00

Outstanding, June 30, 2010		360			2.08
Warrants issued		3,175			1.40
Warrants exercised		(125	)		1.40

Outstanding, June 30, 2011		3,410			1.48
Warrants issued		5,316			1.56
Warrants exercised		(75	)		0.78

Outstanding, June 30, 2012		8,651		$	1.53		3.97	$	—