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.

During fiscal 2011, the company issued warrants to purchase 50,000 shares of the company’s common stock to a consultant for services. These warrants are fully vested and have an exercise price of $1.40 per share. The fair value of these warrants, as determined under the Black Scholes Model, has been charged to operations as the warrants vested during fiscal 2011. 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.

As discussed more fully in Notes 8 and 20 of Notes to Consolidated Financial Statements, during fiscal 2013 the company issued warrants to purchase shares the company’s common stock as follows: 2,558,139 warrants to accredited investors in connection with the issuance of senior secured notes, 2,197,674 warrants to accredited investors in connection with the extension of the maturity date of the senior secured notes issued in fiscal 2012, 6,650,000 warrants to accredited investors in connection with the sale of Series D preferred stock and 4,683,685 warrants to institutional and accredited investors in an underwritten offering. These warrants are fully vested and have exercise prices of $1.34, $1.34, $0.95 and $0.95, respectively. During fiscal 2013, the company also issued warrants to purchase 225,000 shares of the company’s common stock to a consultant for services. These warrants vested on a pro-rata basis through August 31, 2013 and have an exercise price of $1.34 per share. The fair value of these warrants, as determined by the Black Scholes Model, is being changed to operations over the twelve month term of the contract which expires on November 30, 2013.

Except for the warrants issued with the Series D preferred stock in June 2013 and 56,250 of the warrants issued to the consultant in fiscal 2013, 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, 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
Warrants issued		16,315			1.03

Outstanding, June 30, 2013		24,966		$	1.23		4.18	$	—