15. Common Stock Warrants

During the three months ended September 30, 2015, the company issued warrants to purchase shares of its common stock as follows. The company issued 100,000 warrants to a consultant for services with an exercise price of $0.19 per share. These warrants have a five year life and, are exercisable beginning six months after the grant date. Under this consulting arrangement, the company may grant up to an additional 800,000 warrants to this consultant based on the achievement of performance targets. Unless such performance targets are achieved, no additional warrants would be issued under this arrangement. The fair value of these warrants, as determined by the Black Scholes Model, was charged to operations on the grant date. Further, as discussed more fully in Notes 7 of Notes to Condensed Consolidated Financial Statements, the company issued warrants to purchase 1,050,000 shares of the company’s common stock in connection with the issuance of promissory notes in September 2015.

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, 2015		33,669		$	0.84
Issued		1,150			0.29
Expired		(50	)		1.40

Outstanding, September 30, 2015		34,769			0.67		3.49	$	916

Exercisable, September 30, 2015		26,425		$	0.97		3.12	$	916