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Stockholders' Equity
 12 Months Ended
Jun. 30, 2012
Stockholders' Equity
9. Stockholders’ Equity

Sales of Common Stock and Warrants

In August 2012, the Company completed a registered direct offering of 2,494,419 shares of its common stock and warrants to purchase 623,605 shares of its common stock to institutional investors for gross proceeds of $5.4 million. The shares and warrants were sold in units, each unit consisting of one share together with 0.25 of one warrant, at a negotiated price of $2.15 per unit. Each whole warrant has an exercise price of $2.50 per share and a five-year term, provided, however, that the warrants are not exercisable for a period of six months from date of issuance. Placement agent fees and other share issue costs approximated $700,000.

In January 2011, the Company completed a registered direct offering of 2,210,000 shares of its common stock and warrants to purchase 552,500 shares of its common stock to institutional investors for gross proceeds of $11.05 million. The shares and warrants were sold in units, each unit consisting of one share together with 0.25 of one warrant, at a negotiated price of $5.00 per unit. Each whole warrant has an exercise price of $5.00 per share and a five-year term. Placement agent fees and other share issue costs totaled $1.0 million.

Warrants to Purchase Common Shares

The following table provides a reconciliation of all US$ warrants for the years ended June 30, 2012 and 2011:

 

     Year Ended June 30,  
     2012      2011  
   Number of
Warrants		     Weighted
Average
Exercise
Price		      Number of
Warrants		      Weighted
Average
Exercise
Price		  

Balance at beginning of year

      7,614,748      $ 7.35         7,062,248       $ 7.53   

Issued

      —          —           552,500         5.00   

Expired

      (5,550,038 )      7.79         —           —     
  

 

 

    

 

 

     

 

 

     

 

 

  

Balance and exercisable at end of year

      2,064,710      $ 6.17         7,614,748       $ 7.35   
  

 

 

    

 

 

     

 

 

     

 

 

  

At June 30, 2012, the remaining lives of these outstanding warrants ranged from one week to 3.6 years, representing a weighted average term of 1.0 year.

 

The following table provides a reconciliation of all A$ warrants for the years ended June 30, 2012 and 2011:

 

     Year Ended June 30,  
     2012      2011  
   Number of
Warrants		      Weighted
Average
Exercise
Price
A$		      Number of
Warrants		     Weighted
Average
Exercise
Price
A$		  

Balance at beginning of year

      205,479         7.68         3,935,433        9.54   

Expired

      —           —           (3,729,954 )      9.65   
  

 

 

     

 

 

     

 

 

    

 

 

  

Balance and exercisable at end of year

      205,479         7.68         205,479        7.68   
  

 

 

     

 

 

     

 

 

    

 

 

  

The weighted average exercise price of these warrants translated to US$ was $7.80 at June 30, 2012 and $8.14 at June 30, 2011. These outstanding warrants expired on July 19, 2012.

Because the potential exercise of the A$-denominated warrants would result in a variable amount of proceeds in the Company’s functional currency, the fair value of the warrants was recorded as a derivative liability, subject to revaluation of the liability on a recurring basis through the statement of operations. As of June 30, 2012, the Company had no liability recorded.