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Stock-Based Compensation and Warrants | 9 Months Ended
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Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation and Warrants | Note 8. Stock-Based Compensation and Warrants Stock Options As of March 31, 2019, the Company had outstanding stock options for 16.8 million shares under the Company’s stock options plans (the “Plans”), and approximately 9.2 million shares were available for future grants. As discussed in Note 13, on April 24, 2019 the Company’s stockholders voted to approve an increase in the authorized shares by 13.0 million shares whereby a total of 39.0 million shares are now authorized for grants under the Plans. The following table sets forth a summary of stock option activity under Plans for the nine months ended March 31, 2019 :
|  |  |  |  | Weighted |  |  | Weighted Average
|  | Number of |  |  | Average |  |  | Remaining
|  | Options |  |  | Exercise Price |  |  | Contractual Life
Outstanding, June 30, 2018 |  |  | 19,415,246 |  |  | $ | 1.55 |  |  | 7.8
Granted |  |  | 1,125,000 |  |  |  | 0.52 |  |  |
Forfeited |  |  | (3,672,100 | ) |  |  | 1.58 |  |  |
Outstanding, March 31, 2019 |  |  | 16,868,146 |  |  |  | 1.61 |  |  | 6.6
Exercisable, March 31, 2019 |  |  | 12,215,439 |  |  |  | 1.82 |  |  | 6.0
Effective July 1, 2018 , the Company adopted ASU 2016 - 09 to recognize forfeitures in the period that the forfeiture occurs rather than estimating the number of awards that are not expected to vest. The unrecognized stock-based compensation expense as of March 31, 2019 is $3,041,487 and this amount is expected to be recognized over a weighted average period of 1.1 years. Stock-based compensation expense is included in compensation and benefits under the following captions in the unaudited condensed consolidated statements of operations:
|  | Three Months |  |  | Nine Months |
|  | Ended March 31, |  |  | Ended March 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Research and development |  | $ | 117,594 |  |  | $ | 289,645 |  |  | $ | 308,266 |  |  | $ | 870,464 |
General and administrative |  |  | 578,453 |  |  |  | 1,184,070 |  |  |  | 2,081,147 |  |  |  | 3,305,029 |
Total |  | $ | 696,047 |  |  | $ | 1,473,715 |  |  | $ | 2,389,413 |  |  | $ | 4,175,493 |
The aggregate fair value of stock options granted for 1,125,000 shares of Common Stock for the nine months ended March 31, 2019 amounted to $445,189, or $0.40 per share as of the grant date. Fair value was computed using the Black-Scholes valuation model and will result in the recognition of compensation cost ratably over the vesting period of the stock options which approximates the requisite service period. For the nine months ended March 31, 2019, the fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option-pricing model, with the following weighted-average assumptions:
Expected volatility |  |  | 84 | %
Risk free interest rate |  |  | 2.83 | %
Expected term (years) |  |  | 7 |
Dividend yield |  |  | 0 | %
Warrants The Company has issued warrants in conjunction with various debt and equity financings and for services. For the nine months ended March 31, 2019, no warrants expired, and none were exercised. As discussed in Note 11, during the three months ended March 31, 2019, the Company modified one of the outstanding warrants held by a member of the Board of Directors which resulted in an increase in the number of shares subject to the warrant from 500,000 shares to 1,207,146 shares, and a decrease in the exercise price from $0.52 per share to $0.18 per share. Presented below is a summary of warrant activity for the nine months ended March 31, 2019:
|  |  |  |  | Weighted |  |  | Weighted Average
|  | Number of |  |  | Average |  |  | Remaining
|  | Warrants |  |  | Exercise Price |  |  | Contractual Life
Outstanding, June 30, 2018 |  |  | 45,635,217 |  |  | $ | 1.37 |  |  | 3.4
Warrants issued for consulting services |  |  | 46,872 |  |  |  | 1.00 |  |  |
Issuance of warrant modification |  |  | 1,207,146 |  |  |  | 0.18 |  |  |
Modified warrant replaced |  |  | (500,000 | ) |  |  | 0.52 |  |  |
Outstanding, March 31, 2019 |  |  | 46,389,235 |  |  |  | 1.35 |  |  | 2.6

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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