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COMMON STOCK WARRANTS AND OPTIONS | 12 Months Ended
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Jun. 30, 2012
Common Stock Warrants and Options [Abstract] |
COMMON STOCK WARRANTS AND OPTIONS | 12. COMMON STOCK WARRANTS AND OPTIONS Common Stock Warrant activity for the years ended June 30, 2012, 2011, and 2010 was as follows:
|  | Warrants |
Outstanding at June 30, 2009 |  |  | 3,030,863 |
Issued |  |  | 10,495,885 |
Exercised |  |  | - |
Expired |  |  | - |
Outstanding at June 30, 2010 |  |  | 13,526,748 |
Issued |  |  | 4,541,670 |
Exercised |  |  | (1,001,219 | )
Expired |  |  | (1,500,000 | )
Outstanding at June 30, 2011 |  |  | 15,567,199 |
Issued |  |  | - |
Exercised |  |  | (7,317 | )
Expired |  |  | (7,514,263 | )
Outstanding at June 30, 2012 |  |  | 8,045,619 |
All Common Stock warrants outstanding as of June 30, 2012 were exercisable. The following table shows exercise prices and expiration dates for warrants outstanding as of June 30, 2012:
|  |  |  | Exercise |  |  |
Warrants |  |  | Price |  |  | Expiration
Outstanding |  |  | Per Share |  |  | Date
| 291,432 |  |  | $ | 2.20 |  |  | August 6, 2012(1)
| 17,532 |  |  | $ | 7.70 |  |  | October 17, 2012
| 46,258 |  |  | $ | 1.13 |  |  | May 12, 2013
| 4,402 |  |  | $ | 1.13 |  |  | July 7, 2013
| 903,955 |  |  | $ | 5.90 |  |  | September 14, 2013
| 2,518,040 |  |  | $ | 1.13 |  |  | December 31, 2013
| 4,264,000 |  |  | $ | 2.6058 |  |  | September 18, 2016
| 8,045,619 |  |  |  |  |  |  |
(1) Expired unexercised on August 6, 2012.
In conjunction with an October 17, 2007 Securities Purchase Agreement, the Company issued warrants to purchase up to 17,532 shares of the Company’s Common Stock at $7.70 per share at any time through October 17, 2012 to the broker dealer who acted as the exclusive placement agent in the transaction. As of June 30, 2012 no warrants have been exercised under this agreement. In connection with a Securities Purchase Agreement with S.A.C. Capital Associates, LLC (“SAC”) entered into by the Company on March 14, 2007, the Company issued warrants to purchase 833,333 shares of Common Stock, exercisable at $6.40 per share. The warrant provided that if the Company would issue securities in the future at a purchase price that is less than the exercise price of the warrant, then the exercise price of the warrant would be reduced to such lower purchase price, provided, however, that such exercise price can never be lower than $5.90 which was the closing bid price of our shares on the day prior to the sale of our securities to SAC. The warrant also provides that in the event we issue securities at a purchase price less than the exercise price of the warrant, the number of shares issuable under the warrant shall be increased by that number of shares determined by multiplying the exercise price in effect immediately prior to such adjustment by the number of shares issuable under the warrant immediately prior to such adjustment and dividing the product thereof by the new exercise price of the warrant (which can never be less than $5.90). Under this formula, the maximum number shares would be issuable under the warrant would be 903,955. As of June 30, 2009, the original warrants to purchase 833,333 shares of Common Stock at $6.40 per share had changed to warrants to purchase 903,955 shares of Common Stock at $5.90 per share. In addition, for a period of five years, SAC has been granted the pre-emptive right to purchase that number of securities being offered for sale by the Company in order to maintain SAC’s pro-rata ownership of the Common Stock of the Company following the issuance of any such securities by the Company. The warrants are exercisable at any time through September 14, 2013 to the extent that such exercise would not result in the beneficial ownership by SAC and its affiliates of more than 9.99% of the number of shares outstanding immediately after giving effect to the issuance of shares upon exercise of the warrants. As of June 30, 2012 no warrants have been exercised under this agreement. The warrant contains a provision that if a Fundamental Transaction occurs, notably a change in control, within ninety days of the Fundamental Transaction the warrant holder may require the Company to pay the Black-Scholes calculated value of the then unexercised warrant to the warrant holder in cash. The fair value of the 903,955 warrants was estimated using the Black-Scholes model and applying an estimated fair value adjustment related to warrant exercise restrictions, and the Company recorded a warrant liability in its Consolidated Balance Sheet of $1,126 and $93,624 at June 30, 2012 and 2011, respectively (see Note 8). In conjunction with the 2009 Rights Offering (see Note 11), the Company issued warrants to purchase 7,285,792 shares of Common Stock, exercisable at $2.20 per share at any time prior to December 31, 2011. Additionally, the Company issued each of the two dealer managers warrants to purchase 145,716 shares of Common Stock that were exercisable at $2.20 per share at any time prior to August 6, 2012. The dealer manager warrants expired unexercised in August 2012. In conjunction with the 2010 Public Offering (see Note 11), the Company issued warrants to purchase 2,753,454 shares of Common Stock, exercisable at $1.13 per share at any time prior to December 31, 2013. Additionally, the Company issued the placement agent warrants to purchase 165,207 shares of Common Stock, exercisable at $1.13 per share at any time prior to May 12, 2013. In conjunction with the 2010 Rights Offering (see Note 11), the Company issued warrants to purchase 261,953 shares of Common Stock, exercisable at $1.13 per share at any time prior to December 31, 2013. Additionally, in conjunction with the 2010 Rights Offering the Company issued the placement agent warrants to purchase 15,717 shares of Common Stock at $1.13 per share at any time through July 7, 2013. In conjunction with the 2011 Private Placement Offering (see Note 11), the Company issued warrants to purchase 3,900,000 shares of Common Stock at an exercise price of $2.6058 per share. Additionally, the Company issued the placement agent warrants to purchase 364,000 shares of common stock at $2.6058 per share. The 4,264,000 warrants are exercisable from September 18, 2011 through September 18, 2016. The 3,900,000 warrants issued under the 2011 Private Placement Offering contain a provision that if a Fundamental Transaction occurs, notably a change in control, the warrant holder may require the Company to pay the Black-Scholes calculated value of the then unexercised warrant to the warrant holder in cash. The fair value of the warrants was estimated, and the Company recorded a warrant liability in its Consolidated Balance Sheet of $918,566 and $2,732,253 at June 30, 2012 and 2011, respectively (see Note 8). Prior to June 30, 2009 the Company’s Board of Directors granted options to employees and Board members to purchase shares of Common Stock at prices that were at or above fair market value on the dates the options were granted. The option term and vesting schedule were established by the contracts under which the options were granted. Common Stock Option activity during the years ended June 30, 2012, 2011, and 2010 was as follows:
|  |  |  |  |  |  |  | Weighted- |
|  |  |  |  | Exercise |  |  | Average |
|  | Options |  |  | Price |  |  | Exercise |
|  | Outstanding |  |  | Per Share |  |  | Price |
Outstanding and exercisable at June 30, 2009 |  |  | 160,000 |  |  | $ | 7.50-8 |  |  | $ | 7.52 |
Granted |  |  | - |  |  |  | - |  |  |  | - |
Expired |  |  | - |  |  |  | - |  |  |  | - |
Outstanding and exercisable at June 30, 2010 |  |  | 160,000 |  |  | $ | 7.50-8 |  |  | $ | 7.52 |
Granted |  |  | - |  |  |  | - |  |  |  | - |
Expired |  |  | (69,334 | ) |  | $ | 7.50 |  |  | $ | 7.50 |
Outstanding and exercisable at June 30, 2011 |  |  | 90,666 |  |  | $ | 7.50-8 |  |  |  | 7.53 |
Granted |  |  | - |  |  |  | - |  |  |  | - |
Expired |  |  | (45,333 | ) |  | $ | 7.50-8 |  |  | $ | 7.53 |
Outstanding and exercisable at June 30, 2012 |  |  | 45,333 |  |  | $ | 7.50-8 |  |  | $ | 7.53 |
The following table shows exercisable options, exercise prices, the weighted average remaining contractual life and the aggregate intrinsic value for options outstanding as of June 30, 2012:
|  |  |  |  |  |  |  | Weighted Average |  |  |  |  |  |  |
Options |  | Options |  |  | Exercise Price Per |  |  | Remaining Life |  |  | Remaining Life |  |  | Intrinsic Value- |
Outstanding |  | Exercisable |  |  | Share |  |  | Outstanding |  |  | Exercisable |  |  | Outstanding |  |  | Exercisable |
42,333 |  |  | 42,333 |  |  |  | 7.50 |  |  |  | 0.94 |  |  |  | 0.94 |  |  |  | - |  |  |  | - |
3,000 |  |  | 3,000 |  |  |  | 8.00 |  |  |  | 0.97 |  |  |  | 0.97 |  |  |  | - |  |  |  | - |
45,333 |  |  | 45,333 |  |  |  |  |  |  |  | 0.95 |  |  |  | 0.95 |  |  |  | - |  |  |  | - |
There was no compensation expense related to the vesting of options outstanding in the years ended June 30, 2012, 2011, and 2010 as all options were vested, and all related compensation expense had been recognized, prior to the June 30, 2010 fiscal year.

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