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Fair Value of Financial Instruments
 9 Months Ended
Mar. 31, 2012
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
5.  Fair Value of Financial Instruments
 
In accordance with the fair value hierarchy described in Note 1, the following table shows the fair value of the Company’s financial instruments that are required to be measured at fair value as of March 31, 2012 and June 30, 2011:
 
March 31, 2012
  
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Cash equivalents
   $ 132,146     $ -     $ -     $ 132,146  
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016
   $ -     $ -     $ 747,097     $ 747,097  
Common stock warrant liability, warrants exercisable at $5.90 through September 14, 2013
   $ -     $ -     $ 1,714     $ 1,714  
                                 
                                 
 June 30, 2011
  
Level 1
    
Level 2
    
Level 3
    
Total
  
                                 
Cash equivalents
   $ 83,267     $ -     $ -     $ 83,267  
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016
   $
-
     $
 -
     $
 2,638,629
     $
2,638,629

 
Common stock warrant liability, warrants exercisable at $5.90 through September 14, 2013
   $ -     $ -     $ 93,624     $ 93,624  
 
As of March 31, 2012 and June 30, 2011, the fair values of the Company’s Level 1 financial instruments were $132,146 and $83,267, respectively. These financial instruments consist of money market accounts classified as cash equivalents on the Company’s consolidated balance sheets.
 
As of March 31, 2012 and June 30, 2011, the Company held no Level 2 financial instruments.
 
As of March 31, 2012 and June 30, 2011, the fair values of the Company’s Level 3 financial instruments totaled $748,811 and $2,732,253, respectively. The Level 3 financial instruments consist of common stock warrants issued by the Company in March 2011 and March 2007, which include features requiring liability treatment of the warrants. The fair value of warrants issued in March 2011 to purchase 3.9 million shares of the Company’s common stock is based on valuations performed by an independent third party valuation firm. The fair value was determined using proprietary valuation models using the quality of the underlying securities of the warrants, restrictions on the warrants and security underlying the warrants, time restrictions and precedent sale transactions completed in the secondary market or in other private transactions. The fair value of warrants issued in March 2007 to purchase 903,955 shares of the Company’s common stock was estimated by the Company using the Black-Scholes model and applying an estimated fair value adjustment primarily related to the illiquidity of the warrants. Prior to March 31, 2011, the fair value of these warrants was determined to be de minimus and was not included on the Company’s consolidated balance sheets.
 
There were no transfers of assets or liabilities between level 1, level 2, or level 3 during the nine months ended March 31, 2012 and 2011.
 
      Nine months ended March 31,  
   
2012
    
2011
  
   
(unaudited)
    
(unaudited)
  
             
Balance, beginning of period
   $ (2,732,253 )   $ -  
Unrealized gains (losses) included in other income related to the change in the fair value of warrant liabilities
     1,983,442       (850,740 )
Purchases, sales, issuances, settlements, or transfers
     -       (1,917,122 )
Balance, end of period
   $ (748,811 )   $ (2,767,862 )