XML 45 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Warrant Derivative Liability
 9 Months Ended
Mar. 31, 2013
Derivative Liabilities [Abstract]  
Warrant Derivative Liability

NOTE 7 – Warrant Derivative Liability

 

At March 31, 2013 there were 2,907,347 outstanding warrants classified as derivative liabilities due to exercise price re-set provisions included in the underlying warrant agreements.

 

Warrants classified as derivative liabilities are recorded at their fair values at the issuance date and are revalued at each subsequent reporting date, using a Monte Carlo simulation model. Warrants were determined to have a fair value per share and aggregate value as of March 31, 2013 and in aggregate value as of June 30, 2012 as follows:

 

  Issued Warrants  Fair Value Per
Share $ as of
March 31, 2013		  Total Fair Value in
Aggregate $ as of
March 31, 2013		  Total Fair Value in
Aggregate $ as of
June 30, 2012		 
             
June 2012 Warrants  562,551  $0.71  $398,000  $1,158,000 
July 2012 Warrants  338,013  $0.70  $236,000  $— 
August 2012 Warrants  120,719  $0.70  $85,000  $— 
October 2012 Warrants  48,287  $0.71  $34,000  $— 
Advisory Agreement Warrants  1,837,777  $0.70  $1,295,000  $3,785,000 
     Total  2,907,347      $2,048,000  $4,943,000 

 

Significant assumptions used to estimate the fair value of the warrants classified as derivative liabilities at March 31, 2013 are summarized below:

 

Risk-free interest rate  0.61 – 0.69%
Expected life (average)  4.4 years 
Stock price (based on prices on valuation date) $0.86 
Exercise price $0.41 
Expected volatility  100%