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Note 8 - Warrant Derivative Liability | 12 Months Ended
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Jun. 30, 2016
Notes to Financial Statements |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 8 - Warrant Derivative Liability In 2012, we issued warrants to certain investors and a consultant (together, the "2012 Warrant Holders") to purchase a total of 2,970,347 shares of our common stock at $0.41 per share (the "2012 Warrants"). The 2012 Warrants include exercise price re-set provisions should future equity offerings be offered at a price lower than the warrant exercise price. In accordance with ASC No. 815, the re-set provisions are recorded as derivative liabilities in the accompanying consolidated financial statements. W arrants classified as derivative liabilities are recorded at their fair values at the issuance date and are revalued at each subsequent reporting date. Using the Monte Carlo simulation model these warrants were determined to have a fair value per share and aggregate value as of June 30, 2016 and an aggregate value as of June 30, 2015 as follows:
|  | Issued Warrants |  |  | Fair Value Per Share $ as of June 30, 2016 |  |  | Total Fair Value in Aggregate $ as of June 30, 2016 |  |  | Total Fair Value in Aggregate $ as of June 30, 2015 |
June 2012 Warrants |  |  | 562,551 |  |  | $ | 0.008 |  |  | $ | 5,000 |  |  | $ | 4,000 |
July 2012 Warrants |  |  | 338,013 |  |  | $ | 0.009 |  |  | $ | 3,000 |  |  | $ | 3,000 |
August 2012 Warrants |  |  | 120,719 |  |  | $ | 0.010 |  |  | $ | 1,000 |  |  | $ | 1,000 |
October 2012 Warrants |  |  | 48,287 |  |  | $ | 0.012 |  |  | $ | 1,000 |  |  | $ | 1,000 |
Advisory Agreement Warrants |  |  | 1,837,777 |  |  | $ | 0.008 |  |  | $ | 14,000 |  |  | $ | 14,000 |
Total |  |  | 2,907,347 |  |  |  |  |  |  | $ | 24,000 |  |  | $ | 23,000 |
Significant assumptions used to estimate the fair value of the warrants classified as derivative liabilities are summarized below:
|  | As of June 30, 2016 |  |  | As of June 30, 2015 |
Risk-free interest rate |  |  | 0.44%-0.49 | % |  |  | 0.62%-0.76 | %
Expected life (average) (years) |  |  | .96–1.33 |  |  |  | 1.96-2.34 |
Stock price (based on prices on valuation date) |  | $ | 0.05 |  |  | $ | 0.05 |
Exercise price |  | $ | 0.15 |  |  | $ | 0.27 |
Expected volatility |  |  | 110 | % |  |  | 100 | %
As discussed in Note 7 above, during May 2016 we sold shares of our common stock at a price of $0.04 per share , thereby triggering an anti-dilution provision included in the warrants to purchase an aggregate of 2,907,347 shares of common stock upon exercise. As a result, the exercise price of such warrants was reduced to $0.15 per share. The remaining terms, including expiration dates, of all effected warrants remain unchanged. The change in the estimated fair value of warrants classified as derivative liabilities during the year ended June 30, 2016 and 2015 was $11,000 and $548,000, respectively, and is included as a component of other income (expense) in the accompanying consolidated statements of operations (see Note 10).

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