XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Note 9 - Warrant Derivative Liability | 12 Months Ended
--- | ---
Jun. 30, 2017
Notes to Financial Statements |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 9 - Warrant Derivative Liability In 2012, we issued warrants to certain investors and a consultant (together, the "2012 Warrant Holders") to purchase a total of 297,035 shares of our common stock at $4.10 per share (the "2012 Warrants"). The 2012 Warrants include exercise price re-set provisions (the "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. Warrants classified as derivative liabilities are recorded at their fair values at the issuance date and are revalued at each subsequent reporting date. The change in the fair value of the derivative liabilities income for the years ended June 30, 2017 and 2016 totaled approximately $14,000 and $11,000, respectively , and is included as a component of other income (expense) in the accompanying consolidated statements of operations (see Note 11 ) . The change in the warrant derivative liability is primarily attributable to the exchange of approximately 93% of the outstanding warrants at June 30, 2016 into shares of common stock during fiscal 2017 (see Note 8 ) and the decrease in the market value of our common stock. Additionally, on August 23, 2016, we proposed to our 2012 Warrant Holders that the Re-set Provision included in the 2012 Warrants be eliminated. Upon receiving consents to eliminate the Re-set Provision from a majority of the 2012 Warrant Holders, the Re-set Provision and the related derivative liability were eliminated as of January 23, 2017. The derivative liabilities had an average fair value per warrant and aggregate value as of June 30, 2016 of $0.10 and $24,000, respectively. Significant assumptions used to estimate the fair value of the warrants classified as derivative liabilities are summarized below:
|  | As of June 30, 2016 |
Risk-free interest rate |  | 0.44% | - | 0.49 | %
Expected life (average) (years) |  | 0.96 | – | 1.33 |
Stock price (based on prices on valuation date) |  |  |  | $0.50 |
Exercise price |  |  |  | $1.55 |
Expected volatility |  |  |  | 110 | %
As discussed in Note 8 above, during May 2016 we sold shares of our common stock at a price of $0.40 per share, thereby triggering an anti-dilution provision included in the warrants to purchase an aggregate of 297,035 shares of common stock upon exercise. As a result, the exercise price of such warrants was reduced to $1.55 per share. The remaining terms, including expiration dates, of all effected warrants remain unchanged.

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration