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Equity Instruments (Tables)

9 Months Ended

Mar. 31, 2015

Summary of Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense for the years ended June 30 2014 and 2013, and nine months ended March 31, 2015 and 2014:


	Years Ended June 30,				Nine Months Ended March 31,
	2014		2013		2015		2014
					(unaudited)
Research and development expenses
Stock options
Luoxis	$	206,000	$	203,000	$	297,000		155,000
Vyrix		38,000		—		26,000	$	29,000
General and administrative expenses
Stock options
Luoxis		152,000		114,000		371,000		116,000
Vyrix		104,000		—		56,000		85,000

	$	500,000	$	317,000	$	750,000	$	385,000

Unrecognized expense at March 31, 2015
Luoxis	$	1,129,000
Vyrix	$	194,000
Weighted average remaining years to vest
Luoxis		2.23
Vyrix		1.79

Warrants Issued in Conjunction with its Senior Convertible Debentures

Aytu issued warrants in conjunction with its 2013 Private Placement. A summary of all warrants is as follows:


	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life
Outstanding June 30, 2012		—	$	—
Warrants issued - Private Placements		102,613	$	4.53

Outstanding June 30, 2013		102,613	$	4.53		4.41
Outstanding June 30, 2014		102,613	$	4.53		3.92

Outstanding March 31, 2015 (unaudited)		102,613	$	4.53		3.17

Significant Warrant Valuation Assumption

Significant assumptions in valuing the Luoxis warrants were as follows:


Expected volatility	87	%
Risk free interest rate	0.52	%
Expected term (years)	5
Dividend yield	0	%

Luoxis Diagnostics [Member]

Stock Options Valuation Assumption

The assumptions are as follows:


	Years Ended June 30,		Nine Months Ended
	2014	2013	March 31, 2015
			(unaudited)
Expected volatility	79% - 82%	86%	79% - 108%
Risk free interest rate	0.75% - 1.53%	1.04% - 1.53%	0.75% - 2.09%
Expected term (years)	5.0 - 6.5	5.0 - 6.5	5.0 - 7.0
Dividend yield	0%	0%	0%

Stock Option Activity

Stock option activity is as follows:


	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding June 30, 2012		—	$	—			$	—
Granted		396,994	$	4.53
Exercised		—	$	—
Forfeited/Cancelled		—	$	—

Outstanding June 30, 2013		396,994	$	4.53		9.96	$	1,272,000
Granted		33,083	$	4.53
Exercised		—	$	—
Forfeited/Cancelled		—	$	—

Outstanding June 30, 2014		430,077	$	4.53		9.01	$	1,374,000
Granted		195,189	$	7.25
Exercised		—	$	—
Forfeited/Cancelled		—	$	—

Outstanding March 31, 2015 (unaudited)		625,266	$	5.40		8.61	$	2,541,000

Exercisable at March 31, 2015 (unaudited)		206,767	$	4.54		8.26	$	687,000

Available for grant at March 31, 2015 (unaudited)		477,495

Vyrix Pharmaceuticals [Member]

Stock Options Valuation Assumption

The assumptions are as follows:


	Year Ended June 30,	Nine Months Ended
	2014	March 31, 2015
		(unaudited)
Expected volatility	63% - 76%	63% - 76%
Risk free interest rate	0.90% - 2.02%	0.90% - 2.02%
Expected term (years)	5.0 - 6.5	5.0 - 6.5
Dividend yield	0%	0%

Stock Option Activity

Stock option activity is as follows:


	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding June 30, 2012		—	$	—			$	—
Granted		—	$	—
Exercised		—	$	—
Forfeited/Cancelled		—	$	—

Outstanding June 30, 2013		—	$	—		—	$	—
Granted		117,053	$	5.68
Exercised		—	$	—
Forfeited/Cancelled		—	$	—
Outstanding June 30, 2014		117,053	$	5.68		9.54	$	417,000
Granted		—	$	—
Exercised		—	$	—
Forfeited/Cancelled		—	$	—

Outstanding March 31, 2015 (unaudited)		117,053	$	5.68		8.79	$	417,000

Exercisable at March 31, 2015 (unaudited)		58,526	$	5.68		8.79	$	208,000

Available for grant at March 31, 2015 (unaudited)		499,014

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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