Quarterly report pursuant to Section 13 or 15(d)

Warrant Derivative Liability (Tables)

v2.4.0.6
Warrant Derivative Liability (Tables)
6 Months Ended
Dec. 31, 2012
Derivative Liabilities [Abstract]  
Fair Value Measurements, Nonrecurring

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 as of December 31, 2012 and in aggregate as of June 30, 2012 as follows:

 

    Issued Warrants     Fair Value Per
Share $ as of
December 31, 2012
    Total Fair Value in
Aggregate $ as of
December 31, 2012
    Total Fair Value in
Aggregate $ as of
June 30, 2012
 
                         
June 2012 Warrants     562,551     $ 0.79     $ 446,000     $ 1,158,000  
July 2012 Warrants     338,013     $ 0.78     $ 265,000     $  
August 2012 Warrants     120,719     $ 0.79     $ 96,000     $  
October 2012 Warrants     48,287     $ 0.80     $ 38,000     $  
Advisory Agreement Warrants     1,837,777     $ 0.79     $ 1,457,000     $ 3,785,000  
Total     2,907,347             $ 2,302,000     $ 4,943,000
Fair Value, Concentration of Risk

Significant assumptions used to estimate the fair value of the warrants classified as derivative liabilities at December 31, 2012 are summarized below:

 

Expected volatility   100%                        
Risk free interest rate   0.63%-0.74%                        
Stock price (based on prices on valuation dates)   $1.00 to $1.73                        
Exercise price   $0.41                        
Expected term   4.45- 4.83 years                        
Subsequent financing probability   100%