Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v3.8.0.1
Share-Based Compensation
9 Months Ended
Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
11. Share-Based Compensation
 
The following table summarizes the components of share-based compensation expense in the condensed consolidated statements of operations (in thousands):
 
 
 
Three Months Ended
March 31,
 
 
 
2018
 
2017
 
Research and development
 
$
12
 
$
5
 
General and administrative
 
 
171
 
 
202
 
Totals
 
$
183
 
$
207
 
 
 
 
Nine Months Ended
March 31,
 
 
 
2018
 
2017
 
Research and development
 
$
36
 
$
16
 
General and administrative
 
 
541
 
 
697
 
Totals
 
$
577
 
$
713
 
 
Stock Options
On August 12, 2008, the Company adopted the 2008 Omnibus Equity Incentive Plan (the “Plan”) for employees, officers, directors and external service providers. The Plan provided that the Company may grant options to purchase stock and/or make awards of restricted stock up to an aggregate amount of 10 million shares. On December 17, 2013, the Plan was amended to increase the number of shares reserved for awards under the Plan from 10 million to 15 million. As of March 31, 2018, there were approximately 1.5 million shares of common stock reserved for future issuance under the Plan. Stock options granted under the Plan may be either incentive stock options (as defined by Section 422 of the Internal Revenue Code of 1986, as amended) or non-qualified stock options at the discretion of the Board of Directors. Vesting of service awards occurs ratably on the anniversary of the grant date over the service period, generally three or five years, as determined at the time of grant. Vesting of performance awards occurs when the performance criteria have been satisfied. The Company uses historical data to estimate forfeiture rates.
 
Issuance of stock options during Fiscal 2018 were as follows:
 
On July 1, 2017, the Company granted stock options to an employee to purchase 50,000 shares of common stock. These options vest ratably over a three-year service period, expire ten years from the date of grant, and have a weighted-average exercise price of $0.40 per share.
 
The following table summarizes all stock option activity during Fiscal 2018:
 
 
 
Stock
Options
 
Weighted-
average
Exercise
Price
 
Weighted-
average
Remaining
Contractual
Term (in years)
 
Aggregate
Intrinsic Value
(in thousands)
 
Outstanding as of July 1, 2017
 
 
13,548,334
 
$
1.21
 
 
5.8
 
$
138
 
Granted
 
 
50,000
 
 
0.39
 
 
 
 
 
 
 
Forfeited/expired
 
 
(92,499)
 
 
0.40
 
 
 
 
 
 
 
Outstanding as of March 31, 2018
 
 
13,505,835
 
$
1.21
 
 
5.1
 
$
11
 
Vested and, as of March 31, 2018, expected to vest
 
 
13,474,019
 
$
1.21
 
 
4.5
 
$
11
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable as of March 31, 2018
 
 
11,323,355
 
$
1.27
 
 
4.5
 
$
11
 
 
The weighted-average grant date fair value of stock options granted during the nine months ended March 31, 2018 was $0.34 per share. As of March 31, 2018, there was approximately $538,000 of total unrecognized compensation cost related to non-vested stock options that the Company expects to recognize over a weighted-average period of 1.4 years.
 
The Company estimated the fair value of options granted using the Black-Scholes option pricing model with the following assumptions:
   
Risk-free interest rate
 
2.23
%
Dividend yield
 
0
%
Volatility
 
103.10
%
Expected term (in years)
 
9