Quarterly report pursuant to Section 13 or 15(d)

Warrant Derivative Liability

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Warrant Derivative Liability
 3 Months Ended
Sep. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
7.     Warrant Derivative Liability
 
In August 2013, approximately 5.0 million of the Company’s outstanding warrants expired. These warrants were issued in August 2008 (the “August 2008 Warrants”) as part of a private placement completed concurrently with the spin-off from Integrated BioPharma, Inc., and they contained an anti-dilution provision which was accounted for separately as a derivative liability and measured at fair value on a recurring basis. Changes in fair value were charged to other income or expense, as appropriate. The fair value of the warrant derivative liability was determined based on Level 2 inputs utilizing observable quoted prices for similar instruments in active markets and observable quoted prices for identical or similar instruments in markets that are not very active. Using the Black-Scholes option pricing model, the Company developed its own assumptions based on observable inputs and available market data to support the reported fair value of $-0- as of June 30, 2013.
 
The following table summarizes the inputs and assumptions used to calculate the fair value of the warrant derivative liability:
 
 
 
June 30,
 
 
 
2013
 
Common stock price
 
 
$0.42
 
Exercise price
 
 
$1.53 - $1.97
 
Risk-free interest rate
 
 
0.04%
 
Dividend yield
 
 
0%
 
Volatility
 
 
97.9%
 
Remaining contractual term (in years)
 
 
0.2