Stockholders' Equity | 3 Months Ended |
Sep. 30, 2013 |
Stockholders' Equity | ' |
| -2 | Stockholders’ Equity | | | | | | | | | | | | | | |
Common Stock |
As of September 30, 2013, the Company had 108,305,414 shares of common stock issued and 107,971,521 shares of common stock outstanding. |
In September 2013, the Company issued 7,530,120 shares of common stock at a price of $1.66 per share. As a result of the offering, the Company received gross proceeds of $12.5 million. As part of the offering, the Company issued 225,904 shares of common stock to Indaba Capital Fund, L.P. for their Backstop Purchase commitment fee recognized in fiscal 2013; incurred obligations to issue a third party consultant approximately 137,363 shares of common stock for total consideration of $250,000; and incurred additional unpaid offering costs of $0.4 million. As of September 30, 2013, the Company had unpaid debt and equity offering costs of approximately $2.6 million, of which $1.2 million is expected to be settled via the issuance of shares of common stock during the second quarter of fiscal 2014. |
During the three months ended September 30, 2013, the Company issued 68,400 shares of common stock for the exercise of stock options and received cash proceeds of $0.1 million. |
During the quarter ended September 30, 2013, the Company issued 204,093 shares of common stock for vested restricted stock grants at par value. |
During the quarter ended September 30, 2013, the Company repurchased 40,580 shares of common stock at a cost of $0.1 million included in treasury stock. |
Employee and Director Stock Compensation |
During the quarters ended September 30, 2013 and 2012, the Company recognized stock based compensation for employees and directors of $0.3 million and $0.5 million, respectively. |
|
Options |
The fair value of options is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The following table illustrates the assumptions used in estimating the fair value of the options granted during the quarter ended September 30, 2013: |
|
| | | | | | | | | | | | | | | | |
Expected volatility | | 64.60% | | | | | | | | | | | | | | |
Expected dividends | | — | | | | | | | | | | | | | | |
Expected term (in years) | | 2.89 –3.04 | | | | | | | | | | | | | | |
Risk-free rate | | 0.60% | | | | | | | | | | | | | | |
A summary of option activity, including discontinued operations from July 1, 2013 to September 30, 2013 is presented below (in thousands except per share and year amounts): |
|
| | | | | | | | | | | | | | | | |
Options | | Shares | | | Weighted | | | Weighted | | | Aggregate | |
Average | Average | Intrinsic |
Exercise | Remaining | Value |
Price | Contractual | |
| Term (years) | |
Outstanding at July 1, 2013 | | | 5,855 | | | $ | 2.03 | | | | | | | | | |
Options and Awards granted | | | 85 | | | | 2.12 | | | | | | | | | |
Exercised | | | (68 | ) | | | 1.57 | | | | | | | | | |
Forfeited, canceled or expired | | | (203 | ) | | | 2.76 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Outstanding at September 30, 2013 | | | 5,669 | | | $ | 2.01 | | | | 2.18 | | | $ | 684 | |
| | | | | | | | | | | | | | | | |
Vested and expected to vest at September 30, 2013 | | | 5,422 | | | $ | 2.03 | | | | 1.86 | | | $ | 629 | |
| | | | | | | | | | | | | | | | |
Exercisable at September 30, 2013 | | | 4,673 | | | $ | 2.08 | | | | 0.66 | | | $ | 463 | |
| | | | | | | | | | | | | | | | |
The estimated grant date fair value of options granted during the three months ended September, 2013 and 2012 were $0.1 million and $0, respectively. |
Restricted Stock Awards and Units |
A summary of the activity of the Company’s restricted stock awards, including discontinued operations, from July 1, 2013 to September 30, 2013 is presented below (in thousands except per share amounts): |
|
| | | | | | | | | | | | | | | | |
Restricted Stock Awards | | Shares | | | Weighted | | | | | | | | | |
Average | | | | | | | | |
Grant Date | | | | | | | | |
Fair Value | | | | | | | | |
Per Share | | | | | | | | |
Nonvested at July 1, 2013 | | | 106 | | | $ | 1.61 | | | | | | | | | |
Vested | | | (42 | ) | | | 1.68 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Nonvested at September 30, 2013 | | | 64 | | | $ | 1.56 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
|
A summary of the activity of the Company’s restricted stock units from July 1, 2013 to September 30, 2013 is presented below (in thousands except per share amounts): |
|
| | | | | | | | | | | | | | | | |
Restricted Stock Units | | Market Based | | | Weighted | | | | | | | | | |
Restricted Stock | Average Grant | | | | | | | | |
Units | Date Fair Value | | | | | | | | |
Outstanding at July 1, 2013 | | | 1,557 | | | $ | 1.4 | | | | | | | | | |
Granted | | | 17 | | | | 2.02 | | | | | | | | | |
Vested | | | (204 | ) | | | 1.89 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Outstanding at September 30, 2013 | | | 1,370 | | | $ | 1.34 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
As of September 30, 2013, there was $2.6 million of total unrecognized compensation cost related to all unvested share awards and options. |
Consultant Stock Compensation |
From time to time the Company issues equity and equity-linked awards to consultants for services. During the quarters ended September 30, 2013 and 2012, the Company recognized $0.1 million and $0, respectively, associated with awards classified as equity. The Company recognized a gain of $0.4 million and $0, respectively, for the quarters ended September 30, 2013 and 2012 for the change in the fair value of liability classified stock awards (“Incentive Fee”). As of September 30, 2013, the fair value of the Incentive Fee awards was estimated at $0.5 million. |
The assumptions used to estimate the fair value of the Incentive Fee for the three months ended September 30, 2013 using a Monte-Carlo simulation model are as follows: |
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | | | | | | | | | | | | | |
September 30, | | | | | | | | | | | | | | |
| | 2013 | | | | | | | | | | | | | | |
Expected volatility | | 61.20% | | | | | | | | | | | | | | |
Expected dividends | | None | | | | | | | | | | | | | | |
Risk-free interest rate | | 0.18% | | | | | | | | | | | | | | |