Exhibit 12.1
Ratio of Combined Fixed Charges and Preference Dividends to Earnings
| | Year Ended June 30, | |
| | 2014 | | 2013 | | 2012 | | 2011 | | 2010 | |
| | | | | | | | | | | |
Earnings: | | | | | | | | | | | |
Loss from operations before income taxes | | $ | 85,257 | | $ | (61,942 | ) | $ | (23,581 | ) | $ | (56,324 | ) | $ | (77,631 | ) |
Add: | | | | | | | | | | | |
Interest portion of rental expense (1) | | 1,727 | | 1,695 | | 1,721 | | 1,750 | | 1,740 | |
Interest expensed and capitalized | | 4,458 | | 6,781 | | 7,089 | | 9,238 | | 9,489 | |
Amortized discount fees and change in value of embedded derivatives related to indebtedness | | 5,258 | | 4,477 | | 4,535 | | 6,269 | | 6,260 | |
Amortization of capitalized interest | | — | | — | | — | | — | | — | |
Less: | | | | | | | | | | | |
Interest capitalized | | — | | — | | — | | — | | — | |
Total earnings | | $ | (73,814 | ) | $ | (48,989 | ) | $ | (10,236 | ) | $ | (39,067 | ) | $ | (60,142 | ) |
| | | | | | | | | | | |
Fixed Charges and Preference Dividends: | | | | | | | | | | | |
Interest portion of rental expense (1) | | $ | 1,727 | | $ | 1,695 | | $ | 1,721 | | $ | 1,750 | | $ | 1,740 | |
Interest expensed and capitalized | | 4,458 | | 6,781 | | 7,089 | | 9,238 | | 9,489 | |
Amortized discount fees and change in value of embedded derivatives related to indebtedness | | 5,258 | | 4,477 | | 4,535 | | 6,269 | | 6,260 | |
| | | | | | | | | | | |
Total fixed charges | | $ | 11,443 | | $ | 12,953 | | $ | 13,345 | | $ | 17,257 | | $ | 17,489 | |
Ratio of earnings to fixed charges and preference dividends | | — | | — | | — | | — | | — | |
Coverage deficiency (2) | | $ | (85,257 | ) | $ | (61,942 | ) | $ | (23,581 | ) | $ | (56,324 | ) | $ | (77,631 | ) |
(1) Computation of interest component of rent expense | | | | | | | | | | | |
Operating rental expense | | $ | 5,233 | | $ | 5,136 | | $ | 5,216 | | $ | 5,304 | | $ | 5,272 | |
Interest factor (*) | | 33 | % | 33 | % | 33 | % | 33 | % | 33 | % |
Total calculated interest portion of rent expense | | $ | 1,727 | | $ | 1,695 | | $ | 1,721 | | $ | 1,750 | | $ | 1,740 | |
* Calculated as 33% of rent expense, which management believes is a reasonable approximation of the interest factor.
(2) In each of the years presented, we incurred losses from operations and as a result our earnings were insufficient to cover over fixed charges. The amount shown represents the amount of the coverage deficiency in each such period.