Time-Based Vesting

Unvested

Number of Shares

Hybrid

Vested

Unvested

Options

Total

Executive officers

72

(1)

231

(1)

151

(2)

454

Other employees

18

(1)

133

(1)

74

(2)

225

Total

90

364

225

(5)

679

Total fair value

$

817

(3)

$

3,297

(4)

⁽¹⁾

Stock options that are subject to time-based vesting become exercisable (i) for employees who were employed by the Company for more than one year as of the grant date, 25% of such options were immediately exercisable, and for employees that were employed by the Company for less than one year as of the grant date, 25% of such options will vest on the one year anniversary of the employee's hire date, and (ii) the remaining 75% of the stock options will vest ratably over a period of 36 months beginning on the vesting date for the initial 25% tranche.

⁽²⁾

Stock options that commence vesting upon the achievement of market, performance and service conditions (‘Hybrid Options”) will vest ratably over a period of 36 months beginning on the date that all of the following have occurred: (i) the option recipient has been employed by the Company for at least one year, (ii) the Company’s shares of Common Stock have been listed for trading on a national stock exchange, and (iii) such date no later than July 31, 2023, when the Company’s closing stock price exceeds $29.00 per share for 20 trading days in any consecutive 30 day period.

⁽³⁾

Represents the aggregate grant date fair value for stock options that were immediately vested on the grant date, which is included in stock-based compensation expense for the year ended June 30, 2020.

⁽⁴⁾

Represents the aggregate grant date fair value for stock options that were not immediately vested on the grant date and are being charged to expense from the grant date through the respective vesting dates through July 2023.

⁽⁵⁾

The Company has not recognized any expense related to these stock options for the year ended June 30, 2020, since it is not yet probable that the performance condition will be achieved. The Company will begin recognizing compensation expense at such time that the performance condition is probable and continuing through the end of the requisite service period. Determination of the requisite service period for the Hybrid Options will be calculated on the date that the performance condition is considered probable using grant date fair value.

2020

2019

Time-Based

Hybrid

Time-Based

Market price of common stock on grant date

$

10.23

$

$

26.00

Expected volatility

118

%

118

%

84

%

Risk free interest rate

1.9

%

2.0

%

2.8

%

Expected term (years)

5.7

8.0

7.0

Dividend yield

 0

%

 0

%

 0

%

2020

2019

Shares

Price (1)

Term (2)

Shares

Price (1)

Term (2)

Outstanding, beginning of fiscal year

920

$

66.80

913

$

68.29

3.4

Warrants issued for consulting services

14

(3)

14.50

 —

 —

Modification for debt discount to

former member of Board of Directors:

Replacement warrant

 —

 —

24

(4)

9.00

Canceled warrant

 —

 —

(10)

(4)

25.94

Warrant expirations

(316)

82.78

(7)

120.27

Outstanding, end of fiscal year

618

57.46

2.3

920

66.80

3.4

⁽¹⁾

Represents the weighted average exercise price.

⁽²⁾

Represents the weighted average remaining contractual term for the number of years until the warrants expire.

⁽³⁾

Represents warrants granted for consulting services in November 2019 with an expiration date in November 2024. The fair value of the warrants of $67,000 was determined using the BSM model. Since the warrants were immediately vested, this entire amount is included in consulting and outside services under research and development expenses for the year ended June 30, 2020. Key assumptions for the valuation of these warrants included the closing price of the Company’s shares of Common Stock of $14.50 on the grant date, the exercise price of $6.50 per share, historical volatility of 119%, and an expected term of 5.0 years.