Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF OPERATIONS

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Net revenue $ 772,000 [1] $ 5,930,000 [1]
Cost of revenue 756,000 4,769,000
Gross profit 16,000 1,161,000
Operating expenses:    
Selling and administrative expenses 2,569,000 2,368,000
Amortization of prepaid advisory fees 1,719,000 0
Research and development 992,000 590,000
Total operating expense 5,280,000 2,958,000
Operating loss (5,264,000) (1,797,000)
Other income (expense):    
Change in fair value of warrant derivative liability 5,731,000 (526,000)
Interest expense, net (116,000) (62,000)
Net income (loss) $ 351,000 $ (2,385,000)
Net income (loss) per common share - basic $ 0.01 $ (0.06)
Net income (loss) per common share - diluted $ 0.01 $ (0.06)
Weighted average number of common shares outstanding - basic 46,592,334 36,904,769
Weighted average number of common shares outstanding - diluted 50,553,184 36,904,769
[1] Includes sales to related parties of $61,000 and $1,135,000 in 2013 and 2012 respectively