Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2012
Components of Net Deferred Tax Assets

We have incurred losses since inception, so no current income tax provision or benefit has been recorded. Significant components of our net deferred tax assets are shown in the table below.

 

    Year Ended June 30,  
    2012     2011  
Deferred Tax Assets:                
Net operating loss carryforwards   $ 1,275,000     $ 653,000  
Depreciation and amortization     —       (11,000 )
Other, net     178,000       132,000  
Total deferred tax assets     1,453,000       774,000  
Valuation allowance     (1,453,000 )     (774,000 )
Net deferred tax assets   $ —     $ —  
Provision for Income Taxes on Earnings Subject to Income Taxes Differs from Statutory Federal Rate

The provision for income taxes on earnings subject to income taxes differs from the statutory federal rate at June 30, 2012 and 2011, due to the following (in thousands):

 

    Year Ended June 30,  
    2012     2011  
Federal income taxes at 34%   $ (811,000 )   $ (407,000 )
State income taxes, net of federal benefit     (139,000 )     (116,000 )
Change in FMV of Derivative     210,000       —  
Other True Ups     61,000       —  
Change in valuation allowance     679,000     523,000  
Provision for income taxes   $ —     $ —