INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2012
INCOME TAXES [Abstract]  
Schedule of Deferred Tax Assets and Liabilities

Due to the net losses incurred, there was no income tax provision for the fiscal years ended June 30, 2012 and 2011. Deferred tax assets and liabilities as of June 30, 2012 and 2011, were as follows:


               

 

 

June 30,

2012

 

June 30,

2011

 

Net operating loss carryforward

 

$

7,357,047

 

$

5,031,917

 

Allowance for bad debt

 

 

1,042

 

 

8,026

 

Stock-based compensation

 

 

800,329

 

 

873,546

 

Less: Deferred tax liability - depreciation

 

 

(61,063

)

 

(3,863

)

Net deferred tax assets

 

 

8,097,355

 

 

5,909,626

 

Less valuation allowance

 

 

(8,097,355

)

 

(5,909,626

)

 

 

 

 

 

 

 

 

Net deferred tax asset

 

$

-

 

$

-

 


Schedule of Reconciliation of Provision (Benefit) for Income Taxes

Reconciliation of the differences between income tax benefit computed at the federal and state statutory tax rates and the provision for income tax benefit for the fiscal years ended June 30, 2012 and 2011 was as follows:


                                 

 

  

For the Fiscal Year Ended

June 30,

  

 

 

 

 

  

2012

  

 

 

 

  

2011

  

 

 

 

 

  

Amount

    

%

    

Amount

    

%

  

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax at U.S. statutory rate

 

$

(2,424,220

)

 

 

-34.00

%

 

$

(2,049,058

)

 

 

-34.00

%

State taxes, net of federal benefit

 

 

(258,310

)

 

 

-3.62

%

 

 

(217,838

)

 

 

-3.61

%

Other

 

 

494,801

 

 

 

7.81

%

 

 

209,348

 

 

 

3.50

%

Change in valuation allowance

 

 

2,187,729

 

 

 

29.81

%

 

 

2,057,548

 

 

 

34.11

%

 

 

$

-

 

 

 

0.00

%

 

$

-

 

 

 

0.00

%