10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

Form 10-K/A

x ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, 2012

OR

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________ to _____________.

Commission file number 000-53265

M LINE HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Nevada (State or other jurisdiction of incorporation or organization)	88-0375818 (I.R.S. Employer Identification No.)
2672 Dow Avenue Tustin, CA  (Address of principal executive offices)	92780 (Zip Code)

Registrant’s telephone number, including area code    (714) 630-6253

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
None	None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, par value $0.001

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes  ¨      No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.  Yes x    No  ¨

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes x    No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  ¨	Accelerated filer  ¨
Non-accelerated filer ¨	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).   Yes ¨    No x

Aggregate market value of the voting stock held by non-affiliates: $588,030 as based on last reported sales price of such stock.  The voting stock held by non-affiliates on that date consisted of 29,401,515 shares of common stock.

Applicable Only to Registrants Involved in Bankruptcy Proceedings During the Preceding Five Years:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.  Yes ¨     No ¨

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.  As of September 30, 2011, there were 56,846,145shares of common stock, par value $0.001, issued and outstanding.

Documents Incorporated by Reference

List hereunder the following documents if incorporated by reference and the Part of the Form 10-K/A (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to rule 424(b) or (c) of the Securities Act of 1933.  The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1980).  None.

Explanatory Note

The sole reason for this amendment on Form 10-K/A is for the submission of our XBRL data.

PART IV

ITEM 15 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a)(1)           Financial Statements

The following financial statements are filed as part of this report:

Report of Registered Public Accounting Firm	F-1
Consolidated Balance Sheet as of June 30, 2012 and 2011	F-2
Consolidated Statements of Operations for the years ended June 30, 2012 and 2011	F-3
Consolidated Statements of Shareholders’ Equity for the years ended June 30, 2012 and 2011	F-4
Consolidated Statements of Cash Flows for the years ended June 30, 2012 and 2011	F-5
Notes to Consolidated Financial Statements	F-6

(a)(2)      Financial Statement Schedules

We do not have any financial statement schedules required to be supplied under this Item.

(a)(3)      Exhibits

Refer to (b) below.

(b)           Exhibits

Item No.	Description
3.1 (1)	Articles of Incorporation of M Line Holdings, Inc., a Nevada corporation, as amended
3.2 (5)	Certificate of Amendment of Articles of Incorporation
3.3 (1)	Bylaws of M Line Holdings, Inc., a Nevada corporation
10.1 (1)	Asset Purchase Agreement with CNC Repos, Inc. and certain of its shareholders dated October 1, 2007
10.2 (1)	Commercial Real Estate Lease dated February 15, 2007 for the office space located in Tustin, CA
10.3 (1)	Commercial Real Estate Lease dated November 15, 2007 for the office space located in Anaheim, CA
10.4 (1)	Employment Agreement with Timothy D. Consalvi dated February 1, 2007

10.5 (1)	Employment Agreement with Joseph T.W. Gledhill dated February 5, 2007
10.6 (2)	Employment Agreement with Lawrence A. Consalvi dated February 5, 2007
10.7 (1)	Share Exchange Agreement with Gledhill/Lyons, Inc. dated March 26, 2007
10.8 (1)	Share Exchange Agreement with Nu-Tech Industrial Sales, Inc. dated March 19, 2007
10.9 (1)	Fee Agreement with Steve Kasprisin dated April 30, 2008
10.10 (3)	Separation Agreement by and between Gateway International Holdings, Inc., and Mr. Lawrence A. Consalvi dated September 26, 2008
10.11 (4)	Sales Agent Agreement by and between Gateway International Holdings, Inc., and Mr. Lawrence A. Consalvi dated September 30, 2008
10.12 (4)	Loan Agreements with Pacific Western Bank dated September 20, 2008
10.13 (5)	Assignment of Promissory Note and Consent Thereto by and between M Line Holdings, Inc. and Money Line Capital, Inc. dated March 24, 2009
10.14 (5)	M Line Holdings, Inc. Demand Note for up to $500,000 dated March 25, 2009
10.15 (6)	Letter of Intent by and between M Line Holdings, Inc. and Money Line Capital, Inc. dated June 30, 2010
10.16 (8)	Securities Purchase Agreement and Convertible Promissory Note with Asher Enterprises, Inc. dated April 26, 2010 (filed herewith)
10.17 (8)	Convertible Promissory Note with Asher Enterprises, Inc. dated May 25, 2010
10.18 (8)	Commercial Real Estate Lease with SG&H Partners, L.P. for Anaheim Property dated August 13, 2010
10.19 (8)	Business Loan Agreement with Pacific Western Bank dated June 7, 2010 10.20 (8) Loan and Security Agreement and Note with Utica Leaseco, LLC (filed herewith) 10.21 (8) Note and Stock Purchase Agreements with Spagus Capital Partners, LLC (filed herewith)
10.22	Addendum No. 2 dated September 30, 2011 to Commercial Real Estate Lease dated February 15, 2007 for the office space located in Tustin, CA
10.23	Executive Employee Agreement with Barton Webb dated July 25, 2011
21 (7)	List of Subsidiaries
31.1	Rule 13a-14(a)/15d-14(a) Certification of George Colin (filed herewith).
31.2	Rule 13a-14(a)/15d-14(a) Certification of Jitu Banker (filed herewith).
32.1	Section 1350 Certification of George Colin (filed herewith).
32.2	Section 1350 Certification of Jitu Banker (filed herewith).

(1) Incorporated by reference from our Registration Statement on Form 10-12G filed with the Commission on May 16, 2008.

(2) Incorporated by reference from our Registration Statement on First Amended Form 10-12G/A filed with the Commission on July 16, 2008.

(3) Incorporated by reference from our First Amended Current Report on Form 8-K/A filed with the Commission on October 10, 2008.

(4)  Incorporated by reference from our Quarterly Report on Form 10-Q for the period ended September 30, 2008, as filed with the Commission on November 13, 2008.

(5)  Incorporated by reference from our Current Report on Form 8-K filed with the Commission on April 24, 2009.

(6)  Incorporated by reference from our Current Report on Form 8-K filed with the Commission on July 6, 2009.

(7)  Incorporated by reference from our Annual Report on Form 10-K for the period ended June 30, 2009, as filed with the Commission on October 13, 2009.

(8)  Incorporated by reference from our Annual Report on Form 10-K for the period ended June 30, 2010, as filed with the Commission on November 12, 2010.

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	M Line Holdings, Inc.
Dated:  October 29, 2012		/s/ George Colin
	By:	George Colin
		Chief Executive Officer
		and a Director
Dated:  October 29, 2012		/s/ Jitu Banker
	By:	Jitu Banker
		Chief Financial Officer
		and a Director
Dated:  October 29, 2012		/s/ Anthony Anish
	By:	Anthony Anish
		Secretary and a Director

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Dated:  October 29, 2012		/s/ George Colin
	By:	George Colin
		Chief Executive Officer
		and a Director
Dated:  October 29, 2012		/s/ Jitu Banker
	By:	Jitu Banker
		Chief Financial Officer
		and a Director
Dated:  October 29, 2012		/s/ Anthony Anish
	By:	Anthony Anish
		Secretary and a Director

EX-31.1

  EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

I, George Colin, certify that:

1. I have reviewed this Annual Report on Form 10-K/A of M Line Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exhibit Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant‘s internal control over financial reporting.

Dated: October 29, 2012,
		/s/ George Colin
	By:	George Colin
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

I, Jitu Banker, certify that:

1. I have reviewed this Annual Report on Form 10-K/A of M Line Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exhibit Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant‘s internal control over financial reporting.

Dated: October 29, 2012
		/s/ Jitu Banker
	By:	Jitu Banker
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of M Line Holdings, Inc. (the “Company”) on Form 10-K/A for the year ended June 30, 2012, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, George Colin, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  October 29, 2012	/s/ George Colin
	By:  George Colin
	Its:  Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to M Line Holdings, Inc. and will be retained by M Line Holdings, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 USC, SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of M Line Holdings, Inc. (the “Company”) on Form 10-K/A for the year ended June 30, 2012, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Jitu Banker, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  October 29, 2012	/s/ Jitu Banker
	By:  Jitu Banker
	Its:  Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to M Line Holdings, Inc. and will be retained by M Line Holdings, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Basis of Presentation and Significant Accounting Policies (Details)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Number of customer	1	1
Sales Revenue, Goods, Net [Member]
Percent of sales	23.00%	24.00%

XML

Litigation Settlements Payable (Details) (USD $)	Jun. 30, 2012	Jun. 30, 2011
Litigation payable	$ 116,541	$ 494,446
UnSecured Note Payable In Full By October 2012 [Member]
Litigation payable	48,316
Unsecured Note Payable In 12 Monthly Installments One [Member]
Litigation payable	60,000
Unsecured Note Payable In 12 Monthly Installments Two [Member]
Litigation payable	$ 8,225

XML

Intangible Assets (Details Textual) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Amortization of intangible assets	$ 31,953	$ 104,458
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	0
Impairment of Intangible Assets (Excluding Goodwill)	$ 0	$ 0	$ 170,000

XML

Litigation Settlements Payable (Details Textual) (USD $)	12 Months Ended
	Jun. 30, 2012
UnSecured Note Payable In Full By October 2012 [Member]
Debt Instrument Maturity Period	October 2012
Unsecured Note Payable In 12 Monthly Installments One [Member]
Debt Instrument, Periodic Payment	5,000
Unsecured Note Payable In 12 Monthly Installments Two [Member]
Debt Instrument, Periodic Payment	1,000

XML

Property and Equipment (Details Textual) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Depreciation	$ 192,755	$ 281,875

XML

Capital Leases (Tables)

12 Months Ended

Jun. 30, 2012

Leases, Capital [Abstract]

Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]

The company leases certain equipment under capital leases with terms ranging from four to five years. Future annual minimum lease payments are as follows as of June 30:

	June 30, 2012		June 30, 2011
2012	$	71,558	$	70,058
2013		-		11,318
2014		-		-
2015		-		-
2016		-		-
Total minimum lease payments		71,558		81,376
Less amount representing interest		-		6,608
Present value of future minimum lease payments		71,558		74,768
Less current portion of capital lease obligations		71,558		44,998
Capital Lease obligations, net of current portion	$	-	$	29,770

XML

Commitments and Contingencies (Details) (USD $)	Jun. 30, 2012
2012	$ 438,217
2013	451,361
2014	464,900
2015	478,848
Thereafter	493,221
Operating Leases Total	$ 2,326,547

XML

Going Concern and Management Plans

12 Months Ended

Jun. 30, 2012

Going Concern and Management Plans [Abstract]

Going Concern and Management Plans [Text Block]

19. Going Concern and Management Plans.

The Company's consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has an accumulated deficit of $10,051,106 as of June 30, 2012 and a net loss of $768,242 for the year ended June 30, 2012.

The Company recognizes that the very weak economy over the past few years and the difficulty in raising new funds has impacted the working capital needs of the Company.

The consolidated financial statements do not include any adjustments relating to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company's continuation as a going concern is dependent upon its ability to retain its current short term financing and ultimately to generate sufficient cash flow to meet its obligations on a timely basis in order to attain profitability.

To date the Company has funded its operations from both internally generated cash flow and external sources. The Company will pursue additional external capitalization opportunities, as necessary, to fund its long-term goals and objectives.

The Company has taken significant steps to resolve these issues.  The Company has pursued various sources of asset based lending in order to relieve it’s cash flow deficiencies and further information regarding new financing is included in subsequent events, (note 20).

XML

Capital Leases (Details) (USD $)	Jun. 30, 2012	Jun. 30, 2011
2012	$ 71,558	$ 70,058
2013	0	11,318
2014	0	0
2015	0	0
2016	0	0
Total minimum lease payments	71,558	81,376
Less amount representing interest	0	6,608
Present value of future minimum lease payments	71,558	74,768
Less current portion of capital lease obligations	71,558	44,998
Capital Lease obligations, net of current portion	$ 0	$ 29,770

XML

Inventories (Details) (USD $)	Jun. 30, 2012	Jun. 30, 2011
Finished Goods and Components	$ 1,157,918	$ 740,078
CNC Machines held for sale	116,000.00	0
Work in Progress	387,969	505,108
Raw Materials and Parts	5,632	9,216
Inventory, Gross	1,667,519	1,254,402
Less: Reserve for inventories	(58,108)	(54,980)
Inventories, net.	$ 1,609,411	$ 1,199,422

XML

Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision (benefit) for income taxes is comprised of the following for the years ended June 30:

	Year ended June 30,		Year ended June 30,
	2012		2011
Current tax expense	$	-	$	-
Federal
State		2,400		2,400
Deferrred Federal		-		-
Deferred State		-		-
	$	2,400	$	2,400

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The differences between the federal statutory tax rate of 34% and the effective tax rates are primarily due to state income tax provisions, net operating loss (“NOL”) carry forwards, deferred tax valuation allowance and permanent differences as follows for the years ended June 30:

	Year ended June 30,			Year ended June 30,
	2012			2011
Federal Tax at statury rate		34	%		34	%
Permanent differences:
State Income Tax, net of federal benefit		11	%		11	%
Change in valuation allowance/Other		-34	%		-34	%
Other		-3	%		-3	%
		8	%		8	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

DEFERRED TAX ASSETS AND LIABILITIES:
	Year ended June 30,		Year ended June 30,
	2012		2011
Deferred tax asset - current
Allowances for bad debt	$	14,816	$	41,864
Reserve for inventories		23,147		21,901
Accrued expenses		14,281		13,748
Other		14,311		14,311
	$	66,555	$	91,82

NON-CURRENT;
Net Operating loss carry forwards	$	659,149		$	208,843
Depreciation		25,767			25,767	)
Amortization of intangibles		2,800			2,800	)
	$	687,716		$	237,410
TOTAL DEFERRED TAX ASSET	$	754,271		$	329,234
VALUATION ALLOWANCE		(754,271	)		(329,234	)
NET DEFERRED TAX ASSET	$	-		$	-
Miscellaneous Deferred Tax Liability
Non-current	$	16,710		$	16,710

XML

Note Payable (Details) (USD $)	Jun. 30, 2012	Jun. 30, 2011
TOTAL	$ 617,010	$ 319,367
Less: Current Portion	597,261	305,939
Long Term Portion	19,749	13,428
Notes Payable To Financial Institution One [Member] | Equipment [Member]
Secured Debt	253,129	44,471
Notes Payable To Corporation One [Member] | Accounting Software [Member]
Unsecured Debt	46,811	46,811
Notes Payable To Corporation Two [Member] | Machinery [Member]
Unsecured Debt	17,070	66,070
Notes Payable To Corporation Three [Member]
Unsecured Debt	0	31,764
Notes Payable To Financial Institution Two [Member]
Unsecured Debt	$ 300,000	$ 150,000

XML

Income Taxes (Details 1)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Federal Tax at statury rate	34.00%	34.00%
Permanent differences:
State Income Tax, net of federal benefit	11.00%	11.00%
Change in valuation allowance/Other	(34.00%)	(34.00%)
Other	(3.00%)	(3.00%)
Effective Income Tax Rate	8.00%	8.00%

XML

Intangible Assets (Details) (USD $)					12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Customer Relationships [Member]	Jun. 30, 2011 Customer Relationships [Member]	Jun. 30, 2012 Customer Relationships [Member] Minimum [Member]	Jun. 30, 2012 Customer Relationships [Member] Maximum [Member]
Customer Relationships, Cost			$ 417,831	$ 417,831
Customer Relationships, Carrying Amount	$ 0	$ 31,952	$ 0	$ 31,952
Customer Relationships, Weighted Average Remaining Life (in years)					6 years	7 years

XML

Inventories

12 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

3. Inventories

Inventories consist of the following at:

	June 30, 2012			June 30, 2011
Finished Goods and Components	$	1,157,918		$	740,078
CNC Machines held for sale		116,000.00			-
Work in Progress		387,969			505,108
Raw Materials and Parts		5,632			9,216
		1,667,519			1,254,402
Less: Reserve for inventories		(58,108	)		(54,980	)
Inventories, net.	$	1,609,411		$	1,199,422

XML

Income Taxes (Details 2) (USD $)	Jun. 30, 2012	Jun. 30, 2011
Deferred tax asset - current
Allowances for bad debt	$ 14,816	$ 41,864
Reserve for inventories	23,147	21,901
Accrued expenses	14,281	13,748
Other	14,311	14,311
Deferred Tax Assets, Gross, Current	66,555	9,182
NON-CURRENT;
Net Operating loss carry forwards	659,149	208,843
Depreciation	25,767	25,767
Amortization of intangibles	2,800	2,800
Deferred Tax Assets, Gross, Noncurrent	687,716	237,410
TOTAL DEFERRED TAX ASSET	754,271	329,234
VALUATION ALLOWANCE	(754,271)	(329,234)
NET DEFERRED TAX ASSET	0	0
Miscellaneous Deferred Tax Liability
Non-current	$ 16,710	$ 16,710

XML

Related Parties (Details Textual) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Due from Related Parties	$ 1,262,615	$ 769,499
Receivable with Imputed Interest, Effective Yield (Interest Rate)		6.00%
Interest Income	$ 0	$ 21,756

XML

Inventories (Tables)

12 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consist of the following at:

	June 30, 2012			June 30, 2011
Finished Goods and Components	$	1,157,918		$	740,078
CNC Machines held for sale		116,000.00			-
Work in Progress		387,969			505,108
Raw Materials and Parts		5,632			9,216
		1,667,519			1,254,402
Less: Reserve for inventories		(58,108	)		(54,980	)
Inventories, net.	$	1,609,411		$	1,199,422

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Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Schedule Of Sales From Significant Customers [Table Text Block]

Sales from significant customers representing 10% or more of sales consist of the following customers for the years ended June 30:

	Year ended June 30, 2012		Year ended June 30, 2011
Percent of sales		23		24
Number of customer		1		1

Schedule Of Segment Sales From Significant Customers Concentration [Table Text Block]

Sales to this customer as a percentage of sales within the Precision Manufacturing Segment are as follows for the years ended June 30:

	Year ended June 30,
	2012		2011
% of segment sales significant customer sales concentration		54		62

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Derivative Liability (Details Textual) (USD $)	12 Months Ended
	Jun. 30, 2011
Provision For Derivative Liability	$ 93,488

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Prepaid and Other (Details Textual) (USD $)	Jun. 30, 2012	Jun. 30, 2011
Prepaid and other current assets	$ 0	$ 14,148

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Property and Equipment (Tables)

12 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property and equipment consists of the following at June 30:

	Estimated
	Useful life
	(in years)		2012			2011
Machinery and Equipment		7	$	2,435,611			2,527,488
Equipment under capital leases	4 to 5			0			215,021
Fixtures, Fittings and office equipment	3 to 5			321,974			207,554
Vehicles		5		23,276			26,390
Leasehold Improvements		3		105,298			119,649
				2,886,158			3,096,102
Less accumulated depreciation				(2,343,108	)		(2,558,846	)
			$	543,050			537,256

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Intangible Assets (Tables)

12 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Finite Lived Intangible Assets [Table Text Block]

Intangible assets consist of the following at June 30:

	Weighted Average Remaining		2012				2011
	Life (in years)		Cost		Carrying Amount		Cost		Carrying Amount
Customer Relationships		7-6	$	417,831		0	$	417,831		31,952

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Basis of Presentation and Significant Accounting Policies

12 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements include the accounts of M Line Holdings, Inc. and its wholly-owned subsidiaries: E.M. Tool Company, Inc. d.b.a. Elite Machine Tool Company, Eran Engineering, Inc and AACNC as discontinued operations. All intercompany accounts and transactions have been eliminated.

Business Segments

FASB ASC Topic 280: Segment Reporting (“ASC 280”) requires the determination of reportable business segments (i.e., the management approach). This approach requires that business segment information used by the chief operating decision maker to assess performance and manage company resources be the source for segment information disclosure. The Company operates in two reportable segments consisting of (1) Machine Sales and (2) Precision Manufacturing.

Concentrations of Credit Risks

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents and trade accounts receivable. The Company invests its cash balances through high-credit quality financial institutions. From time to time, the Company maintains bank account levels in excess of FDIC insurance limits. If the financial institutions in which the Company has its accounts has financial difficulties, the Company’s cash balances could be at risk.

Sales from significant customers representing 10% or more of sales consist of the following customers for the years ended June 30:

	Year ended June 30, 2012		Year ended June 30, 2011
Percent of sales		23		24
Number of customer		1		1

Accounts receivable from this customer at June 30, 2012 and 2011 were $354,589 and $458,970, respectively.

As a result of the Company's concentration of its customer base and industries served, the loss or cancellation of business from, or significant changes in scheduled deliveries of product sold to the above customers or a change in their financial position could materially and adversely affect the Company's consolidated financial position, results of operations and cash flows.

One customer, included in the Precision Manufacturing segment represents a significant concentration. Sales to this customer as a percentage of sales within the Precision Manufacturing Segment are as follows for the years ended June 30:

	Year ended June 30,
	2012		2011
% of segment sales significant customer sales concentration		54		62

Accounts receivable for significant customers at June 30, 2012 and 2011 were $354,589 and $458,970, respectively.

The Company’s Precision Manufacturing segment operates a single manufacturing facility located in Tustin, California. A major interruption in the manufacturing operations at this facility would have a material adverse affect on the consolidated financial position and results of operations of the Company.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of sales and expenses during the reporting period. Significant estimates made by management are, among others, realization of inventories, collectability of accounts receivable, litigation, impairment of goodwill, and long-lived assets other than goodwill. Actual results could materially differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments with insignificant interest rate risk and original maturities of three months or less from the date of purchase to be cash equivalents. The carrying amounts of cash and cash equivalents approximate their fair values. The Company maintains cash and cash equivalents balances at certain financial institutions in excess of amounts insured by federal agencies. Management does not believe that as a result of this concentration, it is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships.

Accounts Receivable

The Company performs periodic credit evaluations and continually monitors its collection of amounts due from its customers. The Company adjusts credit limits and payment terms granted to its customers based upon payment history and the customer's current creditworthiness. The Company does not require collateral from its customers to secure amounts due from them. The Company regularly reviews its accounts receivable and collection of these balances subsequent to each of these periods. The Company maintains reserves for potential credit losses, and historically, such losses have been within management expectations. As of June 30, 2012 and 2011, accounts receivable totals were $794,317 and $894,197, net of a provision for bad debt expense of $47,193 and $105,096 respectively.

Inventories

Inventories are stated at the lower of cost, determined on a first in, first out (“FIFO”)

Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Equipment under capital lease obligations is depreciated over the estimated useful life of the asset. Leasehold improvements are amortized over the shorter of the estimated useful life or the term of the lease. Repairs and maintenance are expensed as incurred, while improvements are capitalized. Upon the sale or retirement of property and equipment, the accounts are relieved of the cost and the related accumulated depreciation, which any resulting gain or loss included in the consolidated statements of operations.

Long-Lived Assets

The Company reviews its fixed assets and certain identifiable intangibles with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset or discounted cash flows. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.

Based on management’s review, the Company determined there was an impairment of intangible assets of $0 and $0 at June 30, 2012 and 2011, respectively.

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC Topic 740-10, Income Taxes, (“ASC 740”) which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the differences between the financial statement and the tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense represents the tax payable for the period and the change during the period in deferred tax assets and liabilities.

The Company accounts for uncertain tax positions in accordance with ASC 740, which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on various related matters such as derecognition, interest, penalties and disclosures required. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Contingencies and Litigation

The Company evaluates contingent liabilities including threatened or pending litigation.”  Management assesses the likelihood of any adverse judgments or outcomes to a potential claim or legal proceeding, as well as potential ranges of probable losses, when the outcomes of the claims or proceedings are probable and reasonably estimable. A determination of the amount of accrued liabilities required, if any, for these contingencies is made after the analysis of each matter. Because of uncertainties related to these matters, management bases its estimates on the information available at the time. As additional information becomes available, management reassess the potential liability related to its pending claims and litigation and may revise our estimates. Any revisions in the estimates of potential liabilities could have a material impact on the results of operations and financial position.

Revenue Recognition

The Company recognizes revenue in accordance with Staff Accounting Bulletin No. 104 “Revenue Recognition”. Revenue is recognized at the date of shipment to customers when; a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist, and collectability is reasonably assured.

Revenues generated from the Precision Manufacturing segment consist of manufactured parts and in some instances, assembly of these items based on detailed engineering specifications received by the Company from the customer. The Company generally begins to manufacture the parts upon the receipt and acceptance of a purchase order which specifies the quantity, price and delivery dates such products are required to be shipped within. Prior to shipment, physical inspection of the parts is performed to ensure specifications meet the engineering requirements. Historically, customer returns have been inconsequential.

Revenues generated from the sales of new and pre-owned CNC machines from the Machine Tools segment are based on the acceptance of a purchase order and the customer’s acknowledgement of the Company’s terms and conditions which specifies the shipping terms, payment terms and the warranty period, if any. In certain instances, the Company may perform installation services including the leveling of the machine, which is inconsequential. Under agreements with certain new equipment manufacturers, a ninety day warranty is provided to customers whereby the manufacturer is responsible for any replacement parts and the Company is responsible for the installation of the parts. In certain instances, the Company provides warranties for used equipment for periods ranging up to thirty days. Historically, warranty costs have been inconsequential. Generally, the Company does not accept returns of equipment.

Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as customer deposits.

Advertising

The Company expenses the cost of advertising when incurred as selling expenses. Advertising expenses were $7,685 and $8,051, for the years ended June 30, 2012 and 2011 respectively.

Net Income (Loss) per Share

Basic net income (loss) per share is calculated by dividing net loss by the Company’s weighted average common shares outstanding during the period. Diluted net income per share reflects the potential dilution to basic earnings per share that could occur upon conversion or exercise of securities, options or other such items to common shares using the treasury stock method, based upon the Company’s weighted average fair value of the common shares during the period. For each period presented, basic and diluted net income (loss) per share amounts are identical as the Company does not have potentially dilutive securities.

Fair Value of Financial Instruments

Financial instruments are recorded on the consolidated balance sheets. The carrying amount for cash and cash equivalents, accounts receivable, accounts payable, accrued expenses approximates fair value due to the immediate or short-term maturity of these financial instruments. The fair value of long-term debt approximates the carrying amounts based upon the expected borrowing rate for debt with similar remaining maturities and comparable risk. The fair value of related party notes cannot be readily determined because of the nature of the relationship between the Company and the lenders.

Reclassification

Certain reclassification has been made to the previous year’s financial statements to conform to current year presentation with no effect on previously reported net loss.

Recent Accounting Pronouncements

In December 2011 the FASB issued guidance on disclosures about Offsetting Assets and Liabilities on the Balance Sheet. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. This scope would include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS.

In September 2011, the FASB issued guidance on testing goodwill for impairment. The new guidance provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity determines that this is the case, it is required to perform the currently prescribed two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). If, an entity determines that the fair value of a reporting unit is less than its carrying amount, the two-step goodwill impairment test is not required. The new guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted.

In June 2011, the FASB issued guidance on presentation of comprehensive income. The new guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. Instead, an entity will be required to present either a continuous statement of net income and other comprehensive income or in two separate but consecutive statements. The new guidance is effective for annual periods beginning after December 15, 2011. In December 2011, the FASB issued a deferral of certain portion of this guidance.

In September 2011 the FASB issued guidance on compensation, retirement benefits on an multiemployer plan. This guidance relates to disclosures about an employer’s participation in a multiemployee plan. For public entities, effective for annual periods for fiscal years ending after December 15, 2011, with early adoption permitted. The amendments should be applied retrospectively for all prior periods presented.

In December 2011 the FASB issued guidance on Property, Plant, and Equipment and the Derecognition of in Substance Real Estate—a Scope Clarification. The amendments in this Update should be applied on a prospective basis to deconsolidation events occurring after the effective date. Prior periods should not be adjusted even if the reporting entity has continuing involvement with previously derecognized in substance real estate entities.

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Accrued Expenses (Tables)

12 Months Ended

Jun. 30, 2012

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

Accrued expenses consist of the following at June 30:

	June 30, 2012		June 30, 2011
Compensation and related benefits	$	993,077	$	738,650
Audit Fees		77,500		65,000
Other		243,488		35,924
	$	1,314,065	$	839,574

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Basis of Presentation and Significant Accounting Policies (Details 1) (Customer Concentration Risk [Member], Sales Revenue, Segment [Member])	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Customer Concentration Risk [Member] | Sales Revenue, Segment [Member]
% of segment sales significant customer sales concentration	54.00%	62.00%

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Note Payable (Detail Textual) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Interest expense	$ 208,145	$ 103,889
Notes Payable To Financial Institution One [Member]
Debt Instrument, Periodic Payment	7,292
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	7.20%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum	9.75%
Debt Instrument, Frequency of Periodic Payment	50 months
Notes Payable To Corporation Two [Member]
Debt Instrument, Periodic Payment	5,000
Debt Instrument Maturity Period	June 2012
Notes Payable To Corporation Three [Member]
Debt Instrument, Periodic Payment		$ 5,000
Debt Instrument, Frequency of Periodic Payment	six monthly
Debt Instrument, Maturity Date	Dec. 31, 2011

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CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2012	Jun. 30, 2011
Assets
Cash and cash equivalents	$ 5,212	$ 221,036
Accounts receivable, net	794,317	894,197
Inventories, net	1,609,411	1,199,422
Due from related party	1,262,615	769,499
Prepaid and other current assets	0	14,148
Total current assets	3,671,555	3,098,302
Property and equipment, net	543,050	537,256
Intangible Assets, net	0	31,952
Deposits and other	82,806	80,653
Total Assets	4,297,411	3,748,163
Liabilities and Shareholders' Equity
Line of Credit	1,083,879	627,045
Accounts Payable	996,861	901,230
Accrued Expenses and other	1,314,065	839,574
Notes payable ? current	597,261	305,939
Capital Leases ? current	71,558	44,998
Litigation payable	116,541	494,446
Total Current Liabilities	4,180,165	3,213,232
Notes Payable - long term	19,749	13,428
Capital Leases - long term	0	29,770
Deferred Income Taxes	16,710	16,710
Total liabilities	4,216,624	3,273,140
Commitments and Contingencies	0	0
Shareholders' Equity
Authorized; 46,871,145 and 38,570,845 shares issued and outstanding at June 30, 2012 and June 30, 2011, respectively	46,871	38,571
Additional paid in capital	10,179,021	9,813,315
Related party Receivable due to shares issuance	(94,000)	(94,000)
Accumulated deficit	(10,051,106)	(9,282,863)
Total stockholders' equity	80,789	475,023
Total Liabilities and Shareholders' Equity	$ 4,297,411	$ 3,748,163

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Property and Equipment (Details) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Property, Plant and Equipment, Gross	$ 2,886,158	$ 3,096,102
Less accumulated depreciation	(2,343,108)	(2,558,846)
Property, Plant and Equipment, Net	543,050	537,256
Machinery and Equipment [Member]
Property, Plant and Equipment, Gross	2,435,611	2,527,488
Property Plant and Equipment Useful Life	7 years
Equipment Under Capital Leases [Member]
Property, Plant and Equipment, Gross	0	215,021
Equipment Under Capital Leases [Member] | Minimum [Member]
Property Plant and Equipment Useful Life	4 years
Equipment Under Capital Leases [Member] | Maximum [Member]
Property Plant and Equipment Useful Life	5 years
Fixtures, Fittings and Office Equipment [Member]
Property, Plant and Equipment, Gross	321,974	207,554
Fixtures, Fittings and Office Equipment [Member] | Minimum [Member]
Property Plant and Equipment Useful Life	3 years
Fixtures, Fittings and Office Equipment [Member] | Maximum [Member]
Property Plant and Equipment Useful Life	5 years
Vehicles [Member]
Property, Plant and Equipment, Gross	23,276	26,390
Property Plant and Equipment Useful Life	5 years
Leasehold Improvements [Member]
Property, Plant and Equipment, Gross	$ 105,298	$ 119,649
Property Plant and Equipment Useful Life	3 years

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income (loss)	$ (768,242)	$ 229,929
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Gain on disposition of assets	(138,642)	0
Imputed Interest	0	(21,756)
Bad Debt expense	(61,902)	28,285
Depreciation	192,755	281,875
Amortization of intangible assets	31,953	104,458
Issuance of shares for services	374,006	28,000
Gain on debt settlement	(86,097)	(142,956)
Reserve for inventories	50,099	54,980
Change in derivative liabilities	0	(93,845)
Changes in operating assets and liabilities:
Account receivable	161,783	(308,841)
Inventory	(460,088)	(503,102)
Prepaid expenses and other assets	11,994	30,400
Account payable and accrued expenses	656,217	953,143
Deferred rent	0	(39,566)
Litigation payable	(230,260)	0
Cash provided by operating activities	(266,425)	601,004
Cash used in operating activities of discontinued operations	0	(369,559)
Net cash provided by operating activities	(266,425)	231,445
Cash flows from investing activities:
Acquisition of equipment	(59,907)	(5,928)
Cash flows from financing activities:
Net borrowings (repayments) on line of credit	456,834	408,156
Due from related party	(493,116)	(373,654)
Proceeds from notes payable	150,000	150,000
Payments to notes payable	0	(223,324)
Payments on capital leases	(3,210)	(16,069)
Net cash used in financing activities	110,508	(54,891)
Net increase (decrease) in cash and cash equivalent	(215,824)	170,626
Cash and cash equivalents at beginning of period	221,036	50,410
Cash and cash equivalents at end of period	5,212	221,036
Supplemental disclosure of cash flow information:
Cash paid for interest	208,145	103,889
Cash paid for income taxes	0	0
Supplemental disclosure of non-cash investing and financing activities:
Shares issued for deposit	0	11,400
Shares issued for related party receivable	0	94,000
Capital expenditures acquired under capital leases and notes payable	0	0
Shares issued for debt settlement	$ 0	$ 160,056

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Litigation (Details Textual) (USD $)			12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 James M. Cassidy v. Gateway International Holdings, Inc [Member]	Jun. 30, 2012 CNC Manufacturing v. All American CNC Sales, Inc., [Member]	Jun. 30, 2012 Hwacheon Machinery v. All American CNC Sales [Member]	Jun. 30, 2012 Fadal Machining v. All American CNC Sales, et al., [Member]	Jun. 30, 2012 Fox Hills Machining v. CNC Repos [Member]	Jun. 30, 2012 C. William Kircher Jr. V M Line Holdings, Inc. [Member]	Jun. 30, 2012 Pacific Western Bank V M Line Holdings, Inc. [Member]	Jun. 30, 2012 Neal Kohlhaas v. M Line Holdings, INC. [Member]	Jun. 30, 2012 Timothy D. Consalvi v. M Line Holdings, Inc. et.al [Member]	Jun. 30, 2012 All Direct Travel Services Inc. Vs Jitu Banker [Member]
Loss Contingency, Lawsuit Filing Date			September 16, 2008	October 2, 2008	June 8, 2009	June 12, 2009	April 14, 2009		December 11, 2010
Loss Contingency, Damages Sought, Value			$ 195,000	$ 138,750	$ 362,000	$ 163,578.88	$ 30,000		$ 300,616	$ 20,000	$ 40,000
Litigation payable	116,541	494,446
Loss Contingency Damages Awarded Value				27,500,000	403,860.91
Loss Contingency, Settlement Agreement, Date				September 12, 2011		May 31, 2011
Loss Contingency Settlement Agreement Consideration 1					105,000	60,000				3,000
Loss Contingency Settlement Agreement Periodic Payments					5,000			5,000
Loss Contingency, Settlement Agreement, Terms						A settlement agreement in the amount of $60,000 was signed on May 31, 2011. This amount is to be paid in 12 monthly installments starting on January 1, 2012.		The terms of the settlement call for 12 payments of $5,000 per month commencing August 25, 2011 and the issuance of 150,000 shares of common stock.
Legal Fees								120,166.3
Shares issued for deposit (in shares)								150,000
Loss Contingency Accrual, Carrying Value, Payments					70,000						50,000
Loss Contingency, Estimate of Possible Loss												2,000
Loss Contigency Reduction Amount If Entire Payments Made Before Due Date					10,000
Loss Contingency Accrual, Carrying Value, Provision							$ 10,000	$ 50,000	$ 253,000

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Litigation Settlements Payable (Tables)

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Litigation Settlement Payable [Table Text Block]

The following amounts are based on settlement agreements reached with the parties:

An unsecured note payable to a corporation in settlement of a lawsuit payable on the refinance of the company's equipment, expected to close in October 2012.	48,316
An unsecured note payable to a corporation in settlement of a lawsuit payable in 12 monthly payments of $5,000.00	60,000
An unsecured note payable to a corporation in settlement of a lawsuit payable in 12 monthly installments of $1,000.00	8,225
TOTAL	116,541

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Segments and Geographic Information (Details) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Revenue	$ 10,177,449	$ 9,900,700
Interest Income	0	21,756
Interest Expense	208,145	103,889
Depreciation and Amortization	192,755	386,334
Income (loss) before taxes	(765,842)	232,329
Total Assets	4,297,411	3,748,163
Capital Expenditure	337,191	0
Machine Sales [Member]
Revenue	5,929,967	6,179,472
Interest Income	0	0
Interest Expense	10,354	2,171
Depreciation and Amortization	3,000	107,458
Income (loss) before taxes	(57,142)	12,165
Total Assets	284,625	713,773
Capital Expenditure	0	0
Precision Manufacturing [Member]
Revenue	4,247,482	3,721,228
Interest Income	0	0
Interest Expense	150,545	89,917
Depreciation and Amortization	169,703	255,266
Income (loss) before taxes	(670,597)	306,296
Total Assets	2,779,874	2,351,738
Capital Expenditure	337,191	0
Corporate [Member]
Revenue	0	0
Interest Income	0	21,756
Interest Expense	47,246	11,801
Depreciation and Amortization	20,052	23,610
Income (loss) before taxes	(38,103)	(140,712)
Total Assets	1,232,911	682,653
Capital Expenditure	$ 0	$ 0

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Income Taxes

12 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

16. Income Taxes

The provision (benefit) for income taxes is comprised of the following for the years ended June 30:

	Year ended June 30,		Year ended June 30,
	2012		2011
Current tax expense	$	-	$	-
Federal
State		2,400		2,400
Deferrred Federal		-		-
Deferred State		-		-
	$	2,400	$	2,400

The benefit for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The differences between the federal statutory tax rate of 34% and the effective tax rates are primarily due to state income tax provisions, net operating loss (“NOL”) carry forwards, deferred tax valuation allowance and permanent differences as follows for the years ended June 30:

	Year ended June 30,			Year ended June 30,
	2012			2011
Federal Tax at statury rate		34	%		34	%
Permanent differences:
State Income Tax, net of federal benefit		11	%		11	%
Change in valuation allowance/Other		-34	%		-34	%
Other		-3	%		-3	%
		8	%		8	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying value of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

DEFERRED TAX ASSETS AND LIABILITIES:
	Year ended June 30,		Year ended June 30,
	2012		2011
Deferred tax asset - current
Allowances for bad debt	$	14,816	$	41,864
Reserve for inventories		23,147		21,901
Accrued expenses		14,281		13,748
Other		14,311		14,311
	$	66,555	$	91,82

NON-CURRENT;
Net Operating loss carry forwards	$	659,149		$	208,843
Depreciation		25,767			25,767	)
Amortization of intangibles		2,800			2,800	)
	$	687,716		$	237,410
TOTAL DEFERRED TAX ASSET	$	754,271		$	329,234
VALUATION ALLOWANCE		(754,271	)		(329,234	)
NET DEFERRED TAX ASSET	$	-		$	-
Miscellaneous Deferred Tax Liability
Non-current	$	16,710		$	16,710

The Company’s income tax provision was computed based on the federal statutory rate and the average state statutory rates, net of the related federal benefit. As of June 30, 2012 and 2011 the Company had federal and state net operating loss (“NOL”) carry forwards of approximately $660,000 and $550,000, respectively, net of Internal Revenue Code ("IRC") Section 382 limitations. If not used, these carry forwards will begin expiring between 2012 and 2021. These net operating losses are available to offset future regular and alternative minimum taxable income.

The Company has recorded as of June 30, 2012 a valuation allowance of $754,271, as it believes that it is more likely than not that the deferred tax assets will not be realizable in future years. Management has based its assessment on available historical and projected operating results.

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Commitments and Contingencies (Tables)

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Future rent under lease agreements for the next five years is as follows:

2012	$	438,217
2013		451,361
2014		464,900
2015		478,848
Thereafter		493,221
	$	2,326,547

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Segments and Geographic Information

12 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

18. Segments and Geographic Information

The Company’s segments consist of individual companies managed separately with each manager reporting to the Board. “Other” represents corporate functions. Sales, and operating or segment profit, are reflected net of inter-segment sales and profits. Segment profit is comprised of net sales less operating expenses and interest. Income taxes are not allocated and reported by segment since they are excluded from the measure of segment performance reviewed by management.

Segment information is as follows as of and for the year ended June 30, 2012:

	Machine Sales			Precision Manufacturing			Corporate			Total
Revenue	$	5,929,967		$	4,247,482		$	-		$	10,177,449
Interest Income		-			-			-			-
Interest Expense		10,354			150,545			47,246			208,145
Depreciation and Amortization		3,000			169,703			20,052			192,755
Income (loss) before taxes		(57,142	)		(670,597	)		(38,103	)		(765,842	)
Total Assets		284,625			2,779,874			1,232,911			4,297,411
Capital Expenditure	$	-		$	337,191		$	-		$	337,191

Segment Information for the year ended June 30, 2011

	Machine Sales		Precision Manufacturing		Corporate			Total
Revenue	$	6,179,472	$	3,721,228	$	0		$	9,900,700
Interest Income		-		-		21,756			21,756
Interest Expense		2,171		89,917		11,801			103,889
Depreciation and Amortization		107,458		255,266		23,610			386,334
Income (loss) before taxes		12,165		306,296		(140,712	)		232,329
Total Assets		713,773		2,351,738		682,653			3,748,164
Capital Expenditure	$	-	$	-	$	-		$	-

Sales are derived principally from customers located within the United States

Long-lived assets consist of property, plant and equipment and intangible assets and are located within the United States.

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Organization and Business

12 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization and Business Description Disclosure [Text Block]

1. Organization and Business

Organization and Business

M. Line Holdings, Inc. (formerly, Gateway International Holding, Inc.) (the “Company”) was incorporated in Nevada on September 24, 1997. The Company and its subsidiaries are engaged in the following businesses:

Acquiring, refurbishing and selling pre-owned CNC machine-tool equipment through Elite Machine Tool Company, its wholly owned subsidiary, the machine sales group.

Eran Engineering, Inc. (“Eran Engineering”), its wholly owned subsidiary manufactures precision metal component parts for the aerospace, medical and defense, industries. This is the precision manufacturing group.

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CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Jun. 30, 2012	Jun. 30, 2011
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	46,871,145	38,570,845
Common stock, shares outstanding	46,871,145	38,570,845

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Notes Payable

12 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Notes Payable Disclosure [Text Block]

11. Note Payable:

	June 30, 2012		June 30, 2011
Notes payable to financial institutions, secured by the underlying equipment in aggregate monthly installments of $7,292 including interest rates between 7.2% and 9.75% per annum for a period of 50 months.	$	253,129	$	44,471
An unsecured note payable to a corporation in respect of accounting software payable in monthly installments. The company has disputed the debt and therefore all payments are on hold.		46,811		46,811
An unsecured note payable to a corporation in respect of machines sold to us payable in monthly installments of $5,000.00 per month. This agreement will expire in June 2012		17,070		66,070
An unsecured note payable to a corporation in monthly installments of $5,000.00 per month. This balance is due to be paid in six monthly payments ending December 31, 2011.		-		31,764
An unsecured note payable to a financial institution in full on November 2011		300,000		150,000
TOTAL		617,010		319,367
Less Current Portion		597,261		305,939
Long Term Portion (in the next twelve months)	$	19,749	$	13,428

Interest expense on notes payable and  capital leases for years ended June 30, 2012 and 2011, were $208,145 and  $103,889, respectively.

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DOCUMENT AND ENTITY INFORMATION (USD $)	12 Months Ended
	Jun. 30, 2012	Sep. 30, 2011
Entity Registrant Name	M LINE HOLDINGS INC
Entity Central Index Key	0001072248
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	mlhc
Entity Common Stock, Shares Outstanding		56,846,145
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2012
Entity Well-Known Seasoned Issuer	No
Entity Voluntary Filers	Yes
Entity Current Reporting Status	Yes
Entity Public Float	$ 1,695,512

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Litigation Settlements Payable

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Litigation Settlements Payable Disclosure [Text Block]

12.  Litigation Settlements Payable

The following amounts are based on settlement agreements reached with the parties:

An unsecured note payable to a corporation in settlement of a lawsuit payable on the refinance of the company's equipment, expected to close in October 2012.	48,316
An unsecured note payable to a corporation in settlement of a lawsuit payable in 12 monthly payments of $5,000.00	60,000
An unsecured note payable to a corporation in settlement of a lawsuit payable in 12 monthly installments of $1,000.00	8,225
TOTAL	116,541

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Net sales	$ 10,177,449	$ 9,900,700
Cost of sales	7,330,725	7,150,711
Gross Profit	2,846,724	2,749,989
Operating expenses:
Selling, general and administrative	2,629,232	2,687,213
Amortization of intangible assets	31,953	104,458
Total operating expense	2,661,184	2,791,671
Operating income (loss)	185,540	(41,682)
Other income (expense):
Interest expense	(208,145)	(103,889)
Interest income	0	21,756
Research and Development expenditure	(967,976)	0
Rental income	0	119,700
Change in derivative liability	0	93,488
Gain on debt settlement	86,097	142,956
Gain on sale of assets	138,642	0
Total other income (expenses)	(951,382)	274,011
Income (loss) before income tax	(765,842)	232,329
Income tax provision	2,400	2,400
Net income (loss)	$ (768,242)	$ 229,929
Net income (loss) per share:
Basic and dilutive income (loss) per share:	$ (0.02)	$ 0.01
Weighted average number of common shares under in per share calculations (basic and diluted)	45,296,196	32,603,326

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Property and Equipment

12 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

6. Property and Equipment

Property and equipment consists of the following at June 30:

	Estimated
	Useful life
	(in years)		2012			2011
Machinery and Equipment		7	$	2,435,611			2,527,488
Equipment under capital leases	4 to 5			0			215,021
Fixtures, Fittings and office equipment	3 to 5			321,974			207,554
Vehicles		5		23,276			26,390
Leasehold Improvements		3		105,298			119,649
				2,886,158			3,096,102
Less accumulated depreciation				(2,343,108	)		(2,558,846	)
			$	543,050			537,256

Depreciation expense was $192,755 and $ 281,875 for the years ended June 30, 2012 and 2011, respectively.

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Prepaid and Other

12 Months Ended

Jun. 30, 2012

Prepaid Expenses and Other [Abstract]

Prepaid Expenses and Other Disclosure [Text Block]

5. Prepaid and Other

Prepaid and other current assets were $0 and $14,148 as of June 30, 2012 and 2011.

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Shareholders' Equity

12 Months Ended

Jun. 30, 2012

Equity [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

17. Shareholders’ Equity

The Company’s articles of incorporation authorize up to 100,000,000 shares of $0.001 par value preferred stock. Shares of preferred stock may be issued in one or more classes or series at such time as the Board of Directors determine. The Company had no shares of preferred stock issued and outstanding at either June 30, 2012 and 2011.

During the year ended June 30, 2011. The company issued the following shares of common stock.

990,000 shares of common stock to our stock transfer agent and investor relations/financial advisor in payment of services to the company. The company valued the shares at the market price on the issuance date, in the sum of $28,000

3,538,889 shares of common stock to various noteholders in part settlement of the outstanding loans due to them. The company valued the shares at the market price on the issuance date, in the sum of $160,056.  Of the 3,000,000 shares issued to one note-holder, Spagus Capital Partners,LLC (“Spagus”) 1,000,000 million shares were transferred to Spagus by another note-holder, Asher Enterprises.  The funds required to repay Asher were provided by Spagus.  This transfer of stock to Spagus was a part of that loan transaction.

The Company also issued 2,800,000 shares of the company common stock in lieu of salaries and expenses due on behalf of related parties,. The shares were valued at $94,000 based on the market price, and the balance was recorded as a contra equity account in the Company’s financial statements as of June 30, 2011. (see Note 4)

During the year ended June 30, 2012, the company issued the following shares of common stock.

3,650,000 shares of common stock was issued to financial advisors and other parties in payment of services to the company. The company valued the shares at the market price on the issuance date in the sum of $129,000.00.

The Company also issued 4,387,500 shares of the company common stock in lieu of salaries and expenses due on behalf of related parties. The shares were valued at $239,750 based on the market price.

412,800 shares of common stock was issued to employees of the company as a bonus in lieu of cash payments. The company valued these shares at the market price on the issuance date in the sum of $11,000.

Non-Qualified Stock Option Plan

In November 2006, the Board of Directors approved a Non-Qualified Stock Option Plan for key managers, which, among other provisions, provides for the granting of options by the board at strike prices at or exceeding market value, and expiration periods of up to ten years. No stock options have been granted under this plan.

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Derivative Liability

12 Months Ended

Jun. 30, 2012

Derivative Liability [Abstract]

Derivative Liability Disclosure [Text Block]

13. Derivative Liability

The Company has no provision for derivative liability at June 30, 2012 as the loan was paid in full. However, the company had a provision of $93,488 in 2011 to protect against any losses if the note payable to a financial institution was converted into common stock. This Liability was based on the price of the stock of the Company as of June 30, 2010 based on the terms of the conversion in the agreement..

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Capital Leases

12 Months Ended

Jun. 30, 2012

Leases, Capital [Abstract]

Capital Leases in Financial Statements of Lessee Disclosure [Text Block]

9. Capital Leases

 The company leases certain equipment under capital leases with terms ranging from four to five years. Future annual minimum lease payments are as follows as of June 30:

	June 30, 2012		June 30, 2011
2012	$	71,558	$	70,058
2013		-		11,318
2014		-		-
2015		-		-
2016		-		-
Total minimum lease payments		71,558		81,376
Less amount representing interest		-		6,608
Present value of future minimum lease payments		71,558		74,768
Less current portion of capital lease obligations		71,558		44,998
Capital Lease obligations, net of current portion	$	-	$	29,770

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Income Taxes (Details) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Current tax expense	$ 0	$ 0
State	2,400	2,400
Deferrred Federal	0	0
Deferred State	0	0
Income Tax Expense Total	$ 2,400	$ 2,400

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Intangible Assets

12 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

7. Intangible Assets

Intangible assets consist of the following at June 30:

	Weighted Average Remaining		2012				2011
	Life (in years)		Cost		Carrying Amount		Cost		Carrying Amount
Customer Relationships		7-6	$	417,831		0	$	417,831		31,952

Amortization expense was $31,952 and $104,458 for the years ended June 30, 2012 and 2011, respectively.

Estimated intangible asset amortization expense for the remaining carrying amount of intangible assets will be $0 for the year ending June 30, 2013.

The parent company impaired the intangible asset amounting to $170,000 as it did not consider the fair value of the reporting unit adequate to support the carrying amount of the asset in E.M. Tool Company, Inc. dba Elite Machine Tool for the year ended June 30, 2010. There was no impairment for 2012.

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Accrued Expenses

12 Months Ended

Jun. 30, 2012

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

8. Accrued Expenses

 Accrued expenses consist of the following at June 30:

	June 30, 2012		June 30, 2011
Compensation and related benefits	$	993,077	$	738,650
Audit Fees		77,500		65,000
Other		243,488		35,924
	$	1,314,065	$	839,574

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Line of Credit and Notes Payable

12 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Lines Of Credit and Notes Payable Disclosure [Text Block]

10. Line of Credit and Notes Payable

Pacific Western Bank Credit Agreement  As of June 30, 2012, the Company owed $253,128 principal plus accrued interest.

We are in default of our obligations due to Pacific Western Bank. However, subsequent to the year end, the Company has paid off in full the amount due to Pacific Western Bank, and as a result this settles all outstanding legal disputes between the parties in full.

Main Credit:  As of June 30, 2012 the Company owed $1,083,879 principal.  This line of credit is secured by the receivables and inventory of Eran Engineering.  The original term has expired and the line continues on a month to month basis.  There is no intent by Main Credit to cancel the line and the Company continues to borrow funds as necessary.

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Shareholders' Equity (Details Textual) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Preferred Stock, Shares Authorized	100,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001
Shares issued for services	$ 374,006	$ 28,000
Debt Conversion, Converted Instrument, Shares Issued		3,538,889
Debt Conversion, Converted Instrument, Amount		160,056
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	4,387,500	2,800,000
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	239,750	94,000
Stock Issued During Period, Shares, Employee Benefit Plan	412,800
Stock Issued During Period, Value, Employee Benefit Plan	11,000
Common Stock [Member]
Shares issued for services (in shares)	8,300,300	990,000
Shares issued for services	8,300	990
Number Of Shares Issued To Financial Advisors And Other Related Party For Services Rendered	3,650,000
Shares Issued To Financial Advisors And Other Related Party For Services Rendered	$ 129,000
Spagus Capital Partners [Member]
Debt Conversion, Converted Instrument, Shares Issued		3,000,000
Transfers By Related Party In Settlement Of Loan		1,000,000,000,000

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Going Concern and Management Plans (Details Textual) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Retained Earnings (Accumulated Deficit)	$ 10,051,106	$ 9,282,863
Net income (loss)	$ (768,242)	$ 229,929

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Income Taxes (Details Textual) (USD $)			12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Minimum [Member]	Jun. 30, 2012 Maximum [Member]
Operating Loss Carryforwards	$ 660,000	$ 550,000
Operating Loss Carryforwards, Expiration Dates			2012	2021
Operating Loss Carryforwards, Valuation Allowance	$ 754,271

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Note Payable (Tables)

12 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Schedule Of Notes Payable [Table Text Block]

Note Payable:

	June 30, 2012		June 30, 2011
Notes payable to financial institutions, secured by the underlying equipment in aggregate monthly installments of $7,292 including interest rates between 7.2% and 9.75% per annum for a period of 50 months.	$	253,129	$	44,471
An unsecured note payable to a corporation in respect of accounting software payable in monthly installments. The company has disputed the debt and therefore all payments are on hold.		46,811		46,811
An unsecured note payable to a corporation in respect of machines sold to us payable in monthly installments of $5,000.00 per month. This agreement will expire in June 2012		17,070		66,070
An unsecured note payable to a corporation in monthly installments of $5,000.00 per month. This balance is due to be paid in six monthly payments ending December 31, 2011.		-		31,764
An unsecured note payable to a financial institution in full on November 2011		300,000		150,000
TOTAL		617,010		319,367
Less Current Portion		597,261		305,939
Long Term Portion (in the next twelve months)	$	19,749	$	13,428

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Line of Credit and Notes Payable (Details Textual) (USD $)	Jun. 30, 2012
Pacific Western Bank Credit Agreement [Member]
Line of Credit Facility, Amount Outstanding	$ 253,128
Main Credit [Member]
Line of Credit Facility, Amount Outstanding	$ 1,083,879

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Litigation

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Legal Matters And Contingencies [TextBlock]

15. Litigation

1 James M. Cassidy v. Gateway International Holdings, Inc., American Arbitration Association, Case No. 73-194-32755-08. 

Our client was served with a Demand for Arbitration and Statement of Claim, which was filed on September 16, 2008.

The Statement of Claim alleges that claimant is an attorney who performed services for us pursuant to an agreement dated April 2, 2007 between us and the claimant.  The Statement of Claim alleges that we breached the agreement and seeks compensatory damages in the amount of $195,000 plus interest, attorneys’ fees and costs.  Management denies the allegations of the Statement of Claim and will vigorously defend against these allegations.  An arbitrator has not yet been selected, and a trial date has not yet been scheduled.

No provision has been made in the June 30, 2012 financial statements as we feel the litigation has no merit and the likelihood of any liability is extremely low.+ 9 )

2. CNC Manufacturing v. All American CNC Sales, Inc., Elite Machine Tool Company/Sales & Services, CNC Repos,Superior Court for the State of California, County of Riverside, Case No. RIC 509650.

Plaintiff filed this Complaint on October 2, 2008.

The Complaint alleges causes of action for breach of contract and rescission and claims All American breached the agreement with CNC Manufacturing by failing to deliver a machine that conforms to the specifications requested by CNC Manufacturing, and requests damages totaling $138,750. Elite Machine filed an Answer timely, on January 15, 2009. This case was settled on September 12, 2011 in an amount of $27,500 and the full provision has been made in the June 30, 2012 financial statements.

Abstract of Judgment and Writ were issued August 17, 2012.

3. Hwacheon Machinery v. All American CNC Sales, Circuit Court of the 19th Judicial Circuit, Lake County, Illinois, Case No. 09L544. 

The Complaint was filed on June 8, 2009.

The Complaint alleges causes of action for account stated, and arises from a claim by Hwacheon that All American CNC has not paid it for machines sold to All American CNC.  The Complaint seeks damages of approximately $362,000.  All American filed an answer on or about July 15, 2009. Default has been entered against All American CNC Sales, Inc.

In a hearing in the Superior Court of California Hwacheon filed an alter ego case against Eran Engineering, Inc., Elite Machine Too and M Line Holdings, Inc. The judge granted the summary judgment against all three defendants in the amount of $403,860.91 including interest through February 8, 2011. Post judgment proceedings have been initiated by Hwacheon. MLH and Eran Engineering filed an appeal which was dismissed pursuant to settlement.

The Company has entered into a revised settlement agreement in the total amount of $105,000 with $70,000 being paid out of proceeds of an anticipated new loan and the balance being paid at the rate of $5,000 per month commencing December 15, 2012 reducing by $10,000 if paid in full by December 15, 2012.

4. Fadal Machining v. All American CNC Sales, et al., Los Angeles Superior Court, Los Angeles, California, Case No. BC415693. 

The Complaint was filed on June 12, 2009.

The Complaint alleges causes of action for breach of contract and common counts against All American CNC seeking damages in the amount of at least $163,578.88, and arises from a claim by Fadal that All American failed to pay amounts due.  On June 26, 2009, Fadal amended the Complaint to include M Line Holdings, Inc. as a Defendant. 

A settlement agreement in the amount of $60,000 was signed on May 31, 2011.

The Company has not made payments that are due under the settlement agreement. Judgment was entered on June 16, 2011 and a Writ was issued on February 24, 2012.

5. Fox Hills Machining v. CNC Repos, Orange County Superior Court, Orange County, California, Case No. 30-2009-00121514. 

The Complaint was filed on April 14, 2009.

The Complaint alleges causes of action for Declaratory Relief, Breach of Contract, Fraud, Common Counts, and Negligent Misrepresentation, claiming the Defendant failed to pay Fox Hills Machining for the sale of two machines from Fox Hills to CNC Repos.  The damages sought in the Complaint are estimated to be approximately $30,000.  The Court records show the case was dismissed on July 31, 2012. Further, the records show that a stipulated judgment was entered August 27, 2012; Writ was issued on September 9, 2012.

A provision of $10,000 has been made in the June 30, 2012 financial statements.

6. C. William Kircher Jr. V M Line Holdings, Inc. Orange County Superior Court Case No. 00397576

A former attorney for M Line Holdings, Inc. has sued seeking damages for failure to pay legal fees in the amount of $120,166.30.

This case has settled. The terms of the settlement call for 12 payments of $5,000 per month commencing August 25, 2011 and the issuance of 150,000 shares of common stock.

The first three payments have been made but we are currently in default of our payments. The Company has recorded $50,000 in the June 30, 2012 financial statements. Currently the plaintiff is in communication with the Company to work out an arrangement. first three payments have been made but MLH is currently in default of its payments.

7. M Line Holdings, Inc. V Pacific Western Bank Los Angeles Superior Court Case No BC448012.

The case was filed on 10/21/2010.

The Complaint alleges causes of action for Declaratory Relief, Breach of Contract, Fraud, Common Counts, and Negligent Misrepresentation, claiming the Defendant failed to fund against the line of credit when funds were available and also failed to remove two of the personal guarantors after agreeing in writing to do so and MLH is seeking unspecified damages.

The Complaint in this case was dismissed with prejudice on October 17, 2011.

8. Pacific Western Bank v. M Line Holdings, Inc. Los Angeles County Superior Court Case No BC448012. The case was filed as a cross-complaint on 11/12/2010.

The Cross-complaint alleges causes of action basically for breach of written agreement and related claims. Defendant failed to repay a credit line when it became due and is also claiming that defendant must repay two equipment loans even though these loans are current due to the terms of the credit line agreement. Cross-complaint is seeking damages of $300,616.

On July 12, 2012 a Writ was issued and on September 24, 2012 an Abstract of Judgment was issued. The Company has recorded approximately $253,000 in the June 30, 2012 financials.

9. Neal Kohlhaas v. M Line Holdings, INC. Orange County Superior Court Case No. 30-2011- 00442075.

Plaintiff has filed suit against M Line alleging a breach of a consulting agreement and seeking damages in the amount of approximately $20,000. Company has decided to defend the action on the basis that services were not provided as agreed or expected. The case is currently in the discovery phase of litigation.

10. Timothy D. Consalvi v. M Line Holdings, Inc. et.al., Orange County Superior Court Case No, 00308489.

A former president of All American CNC Sales, Inc. has filed suit against the Company seeking payment on an alleged severance obligation by the Company. The Complaint does not specify the damages sought. The parties then reached a settlement in the principal sum of $40,000 to be documented in due course. Meanwhile a default was entered against MLH, which management believes was in error because a settlement was already reached by the principal parties involved. The default has since been vacated and Company has answered the complaint and has filed a motion for leave to file a cross complaint.

Recently a settlement of $50,000 has been reached in this case, requiring payments commencing on March 11, 2011 for ten months. The first two month’s payment have been made however the Company is currently in default of the terms of this settlement agreement. Mr. Consalvi has filed his stipulated judgment on March 5, 2012. Abstract of judgment and Writ were issued on March 13, 2012.

11. Joe Gledhill v. M Line Holdings, Inc., et. al.- Orange County Superior Court Case No. 30-2011-00506723

Joseph Gledhill, a former officer and director of the company and its subsidiary Eran Engineering has filed suit within the Pacific Western case seeking indemnity of the Pacific Western claim and various other causes of action. Management has decided to vigorously defend these claims and believes Mr. Gledhill’s suit has no merit. Trial has been set for April 8, 2013.

No provision has been made in the June 30, 2012 financials as the Company believes that the case has no merit with little likelihood of any liability being incurred by the Company.

12. M Line Holdings, Inc., v. Timothy Consalvi, et. al.- Orange County Superior Court Case No. 30-201100493329

M Line has recently filed suit against two of its former directors alleging that they breached their fiduciary duty to the company by mismanaging the corporate affairs of the company and its subsidiaries resulting in damages to the company and its subsidiaries. Defendants have not yet been served or have not answered the complaint at this time.

This case is expected to be dismissed at the 10/29/2012 Order to Show Cause Hearing.

13. All Direct Travel Services, Inc. Vs Jitu Banker, M Line holdings, Inc., Airworks International, Inc., case number 30-2011-00472824-CL-CO-CJC

It has been settled as to the Chief Financial Officer and M Line for $2,000 payable on 25 February.

Default Judgment entered on January 6, 2012.

Litigation is subject to inherent uncertainties, and unfavorable rulings could occur.  If an unfavorable ruling were to occur in any of the above matters, there could be a material adverse effect on our client’s financial condition, results of operations or liquidity.

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Subsequent Events

12 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

20. Subsequent Events

In October 2012, the Company refinanced Eran Engineering’s equipment with Utica Leaseco, LLC, resulting in the repayment of the company’s debt to Pacific Western Bank, and other obligations. This has resulted in long term debt replacing short term debt. Additional working capital resulted from this agreement.

The company is currently in negotiation for further lines of credit with institutional and private investors, details of which will be made available once they have closed.

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Accrued Expenses (Details) (USD $)	Jun. 30, 2012	Jun. 30, 2011
Compensation and related benefits	$ 993,077	$ 738,650
Audit Fees	77,500	65,000
Other	243,488	35,924
Accrued Liabilities and Other Liabilities	$ 1,314,065	$ 839,574

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Basis of Presentation and Significant Accounting Policies (Details Textual) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Accounts Receivable, Net	$ 794,317	$ 894,197
Allowance for Doubtful Accounts Receivable	47,193	105,096
Impairment of Intangible Assets (Excluding Goodwill)	0	0	170,000
Advertising Expense	7,685	8,051
Customer Concentration Risk [Member]
Accounts Receivable, Net	$ 354,589	$ 458,970

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)	Common Stock [Member]	Additional Paid-In Capital [Member]	Related Party Receivable [Member]	Retained Earnings [Member]	Total
Balance at Jun. 30, 2010	$ 30,862	$ 9,505,812	$ 0	$ (9,512,790)	$ 23,884
Balance (in shares) at Jun. 30, 2010	30,861,956
Shares issued for services	990	27,010	0	0	28,000
Shares issued for services (in shares)	990,000
Shares issued for debt settlement	3,539	156,517	0	0	160,056
Shares issued for debt settlement (in shares)	3,538,889
Shares issued for deposit	380	11,020	0	0	11,400
Shares issued for deposit (in shares)	380,000
Shares issued in lieu of related party expenses	2,800	91,200	(94,000)	0	0
Shares issued in lieu of related party expenses (in shares)	2,800,000
Imputed interest on related party notes	0	21,756	0	0	21,756
Net income (loss)	0	0		229,929	229,929
Balance at Jun. 30, 2011	38,571	9,813,315	(94,000)	(9,282,861)	475,023
Balance (in shares) at Jun. 30, 2011	38,570,845
Shares issued for services	8,300	365,706	0	0	374,006
Shares issued for services (in shares)	8,300,300
Shares issued for debt settlement					0
Net income (loss)	0	0	0	(768,242)	(768,242)
Balance at Jun. 30, 2012	$ 46,871	$ 10,179,021	$ (94,000)	$ (10,051,103)	$ 80,789
Balance (in shares) at Jun. 30, 2012	46,871,145

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Related Parties

12 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

4. Related Parties

As of June 30, 2012 and 2011, we had an amount due from a related party, a shareholder of the Company in the amount of $1,262,615 and $769,499 which is expected to be repaid to the company within the next fiscal year. The Company advanced funds and paid various general expenses incurred by the related party during the course of business for the year ended June 30, 2012. These amounts are fully secured by the related party’s assets.  Interest was imputed at 6% per annum for the fiscal year ended June 30, 2011. Imputed Interest amounted to $0 and $21,756 for the year ended June 30, 2012 and 2011, respectively.

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Commitments and Contingencies (Details Textual) (USD $)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Product Warranty Expense	$ 41,544,000	$ 35,407
Operating Leases, Rent Expense	$ 383,932	$ 537,462

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Basis of Presentation and Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Basis Of Accounting, Policy [Policy Text Block]

20. Subsequent Events

In October 2012, the Company refinanced Eran Engineering’s equipment with Utica Leaseco, LLC, resulting in the repayment of the company’s debt to Pacific Western Bank, and other obligations. This has resulted in long term debt replacing short term debt. Additional working capital resulted from this agreement.

The company is currently in negotiation for further lines of credit with institutional and private investors, details of which will be made available once they have closed.

Segment Reporting, Policy [Policy Text Block]

Business Segments

FASB ASC Topic 280: Segment Reporting (“ASC 280”) requires the determination of reportable business segments (i.e., the management approach). This approach requires that business segment information used by the chief operating decision maker to assess performance and manage company resources be the source for segment information disclosure. The Company operates in two reportable segments consisting of (1) Machine Sales and (2) Precision Manufacturing.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risks

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents and trade accounts receivable. The Company invests its cash balances through high-credit quality financial institutions. From time to time, the Company maintains bank account levels in excess of FDIC insurance limits. If the financial institutions in which the Company has its accounts has financial difficulties, the Company’s cash balances could be at risk.

Sales from significant customers representing 10% or more of sales consist of the following customers for the years ended June 30:

	Year ended June 30, 2012		Year ended June 30, 2011
Percent of sales		23		24
Number of customer		1		1

Accounts receivable from this customer at June 30, 2012 and 2011 were $354,589 and $458,970, respectively.

As a result of the Company's concentration of its customer base and industries served, the loss or cancellation of business from, or significant changes in scheduled deliveries of product sold to the above customers or a change in their financial position could materially and adversely affect the Company's consolidated financial position, results of operations and cash flows.

One customer, included in the Precision Manufacturing segment represents a significant concentration. Sales to this customer as a percentage of sales within the Precision Manufacturing Segment are as follows for the years ended June 30:

	Year ended June 30,
	2012		2011
% of segment sales significant customer sales concentration		54		62

Accounts receivable for significant customers at June 30, 2012 and 2011 were $354,589 and $458,970, respectively.

The Company’s Precision Manufacturing segment operates a single manufacturing facility located in Tustin, California. A major interruption in the manufacturing operations at this facility would have a material adverse affect on the consolidated financial position and results of operations of the Company.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of sales and expenses during the reporting period. Significant estimates made by management are, among others, realization of inventories, collectability of accounts receivable, litigation, impairment of goodwill, and long-lived assets other than goodwill. Actual results could materially differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers all highly liquid investments with insignificant interest rate risk and original maturities of three months or less from the date of purchase to be cash equivalents. The carrying amounts of cash and cash equivalents approximate their fair values. The Company maintains cash and cash equivalents balances at certain financial institutions in excess of amounts insured by federal agencies. Management does not believe that as a result of this concentration, it is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships.

Receivables, Policy [Policy Text Block]

Accounts Receivable

The Company performs periodic credit evaluations and continually monitors its collection of amounts due from its customers. The Company adjusts credit limits and payment terms granted to its customers based upon payment history and the customer's current creditworthiness. The Company does not require collateral from its customers to secure amounts due from them. The Company regularly reviews its accounts receivable and collection of these balances subsequent to each of these periods. The Company maintains reserves for potential credit losses, and historically, such losses have been within management expectations. As of June 30, 2012 and 2011, accounts receivable totals were $794,317 and $894,197, net of a provision for bad debt expense of $47,193 and $105,096 respectively.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost, determined on a first in, first out (“FIFO”)

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Equipment under capital lease obligations is depreciated over the estimated useful life of the asset. Leasehold improvements are amortized over the shorter of the estimated useful life or the term of the lease. Repairs and maintenance are expensed as incurred, while improvements are capitalized. Upon the sale or retirement of property and equipment, the accounts are relieved of the cost and the related accumulated depreciation, which any resulting gain or loss included in the consolidated statements of operations.

Impairment Or Disposal Of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]

Long-Lived Assets

The Company reviews its fixed assets and certain identifiable intangibles with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset or discounted cash flows. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.

Based on management’s review, the Company determined there was an impairment of intangible assets of $0 and $0 at June 30, 2012 and 2011, respectively.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC Topic 740-10, Income Taxes, (“ASC 740”) which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the differences between the financial statement and the tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense represents the tax payable for the period and the change during the period in deferred tax assets and liabilities.

The Company accounts for uncertain tax positions in accordance with ASC 740, which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on various related matters such as derecognition, interest, penalties and disclosures required. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Commitments and Contingencies, Policy [Policy Text Block]

Contingencies and Litigation

The Company evaluates contingent liabilities including threatened or pending litigation.”  Management assesses the likelihood of any adverse judgments or outcomes to a potential claim or legal proceeding, as well as potential ranges of probable losses, when the outcomes of the claims or proceedings are probable and reasonably estimable. A determination of the amount of accrued liabilities required, if any, for these contingencies is made after the analysis of each matter. Because of uncertainties related to these matters, management bases its estimates on the information available at the time. As additional information becomes available, management reassess the potential liability related to its pending claims and litigation and may revise our estimates. Any revisions in the estimates of potential liabilities could have a material impact on the results of operations and financial position.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The Company recognizes revenue in accordance with Staff Accounting Bulletin No. 104 “Revenue Recognition”. Revenue is recognized at the date of shipment to customers when; a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist, and collectability is reasonably assured.

Revenues generated from the Precision Manufacturing segment consist of manufactured parts and in some instances, assembly of these items based on detailed engineering specifications received by the Company from the customer. The Company generally begins to manufacture the parts upon the receipt and acceptance of a purchase order which specifies the quantity, price and delivery dates such products are required to be shipped within. Prior to shipment, physical inspection of the parts is performed to ensure specifications meet the engineering requirements. Historically, customer returns have been inconsequential.

Revenues generated from the sales of new and pre-owned CNC machines from the Machine Tools segment are based on the acceptance of a purchase order and the customer’s acknowledgement of the Company’s terms and conditions which specifies the shipping terms, payment terms and the warranty period, if any. In certain instances, the Company may perform installation services including the leveling of the machine, which is inconsequential. Under agreements with certain new equipment manufacturers, a ninety day warranty is provided to customers whereby the manufacturer is responsible for any replacement parts and the Company is responsible for the installation of the parts. In certain instances, the Company provides warranties for used equipment for periods ranging up to thirty days. Historically, warranty costs have been inconsequential. Generally, the Company does not accept returns of equipment.

Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as customer deposits.

Advertising Costs, Policy [Policy Text Block]

Advertising

The Company expenses the cost of advertising when incurred as selling expenses. Advertising expenses were $7,685 and $8,051, for the years ended June 30, 2012 and 2011 respectively.

Earnings Per Share, Policy [Policy Text Block]

Net Income (Loss) per Share

Basic net income (loss) per share is calculated by dividing net loss by the Company’s weighted average common shares outstanding during the period. Diluted net income per share reflects the potential dilution to basic earnings per share that could occur upon conversion or exercise of securities, options or other such items to common shares using the treasury stock method, based upon the Company’s weighted average fair value of the common shares during the period. For each period presented, basic and diluted net income (loss) per share amounts are identical as the Company does not have potentially dilutive securities.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Financial instruments are recorded on the consolidated balance sheets. The carrying amount for cash and cash equivalents, accounts receivable, accounts payable, accrued expenses approximates fair value due to the immediate or short-term maturity of these financial instruments. The fair value of long-term debt approximates the carrying amounts based upon the expected borrowing rate for debt with similar remaining maturities and comparable risk. The fair value of related party notes cannot be readily determined because of the nature of the relationship between the Company and the lenders.

Prior Period Reclassification Adjustment Description [Policy Text Block]

Reclassification

Certain reclassification has been made to the previous year’s financial statements to conform to current year presentation with no effect on previously reported net loss.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In December 2011 the FASB issued guidance on disclosures about Offsetting Assets and Liabilities on the Balance Sheet. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. This scope would include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS.

In September 2011, the FASB issued guidance on testing goodwill for impairment. The new guidance provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity determines that this is the case, it is required to perform the currently prescribed two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). If, an entity determines that the fair value of a reporting unit is less than its carrying amount, the two-step goodwill impairment test is not required. The new guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted.

In June 2011, the FASB issued guidance on presentation of comprehensive income. The new guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. Instead, an entity will be required to present either a continuous statement of net income and other comprehensive income or in two separate but consecutive statements. The new guidance is effective for annual periods beginning after December 15, 2011. In December 2011, the FASB issued a deferral of certain portion of this guidance.

In September 2011 the FASB issued guidance on compensation, retirement benefits on an multiemployer plan. This guidance relates to disclosures about an employer’s participation in a multiemployee plan. For public entities, effective for annual periods for fiscal years ending after December 15, 2011, with early adoption permitted. The amendments should be applied retrospectively for all prior periods presented.

In December 2011 the FASB issued guidance on Property, Plant, and Equipment and the Derecognition of in Substance Real Estate—a Scope Clarification. The amendments in this Update should be applied on a prospective basis to deconsolidation events occurring after the effective date. Prior periods should not be adjusted even if the reporting entity has continuing involvement with previously derecognized in substance real estate entities.

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Segments and Geographic Information (Tables)

12 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Segment information is as follows as of and for the year ended June 30, 2012:

	Machine Sales			Precision Manufacturing			Corporate			Total
Revenue	$	5,929,967		$	4,247,482		$	-		$	10,177,449
Interest Income		-			-			-			-
Interest Expense		10,354			150,545			47,246			208,145
Depreciation and Amortization		3,000			169,703			20,052			192,755
Income (loss) before taxes		(57,142	)		(670,597	)		(38,103	)		(765,842	)
Total Assets		284,625			2,779,874			1,232,911			4,297,411
Capital Expenditure	$	-		$	337,191		$	-		$	337,191

Segment Information for the year ended June 30, 2011

	Machine Sales		Precision Manufacturing		Corporate			Total
Revenue	$	6,179,472	$	3,721,228	$	0		$	9,900,700
Interest Income		-		-		21,756			21,756
Interest Expense		2,171		89,917		11,801			103,889
Depreciation and Amortization		107,458		255,266		23,610			386,334
Income (loss) before taxes		12,165		306,296		(140,712	)		232,329
Total Assets		713,773		2,351,738		682,653			3,748,164
Capital Expenditure	$	-	$	-	$	-		$	-

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Commitments and Contingencies

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

14. Commitments and Contingencies

The Company has provided certain of its customers with thirty day product warranties. The warranty expense of  $35,407 and $41,544 for the years ended June 30, 2012 and 2011, respectively were accounted for in the cost of goods sold..

The Company leased its manufacturing and office facilities under non-cancelable operating lease arrangements.

Rent expense under operating leases was $383,932 and $537,462 for the years ended June 30, 2012 and 2011, respectively.

Future rent under lease agreements for the next five years is as follows:

2012	$	438,217
2013		451,361
2014		464,900
2015		478,848
Thereafter		493,221
	$	2,326,547