3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Segment Reporting

The following table contains certain financial information by geographic area:

	Three Months Ended  December 31,				Six Months Ended  December 31,
Net sales:	2012		2011		2012		2011
United States	$	5,063,619	$	2,057,228	$	17,015,711	$	4,435,735
Caribbean and South America		628		13,200		746,928		51,900
Asia		291,122		942,053		729,808		1,648,300
Totals	$	5,355,369	$	3,012,481	$	18,492,447	$	6,135,935

Long-lived assets, net:	December 31, 2012		June 30, 2012
United States	$	1,843,551	$	706,065
Asia		2,595,200		3,237,435
Totals	$	4,438,751	$	3,943,500

Property and Equipment

Depreciation is computed using the straight-line method over the estimated useful lives as follows:

Machinery	6 years
Office equipment	5 years
Molds	3 years
Vehicles	5 years
Computers and software	5 years
Furniture and fixtures	7 years
Facilities	5 years

Intangible Assets

The definite lived intangible assets consisted of the following as of December 31, 2012:

Definite Lived Intangible Assets:	Expected Life	Average Remaining Life	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
Complete technology	3 years	0.0 years	$	490,000	$	490,000	$	–
Complete technology	3 years	0.3 years		1,517,683		1,351,778		165,905
Complete technology	3 years	2.0 years		281,714		93,905		187,809
Complete technology	3 years	2.5 years		361,249		90,324		270,925
Complete technology	3 years	2.8 years		174,010		14,501		159,509
Supply and development agreement	8 years	4.8 years		1,121,000		455,406		665,594
Technology in progress	Not Applicable	–		1,048,813		–		1,048,813
Software	5 years	2.8 years		170,035		61,137		108,898
Patents	10 years	9.5 years		12,218		411		11,807
Certifications & licenses	3 years	2.7 years		1,343,256		131,838		1,211,418
Total  as of December 31, 2012			$	6,519,978	$	2,689,300	$	3,830,678

The definite lived intangible assets consisted of the following as of June 30, 2012:

Definite Lived Intangible Assets:	Expected Life	Average Remaining Life	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
Complete technology	3 years	0.3 years	$	490,000	$	449,167	$	40,833
Complete technology	3 years	0.8 years		1,517,683		1,098,830		418,853
Complete technology	3 years	2.5 years		281,714		46,952		234,762
Supply and development agreement	8 years	5.3 years		1,121,000		385,344		735,656
Technology in progress	Not Applicable	–		1,258,499		–		1,258,499
Software	5 years	3.3 years		163,607		44,033		119,574
Patent	10 years	9.7 years		11,944		289		11,655
Certifications & licenses	3 years	2.9 years		701,622		5,942		695,680
Total  as of June 30, 2012			$	5,546,069	$	2,030,557	$	3,515,512