3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Segment Reporting

The following table contains certain financial information by geographic area:

	Three months ended September 30,
Net sales:	2013		2012
United States	$	1,079,513	$	11,952,092
Caribbean and South America		2,580		746,300
Europe, the Middle East and Africa (“EMEA”)		298,616		–
Asia		26,394		438,686
Totals	$	1,407,103	$	13,137,078

Long-lived assets, net:	September 30, 2013		June 30, 2013
United States	$	2,467,045	$	2,595,094
Asia		1,031,153		1,109,876
Totals	$	3,498,198	$	3,704,970

Schedule of estimated useful life, 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 September 30, 2013:

Definite lived intangible assets:	Expected Life	Average Remaining life	Intangible Assets		Accumulated Amortization		Net Intangible Assets
Complete technology	3 years	–	$	490,000	$	490,000	$	–
Complete technology	3 years	–		1,517,683		1,517,683		–
Complete technology	3 years	1.2 years		281,714		174,740		106,974
Complete technology	3 years	1.7 years		361,249		180,637		180,612
Complete technology	3 years	2.0 years		174,009		58,003		116,006
Complete technology	3 years	2.2 years		909,962		202,213		707,749
Supply and development agreement	8 years	4.0 years		1,121,000		560,500		560,500
Technology In progress	Not Applicable	–		171,500		–		171,500
Software	5 years	2.6 years		169,595		84,445		85,150
Patent	10 years	8.4 years		50,754		578		50,176
Certifications & licenses	3 years	1.9 years		1,379,830		443,782		936,048
Total  as of September 30, 2013			$	6,627,296	$	3,712,581	$	2,914,715
Total  as of September 30, 2013			$	6,627,296	$	3,712,581	$	2,914,715

The definite lived intangible assets consisted of the following as of June 30, 2013:

Definite lived intangible assets:	Expected Life	Average Remaining life	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
Complete technology	3 years	–	$	490,000	$	490,000	$	–
Complete technology	3 years	–		1,517,683		1,517,683		–
Complete technology	3 years	1.5 years		281,714		151,264		130,450
Complete technology	3 years	2.0 years		361,249		150,532		210,717
Complete technology	3 years	2.3 years		174,009		43,502		130,507
Complete technology	3 years	2.5 years		909,962		126,384		783,578
Supply and development agreement	8 years	4.3 years		1,121,000		525,469		595,531
Technology In progress	Not Applicable	–		32,500		–		32,500
Software	5 years	2.9 years		169,595		75,965		93,630
Patent	10 years	8.7 years		50,482		517		49,965
Certifications & licenses	3 years	2.2 years		1,379,830		332,963		1,046,867
Total  as of June 30, 2013			$	6,488,024	$	3,414,279	$	3,073,745