7. INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Schedule of Income tax provision from continuing operations

	Year  Ended June 30,
	2014			2013
Current income tax expense (benefit):
Federal	$	(430,972	)	$	31,045
State		(900	)		4,103
		(431,872	)		35,148
Deferred income tax expense (benefit):
Federal		(76,754	)		261,441
State		1,700			(185	)
Foreign		(22,090	)		(127,596	)
		(97,144	)		133,660
Provision (benefit) for income taxes	$	(529,016	)	$	168,808

Schedule of effective income tax rate

	Year Ended June 30,
	2014			2013
Federal tax provision (benefit), at statutory rate of 34%	$	(556,588	)	$	(41,500	)
State tax, net of federal tax benefit		528			2,585
Nondeductible expenses		28,034			47,535
R&D credits		(24,057	)		(84,293	)
Uncertain tax position		7,389			25,905
Foreign rate difference		(20,435	)		209,019
Other		36,113			9,557
Provision (benefit) for income taxes	$	(529,016	)	$	168,808

Schedule of deferred tax assets

	June 30, 2014			June 30, 2013
Deferred tax asset:
Net operating losses	$	1,901,479		$	1,602,235
State tax		(272	)		436
Intangibles		108,207			(142,720	)
Other, net		31,190			41,506
Total deferred tax assets		2,040,604			1,501,457
Less valuation allowance		–			–
Net deferred tax asset	$	2,040,604		$	1,501,457

Schedule of unrecognized tax benefits

Balance as of June 30, 2012	$	26,841
Gross increase or (decrease)		25,905
Reversal of reserve on unrecognized tax benefits		–
Balance as of June 30, 2013	$	52,746
Gross increase or (decrease)		7,389
Reversal of reserve on unrecognized tax benefits		–
Balance as of June 30, 2014	$	60,135