SHAREHOLDERS' EQUITY

9 Months Ended

Mar. 31, 2012

SHAREHOLDERS' EQUITY

NOTE 8 SHAREHOLDERS’ EQUITY

During the nine months ended March 31, 2012, the Company issued 5,865,703 shares of its common stock to consultants for services rendered by them for an aggregate fair value of $487,928 based on the quoted market price of the shares at time of issuance.

On July 1, 2011, the Company issued 368,158 shares of its common stock valued at $60,000 to the holders of the Series B Convertible Preferred Stock for accrued dividends through June 30, 2011.

On October 3, 2011, the Company issued 655,492 shares of its common stock valued at $60,000 to the holders of the Series B Convertible Preferred Stock for accrued dividends through September 30, 2011.

At January 3, 2012, the Company issued 1,224,500 shares of its common stock valued at $60,000 to the holders of the Series B Convertible Preferred Stock for accrued dividends through December 31, 2011.

On October 1, 2011, 250,000 warrants with an exercise price of $1.00 expired.

On January 1, 2012, 600,000 warrants with an exercise price of $0.12 expired.

On January 20, 2012, 350,000 warrants with an exercise price of $0.45, 350,000 warrants with an exercise price of $0.75, 200,000 warrants with an exercise price of $1.00 and 100,000 warrants with an exercise price of $1.50 expired.