Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Components of income tax expense (benefit)

	2012			2011
Income / (Loss) Before Income Taxes:
Domestic	$	14,557,000		$	(50,534,720	)
International		116,000			(165,030	)
	$	14,673,000		$	(50,699,750	)
Current Taxes
Federal	$	3,758,000		$	—
State		1,121,000			92,000
Foreign		47,000			—
Total Current Income Tax Provision	$	4,926,000		$	92,000
Deferred Taxes
Federal		(2,110,000	)		—
State		(602,000	)		—
Foreign		(12,000	)		—
Total Deferred Income Tax Provision	$	(2,724,000	)	$	—
Net Income Tax Provision	$	2,202,000		$	92,000

The effective income tax rate differs from the U.S. Federal statutory income tax rate

	2012			2011
Federal statutory income tax rate		35.00	%		(34.00	%)
State income taxes, net of federal benefit		5.50	%		.24	%
Tax return to provision true-up		(1.01	)%		(1.35	%)
Permanent differences:
— interest on convertible debt		0.00	%		3.44	%
— change in derivative liability		16.14	%		32.44	%
— stock option compensation		0.30	%		.21	%
— other		0.44	%		0.12	%
Decrease in valuation allowance		(39.45	)%		(0.91	%)
Net income tax provision (benefit)		16.04	%		(0.18	%)

The components of the deferred tax assets and liabilities

	2012			2011
Deferred tax assets:
Federal and state net operating loss carryovers	$	2,453,000		$	4,832,000
Research and development tax credits		—			31,000
Contribution carryover		—			13,000
Stock option compensation		988,000			722,000
Accrued vacation, allowance for returns, bonuses & other		600,000			540,000
Deferred tax asset	$	4,041,000		$	6,138,000
Deferred liabilities
Patents and trademarks		(587,000	)		(625,000	)
Change in tax accounting methods		(44,000	)		(36,000	)
Property & equipment		(540,000	)		(6,000	)
Total deferred liabilities		(1,171,000	)		(667,000	)
Net deferred tax asset		2,870,000			5,471,000
Less: valuation allowance		(147,000	)		(5,471,000	)
Deferred tax assets	$	2,723,000		$	—