5. INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Reconciliation of the federal statutory rate to the Company's effective tax rate

	2012			2011
Income tax expense (benefit) at federal statutory rate		34.0	%		(34.0	%)
Increase (decrease) in tax resulting from:
State taxes, net of federal benefit		6.3			(6.3	)
Change in valuation allowance		(94.3	)		46.1
Nondeductible items		1.7			1.0
Prior-year tax adjustments		48.8			1.5
Other		3.6			(8.2	)
Effective tax rate		0.1	%		0.1	%

Components of deferred tax assets and liabilities

	2012			2011
Deferred tax assets:
Net operating loss carry forwards	$	1,913,000		$	2,735,000
Tax credit carry forwards		362,000			347,000
Reserves and accruals not yet deducted for tax purposes		451,000			549,000
Total deferred tax assets		2,726,000			3,631,000
Valuation allowance		(2,726,000	)		(3,631,000	)
Net deferred tax asset	$	–		$	–