1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

12 Months Ended

Dec. 31, 2012

Jun. 30, 2012

Accounting Policies [Abstract]

Inventories

Inventories are stated at the lower of cost (first-in, first-out) or market and consist of the following:

	December 31, 2012		June 30, 2012
Raw Materials	$	321,320	$	277,392
Work-In-Progress		283,654		289,748
Finished Goods		87,165		115,760
Total Inventories	$	692,139	$	682,900

	2012		2011
Raw material	$	277,392	$	271,608
Work-in-progress		289,748		312,097
Finished goods		115,760		82,580
	$	682,900	$	666,285

Property and Equipment

Asset Classification	Estimated Useful Life
Machinery and equipment	2-7 years
Leasehold improvements	Shorter of lease term or estimated useful life
Furniture and fixtures	5 years
Vehicles	3 years

Significant Customers

	2012			2011
Customer A		34	%		22	%
Customer B		22			24
Customer C		3			17
All others		41			37
		100	%		100	%

Income (Loss) per Share

The following is the calculation of income (loss) per share for the three and six months ended December 31, 2012 and 2011:

		Three Months Ended December 31						Six Months Ended December 31
		2012			2011			2012			2011
Net Income (Loss) – Basic	$	(906,484	)	$	(324,875	)	$	(1,264,578	)	$	1,673,566
Interest Expense on Senior Convertible Notes		-			-			-			27,708
Net Income (Loss) – Diluted	$	(906,484	)	$	(324,875	)	$	(1,264,578	)	$	1,701,274
Basic Weighted Average Shares Outstanding		4,035,656			1,191,138			2,688,788			1,081,075
Potentially Dilutive Securities		-			-			-			79,280
Diluted Weighted Average Shares Outstanding		4,035,656			1,191,138			2,688,788			1,160,355
Income (Loss) Per Share
Basic	$	(0.22	)	$	(0.27	)	$	(0.47	)	$	1.55
Diluted	$	(0.22	)	$	(0.27	)	$	(0.47	)	$	1.47

	Year Ended June 30
	2012		2011
Net Income (Loss) – Basic	$	960,972	$	(1,052,613	)
Interest Expense on Senior Convertible Notes		30,208		–
Net Income (Loss) – Diluted	$	991,180	$	(1,052,613	)
Basic Weighted Average Shares Outstanding		1,163,775		994,777
Potentially Dilutive Securities		112,114		–
Diluted Weighted Average Shares Outstanding		1,275,889		994,777
Income (Loss) Per Share
Basic	$	0.83	$	(1.06	)
Diluted	$	0.78	$	(1.06	)

Warranty Costs

	2012			2011
Balance at beginning of period	$	25,000		$	25,000
Provision for warranty claims		1,321			2,658
Warranty claims incurred		(1,321	)		(2,658	)
Balance at end of period	$	25,000		$	25,000