5. INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Reconciliation of federal statutory rate

	2013			2012
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		30.1			(94.3	)
Nondeductible items		1.0			1.7
Prior-year tax adjustments		7.5			48.8
Other		1.6			3.6
Effective tax rate		(0.1	)%		0.1	%

Components of deferred tax assets and liabilities

	2013			2012
Deferred tax assets:
Net operating loss carry forwards	$	2,582,000		$	1,913,000
Tax credit carry forwards		381,000			362,000
Reserves and accruals not yet deducted for tax purposes		301,000			451,000
Total deferred tax assets		3,264,000			2,726,000
Valuation allowance		(3,264,000	)		(2,726,000	)
Net deferred tax asset	$	–		$	–