STOCKHOLDERS' EQUITY (DEFICIT) (Tables)

12 Months Ended

Jun. 30, 2012

STOCKHOLDERS' EQUITY (DEFICIT) [Abstract]

The fair value of the Company's stock options was estimated on the measurement date using the Black-Scholes option pricing model with the following weighted average assumptions:

	2012			2011			2010

Expected life (years)		3.48			4.33			2.39
Interest rate		1.03	%		1.27	%		1.10	%
Volatility		102.31	%		96.27	%		162.90	%
Dividend yield		0.00	%		0.00	%		0.00	%
Estimated forfeitures		0.00	%		0.00	%		0.00	%

Stock options outstanding

The following table summarizes the Company's stock option activity for the years ended June 30, 2012, 2011 and 2010:

	Number of Options			Price Per Option		Weighted Average Exercise Price

Outstanding, June 30, 2009		3,370,000		$	0.50 to $ 2.25	$	1.21
Granted		3,500,000		$	0.25	$	0.25
Expired		(300,000	)	$	1.00 to $ 1.16	$	1.08
Cancelled		(2,445,000	)	$	0.65 to $ 2.25	$	1.28

Outstanding, June 30, 2010		4,125,000		$	0.25 to $ 1.00	$	0.36
Granted		2,375,000		$	0.25 to $ 0.85	$	0.58

Outstanding, June 30, 2012 and 2011		6,500,000		$	0.25 to $ 1.00	$	0.44
Exercisable, June 30, 2012		5,100,000		$	0.25 to $ 1.00	$	0.40

Stock options outstanding and exercisable

The following summarizes the options outstanding and exercisable:

	Number of Options
Expiry Date	Exercise Price		June 30, 2012		June 30, 2011

December 31, 2013(1)	$	1.00		110,000		110,000
December 31, 2012	$	0.25		2,500,000		2,500,000
December 31, 2013(2)	$	1.00		100,000		100,000
March 9, 2014	$	0.25		125,000		125,000
June 1, 2014	$	0.85		100,000		100,000
October 15, 2014	$	0.50		100,000		100,000
July 31, 2014(3)	$	1.00		415,000		415,000
December 1, 2014	$	0.50		175,000		175,000
December 1, 2014	$	0.85		100,000		100,000
December 31, 2014	$	0.25		1,000,000		1,000,000
April 15, 2015	$	0.50		100,000		100,000
June 1, 2015	$	0.50		175,000		175,000
June 1, 2015	$	0.85		100,000		100,000
October 15, 2015	$	0.50		100,000		100,000
December 1, 2015	$	0.50		175,000		175,000
December 1, 2015	$	0.85		100,000		100,000
April 15, 2016	$	0.50		100,000		100,000
June 1, 2016	$	0.50		175,000		175,000
June 1, 2016	$	0.85		100,000		100,000
October 15, 2016	$	0.50		100,000		100,000
December 1, 2016	$	0.50		175,000		175,000
December 1, 2016	$	0.85		100,000		100,000
April 15, 2017	$	0.50		100,000		100,000
June 1, 2017	$	0.50		175,000		175,000

Total outstanding				6,500,000		6,500,000
Total exercisable				5,100,000		3,950,000

(1)

During the year ended June 30, 2010, the expiry date of the options was extended from December 31, 2011 to December 31, 2013.

(2)

During the year ended June 30, 2010, the expiry date of these options was extended from November 15, 2010 to December 31, 2013.

(3)

During the year ended June 30, 2010, the expiry date of these options was extended from December 31, 2010 to July 31, 2014.

Stock purchase warrants

The following summarizes information about the Company's stock purchase warrants outstanding:

	Number of Warrants			Exercise Price Per Warrant		Weighted Average Exercise Price

Balance, June 30, 2010		8,763,952				$	0.60
Issued		1,316,553		$	1.00	$	1.00
Exercised		(860,800	)	$	0.50	$	0.50
Expired		(2,970,000	)	$	0.50	$	0.50

Balance, June 30, 2011		6,249,705				$	0.74
Issued		4,770,398		$	0.57 to $1.00	$	0.68
Reinstated(1)		3,040,000		$	0.50	$	0.50

Balance, June 30, 2012		14,060,103				$	0.67

(1)

During the year ended June 30, 2011 these investor warrants had expired. During the year ended June 30, 2012 these warrants were reinstated with original terms and holders. The expiry date of the reinstated warrants was extended to December 31, 2013. This did not result in any additional incremental value recorded to paid in capital.

	Number of Warrants
Expiry Date	Exercise Price		June 30, 2012		June 30, 2011

December 31, 2013(1)	$	0.50		3,710,000		670,000
December 31, 2013(1)	$	0.70		3,963,152		4,263,152
December 31, 2013(1)	$	1.00		1,358,372		1,316,553
January 3, 2014	$	0.70		856,692		0
January 31, 2014	$	0.70		2,360,459		0
February 14, 2014(2)	$	0.70		300,000		0
March 31, 2014	$	0.57		1,000,000		0
November 29, 2016	$	0.70		511,428		0

Total outstanding and exercisable				14,060,103		6,249,705

(1)

During the year ended June 30, 2012, these warrants were extended to December 31, 2013.

(2)

During the year ended June 30, 2012, 300,000 warrants with expiry dates of February 28, 2012, were extended to February 14, 2014.

Stock purchase warrants, valuation assumptions

In August 2010, the Company extended the expiry date of 670,000 warrants which were originally issued in conjunction with equity issues during 2008 from December 31, 2010 to December 31, 2011. The modification resulted in a deemed dividend of $131,577, which was calculated as the difference in the fair value of the warrants immediately before and after the modification using the Black-Scholes option pricing model with the following significant assumptions:

	Before		After

Remaining term (years)	0.35		1.35
Interest rate	0.16	%	0.25	%
Volatility	55.58	%	119.04	%
Dividend yield	0.00	%	0.00	%
Estimated forfeitures	0.00	%	0.00	%

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

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- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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