INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2012

INCOME TAXES [Abstract]

Provision for income taxes

The provision for income taxes consists of the following at June 30:

	2012			2011			2010
Current expense	$	0		$	0		$	0
Deferred benefit		(522,000	)		(846,000	)		878,000
Increase (decrease) in valuation allowance		522,000			846,000			(878,000	)
Total provision for income tax	$	0		$	0		$	0

Income tax reconciliation

The total provision differs from the amount computed by applying federal statutory rates to loss before income taxes due to the following at June 30:

	2012			2011			2010
Provision for income tax at the statutory rate of 34%	$	(1,001,000	)	$	(966,000	)	$	(996,000	)
Increase (decrease) in taxes due to
Change in valuation allowance		522,000			846,000			(878,000	)
Disallowed expense		2,000			2,000			1,000
Expiration of net operating loss		477,000			118,000			0
Expiration of capital loss		0			0			425,000
Change in deferred stock-based compensation		0			0			1,448,000
Total provision for income tax	$	0		$	0		$	0

Components of net deferred income tax assets

Deferred tax assets and liabilities reflect the tax effects of the temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. The Company has net deferred income tax assets which have been reduced to zero through a valuation allowance because of uncertainties relating to utilization of future tax benefits. The increase (decrease) in the valuation allowance for the years ended June 30, 2012, June 30, 2011 and June 30, 2010 are respectively $522,000, $846,000 and ($878,000). The components of the net deferred income tax assets, calculated at an effective rate of 34%, are as follows at June 30:

	2012			2011			2010
Deferred income tax assets
Current deferred tax assets
Accrued liabilities	$	0		$	0		$	14,000
Valuation allowance		0			0			(14,000	)
Total current deferred tax assets		0			0			0
Non-current deferred tax assets
Net operating loss carry-forwards		9,455,000			9,048,000			8,102,000
Non-qualified stock options		1,038,000			923,000			762,000
Capital loss carry-forwards		0			0			0
Investment reserve		0			0			247,000
Legal dispute reserve		182,000			182,000			182,000
Basis difference of fixed assets		1,000			1,000			1,000
Valuation allowance		(10,676,000	)		(10,154,000	)		(9,294,000	)
Total non-current deferred tax assets		0			0			0
Non-current deferred tax liabilities		0			0			0
Net deferred tax asset	$	0		$	0		$	0

Amounts and expiration dates of Company's net operating loss carry-forwards

For tax purposes, the Company has unused net operating losses available to carry-forward to future tax years. At June 30, 2012, the amounts and expiration dates of the Company's net operating loss carry-forwards are as follows.

Year Ended	Expires	Amount
June 30, 1998	June 30, 2018	$	999,000
June 30, 1999	June 30, 2019		1,361,000
June 30, 2000	June 30, 2020		1,091,000
June 30, 2001	June 30, 2021		2,002,000
June 30, 2002	June 30, 2022		2,527,000
June 30, 2003	June 30, 2023		1,364,000
June 30, 2004	June 30, 2024		2,162,000
June 30, 2005	June 30, 2025		2,208,000
June 30, 2006	June 30, 2026		2,373,000
June 30, 2007	June 30, 2027		1,177,000
June 30, 2008	June 30, 2028		1,676,000
June 30, 2009	June 30, 2029		1,439,000
June 30, 2010	June 30, 2030		1,699,000
June 30, 2011	June 30, 2031		3,129,000
June 30, 2012	June 30, 2032		2,600,000
Total		$	27,807,000