INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2016

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

	2016			2015

Current Expense	$	-		$	-
Deferred Expense/(Benefit)		(746,000	)		(482,000	)
Inc/(Dec) in valuation allowance		746,000			482,000
Total provision for income tax	$	-		$	-

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:

	2016			2015

Provision for income tax at the statutory rate of 34%	$	(1,578,000	)	$	(1,507,000	)

Increase(Decrease) in taxes due to
Change in valuation allowance		746,000			482,000
Disallowed expense		419,000			(14,000	)
Federal Tax Return True Ups		64,000			(30,000	)
Expired & Cancelled Stock Op		349,000			729,000
Expired Net Operating Loss		-			340,000
Total provision for income tax	$	-		$	-

The components of the net deferred income tax assets, calculated at an effective rate of 34%, are as follows at June 30:

	2016			2015
Deferred income tax assets
Current deferred tax assets
Accrued Liabilities	$	-		$	-
Valuation allowance		-			-

Total current deferred tax assets		-			-

Noncurrent deferred tax assets
Net operating loss carryforwards		14,450,000			13,339,000
Nonqualified stock options		41,000			390,0000
Deferred Revenue		127,000			143,000
Capital loss carryforwards		-			-
Unrealized Loss on Stock Compensation		-			-
Legal dispute reserve		-			-
Basis difference of fixed assets		-			-
Valuation allowance		(14,605,000	)		(13,859,000	)

Total noncurrent deferred tax assets		13,000			13,000

Noncurrent deferred tax liabilities
Basis difference of fixed assets		13,000			13,000

Total noncurrent deferred tax liabilities		13,000			13,000

Net deferred tax asset/(liability)	$	-		$	-

At June 30, 2016, the amounts and expiration dates of the Company's net operating loss carryforwards are as follows: