11. Income Taxes

12 Months Ended

Jun. 30, 2015

Notes

11. Income Taxes

11.                  INCOME TAXES

The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting and tax bases of its assets and liabilities.  Deferred assets are reduced by a valuation allowance when deemed appropriate.

The tax effects of existing temporary differences that give rise to significant portions of deferred tax assets at June 30, 2015, and 2014, were as follows:

	June 30 ,2015		June 30 ,2014
Net operating loss carryforwards	$	2,033,000	$	1,473,000
Deferred compensation		-		23,000
Deferred rent expense		-		4,000
Accounts receivable allowance		2,000		5,000
Valuation allowance		(2,035,000)		(1,505,000)
Net Deferred Tax Asset	$	--	$	--

At June 30, 2015, the Company has net operating loss carryforwards for Federal tax purposes of approximately $4,845,000 which, if unused to offset future taxable income, will expire in years beginning in 2019.