9. EMPLOYEE/DIRECTOR EQUITY INCENTIVE PLANS (Tables)

3 Months Ended

Sep. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock option activity under the employee and director plans

Information with respect to stock option activity under the employee and director plans is as follows:

	Number of Options			Weighted-Average Exercise Price Per Share
Balance at June 30, 2011		3,322,303		$	1.55
Options granted		1,454,500			0.82
Options forfeited		(537,739	)		1.91
Balance at June 30, 2012		4,239,064			1.25
Options granted		640,050			0.38
Options forfeited		(156,167	)		0.86
Balance at September 30, 2012		4,722,947		$	1.14

Stock options outstanding

The following table summarizes information relating to the stock options outstanding at September 30, 2012:

	Outstanding						Exercisable
Range of Exercise Prices	Number of Options		Average Remaining Contractual Life (in years)		Weighted Average Exercise Price		Number of Options		Average Remaining Contractual Life (in years)		Weighted Average Exercise Price
$0.34 to $0.50		707,550		7.96	$	0.38		38,834		5.63	$	0.49
$0.51 to $1.00		1,517,666		6.87		0.80		272,500		6.27		0.76
$1.01 to $1.50		2,147,731		5.67		1.24		1,393,178		5.43		1.27
$3.50 to $3.82		350,000		2.30		3.59		350,000		2.30		3.59
Balance at September 30, 2012		4,722,947		6.20		1.14		2,054,512		5.00		1.58

Assumptions were used to estimate the fair value of options

The following assumptions were used to estimate the fair value of options granted during the three months ended September 30, 2012 and the year ended June 30, 2012 using the Black-Scholes option-pricing model:

	FY 2013	FY 2012
Expected life of option (years)	4	2.5
Risk-free interest rate	.46 - .54%	.24 - .55%
Assumed volatility	104%	103 - 107%
Expected dividend rate	0	0
Expected forfeiture rate	4.19 - 6.66%	4.35 - 6.80%

Summary of the status of unvested employee stock options

A summary of the status of unvested employee stock options as of September 30, 2012 and June 30, 2012 and the changes during the periods then ended is presented below: 

	Number of  Options			Weighted-Average Grant Date Fair Value Per Share
Balance at June 30, 2011		1,735,224		$	0.62
Granted		1,454,500			0.38
Vested		(722,837	)		0.85
Forfeited		(226,334	)		0.86
Balance at June 30, 2012		2,240,553			0.81
Granted		640,050			0.38
Vested		(57,001	)		0.85
Forfeited		(155,167	)		0.86
Balance at September 30, 2012		2,668,435		$	0.81

Status of restricted stock unit balances

The table below summarizes the status of restricted stock unit balances: 

	Number of Restricted Stock Units			Weighted-Average Valuation Price Per Unit
Balance at June 30, 2011		1,400,385		$	0.70
RSUs granted		1,048,051			0.74
RSUs forfeited		-			-
Balance at June 30, 2012		2,448,436			0.72
RSUs granted		-			-
RSUs forfeited		(50,000	)		0.70
		2,398,436		$	0.72