14. INCOME TAXES (Tables)

3 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Provision (benefit) for income taxes

The provision (benefit) for income taxes consists of the following:

	Three months ended September 30,
	2012		2011
Current	$	-	$	(70,000	)
Deferred		-		-
Provision (benefit) for income taxes	$	-	$	(70,000	)

Effective income tax rate reconciliation

The Company’s combined effective income tax rate differed from the U.S. federal statutory income rate as follows:

	Three months ended September 30,
	2012	2011
Income tax benefit computed at the U.S. federal statutory rate	-34%	-34%
Australia research and development credit	0	-4
Change in valuation allowance	34	34
Total	0%	-4%

Significant components of the Company’s net deferred income tax assets

Significant components of the Company’s net deferred income tax assets as of September 30, 2012 and June 30, 2012 were as follows:

	September 30, 2012			June 30, 2012
Federal net operating loss carryforwards	$	17,898,721		$	17,063,374
Federal - other		1,553,682			1,578,175
Wisconsin net operating loss carryforwards		2,206,508			2,080,223
Australia net operating loss carryforwards		1,568,110			1,291,699
Deferred income tax asset valuation allowance		(23,227,021	)		(22,013,471	)
Total deferred income tax assets	$	-		$	-

Reconciliation of the beginning and ending balance of unrecognized income tax benefits

A reconciliation of the beginning and ending balance of unrecognized income tax benefits is as follows:

	September 30, 2012		June 30, 2012
Beginning balance	$	208,593	$	219,500
Effect of foreign currency translation		7,979		(10,907	)
Ending balance	$	216,572	$	208,593