14. INCOME TAXES (Tables)

9 Months Ended

Mar. 31, 2014

Income Taxes Tables

Provision (benefit) for income taxes

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

	Nine months ended March 31,
	2014			2013
Current	$	(86,848	)	$	(110,866	)
Deferred		-			-
Provision (benefit) for income taxes	$	(86,848	)	$	(110,866	)

Effective income tax rate reconciliation

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

	Nine months ended March 31,
	2014			2013
Income tax expense/(benefit) computed at the U.S. federal statutory rate		-34	%		-34	%
Foreign tax expense/(benefit)		-2	%		-1	%
Change in valuation allowance		34	%		34	%
Total		-2	%		-1	%

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

Significant components of the Company’s net deferred income tax assets as of March 31, 2014 and June 30, 2013 were as follows:

	March 31, 2014			June 30, 2013
Federal net operating loss carryforwards	$	20,924,016		$	19,777,894
Federal - other		2,455,559			2,273,021
Wisconsin net operating loss carryforwards		2,485,514			2,482,692
Australia net operating loss carryforwards		1,430,293			1,398,139
Deferred income tax asset valuation allowance		(27,295,382	)		(25,931,746	)
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:

	March 31, 2014		June 30, 2013
Beginning balance	$	193,097	$	208,593
Effect of foreign currency translation	$	-	$	(15,496	)
Ending balance	$	193,097	$	193,097