Note 12 - Income Taxes

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 12 - INCOME TAXES

Income tax expense (benefit) for the years ended June 30, 2014 and 2013 is summarized as follows:

	2014		2013
Current:
Federal	$	-	$	-
State		-		-
Deferred taxes		-		-
Income tax expense (benefit)	$	-	$	-

The following is a reconciliation of the provision for income taxes at the U.S. federal income tax rate to the income taxes reflected in the Consolidated Statement of Operations at June 30, 2014 and 2013:

	2014			2013
Tax expense (credit) at statutory rate-federal		(34.0	%)		(34.0	%)
State tax expense net of federal tax		(5.3	%)		(5.3	%)
Valuation allowance		39.3	%		39.3	%
Tax expense at actual rate		-			-

The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at June 30, 2014 are as follows:

Deferred tax assets:
Net operating loss carry forward	$	6,650,000
Total gross deferred tax assets		6,650,000
Less valuation allowance		(6,650,000	)
Net deferred tax assets	$	-

Deferred income taxes are provided for the tax effects of transactions reported in the financial statements and consist of deferred taxes related primarily to differences between the bases of certain assets and liabilities for financial and tax reporting. The deferred taxes represent the future tax return consequences of those differences, which will either be deductible or taxable when the assets and liabilities are recovered or settled.

The Company’s provision for income taxes differs from applying the statutory U S federal income tax rate to income before income taxes. The primary differences result from providing for state income taxes and from deducting certain expenses for financial statement purposes but not for federal income tax purposes.

At June 30, 2014, the Company has accumulated deficit carry forwards of approximately $16,921,000 for U.S. federal income tax purposes available to offset future taxable income expiring on various dates through 2034. The net change in the valuation allowance during the years ended June 30, 2014 and 2013 was an increase of $2,280,000 and $824,000, respectively.

In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessment by these taxing authorities. Accordingly, the Company believes that it is more likely than not that it will realize the benefits of tax positions it has taken in its tax returns or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with FASB ASC 740-10-15. Differences between the estimated and actual amounts determined upon ultimate resolution, individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position.

The Company is not under examination for any open tax years.