Note 15 - Fair Value Measurements

12 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE 15 – FAIR VALUE MEASUREMENTS

The Company uses a hierarchy that prioritizes the inputs used in measuring fair value such that the highest priority is given to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).  The three levels of the fair value hierarchy are described below:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level 2 Inputs to the valuation methodology include:

● Quoted prices for similar assets or liabilities in active markets;

● Quoted prices for identical or similar assets or liabilities in inactive markets;

● Inputs other than quoted prices that are observable for the asset or liability;

● Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs. See Note 1 for discussion of valuation methodologies used to measure fair value of investments.

The valuation methodologies described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Other than cash which is determined using Level 1 inputs and intangible assets which were determined using level 3 inputs, the fair value of the assets and liabilities was determined using Level 2 inputs. The carrying amounts and fair values of the Company’s financial instruments at June 30, 2014 and 2013 are as follows:

	June 30, 2014				June 30, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	$	764,931	$	764,931	$	4,515,618	$	4,515,618
Restricted cash		755,701		755,701		500,000		500,000
Accounts receivable - related party		683,992		683,992		689,067		689,067
Accounts receivable - non related party		43,974		43,974		196,010		196,010
Loans held for sale		15,416,781		15,416,781		17,702,492		17,702,492
Prepaid expenses		142,096		142,096		161,717		161,717
Loan receivable		88,898		88,898		88,898		88,898
Intangible Assets		3,122,590		3,122,590		3,492,172		3,492,172
Financial liabilities:
Accounts payable	$	602,351	$	602,351	$	503,895	$	503,895
Warehouse line of credit		474,000		474,000		1,981,687		1,981,687
Warehouse lines of credit - related parties		14,942,781		14,942,781		15,688,725		15,688,725
Preferred dividends payable – related parties		82,500		82,500		55,500		55,500
Preferred dividends payable		51,000		51,000		30,000		30,000
Accrued liabilities		643,915		643,915		1,418,996		1,418,996