A. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Amortization expense relating to the trademarks

As of June 30, 2013, amortization expense relating to the trademarks is expected to be as follows:

Year ending June 30,
2014	$	1,614
2015		1,614
2016		1,614
2017		1,614
2018		1,614
Thereafter		5,313
	$	13,383

Amortization expense related to patent

As of June 30, 2013, amortization expense relating to the patents is expected to be as follows:

Year ending June 30,
2014	$	5,856
2015		5,856
2016		5,856
2017		5,856
2018		5,856
Thereafter		60,231
	$	89,511

Inputs and variables were used in the calculations for warrants issued for stock based compensation to employees and non-employees

The following inputs and variables were used in the calculation for warrants issued for stock based compensation to employees and non-employees for the year ended June 30, 2012:

Stock Price		$0.30 to $0.405
Exercise Price	$	0.25
Volatility		314.9% to 331.3%
Expected Term (Years)		3
Expected Dividends	$	0
Discount Rate		0.40	%

Assets and liabilities measured at fair value on a recurring basis

	Fair Value as of June 30, 2013
	Level 1	Level 2	Level 3	Total
Liabilities
Derivative Liability – Warrants	$ -	$ -	$ 10,178	$ 10,178
Derivative Liability – Convertible Debt	-	-	400,270	400,270
Total	$ -	$ -	$ 410,448	$ 410,448

	Fair Value as of June 30, 2012
	Level 1	Level 2	Level 3	Total
Liabilities
Derivative Liability – Warrants	$ -	$ -	$ 229,461	$ 229,461
Derivative Liability – Convertible Debt	-	-	202,844	202,844
Total	$ -	$ -	$ 432,305	$ 432,305

The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value on a recurring basis during the year s ended June 30, 2013 and 2012:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Derivative Liability - Warrants	Derivative Liability – Convertible Debt	Total
Balance at June 30, 2011	$ 318,355	$ 208,505	$ 526,860
Issuances	87,090	378,809	465,899
Retirement	-	(359,424)	(359,424)
Gain on Derivative Liability	(359,424)	(25,046)	(201,030)
Balance at June 30, 2012	229,461	202,844	432,305
Issuances	-	371,500	371,500
Retirement	-	(327,442)	(327,442)
(Gain) Loss on Derivative Liability	(219,283)	153,368	(65,915)
Balance at June 30, 2013	$ 10,178	$ 400,270	$ 410,448

Concentration of Credit Risk

	2013	2012
Revenues:
Customer A	100%	17%
Customer B	0%	81%
Accounts receivable:
Customer A	96%	100%