Significant Accounting Policies	3 Months Ended
Dec. 31, 2011
Notes to Financial Statements
Significant Accounting Policies	D. SIGNIFICANT ACCOUNTING POLICIES Net Loss per Common Share: Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the year. Diluted earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation as their effect is antidilutive. For the three and six months ended December 31, 2011 and 2010 the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect. There were 6,890,714 and 6,434,671 potentially dilutive securities as of December 31, 2011 and 2010, respectively. Concentrations During the three months ended December 31, 2011 and 2010, the Company had three customers that accounted for approximately 10%, 15%, and 64% of sales in 2011, and three customers that accounted for approximately 15%, 27% and 29% of sales in 2010, respectively. During the six months ended December 31, 2011 and 2010, the Company had two customers that accounted for approximately 22% and 41% of sales in 2011, and four customers of which two accounted for approximately 17% each with the remaining two accounting for approximately 14% and 25% of sales in 2010, respectively. No other customers accounted for more than 10% of sales in either period. As of December 31, 2011 and June 30, 2011, the Company had approximately $20,400 (64%) and $6,050 (19%) and $6,050 (16%), $10,963 (29%), $10,025 (27%), and $5,300 (14%), respectively, of accounts receivable from its major customers. For the three months ended December 31, 2011 and 2010, foreign revenues accounted for 77% (65% Korea, 2% Taiwan and 10% Germany) and 99% (58% Korea and 41% Taiwan) of the Company’s total revenues respectively. For the six months ended December 31, 2011 and 2010, foreign revenues accounted for 67% (56% Korea, 7% Taiwan, 3% Germany and 1% others) and 97% (73% Korea, 20% Taiwan, 3% Germany and 1% others) of the Company’s revenues respectively. Recent Accounting Pronouncements In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-4 does not require additional fair value measurements and is not intended to establish valuation standards or affect valuation practices outside of financial reporting. The ASU is effective for interim and annual periods beginning after December 15, 2011. The Company will adopt the ASU as required. The ASU will affect the Company’s fair value disclosures, but will not affect the Company’s results of operations, financial condition or liquidity. In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income”. The ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in shareholders’ equity, and instead requires consecutive presentation of the statement of net income and other comprehensive income either in a continuous statement of comprehensive income or in two separate but consecutive statements. ASU No. 2011-5 is effective for interim and annual periods beginning after December 15, 2011. The Company will adopt the ASU as required. It will have no affect on the Company’s results of operations, financial condition or liquidity. In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment”, an update to existing guidance on the assessment of goodwill impairment. This update simplifies the assessment of goodwill for impairment by allowing companies to consider qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing the two step impairment review process. It also amends the examples of events or circumstances that would be considered in a goodwill impairment evaluation. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The Company is currently evaluating the affects adoption of ASU 2011-08 may have on its goodwill impairment testing. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities Exchange Commission (the "SEC") did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

Significant Accounting Policies

3 Months Ended

Dec. 31, 2011

D. SIGNIFICANT ACCOUNTING POLICIES

Net Loss per Common Share:

Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the year. Diluted earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation as their effect is antidilutive.

For the three and six months ended December 31, 2011 and 2010 the calculations of basic and diluted loss per share are the same because potential dilutive securities would have an anti-dilutive effect.

There were 6,890,714 and 6,434,671 potentially dilutive securities as of December 31, 2011 and 2010, respectively.

Concentrations

During the three months ended December 31, 2011 and 2010, the Company had three customers that accounted for approximately 10%, 15%, and 64% of sales in 2011, and three customers that accounted for approximately 15%, 27% and 29% of sales in 2010, respectively. During the six months ended December 31, 2011 and 2010, the Company had two customers that accounted for approximately 22% and 41% of sales in 2011, and four customers of which two accounted for approximately 17% each with the remaining two accounting for approximately 14% and 25% of sales in 2010, respectively. No other customers accounted for more than 10% of sales in either period. As of December 31, 2011 and June 30, 2011, the Company had approximately $20,400 (64%) and $6,050 (19%) and $6,050 (16%), $10,963 (29%), $10,025 (27%), and $5,300 (14%), respectively, of accounts receivable from its major customers.

For the three months ended December 31, 2011 and 2010, foreign revenues accounted for 77% (65% Korea, 2% Taiwan and 10% Germany) and 99% (58% Korea and 41% Taiwan) of the Company’s total revenues respectively. For the six months ended December 31, 2011 and 2010, foreign revenues accounted for 67% (56% Korea, 7% Taiwan, 3% Germany and 1% others) and 97% (73% Korea, 20% Taiwan, 3% Germany and 1% others) of the Company’s revenues respectively.

Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-4 does not require additional fair value measurements and is not intended to establish valuation standards or affect valuation practices outside of financial reporting. The ASU is effective for interim and annual periods beginning after December 15, 2011. The Company will adopt the ASU as required. The ASU will affect the Company’s fair value disclosures, but will not affect the Company’s results of operations, financial condition or liquidity.

In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income”. The ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in shareholders’ equity, and instead requires consecutive presentation of the statement of net income and other comprehensive income either in a continuous statement of comprehensive income or in two separate but consecutive statements. ASU No. 2011-5 is effective for interim and annual periods beginning after December 15, 2011. The Company will adopt the ASU as required. It will have no affect on the Company’s results of operations, financial condition or liquidity.

In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment”, an update to existing guidance on the assessment of goodwill impairment. This update simplifies the assessment of goodwill for impairment by allowing companies to consider qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount before performing the two step impairment review process. It also amends the examples of events or circumstances that would be considered in a goodwill impairment evaluation. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The Company is currently evaluating the affects adoption of ASU 2011-08 may have on its goodwill impairment testing.

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities Exchange Commission (the "SEC") did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.