Stock-Based Compensation

6 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Stock-Based Compensation

H. STOCK-BASED COMPENSATION

Stock options

The Company has agreements with certain of its employees and independent contractor consultants that provide grants of options to purchase the Company’s common stock.

A summary of stock options as of December 31, 2012 and for the six months then ended is as follows:

	Number of			Weighted - Average
	Shares			Exercise Price
Outstanding at June 30, 2012		754,249		$	0.42
Forfeited		(43,666	)	$	1.26
Outstanding at December 31, 2012		710,583		$	0.37
Exercisable at December 31, 2012		710,583		$	0.37

The weighted-average remaining contractual life of stock options outstanding and exercisable at December 31, 2012 is 1.7 years. The options have no intrinsic value at December 31, 2012.

Stock-based compensation expense was $0 and $0 during the three and six months ended December 31, 2012 and 2011, respectively. As of December 31, 2012, there was no unrecognized compensation costs related to stock options.

Warrants

In connection with the issuance of certain convertible notes payable, the Company has outstanding 275,000 fully invested warrants to acquire its common stock at an exercise price of $2 per share. The warrants expire in 2014. The warrants have no intrinsic value at December 31, 2012.