3. PROPERTY AND EQUIPMENT

12 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

3. PROPERTY AND EQUIPMENT

The Company’s property and equipment are comprised of the following as of June 30, 2012 and 2011:

	2012			2011
Furniture and Office Equipment	$	25,912		$	25,912
Office Equipment and Computers		230,091			223,032
Studios		1,093,669			1,624,469
Vehicles		29,125			29,125
Leasehold Improvements		6,574			6,574
Computer Software		56,166			52,796
Accumulated Depreciation		(996,302	)		(576,916	)
Property and Equipment, net	$	445,235		$	1,384,992

The Company also had $93,357 and $484,462 in equipment that was yet to be placed in service as of June 30, 2012 and 2011, respectively.  Depreciation expense for the years ended June 30, 2012 and 2011 was $419,368 and $267,311, respectively.

During the fiscal year ended June 30, 2012, a major supplier of the Company’s work-in-process property and equipment filed for bankruptcy.  The Company had deposits placed with this supplier for future studios of $93,016 and other work-in-process of $115,184.  The Company was able to recover some scrap material which has been allocated a $-0- fair value.  Thus, the Company recognized an impairment of these deposits and other work-in-process of $208,210.