6. COMMON STOCK

9 Months Ended

Mar. 31, 2013

Text Block [Abstract]

6. COMMON STOCK

NOTE 6 – COMMON STOCK

The Company has authorized 100,000,000 shares of $0.001 par value per share Common Stock, of which 41,923,246 and 36,412,601 were issued outstanding as of March 31, 2013 and June 2012, respectively. The activity surrounding the issuances of the Common Stock is as follows:

For the Nine months Ended March 31, 2013

The Company issued 450,800 common shares for net cash proceeds of $106,700. The Company paid as offering costs $3,300 in cash offering costs. Offering costs have been recorded as reductions to additional paid-in capital from common stock proceeds. Attached to the Common Shares, the Company issued 430,000 warrants to purchase shares of the Company’s Common Stock. The Company recognized $14,090 in employee stock option expense and for the amortization of warrants issued in prior periods.

As share-based compensation to employees and non-employees, the Company issued 3,133,732 shares of common stock valued at $706,325, based on the market price of the stock on the date of issuance. As interest expense on outstanding notes payable, the Company issued 1,767,988 shares of common stock valued at $431,183 based on the market price on the date of issuance.

For the Nine months Ended March 31, 2012

The Company issued 635,335 shares of Common Stock for net cash proceeds of $371,664. The Company paid $41,266 in cash offering costs. Offering costs have been recorded as reductions to additional paid-in capital from Common Stock proceeds.

The Company issued 625,103 shares of Common Stock valued at $408,790 to non-employees in advance of services. The shares of Common Stock were valued based on the quoted market price on the date of issuance. The Company also issued 505,856 shares of Common Stock to convert $100,000 in convertible notes payable and $169,287 in accrued liabilities. The difference between the fair market value of the stock on the date of conversion of the accrued liabilities resulted in a gain on conversion of these liabilities of $191. An additional 582,000 shares of Common Stock were issued to convert 291,000 shares of Convertible Preferred Stock and accrued dividends of $5,370.

As share-based compensation to employees and non-employees, the Company issued 858,811 shares of Common Stock valued at $480,715, based on the market price of the stock on the date of issuance. As interest expense on outstanding notes payable, the Company issued 380,969 shares of Common Stock valued at $231,683 based on the market price on the date of issuance.