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8. COMMON STOCK
12 Months Ended
Jun. 30, 2013
Text Block [Abstract]  
8. COMMON STOCK

The Company has authorized 100,000,000 shares of $0.001 par value per share Common Stock, of which 51,244,242 and 36,412,601 were issued outstanding as of June 30, 2013 and 2012, respectively.  The activity surrounding the issuances of the Common Stock is as follows:

 

Fiscal Year Ended June 30, 2013

The Company issued 7,023,735 shares of Common Stock for net cash proceeds of $700,915. The Company paid $44,085 in cash offering costs and issued 233,735 in stock 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 1,395,732 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.

 

The Company also issued 505,856 shares of Common Stock to convert $44,600 in convertible notes payable and $45,454 in accrued liabilities.

 

As share-based compensation to employees and non-employees, the Company issued 4,592,744 shares of common stock valued at $951,301, based on the market price of the stock on the date of issuance. As interest expense on outstanding notes payable, the Company issued 2,584,994 shares of common stock valued at $759,435 based on the market price on the date of issuance.

 

Fiscal Year Ended June 30, 2012

The Company issued 918,220 shares of Common Stock for net cash proceeds of $436,869. The Company paid $45,091 in cash offering costs. Offering costs have been recorded as reductions to additional paid-in capital from Common Stock proceeds.

 

The Company issued 775,103 shares of Common Stock valued at $413,582 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 877,550 shares of Common Stock were issued to convert 416,000 shares of Convertible Preferred Stock and accrued dividends of $23,072.

 

As share-based compensation to employees and non-employees, the Company issued 1,642,078 shares of Common Stock valued at $733,945, based on the market price of the stock on the date of issuance. As interest expense on outstanding notes payable, the Company issued 770,232 shares of Common Stock valued at $300,599 based on the market price on the date of issuance.