7. STOCK PURCHASE OPTIONS AND WARRANTS (Tables)

6 Months Ended

Dec. 31, 2013

Notes to Financial Statements

Schedule of Assumptions Used to Estimate Fair Value

	2013
Expected volatility		113 – 132%
Expected dividends		0%
Expected term		2  – 10 years
Risk-free interest rate		0.35 – 1.72 %

Schedule of Warrants

Date Issued	Number of Warrants		Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Expiration Date (yrs)		Value if Exercised
Balance June 30, 2013		7,530,063	$	0.67	$	2.45		4.17	$	4,770,713
Granted		866,016		0.21		0.20		5.00		1,684,723
Exercised		(65,000)		-		-		-		-
Cancelled/Expired		(222,500)		-		-		-		-
Outstanding as of June 30, 2013		8,108,579	$	1.14	$	0.71		2.24	$	6,413,750