9. STOCK PURCHASE OPTIONS AND WARRANTS (Tables)

12 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Schedule of Options

Date Issued	Number of Options			Weighted Average Exercise Price			Weighted Average Grant Date Fair Value		Expiration Date (yrs)		Value if Exercised
Balance June 30, 2013		613,429		$	0.85		$	1.20		1.95	$	522,843
Granted		25,000			0.15			0.24		5.00		3,750
Exercised		-			-			-		-		-
Cancelled/Expired		(257,000	)		(1.23	)		-		-		(316,950	)
Outstanding as of June 30, 2014		381,429		$	0.55		$	0.12		0.62	$	209,643

Date Issued	Number of Options			Weighted Average Exercise Price			Weighted Average Grant Date Fair Value		Expiration Date (yrs)		Value if Exercised
Balance June 30, 2012		698,429		$	0.85		$	1.20		2.95	$	522,843
Granted		-			-			-		-		-
Exercised		-			-			-		-		-
Cancelled/Expired		(85,000	)		(0.80	)		-		-		-
Outstanding as of June 30, 2013		613,429		$	0.55		$	1.20		1.95	$	522,843

Schedule of Assumptions Used to Estimate Fair Value

	2014	2013
Expected volatility	113-132%	111-207%
Expected dividends	0%	0%
Expected term	2-10 Years	2-10 Years
Risk-free interest rate	0.35 – 1.75%	0.41-2.52%

Schedule of Warrants

The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the fiscal year ended June 30, 2014.

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		1,366,016			1.30			0.23		5.00		1,774,467
Exercised		(65,000	)		(0.25	)		0.14		-		(16,250	)
Cancelled/Expired		(498,500	)		(0.70	)		-		-		(158,498	)
Outstanding as of June 30, 2014		8,332,579		$	0.76		$	0.70		2.96	$	6,370,432

The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the fiscal year ended June 30, 2013.

Date Issued	Number of Warrants			Weighted Average Exercise Price			Weighted Average Grant Date Fair Value		Expiration Date (yrs)		Value if Exercised
Balance June 30, 2012		6,529,331		$	2.84		$	3.55		1.95	$	4,835,028
Granted		1,395,732			0.33			0.19		4.17		458,185
Exercised		-			-			-		-		-
Cancelled/Expired		(395,000	)		(0.82	)		-		-		(552,500	)
Outstanding as of June 30, 2013		7,530,063		$	0.67		$	2.45		4.17	$	4,770,713