7. STOCK PURCHASE OPTIONS AND WARRANTS (Tables)

6 Months Ended

Dec. 31, 2014

Notes to Financial Statements

Schedule of options activity

The following table summarizes the changes in options outstanding of the Company during the six months ended December 31, 2014.

Date Issued	Number of Options			Weighted Average Exercise Price			Weighted Average Grant Date Fair Value		Expiration Date (yrs)		Value if Exercised
Balance June 30, 2014		381,429		$	0.55		$	0.12		0.62	$	209,643
Granted		-			-			-		-		-
Exercised		-			-			-		-		-
Cancelled/Expired		(301,429	)		(0.52	)		-		-		(156,743	)
Outstanding as of December 31, 2014		80,000		$	0.66		$	0.59		1.94	$	52,900

The following table summarizes the changes in options outstanding of the Company during the fiscal year ended June 30, 2014.

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

Schedule of Assumptions Used to Estimate Fair Value

	December 31,	June 30,
	2014	2014
Expected volatility	106-125%	113-132%
Expected dividends	0%	0%
Expected term	.25-5 Years	2-10 Years
Risk-free interest rate	0.02-1.75%	0.35-1.75%

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, 2014		8,332,579		$	0.76		$	0.70		2.96	$	6,370,432
Granted		6,506,133			0.44			0.24		5.10		3,017,533
Exercised		(1,050,000	)		(0.20	)		-		-		(210,000	)
Cancelled/Expired		(100,000	)		(0.50	)		-		-		(1,824,468	)
Outstanding as of December 31, 2014		13,688,712		$	0.55		$	0.52		2.93	$	7,773,498

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