7. STOCK PURCHASE OPTIONS AND WARRANTS (Tables)

3 Months Ended

Sep. 30, 2014

Notes to Financial Statements

Schedule of options activity

The following table summarizes the changes in options outstanding of the Company during the three months ended September 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, 2014		381,429		$	0.55		$	0.12		0.62	$	209,643
Granted		-			-			-		-		-
Exercised		-			-			-		-		-
Cancelled/Expired		(301,429	)		(0.52	)		-		-		(156,743	)
Outstanding as of September 30, 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

The following table presents the assumptions used to estimate the fair values of the stock warrants and options granted:

	September 30,			June 30,
	2014			2014
Expected volatility		109-125	%		113-132	%
Expected dividends		0	%		0	%
Expected term	2-5 Years			2-10 Years
Risk-free interest rate		0.47-1.66	%		0.35-1.75	%

Schedule of Warrants

The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the three months ended September 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, 2014		8,332,579	$	0.76	$	0.70		2.96	$	6,370,432
Granted		3,300,000		0.53		0.15		2.20		712,500
Exercised		-		-		-		-		-
Cancelled/Expired		-		-		-		-		-
Outstanding as of September 30, 2014		11,632,579	$	0.61	$	0.55		2.54	$	7,082,932

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