5. Fair Value of Financial Instruments

9 Months Ended

Mar. 31, 2014

Investments, All Other Investments [Abstract]

Fair Value of Financial Instruments

5. Fair Value of Financial Instruments:

The FASB defines the fair value of financial instruments as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements do not include transaction costs.

The accounting guidance also expands the disclosure requirements concerning fair value and establishes a fair value hierarchy of valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels, which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are described below:

Level 1 Inputs that are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2 Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The following tables set forth by level within the fair value hierarchy the Company=s financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2014 and June 30, 2013 according to the valuation techniques the Company used to determine their fair values:

Fair Value Measurements Using Inputs

Considered as

Assets:

	Fair Value at
	March 31, 2014	Level 1	Level 2	Level 3
Cash and cash equivalents	$ 343,000	$ 343,000	$ -	$ -
Available for sale securities	474,000	474,000	-	-
Total	$ 817,000	$ 817,000	$ -	$ -

Liabilities:

Contingent consideration  $ 528,700  $ -  $ -  $528,700

Fair Value Measurements Using Inputs

Considered as

Assets:

	Fair Value at
	June 30, 2013	Level 1	Level 2	Level 3
Cash and cash equivalents	$ 927,300	$ 927,300	$ -	$ -
Available for sale securities	908,400	908,400	-	-
Total	$1,835,700	$1,835,700	$ -	$ -

Liabilities:

Contingent consideration  $ 70,600  $ -  $ -  $ 70,600

Investments in marketable securities classified as available-for-sale by security type at March 31, 2014 and June 30, 2013 consisted of the following:

			Unrealized
		Fair	Holding Gain
	Cost	Value	(Loss)
At March 31, 2014:
Available for sale:
Equity securities	$ 29,300	$ 37,400	$ 8,100
Mutual funds	450,800	436,600	( 14,200)
	$ 480,100	$ 474,000	($ 6,100)

			Unrealized
		Fair	Holding Gain
	Cost	Value	(Loss)
At June 30, 2013:
Available for sale:
Equity securities	$ 29,300	$ 33,200	$ 3,900
Mutual funds	892,700	875,200	(17,500)
	$ 922,000	$ 908,400	$ (13,600)