INCOME TAXES

9 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

7. INCOME TAXES

For the three and nine months ended March 31, 2015, an income tax provision of $137,820 and $179,705, respectively, was recorded; of those amounts, $395,605 for the nine months ended March 31, 2015 was due to the decrease in the applicable tax rate utilized to tax effect the deferred tax assets that was caused by a state income tax law change. The remaining benefit of $215,900 for the nine months ended March 31, 2015 was based upon loss before provision for income taxes using an estimated annual effective income tax rate of 64% for the fiscal year ending June 30, 2015 and the effect of a change in estimated state income tax rates, the effect of which was treated discretely.

The Company has significant deferred tax assets, a substantial amount of which result from operating loss carryforwards. In periods prior to the quarter ended March 31, 2014, the Company had determined that it was more likely than not that the benefit of its deferred tax assets would not be realized and recorded a full valuation allowance against such assets. As of March 31, 2014 the Company determined that it was more likely than not that it would realize a substantial portion of its deferred tax assets and reduced its valuation allowance by $26,713,897.

The reduction of the $26,713,897 in valuation allowances is reflected as an income tax benefit in the provision for income taxes for the three months and nine months ended March 31, 2014. The provision for income taxes for the three months ended March 31, 2014 also reflects a benefit of $13,823 which represents the provision for income taxes recorded through December 31, 2013 relating to amortization of indefinite life intangible assets and goodwill for income tax purposes and not subject to offset against finite life assets when full valuation allowances were reflected against deferred tax assets.

	Three months ended			Nine months ended
	March 31, 2014			March 31, 2014
Income before benefit from income taxes	$	138,806		$	855,474
Estimated annual effective tax rate		0	%		0	%
Provision (benefit) for income taxes	$	-		$	-
Reversal of provision for income taxes recorded
for the six months ended December 31, 2013	$	(13,823	)	$	-
Benefit from reversal of valuation allowances		(26,713,897	)		(26,713,897	)
Benefit from income taxes	$	(26,727,720	)	$	(26,713,897	)