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INCOME TAXES
6 Months Ended
Dec. 31, 2012
INCOME TAXES  
INCOME TAXES

6. INCOME TAXES

 

Federal income taxes are not due as we have had losses since inception. Our effective tax rate for the three and six months ended December 31, 2012 and December 31, 2011 is zero percent. This rate is lower than the U.S. statutory rate of 35 percent due primarily to the valuation allowance applied against our net deferred tax assets.