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INCOME TAXES
6 Months Ended
Dec. 31, 2013
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 month periods ended December 31, 2013 and 2012 is zero percent. This rate is lower than the U.S. statutory rate of 35 percent primarily due to the valuation allowance applied against our net deferred tax assets.