2. STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Jun. 30, 2012

Equity [Abstract]

Assumptions for awards of options granted

	Awards Granted in the Years Ended
Assumption	June 30, 2012	June 30, 2011
Dividend yield	0%	0%
Expected volatility	62%	62%
Weighted-average volatility	62%	62%
Risk-free interest rate	2%	2% - 4%
Expected life of options (in years)	3.75	2.0 - 3.75
Weighted average grant-date Black Scholes calculated fair value	$0.31	$0.61

Stock option activity

				Weighted  Average
			Weighted Average	Remaining		Aggregate		Aggregate
	Number of		Exercise Price	Contractual		Fair		Instrinsic
	Shares		Per Share	Term (1)		Value		Value
Outstanding July 1, 2011 (4)	661,800	$	1.62	1.78	$	394,100	$	210,700
Granted	635,000		0.75	4.78		196,900		-
Exercised	(100,800)		1.50	-		(45,500)		45,600	(2) (3)
Forfeited, expired or cancelled	(521,900)		1.64	-		(328,400)		-
Outstanding June 30, 2012	674,100	$	0.80	4.58	$	217,100	$	-	(2)
Exercisable June 30, 2012	102,600	$	1.08	3.47	$	40,000	$	-	(2)
(1) Remaining contractual term presented in years.
(2) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards
and the closing price of the Company's common stock as of June 30, 2012, for those awards that have an
exercise price currently below the closing price as of June 30, 2012 of $0.69.
(3) This value is calculated as the difference between the exercise price and the market price of the stock on the
date of exercise.  The market price of the Company's common stock as of the various exercise dates ranged
from $1.77 to $2.02.
(4) Includes 23,400 options previously excluded.

Warrant activity

				Weighted
		Number of		Average
		Shares		Exercise Price
Warrants Outstanding, June 30, 2011		201,100	$	5.77
	Granted	-		-
	Exercised	-		-
	Canceled/Expired	(50,700)		4.38
Warrants Outstanding, June 30, 2012		150,400	$	6.24