2. STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Dec. 31, 2012

Equity [Abstract]

Stock option activity

					Weighted		Grant
			Weighted		Average		Date
			Average		Remaining		Aggregate		Aggregate
			Exercise Price		Contractual		Fair		Instrinsic
		Shares	Per Share		Term (1)		Value		Value
Outstanding July 1, 2012		674,100	$0.80		4.58	$	217,100	$	-
	Granted	-	-		-		-		-
	Exercised	-	-		-		-		-	(2) (3)
	Forfeited or expired	(15,000)	$1.83	-	-		(5,800)		-
Outstanding December 31, 2012		659,100	$0.78		4.17	$	211,300	$	-	(2)
Exercisable December 31, 2012		341,600	$0.80		4.07	$	113,000	$	-	(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 December 31, 2012, for those awards that
	have an exercise price below the closing price as of December 31, 2012 of $.70.
(3)	This value is calculated as the difference between the exercise price and the market price of the stock on the

Warrant activity

				Weighted
		Number of		Average
		Shares		Exercise Price
Warrants Outstanding, June 30, 2012		150,400	$	6.24
	Granted	-		-
	Exercised	-		-
	Canceled/Expired	(8,600)		4.00
Warrants Outstanding, December 31, 2012		141,800	$	6.38