Annual report pursuant to section 13 and 15(d)

INCOME TAXES (Tables)

v2.4.0.8
INCOME TAXES (Tables)
12 Months Ended
Jun. 30, 2013
INCOME TAXES [Abstract]  
Provision for income taxes
The (provision) benefit for income taxes consists of the following:
 
 
 
2013
 
 
2012
 
Current
 
$
-
 
 
$
-
 
Deferred
 
 
-
 
 
 
-
 
 
 
$
-
 
 
$
-
 
Deferred tax assets
Deferred tax assets for June 30, 2013 and 2012 consist of the following:
 
 
2013
 
 
2012
 
 
 
 
 
 
Deferred tax asset (liability):
 
 
 
 
Depreciation and amortization
 
$
(50,538
 
)
 
$
7,985
 
Stock based compensation
 
 
2,980,409
 
 
 
3,134,667
 
Net operating loss carry forward
 
 
6,037,629
 
 
 
5,709,372
 
Interest accrual
 
 
500,288
 
 
 
339,934
 
Research tax credit
 
 
7,203
 
 
 
7,203
 
Less: valuation allowance
 
 
(9,474,991
)
 
 
(9,199,161
)
Deferred tax asset:
 
$
-
 
 
$
-
 
Reconciliation of income tax at the statutory rate to the Company's effective tax rate
A reconciliation of income tax at the statutory rate to the Company's effective tax rates for the periods ended June 30, 2013 and 2012 is as follows:
 
 
 
2013
 
 
2012
 
 
 
 
 
 
Federal Income tax at statutory rate of 34%
 
$
(242,445
)
 
$
(573,547
)
State tax, net of federal benefit
 
 
(25,775
)
 
 
(52,636
)
Other
 
 
(7,609
)
 
 
33,349
 
Valuation allowance
 
 
275,829
 
 
 
592,834
 
 
 
$
-
 
 
$
-