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Derivative Financial Instruments
 12 Months Ended
Jun. 30, 2012
Accounting Policies [Abstract]  
Derivative Financial Instruments
18. Derivative Financial Instruments

The Company accounted for the June 2012 Warrants issued to investors under the June 11, 2012 Securities Purchase Agreement (see Note 17 above) in accordance with ASC 815-10, Derivatives and Hedging (ASC 815-10). ASC 815-10 provides guidance for determining whether an equity-linked financial instrument (or embedded feature) is indexed to an entity’s own stock. This applies to any freestanding financial instrument or embedded feature that has all the characteristics of a derivative under ASC 815-10, including any freestanding financial instrument that is potentially settled in an entity’s own stock.

Due to certain adjustments that may be made to the exercise price of the June 2012 Warrants, if the Company issues or sell shares of its common stock at a price which is less than the then current warrant exercise price, the June 2012 Warrants have been classified as a liability as opposed to equity in accordance with ASC 815-10 as it was determined that the June 2012 Warrants were not indexed to the Company’s stock. As a result, the fair value of these warrants were remeasured on June 30, 2012 and will be remeasured at each subsequent financial reporting period. The change in fair value of the June 2012 Warrants is recorded in the statement of operations and comprehensive income and is estimated using the Lattice option-pricing model using the following assumptions:
 
Inputs into Lattice model for warrants:
  
6/11/2012
    
6/30/2012
  
Equivalent Volatility
     107.02 %     103.80 %
Equivalent Interest Rate
     0.33 %     0.37 %
Estimated stock price
   $ 0.8534     $ 0.8219  
Floor
   $ 1.1500     $ 1.1500  
Greater of estimated stock price or floor
   $ 1.1500     $ 1.1500  
Probability price < Strike
     84.98 %     84.91 %
FV of put
   $ 1.0672     $ 1.0698  
Probability of Fundamental Transaction occuring
     5 %     5 %
 
All warrants issued by the Company other than the above noted June 2012 Warrants are classified as equity.
 
The warrant liabilities are considered a recurring Level 3 fair value measurement, with a fair value of $1,087,296 at June 30, 2012

 
The following table summarizes the activity of Level 3 inputs measured on a recurring basis for the year ended June 30, 2012:
 
     
Warrant Liability
Balance at June 30, 2011
     
$
                                  -
  
Issuance of common stock warrants
    
1,190,660
  
Change in fair value of warrant liability
    
(103,364
)
Balance at June 30, 2012
  
$
1,087,296