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4. OTHER CURRENT ASSETS
 12 Months Ended
Jun. 30, 2012
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
4. OTHER CURRENT ASSETS

Other assets consists of the following as of June 30,

 

    2012     2011  
             
Common stock issued for services   $ 38,520     $ 10,775,858  
Prepaid insurance     -       2,093  
                 
 Total Prepaids and Other Current Assets   $ 38,520     $ 10,777,951  

  

As discussed in Note 8, in June 2011, the Company issued 7,215,365 shares of common stock to a third party consultant for services.  The shares were valued at $1.50 (based on a contemporaneous cash sales price and anticipated offering price).  The $10,823,048 was recorded as a prepaid expense and is being amortized over the one-year term of the agreement.  The Company recognized $645,107 of amortization related to this agreement through June 30, 2011.  The total prepaid balance as of June 30, 2011 is $10,775,858. This was fully amortized during fiscal 2012.

 

As discussed in Note 8, in February 2012, the Company issued 100,000 shares of common stock to a third party for services to be performed over the contract term.  The shares were valued at $0.65 (based on contemporaneous cash sales prices) with a total value of $65,000.  The Company has amortized approximately five months of the prepaid shares issued for services leaving a balance of $38,520 as of June 30, 2012.