Annual report pursuant to Section 13 and 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)

DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

	Initial Valuation September 30, 2013		June 30, 2014
Volatility	53	%	134	%
Expected Term	2.25		1.5
Risk Free Interest Rate	0.4	%	0.47	%
Expected dividend yield	none		none

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2014:

Quoted Prices

Significant

Balance at

in Active

Other

Significant

June 30,

Markets for

Observable

Unobservable

2014

Identical Assets

Inputs

(Level 1)

(Level 2)

(Level 3)

Fair value of liability for warrant derivative instruments

158,244

—

158,244

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following is a roll forward for the year ended June 30, 2014 of the fair value liability of price adjustable warrant derivative instruments:

	Fair Value of
	Liability for
	Warrant
	Derivative
	Instruments

Balance at June 30, 2013	$	-
Initial fair value recording of warrant derivative liability as debt discount		144,241
Effects of foreign currency exchange rate changes		(2,519)
Change in fair value included in statements of operations		16,522
Balance at June 30, 2014	$	158,244

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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