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<div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-weight: bold;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">1.  </font></font></font></font><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; font-weight: bold; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: normal; font-weight: bold; display: inline;">ACCOUNTING POLICIES</font></font></font></div> <div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="left" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> <div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Business</font></div> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">USA Technologies, Inc. (the “Company”, “We” or “Our”), incorporated in the Commonwealth of Pennsylvania in January 1992, provides wireless networking, cashless transactions, asset monitoring and other value-added services principally to the small ticket unattended retail markets. Our ePort<font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">®</font> technology can be installed and/or embedded into everyday devices such as vending machines, kiosks, and our eSuds™ technology can be installed in for washer and dryers. Our associated network service, ePort Connect<font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">®</font>, is a comprehensive service that provides wireless connectivity that facilitates electronic payment options as well as telemetry and machine-to-machine (“M2M”) services, including the ability to remotely monitor, control and report on the results of distributed assets containing our electronic payment solutions. In addition, the Company provides energy management products, such as its VendingMiser<font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">®</font> and CoolerMiser™, which reduce energy consumption in vending machines and coolers.</font></div> <div style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Interim Financial Information</font></div> <div style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The accompanying unaudited consolidated financial statements of USA Technologies, Inc. have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements and therefore should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2012. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included. Operating results for the three-month period ended September 30, 2012 are not necessarily indicative of the results that may be expected for the year ending June 30, 2013. The balance sheet at June 30, 2012 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"><font style="font-family: 'times new roman'; font-size: 10pt;"><font style="font-family: 'times new roman'; font-size: 10pt;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The Company has incurred losses from its inception through June 30, 2012; the Company had net income of $39,140 for the fiscal quarter ended September 30, 2012. </font>Although the Company anticipates nearing profitability during the 2013 fiscal year, profitability is not assured. The Company’s ability to meet its future obligations is dependent upon the success of its products and services in the marketplace and the available capital resources. Until the Company’s products and services can generate sufficient annual revenues, the Company will be required to use its cash and cash equivalents on hand, and its line of credit; and may be required to raise equity capital to meet its cash flow requirements.</font></font></font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Consolidation</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Stitch Networks Corporation (“Stitch”) and USAT Capital Corp LLC (“USAT Capital”). All significant intercompany accounts and transactions have been eliminated in consolidation.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Use of Estimates</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Reclassification</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Certain amounts in prior period financial statements have been reclassified to conform to the current period presentation.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Cash Equivalents</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Cash equivalents represent all highly liquid investments with original maturities of three months or less. Cash equivalents are comprised of money market funds. The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">At September 30, 2012 and June 30, 2012, none of the cash and cash equivalents of the Company was payable to our customers. Included in accounts receivable are amounts for transactions processed with our card processers for which cash has not been received by the Company and included in accounts payable are amounts for transactions processed with our card processers and due to our customers, which are recorded net of fees due to the Company. Generally, contractual terms require us to remit amounts owed to our customers on a weekly basis.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Finance Receivables</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program. Notes receivable or Quick Start leases are generally for a 36 or 60 month term. Finance receivables are carried at their contractual amount and charged off against the allowance for credit losses when management determines that recovery is unlikely and the Company ceases collection efforts. The Company recognizes a portion of the note or lease payments as interest income in the accompanying consolidated financial statements based on the effective interest rate method.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Inventory</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Fair Value of Financial Instruments</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2010-06, “Fair Value Measurements and Disclosures (“Topic 820”): Improving Disclosures about Fair Value Measurements.” ASU 2009-06 amends certain disclosure requirements of Subtopic 820-10. This ASU provides additional disclosures for transfers in and out of Levels 1 and 2 and for activity in Level 3. This ASU also clarifies certain other existing disclosure requirements including level of desegregation and disclosures around inputs and valuation techniques.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows:</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Level 2- Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Level 3- Inputs are unobservable and reflect the Company’s assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The Company’s financial instruments, principally cash equivalents, accounts receivable, finance receivables, prepaid expenses and other assets, accounts payable and accrued expenses, are carried at cost which approximates fair value due to the short-term maturity of these instruments. The fair value of the Company’s obligations under its long-term debt and credit agreements approximates their carrying value as such instruments are at market rates currently available to the Company.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Property and Equipment</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Property and equipment are recorded at cost. Property and equipment are depreciated on the straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on the straight-line basis over the lesser of the estimated useful life of the asset or the respective lease term.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Accounting for Equity Awards</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">In accordance with ASC 718, the cost of employee services received in exchange for an award of equity instruments is based on the grant-date fair value of the award and allocated over the vesting period of the award.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Income Taxes</font></div> <div style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">A provision for income taxes of $6,921 (all deferred income taxes) was recorded for the three months ended September 30, 2012. The provision for income taxes is not a function of nor related to the income before provision for income taxes of $46,061 for the period because the Company has significant operating loss carryforwards that are available to negate any taxable income that would create current liabilities for income taxes. The provision for income taxes relates to the amortization of indefinite life intangible assets and goodwill that are being amortized for income tax purposes but not for financial reporting purposes giving rise to basis differences in such assets between financial and income tax reporting.</font></div> <div style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">The Company has substantial operating loss carryforwards and other items that create net deferred tax assets that have been offset by a valuation allowance as the realization of the deferred tax assets is not likely, principally due to a lack of earnings history. The deferred tax liabilities related to the amortization of the indefinite life assets are not subject to offset against deferred tax assets with finite lives. As of September 30, 2012 and June 30, 2012, deferred tax liabilities of $19,520 and $12,599, respectively, were recorded for the potential future state and federal income tax effects for these basis differences.</font></div> <div style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">No provision for income taxes was recorded for the three months ended September 30, 2011.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-style: italic; display: inline;">Loss Per Common Share</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Basic earnings per share are calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the period. Diluted earnings per share is calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the year plus the effect of potential common shares unless such effect is anti-dilutive. No exercise of stock options, stock purchase warrants, or the conversion of preferred stock or cumulative preferred dividends was assumed because the result would be anti-dilutive.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div>

<div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">2. FINANCE RECEIVABLES</font></div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Finance Receivables consist of the following:</font></div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> <div align="center" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> <table style="width: 50%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"> <tr> <td align="left" valign="bottom" width="26%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="left" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">September 30,</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">June 30,</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="26%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2012</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2012</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td valign="bottom" width="26%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(unaudited)</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="26%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total finance receivables</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">512,016</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">542,847</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="26%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Less current portion</font></div> </td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">139,039</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">206,649</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" style="padding-bottom: 4px;" valign="bottom" width="26%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Non-current portion of finance receivables</font></div> </td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">372,977</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">336,198</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> </table> </div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of September 30, 2012 and June 30, 2012, there was no allowance for credit losses of finance receivables. As the Company collects monthly payments of the receivables from the customers’ transaction funds the risk of loss was determined to be remote.</font><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Credit Quality Indicators<br /></font>As of September 30, 2012</div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Credit risk profile based on payment activity:</font></div> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> </div> <div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; text-align: center; display: block;"> <table style="width: 40%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"> <tr> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="29%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Leases</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td align="left" valign="bottom" width="29%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="29%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Performing</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">512,016</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="29%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Nonperforming</font></div> </td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" style="padding-bottom: 4px;" valign="bottom" width="29%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></div> </td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">512,016</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> </table> </div> <div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block;"> </div> <div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block;"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Age Analysis of Past Due Finance Receivables<br /></font> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of September 30, 2012</font></font></div> </div> </div> <div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block;"> </div> <div align="center" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block;"> <table style="width: 80%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"> <tr> <td valign="bottom" width="8%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> 31 – 60</font></td> <td style="text-align: center;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">61 – 90 </font></td> <td style="text-align: center;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Greater than</font></font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td valign="bottom" width="8%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Days Past</font></td> <td style="text-align: center;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Days Past</font></td> <td style="text-align: center;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">90 Days</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total Past</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">Finance</div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td style="padding-bottom: 2px;" valign="bottom" width="8%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Due</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Due</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Past Due</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="1%" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div> </td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Due</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Current</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Receivables</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td align="left" valign="bottom" width="8%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="8%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Leases</font></div> </td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,300</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,300</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">509,716</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">512,016</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" style="padding-bottom: 4px;" valign="bottom" width="8%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></div> </td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,300</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,300</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">509,716</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">512,016</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> </table> </div> <div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block;"> </div>

<div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;">5. FAIR VALUE OF FINANCIAL INSTRUMENTS</font></div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> <div align="left" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">In accordance with the fair value hierarchy described in Note 2, the following table shows the fair value of the Company’s financial instruments that are required to be measured at fair value as of September 30, 2012 and June 30, 2012:</font></div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> <div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; text-align: left; display: block; margin-left: 0pt; margin-right: 0pt;"> <div align="center"> <table style="width: 80%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"> <tr> <td align="left" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">September 30, 2012</font></div> </td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 1</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 2</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 3</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td valign="bottom" width="32%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Cash equivalents</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">158,092</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">158,092</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">455,299</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">455,299</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Common stock warrant liability, warrants exercisable at $5.90 through September 14, 2013</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">134</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">134</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="32%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> June 30, 2012</font></div> </td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 1</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 2</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 3</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="32%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Cash equivalents</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">141,107</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">141,107</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">917,440</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">917,440</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Common stock warrant liability, warrants exercisable at $5.90 through September 14, 2013</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,126</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,126</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> </table> </div> </div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of September 30, 2012 and June 30, 2012, the fair values of the Company’s Level 1 financial instruments were $158,092 and $141,107, respectively. These financial instruments consist of cash equivalents, including certificates of deposit and money market accounts. As of September 30, 2012 and June 30, 2012, the Company held no Level 2 financial instruments.</font></div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of September 30, 2012 and June 30, 2012, the fair values of the Company’s Level 3 financial instruments totaled $455,433 and $918,566, respectively. The Level 3 financial instruments consist of common stock warrants issued by the Company in March 2011 and March 2007, which include features requiring liability treatment of the warrants. The fair value of warrants issued in March 2011 to purchase 3.9 million shares of the Company’s common stock is based on valuations performed by an independent third party valuation firm. The fair value was determined using proprietary valuation models using the quality of the underlying securities of the warrants, restrictions on the warrants and security underlying the warrants, time restrictions and precedent sale transactions completed in the secondary market or in other private transactions. As of September 30, 2012, the fair value of warrants issued in March 2007 to purchase 903,955 shares of the Company’s common stock was estimated by the Company to be $134 using the Black-Scholes with the following assumptions: dividend yield of 0%, expected stock price volatility of 0.68, risk free interest rate of 0.17%, and an expected life of one year. There were no transfers of assets or liabilities between level 1, level 2, or level 3 during the periods ending September 30, 2012 and June 30, 2012.</font></div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">The following table summarizes the changes in fair value of the Company’s Level 3 financial instruments for the three months ended September 30, 2012 and 2011:</font></div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"> </div> <div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; text-align: left; display: block; margin-left: 0pt; margin-right: 0pt;"> <div align="center"> <table style="width: 80%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"> <tr> <td valign="bottom" width="56%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="6" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Three months ended</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td valign="bottom" width="56%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="6" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">September 30,</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td style="padding-bottom: 2px;" valign="bottom" width="56%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2012</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2011</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td valign="bottom" width="56%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(unaudited)</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(unaudited)</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="56%" colspan="2"> <div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Balance, Beginning of period</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(918,566</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(2,732,253</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="56%"> <div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Purchase, sales, issuance, settlements, or transfers</font></div> </td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="56%"> <div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Gain due to change in fair value of warrant liabilities, net</font></div> </td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">463,133</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,736,609</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" style="padding-bottom: 4px;" valign="bottom" width="56%"> <div align="left" style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Ending balance</font></div> </td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(455,433</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(995,644</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">)</font></td> </tr> </table> </div> </div>

<div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; font-weight: bold; display: inline;">6. COMMON STOCK AND COMMON STOCK WARRANTS</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Under the 2010 Stock Incentive Plan, the Company recorded stock compensation expense of $15,644 and issued 500 shares of Common stock during the three months ended September 30, 2012. $9,792 of the expense related to the vesting of shares under employment agreements entered into with its executive officers in April 2011; and $5,852 of expenses related to vesting and issuance of shares to an employee and Directors of the Company granted in June 2011 and March 2012.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">In July 2012, the Board of Directors accepted the recommendation of the Compensation Committee that each of the three non-employee Directors who joined the Board after March 31, 2012 receive a stock award of 10,000 shares of Common Stock. Under the 2011 Stock Incentive Plan 30,000 shares of Common Stock were awarded with a grant date fair value of $1.45 per share, and vest as follows: 9,999 on August 10, 2012; 9,999 on August 10, 2013; and, 10,002 on August 10, 2014. The Company recorded stock compensation expense of $64,689 and issued 59,165 shares of Common stock during the three months ended September 30, 2012. $26,719 of the expense related to the vesting of shares under employment agreements entered into with its executive officers in September 2011, and 41,666 shares of Common Stock vested under these grants on September 27, 2012. $18,124 of expenses related to vesting of shares granted to Directors of the Company in July 2012; 9,999 shares of Common Stock vested under this grant in August 2012. $19,846 of expenses related to vesting of shares granted to employees in April 2012; 7,500 shares of Common Stock vested under these grants in September 2012.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Under the 2012 Stock Incentive Plan, the Company recorded stock compensation expense of $45,000 and issued 171,998 shares of Common stock during the three months ended September 30, 2012. All of the expense and 35,713 shares of Common Stock were issued to Company Directors in lieu of cash payment for compensation for services to the Company in the three months ended September 30, 2012. The other 136,285 shares of Common Stock were issued to its executive officers under the Fiscal Year 2012 Performance Share Plan (the “2012 Plan”) after the filing of the Company’s form 10-K on September 26, 2012.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">On September 5, 2012, at the recommendation of the Compensation Committee, the board of directors adopted the Fiscal Year 2013 Performance Share Plan (the “2013 Plan”) covering the Company’s executive officers. Under the 2013 Plan, each executive officer would be awarded common stock in the event the Company achieves certain performance goals during the fiscal year ending June 30, 2013. The metrics under the 2013 Plan as well as the relative weightings of these metrics are identical to those originally set forth in the 2012 Plan. No awards would be made under the 2013 Plan if either (i) none of the minimum, threshold performance target goals has been achieved, or (ii) if operating earnings for the 2013 fiscal year are not equal or better than those during the 2012 fiscal year.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">If all of the target goals are achieved under the 2013 Plan, the executive officers would be awarded shares having the following value: Mr. Herbert – $275,000; and Mr. DeMedio – $100,000. If all of the minimum, threshold performance target goals are achieved, the executive officers would be awarded shares having the following value: Mr. Herbert – $75,000; and Mr. DeMedio – $25,000. If all of the maximum, distinguished performance target goals are achieved, the executive officers would be awarded shares having the following value: Mr. Herbert – $550,000; and Mr. DeMedio – $200,000. If the actual results for the fiscal year are less than the target goals (but greater than the minimum, threshold performance target goals), each executive would be awarded a lesser pro rata number of shares from the target goal, and if actual results are greater than the maximum, distinguished goals, each executive would be awarded a greater pro rata number of shares over the maximum distinguished goal.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">As of September 30, 2012 and for the three months then ended the Company recorded a liability and expense of $43,868.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">In the same quarter a year ago for the 2012 Plan, the Company recorded a liability and expense of $47,582.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Warrants to purchase up to 291,432 shares of Common Stock, issued in conjunction with the 2009 Rights Offering, exercisable at $2.20 per share expired unexercised on August 6, 2012.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">During the three months ended September 30, 2011, the Company recorded stock compensation expense of $240,453 and issued 92,666 shares of Common stock. $66,094 and $156,749 of the expense related to the vesting of shares under employment agreements entered into with its executive officers in April and September 2011, respectively; and $17,610 of expenses related to vesting and issuance of shares to employees and Directors of the Company granted in June 2011.</font></div> <div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> </div>

<div align="justify" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"><br class="apple-interchange-newline" /> </div> <div align="center" style="font: 13px/normal 'times new roman'; color: #000000; text-transform: none; text-indent: 0pt; letter-spacing: normal; margin-right: 0pt; margin-left: 0pt; word-spacing: 0px; display: block; white-space: normal; orphans: 2; widows: 2; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;"> <table style="width: 50%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"> <tr> <td align="left" valign="bottom" width="26%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td align="left" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">September 30,</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">June 30,</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> </tr> <tr> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="26%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">2012</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">2012</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> </tr> <tr> <td valign="bottom" width="26%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">(unaudited)</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="26%"> <div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Total finance receivables</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">512,016</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">542,847</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="26%"> <div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Less current portion</font></div> </td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="9%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">139,039</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="9%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">206,649</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" style="padding-bottom: 4px;" valign="bottom" width="26%"> <div align="left" style="text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; display: block;"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">Non-current portion of finance receivables</font></div> </td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;" valign="bottom" width="9%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">372,977</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> <td style="text-align: left; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;" valign="bottom" width="1%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">$</font></td> <td style="text-align: right; border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double;" valign="bottom" width="9%"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;">336,198</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="font-family: 'times new roman'; font-size: 10pt; display: inline;"> </font></td> </tr> </table> </div>

<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block;"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">As of September 30, 2012</font></font></div> </div> </div> <div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block;"> </div> <div align="center" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block;"> <table style="width: 80%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"> <tr> <td valign="bottom" width="8%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> 31 – 60</font></td> <td style="text-align: center;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">61 – 90 </font></td> <td style="text-align: center;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Greater than</font></font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td valign="bottom" width="8%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Days Past</font></td> <td style="text-align: center;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Days Past</font></td> <td style="text-align: center;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">90 Days</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total Past</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">Finance</div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td style="padding-bottom: 2px;" valign="bottom" width="8%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Due</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Due</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Past Due</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="1%" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></div> </td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Due</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Current</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: center;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Receivables</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td align="left" valign="bottom" width="8%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="8%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Leases</font></div> </td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,300</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,300</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">509,716</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">512,016</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" style="padding-bottom: 4px;" valign="bottom" width="8%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></div> </td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,300</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,300</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">509,716</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">512,016</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> </table> </div>

<table style="widows: 2; text-transform: none; background-color: #ffffff; text-indent: 0px; width: 80%; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"> <tr> <td valign="bottom" width="56%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">September 30,</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">June 30,</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="56%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2012</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2012</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td align="left" valign="bottom" width="56%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">(unaudited)</font></div> </td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="56%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Accrued compensation and related sales commissions</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">437,264</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">767,926</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="56%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Accrued professional fees</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">226,048</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">482,664</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="56%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Accrued taxes and filing fees</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">642,751</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">663,078</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="56%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Advanced customer billings</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">334,264</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">311,767</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="56%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Accrued proxy contest and litigation costs</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">121,530</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">992,520</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="56%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Accrued rent</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">265,363</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">278,862</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" style="padding-bottom: 2px;" valign="bottom" width="56%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Accrued other</font></div> </td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">290,031</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">271,880</font></td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" style="padding-bottom: 4px;" valign="bottom" width="56%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">2,317,251</font></td> <td style="text-align: left; padding-bottom: 4px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" style="padding-bottom: 4px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="border-bottom-color: black; border-bottom-width: 4px; border-bottom-style: double; text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">3,768,697</font></td> </tr> </table>

<div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; text-align: left; display: block; margin-left: 0pt; margin-right: 0pt;"> <div align="center"><br class="apple-interchange-newline" /> <table style="width: 80%; font-family: 'times new roman'; font-size: 10pt;" cellspacing="0" cellpadding="0"> <tr> <td align="left" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">September 30, 2012</font></div> </td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 1</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 2</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 3</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr> <td valign="bottom" width="32%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="10%" colspan="2" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Cash equivalents</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">158,092</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">158,092</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">455,299</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">455,299</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Common stock warrant liability, warrants exercisable at $5.90 through September 14, 2013</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">134</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">134</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="32%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> June 30, 2012</font></div> </td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 1</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 2</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Level 3</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="padding-bottom: 2px;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="border-bottom-color: black; border-bottom-width: 2px; border-bottom-style: solid;" valign="bottom" width="10%" colspan="2" nowrap="nowrap"> <div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Total</font></div> </td> <td style="text-align: left; padding-bottom: 2px;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td valign="bottom" width="32%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Cash equivalents</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">141,107</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">141,107</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="white"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">917,440</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">917,440</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> <tr bgcolor="azure"> <td align="left" valign="bottom" width="32%"> <div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">Common stock warrant liability, warrants exercisable at $5.90 through September 14, 2013</font></div> </td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">-</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,126</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td align="right" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> <td style="text-align: left;" valign="bottom" width="1%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">$</font></td> <td style="text-align: right;" valign="bottom" width="9%"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;">1,126</font></td> <td style="text-align: left;" valign="bottom" width="1%" nowrap="nowrap"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt;"> </font></td> </tr> </table> </div> </div> <div align="justify" style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: 'times new roman'; font-size: 10pt; font-weight: bold;"> </font></div> <div style="color: #000000; font-family: 'times new roman'; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: start; text-indent: 0pt; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; margin-left: 0pt; margin-right: 0pt;" > <div > <div align="left" style="width: 1583px;" ><font style="display: inline; font-family: 'times new roman'; font-size: 8pt;"> </font></div> </div> </div>

P60M P36M

2.6058

2.20

2.6058

917440 917440 455299 455299 Prime Rate 767926 437264

482664

226048

663078 642751 311767 334264 992520 121530

278862

265363

271880

290031

3768697

2317251

542847

512016

2300 2300

2300

509716

141107

158092

1126 1126 134 134

1736609

463133

5.90 5.90

903955

3900000

Black-Scholes model

proprietary valuation models

0.00

0.0068

0.0017

P1Y

3000000 0.7500 0.8000 1000000 45000 171998

1337779

5559

1337779

The Loan Documents provide that the aggregate amount of advances under the Line of Credit shall not exceed the lesser of (i) $3.0 million, or (ii) 75% of eligible accounts receivable as defined in the Loan Documents plus 80% of the prior two months transaction processing revenues and networking service fees as defined in the Loan Documents, provided that the amounts advanced on account of such processing revenues and service fees shall not exceed $1,000,000 without the Bank's prior consent.

3000000

0.02 0.05

20000

The outstanding balance of the amounts advanced under the Line of Credit will bear interest at 2% above the prime rate as published in The Wall Street Journal or 5% whichever is higher.

918566 455433

240453

15644

64689

45000

92666

10000

41666

59165

500

30000

171998

136285

9792 66094 5852 17610 156749 26719 19846 18124 3 1.45 9999 9999 10002 9999 7500 35713

550000

200000

100000

75000

275000

25000

43868 47582

291432

442968

1800000

45000 128062

15693778

15361552

(unaudited)