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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 31, 2011	Feb. 06, 2012
Document and Entity Information
Entity Registrant Name	EVOLUTION PETROLEUM CORP
Entity Central Index Key	0001006655
Document Type	10-Q
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		27,816,963
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets - USD ($)	Dec. 31, 2011	Jun. 30, 2011
Current assets
Cash and cash equivalents	$ 13,646,120	$ 4,247,438
Certificates of deposit	250,000	250,000
Restricted cash from joint interest partner	73,181	118,194
Receivables
Oil and natural gas sales	1,961,427	1,559,404
Joint interest partner	101,454	86,105
Income taxes		28,680
Other	7,958	167
Prepaid expenses and other current assets	170,212	67,852
Total current assets	16,210,352	6,357,840
Property and equipment, net of depreciation, depletion, and amortization
Oil and natural gas properties - full-cost method of accounting, of which $695,544 and $2,940,199 at December 31, 2011 and June 30, 2011, respectively, were excluded from amortization.	34,947,310	33,447,564
Other property and equipment	65,488	69,262
Total property and equipment	35,012,798	33,516,826
Other assets	100,944	77,287
Total assets	51,324,094	39,951,953
Current liabilities
Accounts payable	967,809	514,177
Joint interest advances	73,181	105,567
Accrued compensation	414,465	682,850
Royalties payable	620,426	742,651
Income taxes payable	175,401	82,122
Other current liabilities	50,961	84,565
Total current liabilities	2,302,243	2,211,932
Long term liabilities
Deferred income taxes	4,588,372	3,330,266
Asset retirement obligations	912,405	859,586
Deferred rent	78,583	85,412
Total liabilities	7,881,603	6,487,196
Commitments and contingencies (Note 9)
Stockholders' equity
Common stock; par value $0.001; 100,000,000 shares authorized and 28,605,163 shares issued; outstanding 27,816,963 shares and 27,612,916 shares at December 31, 2011 and June 30, 2011, respectively.	28,605	28,400
Additional paid-in capital	28,462,788	20,761,209
Retained earnings	15,832,803	13,557,170
Stockholders equity before treasury stock	44,324,513	34,346,779
Treasury stock, at cost, 788,200 shares as of December 31, 2011 and June 30, 2011.	(882,022)	(882,022)
Total stockholders' equity	43,442,491	33,464,757
Total liabilities and stockholders' equity	51,324,094	$ 39,951,953
Series A Cumulative Preferred Stock
Stockholders' equity
Preferred stock, par value $0.001; 5,000,000 shares authorized: 8.5% Series A Cumulative Preferred Stock, 1,000,000 shares designated, 317,319 shares issued and outstanding at December 31, 2011, with a total liquidation preference of $7,932,975 ($25.00 per share)	$ 317

Consolidated Balance Sheets (Parenthetical) - USD ($)	6 Months Ended
Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2011	Jun. 30, 2011
Oil and natural gas properties, excluded from amortization (in dollars)	$ 695,544	$ 2,940,199
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	28,605,163
Common stock, shares outstanding	27,816,963	27,612,916
Treasury stock, shares	788,200	788,200
Series A Cumulative Preferred Stock
Cumulative Preferred Stock (as a percent)	8.50%
Preferred stock, shares designated	1,000,000
Preferred stock, shares issued	317,319
Preferred stock, shares outstanding	317,319
Preferred stock, total liquidation preference	$ 7,932,975
Preferred stock, liquidation preference (in dollars per share)	$ 25.00

Consolidated Statements of Operations - USD ($)

3 Months Ended

6 Months Ended

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2011

Dec. 31, 2010

Revenues

Crude oil

$ 4,231,201

$ 778,594

$ 7,679,796

$ 1,426,812

Natural gas liquids

182,971

231,495

371,426

441,413

Natural gas

232,530

169,343

480,336

480,303

Total revenues

4,646,702

1,179,432

8,531,558

2,348,528

Operating Costs

Lease operating expenses

412,470

311,224

615,387

665,805

Production taxes

18,725

13,073

32,760

27,776

Depreciation, depletion and amortization

280,795

102,429

517,686

226,447

Accretion of asset retirement obligations

19,616

10,766

36,588

27,081

General and administrative expenses

^[1]

1,488,258

1,309,387

2,893,433

2,616,954

Total operating costs

2,219,864

1,746,879

4,095,854

3,564,063

Income (loss) from operations

2,426,838

(567,447)

4,435,704

(1,215,535)

Other income

Interest income

6,712

3,705

13,958

11,472

Net income (loss) before income tax benefit

2,433,550

(563,742)

4,449,662

(1,204,063)

Income tax (provision) benefit

(1,008,195)

102,207

(1,880,789)

257,194

Net Income (loss) attributable to the Company

1,425,355

(461,535)

2,568,873

(946,869)

Dividends on Preferred Stock

165,405

293,240

Earnings (loss) attributable to common shareholders

$ 1,259,950

$ (461,535)

$ 2,275,633

$ (946,869)

Basic (in dollars per share)

$ 0.05

$ (0.02)

$ 0.08

$ (0.03)

Diluted (in dollars per share)

$ 0.04

$ (0.02)

$ 0.07

$ (0.03)

Weighted average number of common shares

Basic (in shares)

27,792,768

27,457,118

27,731,062

27,308,920

Diluted (in shares)

31,515,271

27,457,118

31,394,528

27,308,920

[1]

General and administrative expenses for the three months ended December 31, 2011 and 2010 included non-cash stock-based compensation expense of $354,871 and $396,394, respectively. For the corresponding six month period's non-cash stock-based compensation expense was $771,566 and $750,880, respectively.

Consolidated Statements of Operations (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Consolidated Statements of Operations
General and administrative expenses, non-cash stock-based compensation expense	$ 354,871	$ 396,394	$ 771,566	$ 750,880

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities
Net Income (loss) attributable to the Company	$ 2,568,873	$ (946,869)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	517,686	226,447
Stock-based compensation	771,566	750,880
Accretion of asset retirement obligations	36,588	27,081
Payments on asset retirement obligations	(30,969)	(1,847)
Deferred income taxes	1,258,106	(294,725)
Accrued compensation		315,000
Deferred rent	(6,829)	1,889
Other		32,080
Changes in operating assets and liabilities:
Receivables from oil and natural gas sales	(402,023)	37,700
Receivables from income taxes and other	20,889	84,769
Due from joint interest partner	6,854	(177,713)
Prepaid expenses and other current assets	(102,360)	(44,655)
Accounts payable and accrued expenses	(307,079)	(41,995)
Royalties payable	(122,225)	(42,615)
Income taxes payable	93,279	55,566
Net cash provided by (used in) operating activities	4,302,356	(19,007)
Cash flows from investing activities
Proceeds from asset sale		231,326
Development of oil and natural gas properties	(1,329,930)	(1,339,366)
Acquisitions of oil and natural gas properties	(174,604)	(689,759)
Capital expenditures for other property and equipment	(12,778)
Maturities of certificates of deposit		1,100,000
Other assets	(23,657)	(16,723)
Net cash used in investing activities	(1,540,969)	(714,522)
Cash flows from financing activities
Proceeds from the exercise of restricted stock		28
Proceeds from the exercise of stock options		16,049
Proceeds from issuances of preferred stock, net	6,930,535
Preferred stock dividends paid	(293,240)
Net cash provided by financing activities	6,637,295	16,077
Net increase (decrease) in cash and cash equivalents	9,398,682	(717,452)
Cash and cash equivalents, beginning of period	4,247,438	3,138,259
Cash and cash equivalents, end of period	13,646,120	2,420,807
Supplemental disclosures of cash flow information:
Income taxes paid	513,581	7,000
Non-cash transactions:
Increase in accounts payable used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	449,146	256,287
Increase in accounts payable related to joint venture activities	9,576	1,710,033
Oil and natural gas properties incurred through recognition of asset retirement obligations	$ (47,200)	$ (25,115)

Organization and Basis of Preparation

6 Months Ended

Dec. 31, 2011

Organization and Basis of Preparation

Organization and Basis of Preparation

Note 1 — Organization and Basis of Preparation

Nature of Operations. Evolution Petroleum Corporation (“EPM”) and its subsidiaries (the “Company”, “we”, “our” or “us”), is an independent petroleum company headquartered in Houston, Texas and incorporated under the laws of the State of Nevada. We are engaged primarily in the acquisition, exploitation and development of properties for the production of crude oil and natural gas. We acquire properties with known oil and natural gas resources and exploit them through the application of conventional and specialized technology to increase production, ultimate recoveries, or both.

Interim Financial Statements. The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the appropriate rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. All adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods presented have been included. The interim financial information and notes hereto should be read in conjunction with the Company’s 2011 Annual Report on Form 10-K for the fiscal year ended June 30, 2011, as filed with the SEC. The results of operations for interim periods are not necessarily indicative of results to be expected for a full fiscal year.

Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of EPM and its wholly-owned subsidiaries: NGS Sub Corp and its wholly owned subsidiary, Tertiaire Resources Company, NGS Technologies, Inc., and Evolution Operating Co., Inc. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the prior period may include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported loss or stockholders’ equity.

Use of Estimates. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Property and Equipment

6 Months Ended

Dec. 31, 2011

Property and Equipment

Property and Equipment

Note 2 — Property and Equipment

As of December 31, 2011 and June 30, 2011 our oil and natural gas properties and other property and equipment consisted of the following:

	December 31, 2011			June 30, 2011
Oil and natural gas properties
Property costs subject to amortization	$	40,106,046		$	35,860,517
Less: Accumulated depreciation, depletion, and amortization	(5,854,280		)	(5,353,152		)
Unproved properties not subject to amortization	695,544			2,940,199
Oil and natural gas properties, net	$	34,947,310		$	33,447,564

Other property and equipment
Furniture, fixtures and office equipment, at cost	274,117			261,340
Less: Accumulated depreciation	(208,629		)	(192,078		)
Other property and equipment, net	$	65,448		$	69,262

Unproved properties not subject to amortization includes: unevaluated acreage of $0.7 million and $2.9 million as of December 31, 2011 and June 30, 2011, respectively, of which (i) $0.7 million as of December 31, 2011 and June 30, 2011, related to our interests in the Delhi Field in Louisiana; and (ii) $6,000 and $2.2 million as of December 31, 2011 and June 30, 2011, respectively, related to Woodford Shale trend in Oklahoma. Development of our unproved properties is expected to be completed within five years. Our evaluation of impairment of unproved properties occurs, at a minimum, on a quarterly basis. During the six months ended December 31, 2011, our evaluations determined that approximately $2.2 million of our unevaluated Woodford Shale trend property was impaired and accordingly was moved to the full cost pool.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Joint Interest Drilling Arrangement

6 Months Ended

Dec. 31, 2011

Joint Interest Drilling Arrangement

Joint Interest Drilling Arrangement

Note 3 — Joint Interest Drilling Arrangement

In July 2010, we entered into a drilling arrangement with an industry partner to drill up to five horizontal development wells in the Giddings Field in central Texas. Our industry partner has funded $7.7 million through December 31, 2011, their portion of the approval for expenditure (“AFE’) for three wells, including a sales line. As of December 31, 2011, $73,181 of their funding has yet to be expended with respect to those wells. We have billed our industry partner $101,454 for operating expense recovery and costs incurred for their share of costs. Amounts pertaining to our industry partner’s share of the joint interest drilling arrangement included in our balance sheet as of December 31, 2011, are as follows:

Restricted cash from joint interest partner	$	73,181
Amounts due from joint interest partner	101,454
Accounts payable	9,576
Joint interest advances	73,181

Asset Retirement Obligations

6 Months Ended

Dec. 31, 2011

Asset Retirement Obligations

Asset Retirement Obligations

Note 4 — Asset Retirement Obligations

Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following is a reconciliation of the beginning and ending asset retirement obligation for the six months ended December 31, 2011:

Asset retirement obligations — beginning of period	$	859,586
Accretion expense	36,588
Payments on asset retirement obligations	(30,969		)
Acquisition of oil and gas properties	153,668
Revision of estimate	(106,468		)
Asset retirement obligations — end of period	$	912,405

Stockholders' Equity

6 Months Ended

Dec. 31, 2011

Stockholders' Equity

Stockholders' Equity

Note 5 — Stockholders’ Equity

Common Stock

On September 9, 2011, a contractor of the Company net exercised 20,000 stock options issued under the 2004 Stock Plan for a net issuance of 7,941 shares of our common stock. The options were granted in March 2008 at an exercise price of $4.10 per share.

On August 31, 2011, the Board of Directors authorized the issuance of 161,861 shares of restricted common stock from the 2004 Stock Plan to all employees as a long-term incentive award. Total unrecognized stock-based compensation expense of $1,029,436 related to the long-term incentive award will be recognized ratably over a four year period as, if and when the restricted common stock vests.

On December 5, 2011, a total of 34,245 shares of our restricted common stock was issued pursuant to the 2004 Stock Plan to five outside directors as part of their annual board compensation for calendar year 2012. The value of the shares issued was $249,955, based on the fair market value on the date of issuance. All issuances of our common stock were subject to vesting terms per individual stock agreements, which is one year for directors.

See Note 6.

Series A Cumulative Perpetual Preferred Stock

During the six months ended December 31, 2011, we sold 317,319 shares of our 8.5% Series A Cumulative (perpetual) Preferred Stock at a weighted average sales price of $23.80 per share, with a liquidation preference of $25.00 per share. All shares were underwritten or sold through McNicoll Lewis & Vlak LLC (MLV), 220,000 of which were sold in an underwritten public offering and 97,319 shares of which were sold under an at-the-market sales agreement (ATM), providing aggregate net proceeds of $6,930,535 after- market discounts, underwriting fees, legal and other expenses of the offerings. The Series A Cumulative Preferred Stock cannot be converted into our common stock and there are no sinking fund or redemption rights available to holders thereof. Optional redemption can only be made by us on or after July 1, 2014 for the stated liquidation value of $25.00 per share plus accrued dividends, or by an acquirer under a change of control prior to such date at redemption prices ranging from $25.25 to $25.75 per share. With respect to dividend rights and rights upon our liquidation, winding-up or dissolution, the Series A Preferred Stock ranks senior to our common shareholders, but subordinate to any of our existing and future debt. Dividends on the Series A Cumulative Preferred Stock accrue and accumulate at a fixed rate of 8.5% per annum on the $25.00 per share liquidation preference, payable monthly at $0.177083 per share, as, if and when declared by our Board of Directors.

During the six months ended December 31, 2011, we paid dividends of $293,240 to holders of our Series A Preferred Stock

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Number 210
-Article 4
-Section 08
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Stock-Based Incentive Plan

6 Months Ended

Dec. 31, 2011

Stock-Based Incentive Plan

Stock-Based Incentive Plan

Note 6 — Stock-Based Incentive Plan

We have granted option awards to purchase common stock (the “Stock Options”), restricted common stock awards (“Restricted Stock”), and/or unrestricted fully vested common stock, to employees, directors, and consultants of the Company and its subsidiaries under the Natural Gas Systems Inc. 2003 Stock Plan (the “2003 Stock Plan”) and the Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan (the “2004 Stock Plan” or together, the “EPM Stock Plans”). Option awards for the purchase of 600,000 shares of common stock were issued under the 2003 Stock Plan. The 2004 Stock Plan authorized the issuance of 5,500,000 shares of common stock with an additional 1,000,000 shares authorized by a December 5, 2011 plan amendment approved by a vote of our shareholders. No shares are available for grant under the 2003 Stock Plan and 1,012,111 shares remain available for grant under the 2004 Stock Plan as of December 31, 2011.

We have also granted common stock warrants, as authorized by the Board of Directors, to employees in lieu of cash bonuses or as incentive awards to reward previous service or provide incentives to individuals to acquire a proprietary interest in the Company’s success and to remain in the service of the Company (the “Incentive Warrants”). These Incentive Warrants have similar characteristics of the Stock Options. A total of 1,037,500 Incentive Warrants have been issued, with Board of Directors approval, outside of the EPM Stock Plans. We have not issued Incentive Warrants since the listing of our shares on the NYSE Amex (formerly, the American Stock Exchange) in July 2006.

Stock Options and Incentive Warrants

Non-cash stock-based compensation expense related to Stock Options and Incentive Warrants for the three months ended December 31, 2011 and 2010 was $59,410 and $172,728, respectively. For the six months ended December 31, 2011, and 2010, non-cash stock-based compensation expense was $232,139 and $369,571, respectively.

There were no Stock Options granted during the six months ended December 31, 2011 and 2010.

We estimated the fair value of Stock Options and Incentive Warrants issued to employees and directors at the date of grant using a Black-Scholes-Merton valuation model. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected term (estimated period of time outstanding) of Stock Options and Incentive Warrants is based on the “simplified” method of the estimated expected term for “plain vanilla” options allowed by the SEC Staff Accounting Bulletin (“SAB”) No. 107 and SAB No. 110, and varied based on the vesting period and contractual term of the Stock Options or Incentive Warrants. Expected volatility is based on the historical volatility of the Company’s closing common stock price and that of an evaluation of a peer group of similar companies trading activity. We have not declared any cash dividends on the Company’s common stock.

The following summary presents information regarding outstanding Stock Options and Incentive Warrants as of December 31, 2011, and the changes during the fiscal year:

	Number of Stock Options and Incentive Warrants		Weighted Average Exercise Price		Aggregate Intrinsic Value (1)		Weighted Average Remaining Contractual Term (in years)

Stock Options and Incentive Warrants outstanding at July 1, 2011	5,392,820		$	1.84

Granted	—		—
Exercised	(20,000	)	$	4.10
Cancelled or forfeited	—		—
Expired	—		—

Stock Options and Incentive Warrants outstanding at December 31, 2011	5,372,820		$	1.83	$	33,398,905	3.9

Vested or expected to vest at December 31, 2011	5,372,820		$	1.83	$	33,398,905	3.9

Exercisable at December 31, 2011	5,307,982		$	1.81	$	33,138,785	3.9

(1) Based upon the difference between the market price of our common stock on the last trading date of the period ($8.05 as of December 31, 2011) and the Stock Option or Incentive Warrant exercise price of in-the-money Stock Options and Incentive Warrants.

There were 20,000 Stock Options exercised during the six months ended December 31, 2011 with an aggregate intrinsic value of $54,000. There were 36,875 Stock Options that were exercised during the six months ended December 31, 2010, with an aggregate intrinsic value of $204,101.

A summary of the status of our unvested Stock Options and Incentive Warrants as of December 31, 2011 and the changes during the six months ended December 31, 2011, is presented below:

	Number of Stock Options and Incentive Warrants		Weighted Average Grant- Date Fair Value

Unvested at July 1, 2011	173,877		$	2.20

Granted	—		—

Vested	(109,039	)	$	1.99

Forfeited	—		—

Unvested at December 31, 2011	64,838		$	2.54

During the six months ended December 31, 2011 and 2010, there were 109,039 and 190,914 Stock Options and Incentive Warrants that vested with a total grant date fair value of $216,987 and $500,195, respectively.

The total unrecognized compensation cost at December 31, 2011, relating to non-vested Stock Options and Incentive Warrants was $121,912. Such unrecognized expense is expected to be recognized over a weighted average period of 0.67 years.

Restricted Stock

Stock-based compensation expense related to Restricted Stock grants for the three months ended December 31, 2011 and 2010 was $295,461 and $223,666, respectively. Stock-based compensation expense related to Restricted Stock grants for the six months ended December 31, 2011 and 2010 was $539,427 and $381,309, respectively.

The following table sets forth the Restricted Stock transactions for the six months ended December 31, 2011:

	Number of Restricted Shares		Weighted Average Grant-Date Fair Value

Unvested at July 1, 2011	495,689		$	4.30

Granted	196,106		$	6.52

Vested	(128,560	)	$	4.60

Forfeited	—		—

Unvested at December 31, 2011	563,235		$	5.01

At December 31, 2011, unrecognized stock compensation expense related to Restricted Stock grants totaled $2,727,533. Such unrecognized expense will be recognized over a weighted average period of 1.85 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Number 93-6
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Income Taxes

6 Months Ended

Dec. 31, 2011

Income Taxes

Income Taxes

Note 7 — Income Taxes

We file a consolidated federal income tax return in the United States and various combined and separate filings in several state and local jurisdictions.

There were no unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax benefits during the six months ended December 31, 2011. We believe that we have appropriate support for the income tax positions taken and to be taken on the Company’s tax returns and that the accruals for tax liabilities are adequate for all open years based on our assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. The Company’s federal and state income tax returns are open to audit under the statute of limitations for the years ending June 30, 2007 through June 30, 2011.

Our effective tax rate for any period may differ from the statutory federal rate due to our state income tax liability in Louisiana and to stock-based compensation related to qualified incentive stock option awards (“ISO awards”), a permanent tax difference for financial reporting, as these types of awards, if certain conditions are met, are not deductible for federal tax purposes.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Number 109
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Subparagraph (SX 210.4-08.(h))
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+ Details

Net Income (loss) Per Share

6 Months Ended

Dec. 31, 2011

Net Income (loss) Per Share

Net Income (loss) Per Share

Note 8 — Net Income (loss) Per Share

The following table sets forth the computation of basic and diluted income (loss) per share:

	Three Months Ended December 31,					Six Months Ended December 31,
	2011		2010			2011		2010
Numerator
Net income (loss) attributable to common shareholders	$	1,259,950	$	(461,535	)	$	2,275,633	$	(946,869	)

Denominator*
Weighted average number of common shares — Basic	27,792,768		27,457,118			27,731,062		27,308,920

Effect of dilutive securities:
Common stock warrants issued in connection with equity and financing transactions	61,187		—			60,149		—
Stock Options and Incentive Warrants	3,661,316		—			3,603,317		—
Total weighted average dilutive securities	3,722,503		—			3,663,466		—

Weighted average number of common shares and dilutive potential common shares used in diluted EPS	31,515,271		27,457,118			31,394,528		27,308,920

Net income (loss) per common share — Basic	$	0.05	$	(0.02	)	$	0.08	$	(0.03	)
Net income (loss) per common share — Diluted	$	0.04	$	(0.02	)	$	0.07	$	(0.03	)

* Potential dilutive common shares are excluded from the computation of net loss per common shares because their effect will always be anti-dilutive.

Outstanding potentially dilutive securities as of December 31, 2011 are as follows:

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at December 31, 2011

Common stock warrants issued in connection with equity and financing transactions	$	2.50	92,365
Stock Options and Incentive Warrants	$	1.83	5,372,820
Total	$	1.84	5,465,185

Outstanding potentially dilutive securities as of December 31, 2010 are as follows:

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at December 31, 2010

Common stock warrants issued in connection with equity and financing transactions	$	1.87	159,308
Stock Options and Incentive Warrants	$	1.85	5,442,820
Total	$	1.83	5,602,128

Commitments and Contingencies

6 Months Ended

Dec. 31, 2011

Commitments and Contingencies

Commitments and Contingencies

Note 9 — Commitments and Contingencies

We are subject to various claims and contingencies in the normal course of business. In addition, from time to time, we receive communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdiction in which we operate. We disclose such matters if we believe it is reasonably possible that a future event or events will confirm a loss through impairment of an asset or the incurrence of a liability. We establish reserves if we believe it is probable that a future event or events will confirm a loss and we can reasonably estimate such loss. Furthermore, we will disclose any matter that is unasserted if we consider it probable that a claim will be asserted and there is a reasonable possibility that the outcome will be unfavorable.

Lease Commitments. We have a non-cancelable operating lease for office space that expires on August 1, 2016. Future minimum lease commitments as of December 31, 2011 under this operating lease are as follows:

For the twelve months ended December 31,
2012	$	159,011
2013	159,011
2014	159,011
2015	159,011
Thereafter	92,756
Total	$	728,800

Rent expense for the three months ended December 31, 2011 and 2010 was $36,808 and $36,324 respectively. For the six months ended December 31, 2011 and 2010 rent expense was $73,617 and $72,647, respectively.

Employment Contracts. We have entered into employment agreements with the Company’s three senior executives. The employment contracts provide for a severance package for termination by the Company for any reason other than cause or permanent disability, or in the event of a constructive termination, that includes payment of base pay and certain medical and disability benefits from six months to a year after termination. The total contingent obligation under the employment contracts as of December 31, 2011 is approximately $588,000.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details