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COMMITMENTS AND CONTINGENCIES
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12 Months Ended |
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Jun. 30, 2012
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| COMMITMENTS AND CONTINGENCIES |
NOTE 6 – COMMITMENTS AND CONTINGENCIES
From time to time, we may be involved in litigation relating to claims arising out of our operations. We are not a party to any legal proceedings that are expected, individually or in the aggregate, to have a material adverse effect on its business, financial condition or operating results.
Effective July 1, 2011, the Company completed its long-term office space lease agreement and instead entered into a month-to-month agreement for its office space. The agreement provides for monthly payments of approximately $13,000. Currently management is seeking other office space rental options in proximity to the current offices.
In July of 2011 the Company entered into a sublease with a related party for approximately $6,600 per month for a portion of this space. The sublease was terminated on January 1, 2012. The Company recorded rent expense, net of sublease income during the fiscal years ended June 30, 2012 and 2011, of approximately $106,000 and approximately $133,000, respectively.
In March 2011, the Company entered into a brokerage agreement with a management consulting firm to provide investors to the Company. The term of the agreement was for a period of one year. The compensation to the consulting firm includes a monthly fee with additional compensation based on a percentage of the amount raised. The Company recorded expense of $13,000 and $4,000 related to the brokerage agreement during fiscal years ended June 30, 2012 and 2011, respectively.
In August 2011, the Company entered into an agreement and term sheet with an entity to assist the Company in its merger efforts with a public company. The agreement and term sheet expired during February 2012 and it obligated the Company to pay legal expenses of the investors not to exceed $25,000 and due diligence expenses of the entity of $15,000. |