UNAUTHORIZED TRANSACTION RELATED RECOVERIES

In December 2009, the Company learned of significant unauthorized transactions as previously reported. The Company has ongoing costs and recoveries associated with the unauthorized transactions. For the years ended June 30, 2014 and 2013, the costs incurred were for legal fees related to claims initiated against third parties (see Note 21). The Company has received various recoveries related to the unauthorized transactions which are summarized below. The Company will continue to incur legal fees for the claims initiated against third parties. There have been other recoveries of the assets previously owned and forfeited by the former Vice President of Finance. The Company expects to receive additional forfeiture related funds in the fiscal year ended June 30, 2015. However, the remaining amounts to be received are not expected to be significant. For the years ended June 30, 2014 and 2013, the costs and recoveries were as follows:



	2014			2013
Legal fees incurred	$	388,287		$	2,598,454

Recoveries:
Insurance proceeds	—			(15,014		)
Gross proceeds from the settlement of the third party lawsuit	—			(8,500,000		)
Proceeds from asset forfeitures	(1,134,082		)	(1,670,487		)
Total recoveries	(1,134,082		)	(10,185,501		)

Unauthorized transaction related costs and recoveries, net	$	(745,795	)	$	(7,587,047	)