Related-Party Transactions

3 Months Ended

Sep. 30, 2011

Related-Party Transactions [Abstract]

Related-Party Transactions

6. Related-Party Transactions

The Company and a member of the Company's Board of Directors are founding and equal members of Ocular Telehealth Management, LLC ("OTM"). OTM is a diagnostic telemedicine company providing remote examination, diagnosis and management of disorders affecting the human eye. OTM's initial focus is on the diagnosis of diabetic retinopathy by creating access and providing annual dilated retinal examinations for the diabetic population. Through September 30, 2011, the Company has invested $444,000 in OTM. As of September 30, 2011, the Company owned 45% of OTM. The Company provides administrative support functions to OTM. For the three-month periods ended September 30, 2011 and 2010 the Company recorded a gain of $1,000 and a loss of $23,000, respectively. At September 30, 2011 OTM had total assets, liabilities and equity of, $2,000, $80,000 and ($78,000), respectively.

Richard J. DePiano, Jr., the Company's President. participated in an accounts receivable factoring program that was implemented by the Company. Under the program, Mr. DePiano advanced the Company $134,488 which represented 80% of an amount due from a Drew customer in China as of September 30, 2011. The receivable from the Chinese customer, was not eligible to be sold to the Company's usual factoring agent. Interest on the transaction is 1.25% per month, which is equal to the best price offered by the Company's usual factoring agent. The transaction excluded fees typically charged by the factoring agent and provided much needed liquidity to the Company.