Related Party Transaction

9 Months Ended

Mar. 31, 2012

Related Party Transaction [Abstract]

Related Party Transaction

6. Related Party Transaction

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 March 31, 2012, the Company has invested $444,000 in OTM. As of March 31, 2012, the Company owned 45% of OTM. The Company provides administrative support functions to OTM. For the three-month periods ended March 31, 2012 and 2011 the Company recorded losses of $532 and $37,600, respectively. For the nine-month periods ended March 31, 2012 and 2011 the Company recorded a gain of $612 and a loss of $71,745, respectively.

At March 31, 2012 OTM had total assets, liabilities and equity of $1,000, $80,000 and ($79,000), respectively.

During the nine-month period ended March 31, 2012, Richard J. DePiano, Sr., the Company's CEO participated in an accounts receivable factoring program that was implemented by the Company. Under the program, Mr. DePiano advanced the Company $300,000 which represented 100% of an amount due from various Drew customers. The receivables were 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.