|
DISCONTINUED OPERATIONS
|
9 Months Ended |
|---|---|
|
Mar. 31, 2012
|
|
| Discontinued Operations and Disposal Groups [Abstract] | |
| Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 4. DISCONTINUED OPERATIONS Included in the net assets acquired by AccelPath in the reverse acquisition were assets and liabilities related to discontinued operations. On September 10, 2007, the Company and its wholly owned subsidiary, EOIR entered into a Stock Purchase Agreement (“SPA”) with EOIR Holdings LLC (“LLC”), a Delaware limited liability company, pursuant to which the Company agreed to sell EOIR to LLC. The sale of EOIR to LLC was structured as a stock sale in which LLC acquired all of the outstanding stock of EOIR in exchange for approximately $34 million in cash, $11 million of which was paid at closing and $23 million of which was payable upon the successful re-award to EOIR of the contract with the U.S. Army's Night Vision and Electronics Sensors Directorate (“NVESD”). This transaction closed on December 31, 2007. On August 4, 2008, EOIR was one of three companies awarded the U.S. Army's NVESD contract with a funding ceiling of $495 million. The Contingent Purchase Price of $23 million was due as of August 21, 2008 in accordance with the SPA. On August 26, 2008, LLC notified the Company that, in their opinion, the conditions set forth in the Stock Purchase Agreement triggering payment of the Contingent Purchase Price had not been satisfied. On August 21, 2009, an American Arbitration Association Panel of three arbitrators awarded the Company $23,778,403. The $23,778,403 included $830,070 of interest through the date of the Award and was also subject to additional interest at 3.25% from the date of the Award through the date of payment. On October 26, 2009, the Company entered into a Settlement Agreement with LLC and EOIR settling all claims related to the Stock Purchase Agreement (see Note 1). The assets and liabilities related to the sale of EOIR and related legal and other costs incurred to collect the contingent consideration were acquired by AccelPath in the reverse acquisition and are presented as a discontinued operation in the consolidated financial statements. The accretion of the discount was recorded in income from continuing operations as the interest income represents the consequences of management's subsequent decision to hold the related asset. The liabilities related to discontinued operations of $1,045,374 were paid in April and May 2012. There was no loss from discontinued operations for the three and nine months ended March 31, 2012 and 2011. |