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COMMITMENTS AND CONTINGENCIES
 9 Months Ended
Mar. 31, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

12.  COMMITMENTS AND CONTINGENCIES

Facility Rental

The Company leased offices with approximately 6,848 square feet in Bethesda, Maryland, pursuant to a lease which expired on December 31, 2011.  At March 31, 2012, unpaid rent of $66,137 is included in accounts payable and $32,481 of unpaid operating expense charges are included in accrued expenses and other current liabilities.

On December 7, 2011, the Company entered into a one-year lease for 1,957 square feet in Gaithersburg, Maryland which expires on December 31, 2012.  The lease required the payment of a refundable security deposit of $4,000 which is included in prepaid expenses and other current assets at March 31, 2012.  Monthly lease amounts for this facility total approximately $2,000 including monthly operating expense charges of $763.  Rent expense is included in the accompanying financial statements since the reverse acquisition.

Rent expense for the three and nine months ended March 31, 2012 was $6,000 and $104,241, respectively. Future minimum rental payments required under the current operating lease through expiration are $18,000.

Operating Lease

In May 2010, AccelPath entered into a non-cancelable operating lease for certain equipment.  The lease required monthly rental payments of $3,698 and expired in May 2015.  The lease terms required payment of a refundable security deposit of $18,000 which is included in deposits on the Company’s consolidated balance sheet.  Rent expense for the three and nine months ended March 31, 2012 was $0 and $18,575, respectively.  Rent expense for the three and nine months ended March 31, 2011 were $11,094 and $33,282, respectively.  On April 9, 2012, AccelPath entered into a general release and covenant not to sue with the lessor.  Under the terms of the release, AccelPath returned the equipment to the lessor, the lessor returned AccelPath’s security deposit and the parties released each other from any and all claims.


Consulting Agreements



On December 14, 2011, the Company entered into a consulting agreement that terminates on December 31, 2012.  The agreement may be cancelled by the Company with 90 days prior notice.  Under the agreement the consultant received a stock option for 2,500,000 shares of common stock (see Note 10), a payment of $10,000 in February 2012, and is entitled to monthly payments of $7,500 for the remainder of agreement.  The monthly payments are subject to scheduled increases contingent on future events.  Consulting expense, not including expense recognized for the stock option, was $17,500 for the three and nine months ended March 31, 2012.

   

On March 15, 2012, the Company entered into a six month consulting agreement.  Under the agreement, the consultant received a $10,000 retainer and will receive additional compensation of $10,000 per month for the term of the agreement.  The Company also granted the consultant a restricted stock award (see Note 10).  Consulting expense, not including expense recognized for the restricted stock award, was $10,000 for the three and nine months ended March 31, 2012.