COMMITMENTS AND CONTINGENCIES

3 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

10.  COMMITMENTS AND CONTINGENCIES

Operating Leases

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.  Monthly lease amounts for this facility total approximately $2,000 including monthly operating expense charges of $763.

Digipath leases office space under a lease agreement which expired in October 2012.  Digipath continues to occupy the office space on a month to month basis.  Monthly lease amounts for this office space total approximately $2,650.  Rent expense for this lease is included in the accompanying financial statements since the acquisition on September 18, 2012.  

Rent expense for the three months ended September 30, 2012 and 2011 was $8,000 and $48,639, respectively. Future minimum rental payments required under the current operating leases through expiration are $6,000.

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, 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 $22,500 for the three months ended September 30, 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.  Consulting expense, not including expense recognized for the restricted stock award, was $25,000 for the three months ended September 30, 2012.

In connection with the Digipath acquisition, the Company entered into a one-year consulting agreement with Mr. Reddy pursuant to which he agreed to perform consulting and advisory services in the field of pathology and to serve as a member of the Company’s Medical Advisory Board for a monthly retainer of $8,333.  There was no consulting expense recognized for the three months ended September 30, 2012.