Note 14 - Related Party Transactions

12 Months Ended

Jun. 30, 2012

Related Party Transactions Disclosure [Text Block]

Note 14 – Related Party Transactions

Qualstar’s outside counsel is a member of its board of directors. During the years ended June 30, 2012, 2011, and 2010 Qualstar paid $134,000, $86,000 and $107,000, respectively to the law firm in which the director is a shareholder for general business purposes.  During the year ended June 30, 2012, Qualstar paid $279,000 to the law firm in which the director is a shareholder for legal services provided in connection with the proxy contest related to the special meeting of shareholders held on June 20, 2012, and in connection with litigation.

Qualstar engaged the Company’s former President and CEO, William Gervais, who is also a major shareholder of the Company, as a consultant pursuant to a consulting agreement dated June 22, 2012. During the year ended June 30, 2012, Qualstar paid approximately $8,000 to Mr. Gervais for consulting services.