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Note 17 - Subsequent Event
12 Months Ended
Jun. 30, 2013
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

Note 17 – Subsequent Event


On July 3, 2013, the Board of Directors authorized the termination of Mr. Firestone’s employment agreement for cause. On July 9, 2013, Mr. Firestone was informed that he was terminated for cause. The Company has filed a lawsuit pending in the Superior Court of the State of California, County of Los Angeles, and assigned case number BC514889, alleging, among other things, that Mr. Firestone was terminated for cause.


Qualstar believes that it has sufficient grounds to prevail in its complaint and that the probability of losing is remote.


If the court finds that Mr. Firestone was terminated without good cause, as defined in his employment agreement attached as Exhibit 10.6, to this Form 10-K, then severance payments approximating $1.1 million may become due to Mr. Firestone.


No provision for any loss contingency as defined in ASU 450 is provided in these financial statements as the termination occurred after year end.