10. Commitments and Contingencies

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

10. Commitments and Contingencies

The Company is obligated through January 2015 under a noncancelable operating lease for its Bohemia, New York premises, which requires minimum annual rental payments plus other expenses, including real estate taxes and insurance. The future minimum annual rental expense, computed on a straight-line basis, is approximately $209,400 under the terms of the lease. Rental expense for the Bohemia facility amounted to approximately $233,600 in 2012 and $233,700 in 2011. Accrued rent, payable in future years, amounted to $59,800 and $67,500 at June 30, 2012 and 2011.

The Company was also obligated under an operating lease for its facility in Pittsburgh, Pennsylvania. The lease expired on July 31, 2011 and the Company is currently on a month-to-month tenancy while negotiating a new lease agreement. Total rental expense for the Pittsburgh facility was $56,000 in each of 2012 and 2011, plus $17,000 of related occupancy expenses in 2012 and none in 2011.

10. Commitments and Contingencies (Continued)

The Company’s approximate future minimum rental payments under all operating leases are as follows:

Fiscal Years	Total
2013	$      216,400
2014	234,800
2015	140,100
	$      591,300

The Company has two year employment contracts with its President and Executive Vice President through June 30, 2013, providing for annual base salaries of $138,000 and $126,300, respectively for the fiscal year ended June 30, 2012 and $141,000 and $129,000, respectively, for the fiscal year ending June 30, 2013, plus discretionary performance bonus for each of the fiscal years for both officers. No bonuses have been awarded for the year ended June 30, 2012. The Board of Directors awarded bonuses of $4,000, to the President, and $3,000 to the Executive President for the year ended June 30, 2011.

The Company has an employment contract with the President of Altamira through June 30, 2014, which may be extended by mutual consent for an additional year. The contract provides for an annual base salary of $131,000 and $135,000 for each of the fiscal years ending June 30, 2013 and 2014, respectively, plus discretionary bonuses. No bonuses were awarded for the fiscal year ended June 30, 2012, except for a stock option granted during the year in connection with his services provided with respect to the new subsidiary, SBI, valued at $5,600 using the Black-Scholes-Merton option pricing model. A bonus of $5,000 was paid in the fiscal year ended June 30, 2011 for his services during the twelve month period ended November 30, 2010 under the previous contract.

The Company has a consulting agreement which expires on December 31, 2012 with an affiliate of the Chairman of the Board of Directors for marketing consulting services. The agreement provides that the consultant be paid a monthly fee of $3,300 for a certain number of consulting days as defined in the agreement. Stock options were granted to him valued at $10,000 and $15,300 during each of the years ended June 30, 2012 and 2011, respectively. Consulting expense related to this agreement amounted to $42,800 and $52,200 for the years ended June 30, 2012 and 2011, respectively.

The Company has a consulting agreement which expires March 31, 2013 with another member of its Board of Directors for administrative services providing that the consultant be paid at the rate of $85 per hour. Consulting expense related to this agreement amounted to $5,100 and $9,000 for the fiscal years ended June 30, 2012 and 2011, respectively.