Related Party Transaction

6 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Related Party Transaction

Note 8 – Related Party Transaction

During the six months ended December 31, 2011, we paid Dr. Gwen Fyfe, a former member of our Board of Directors, approximately $89,000 for consulting services under a Consulting Agreement entered into prior to Dr. Fyfe joining our Board in December 2010.  In November 2011, we entered into an amendment (the “Amendment”) to our Consulting Agreement with Dr. Fyfe.  The Amendment provided that Dr. Fyfe would receive a lump sum of $50,000 and that she will continue to provide limited consulting services to us for a period of two years. In addition, the options to purchase 330,000 shares of our common stock previously granted to Dr. Fyfe in connection with her consulting services continued to vest through November 30, 2011 and shall remain exercisable for a period of two years following the date of the Amendment. Dr. Fyfe did not stand for reelection at our December 15, 2011 Annual Meeting of Stockholders.  Options granted to Dr. Fyfe upon her initial election to the Board continued to vest through December 15, 2011; all such vested options and all additional options received by Dr. Fyfe in connection with her Board service shall remain exercisable for a period of three years from this date.  Payment of the $50,000 lump sum occurred in November 2011.