Related Party Transactions

12 Months Ended

Sep. 30, 2011

14.	Related Party Transactions

During the fiscal year ending September 30, 2010, the Company entered into transactions, in the ordinary course of business, with Optasia Medical Limited. The value of services provided by Optasia was $13,000 during the twelve months ended September 30, 2010. The Company did not enter into any transactions with Optasia during the twelve months ended September 30, 2011 and did not have any amounts payable to or from Optasia as of September 30, 2011 and 2010.

During the fiscal years ended September 30, 2011 and 2010, the Company had incurred interest expense of $62,000 and $128,000, respectively, to SHV, its largest shareholder. As of September 30, 2011 and 2010, the company had accrued interest payable to SHV of $79,000 and $17,000, respectively.

As a result of the Company initiating the March 10, 2010 private equity offering, Series B Preferred Ordinary shareholders were entitled to purchase a defined amount of additional shares of Series B Preferred Ordinary at par value of $0.08. In February 2010, the Company sold to SHV 145,933 shares of its Series B Preferred Ordinary shares at $0.08 per share. This sale of Series B Preferred Ordinary shares was accounted for as a deemed dividend in the amount of $470,000 and recorded as a reduction to retained earnings.

During the fiscal year ended September 30, 2010, the Company received loan proceeds in the amount of $1,375,000, from its principal investor, SHV. The Company did not make any loan payments to SHV during the fiscal years ended September 30, 2011 and 2010. As of September 30, 2011 and 2010, the Company had outstanding notes payable to SHV of $650,000.

In connection with the March 10, 2010 private equity offering, SHV converted all of its outstanding notes payable into Series A Convertible Preferred Stock and purchased an additional $500,000 of Series A Convertible Preferred Stock and warrants (see notes 1, 4 and 8 for further discussion).

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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+ Details

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