Quarterly report pursuant to Section 13 or 15(d)

SUBSEQUENT EVENTS (Details Narrative)

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SUBSEQUENT EVENTS (Details Narrative)
3 Months Ended
Dec. 31, 2012
Subsequent Events [Abstract]  
Settlement agreement with GarrettCom, Inc.
[1]  In October 2012, the Company reached a settlement agreement with defendant GarrettCom, Inc. with respect to its patent litigation currently pending against 13 data networking equipment manufacturers (excluding related parties) in the United States District Court for the Eastern District of Texas, Tyler Division, for infringement of the Company’s Remote Power Patent (See Note D[1]).  As part of the settlement, GarrettCom, Inc. entered into a non-exclusive license agreement for the Company’s Remote Power Patent for its full term (which expires in March 2020) and paid a license initiation fee and is obligated to pay annual royalties based on their sales of PoE products.
New employment agreement with CEO description
 [2]  On November 1, 2012, the Company entered into a new employment agreement (the “Agreement”) with Corey M. Horowitz, pursuant to which he continues to serve as Chairman and Chief Executive Officer for a one year period (which shall automatically be extended for two successive one year periods unless terminated by the Company) at an annual base salary of $415,000.  In connection with the Agreement, Mr. Horowitz was issued a ten year option to purchase 500,000 shares of the Company’s common stock at an exercise price of $1.19 per share (the market price at the time of grant), which vests in equal quarterly amounts of 46,667 shares beginning November 30, 2012 through August 31, 2015.  The additional terms of the employment agreement are substantially similar to the Company’s prior employment agreement with Mr. Horowitz (See Note C[1]), although there were certain modifications which, among others, include:  (i) Mr. Horowitz will be eligible to receive an annual target bonus of $150,000 based on annual performance criteria to be established by the Board of Directors, (ii) the bonus compensation payable to Mr. Horowitz with respect to Additional Patents (besides the Remote Power Patent) from licensing, enforcement or sale, shall be equal to 10% of the amount received by the Company after deduction of all legal fees and litigation expenses; provided, however, in no event shall Mr. Horowitz receive less that 6.25% of the gross royalties or other payments received by the Company, and (iii) in the event of a merger or the sale of substantially all the assets of the Company, the Company has the option to extinguish the right of Mr. Horowitz to receive future Royalty Incentive Compensation and Additional Incentive Compensation by payment to Mr. Horowitz of a lump sum in an amount equal to the fair market value of such interests as determined by an independent third party expert if the parties do not reach agreement as to such value.