Imaging Diagnostic Systems (fka IMDS)

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GENERAL AND ADMINISTRATIVE

Our general and administrative expenses include compensation and related benefits for employees in administration, finance, human resources and information technology. Also included are travel/subsistence related to general and administrative activities; property and casualty insurance; directors’ and officers’ liability insurance; professional fees associated with our corporate and securities attorneys and independent auditors; patent maintenance; corporate governance expenses; stockholder expenses; consulting; utilities; maintenance; telephones; office supplies and sales and property taxes.

General and administrative expenses during the year ended June 30, 2012, were $2,214,184 representing a decrease of $882,025 or 28% from $3,096,209 during the year ended June 30, 2011. Of the $2,214,184 and $3,096,209, compensation and related benefits comprised $1,123,088 (51%) and $1,638,657 (53%), respectively, representing a decrease of $515,569 or