LITIGATION, CONTINGENCIES AND COMMITMENTS

9 Months Ended

Jun. 30, 2011

Commitments and Contingencies Disclosure [Abstract]

LITIGATION, CONTINGENCIES AND COMMITMENTS

NOTE 12. LITIGATION, CONTINGENCIES AND COMMITMENTS

Laurus Master Fund Settlement

On March 24, 2009, ValCom and Laurus Master Fund, Ltd, a company organized under the laws of the Cayman Islands and Chicago Title Company, a California Corporation entered into a Settlement Agreement whereby ValCom resolved its previously asserted claims against Laurus and Chicago Title. Pursuant to the terms of the Agreement, Laurus agreed to pay the Company five hundred and fifty six thousand dollars ($556,000) which was received by the Company's attorney on March 30, 2009. Within ten calendar days after the Company receives payment from Laurus, the Company filed a Request for Dismissal of its claims, with prejudice, of its actions against Laurus and Chicago Title and Chicago Title. This settlement was reflected as `Other Income’ in the consolidated statements of operations.

In March 2010, The Company filed suit against AAN (America’s Auction Network) and Jeremiah Hartman for Breach of Agreement pertaining to Real Estate Auctions. In the first quarter, the Company advertised and introduced AAN to a third party bank that foreclosed homes and jointly marked them for three successful auctions and was to be reimbursed for advertising and expenses and 25% of the profits. No trial date has been set as of yet.

In March 2010, Mr. Carl Powers, Vice President of Sales and Marketing; was terminated for cause, subsequent to the termination, Mr. Powers took the Company to arbitration. In the first quarter of 2011, the Arbitrator ruled that the Company was to pay 1/3 of Mr. Powers’ contract.  The Company is making arrangements to pay the Arbitrator’s award.  Mr. Powers resigned as a board member two weeks after his termination.  The Company continues to negotiate a settlement and hopes to have Mr. Powers paid off by September 30, 2011.

The Company filed suit in January 2011 against Chameleon Communications and Frankie “Buddy” Winsett for non-payment of 14 months of rent, six months of employee payroll and 10% ownership in the studio in which ValCom managed including other miscellaneous expenses. No trial date has been set.