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Commitments and Contingencies
6 Months Ended
Jun. 30, 2011
Commitments and Contingencies  
Commitments and Contingencies

5.       COMMITMENTS AND CONTINGENCIES

 

Legal Proceedings.  The Company is subject to various legal proceedings and claims that arise in the ordinary course of business.  There are no material pending legal proceedings to which the Company is a party.

 

The Company is required to provide a variety of services under its contracts with clients.  There currently exists an ongoing discussion with one client regarding the cost to remediate certain defects in Company-managed software which our client believes precipitated under-billings by our client to its customers.  Management previously accrued $100,000 relating to this matter, and during the second quarter of 2011 the Company began executing a remediation plan.  The Company incurred costs during this period of $46,000 relating to the remediation plan, thereby reducing the accrual related to this matter to $54,000 at June 30, 2011.