Commitments and contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Note 7. Commitments and contingencies

Legal Proceedings

There are no pending legal proceedings against the Company. To the Company’s knowledge, there have been no cases initiated by or against the Company, nor any cases resolved, since the date of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 was filed with the SEC.

The Company has been a party to a number of other proceedings, informal demands, or debt for services brought by former unsecured creditors to collect past due amounts for services. The Company is attempting to settle these demands and unfilled claims. The Company does not consider any of these claims to be material.

During the quarter ended March 31, 2012, the Company recorded a write off totaling $193,000 of trade debt deemed uncollectible by the holder due to the expiration of the statute of limitations. The settlement was recorded as a reduction of selling, general and administration expense.

Contingencies

The Company has not filed its franchise returns for 2012, 2011, 2010 and 2009 or paid its franchise tax for those years. During the quarter, the Company remeasured its liability for unpaid franchise taxes and, as a result, reduced its liability by $235,000. The Company believes that it has made adequate provision for the liability including penalties and interest.