Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Commitments and Contingencies

Note 6: Commitments and Contingencies

On June 24, 2011, Kinder Investments, LP (“Kinder”), the prior holder of five shares of the Company’s Series A preferred stock, filed a lawsuit against the Company, its current officers and directors, and it’s outside legal counsel in the United States Court, Eastern District of New York.  Kinder claims that the Company falsely forced the redemption of its shares of preferred stock without paying accumulated dividends and other amounts that Kinder believes were owed totaling $1,075,000.  The Company believes the claims are without merit and has retained legal counsel in New York and plans to dispute the claims vigorously. 

On October 26th, 2011, the Company filed a motion to dismiss the claims against them. The Company anticipates that the court will rule on the motion to dismiss during the first quarter of 2012. The Company will continue to incur expenses to resolve this matter, although the amount cannot be reasonably estimated at this time.