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Absence of Significant Operating Business
6 Months Ended
Jun. 30, 2012
Absence of Operating Business [Abstract]  
Absence of Operating Business

2. Absence of Operating Business

As a result of the loss of its promotions customers, the Company no longer has any operating business. Since August 2001, the Company has concentrated its efforts on reducing its costs and settling numerous claims, contractual obligations, and pending litigation. By April 2002, the Company had effectively eliminated a majority of its ongoing promotions business operations and was in the process of disposing of its assets and settling its liabilities related to the promotions business and defending and pursuing litigation with respect thereto. In essence, the Company discontinued its promotions business and changed the nature of its operation to focus on its pending litigation and winding down its contractual obligations. As a result of these efforts, the Company has been able to resolve a significant number of outstanding liabilities that existed in August 2001 or arose subsequent to that date. As of June 30, 2012, the Company had reduced its workforce to 4 employees from 136 employees as of December 31, 2001.

In April 2012, the Company began providing limited accounting and administrative services to another company controlled by the Company’s largest shareholder. For the three months ended June 30, 2012, the Company earned approximately $16,000 related to these services provided. The arrangement entails providing these services through an undetermined end date, including payments totaling $9,000 for each of the third and fourth quarters. The Company does not consider this arrangement to be part of its recurring operations.

With no revenues from operations, the Company closely monitors and controls its expenditure within a reasonably predictable range. Cash used by operating activities was $1.9 million and $2.3 million in the years ended December 31, 2011 and 2010, respectively. Cash used by operating activities was $.8 million for the six months ended June 30, 2012 and 2011. The Company incurred losses within its continuing operations in 2011 and continues to incur losses in 2012 for the general and administrative expenses incurred to manage the affairs of the Company. By utilizing cash available at June 30, 2012 to maintain its scaled back operations, management believes it has sufficient capital resources and liquidity to operate the Company for at least one year.