RELATED PARTY AND OTHER TRANSACTIONS

12 Months Ended

Dec. 31, 2011

RELATED PARTY AND OTHER TRANSACTIONS [Abstract]

RELATED PARTY AND OTHER TRANSACTIONS

Note 8 – Related Party and Other Transactions

During the year ended December 31, 2011, the Company paid approximately $620,000 for severance payable to the former chief executive officer, in accordance with his contract.  In addition, the Board of Directors authorized the Company to reimburse Metropolitan Venture Partners Corp., whose Managing Director is also a stockholder and director of the Company, and S.A.V.E. Partners III, LLC, whose Managing Member is also a stockholder and director of the Company, approximately $181,000 for the costs they incurred related to annual meeting proxy solicitations.

During the year ended December 31, 2006, the Company terminated and settled the consulting agreement with Mountain Meadow Farm and its associates, including SJ Associates (collectively “Mountain Meadow”).  As part of the settlement, the Company agreed to issue Mountain Meadow 90,638 restricted common shares valued at $34,000 and to pay for the costs of medical, life and certain other insurance through December 31, 2013 with the cost for such insurance not to exceed $200,000 in the aggregate or $50,000 in any 12 month period.  At December 31, 2011, the Company has recorded a liability of $9,000 representing the estimated present value of this obligation.  Mountain Meadow and its principal employee are shareholders of the Company.