Note 11 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Text Block]

11. Commitments and Contingencies

Delinquent payroll

During 2011 and 2012, the Company curtailed payment of salaries payable to senior management of the Company. As of December 31, 2012, approximately $113,222 of unpaid salaries due to senior management of the Company is included in accounts payable and accrued expenses for $13,222 and notes payable-related parties for $100,000. While the significance of the amounts owed to senior management subjects the Company to the risk of resignation by these officers, as well as possible litigation, the risk was mitigated by the retirement of Dr. Joseph M. Cummins, his waiving of any and all claim to back salary of $267,811and other benefits, and a compromise and settlement agreement between Martin Cummins and the Company waiving claims to back salary of $143,300.  The $113,222 still owed at December 31, 2012, consisted of a $100,000 Note Payable to Martin Cummins for the balance of the back salary and $13,222 to another officer.

Lease commitment

Our executive and administrative offices are located at 4134 Business Park Drive, Amarillo, Texas in a 1,800 square-foot facility rented by the Company. The lease expires on June 30, 2013 and our monthly rent is $1,045 per month. We believe that the facilities are well maintained and generally suitable and adequate for our current and projected operating needs.

Minimum Royalties

The agreement with Texas A&M University requires the Company to make minimum annual royalty payments of $7,500 through 2019.

Clinical Trial Costs

The Company currently has no ongoing studies, so there are no obligations to pay third parties in 2013 for expenses related to clinical studies.

Litigation

The Company is not a party to any litigation and is not aware of any pending litigation or unasserted claims or assessments as of December 31, 2012.