Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 3.  Commitments and Contingencies

Legal Matters

From time to time, the Company may become involved in litigation relating to claims arising out of our operations in the normal course of business.  Other than as set forth below, no legal proceedings, government actions, administrative actions, investigations or claims are currently pending against us or involve us which, in the opinion of our management, could reasonably be expected to have a material adverse effect on our business or financial condition.

On October 28, 2011, Mr. Robert Weinstein, our former Chief Financial Officer, filed a Demand for Arbitration with the New York office of the American Arbitration Association seeking unpaid wages and benefits that Mr. Weinstein claimed he was owed under the terms of his employment agreement with us.  In February 2012, Mr. Weinstein was awarded a judgment totaling $391,914.  The Company's management believes that if this proceeding is decided against the Company and it is forced to make the payment to Mr. Weinstein required by the judgment, this will materially affect the Company's financial position, results of operations or liquidity.  This amount has been accrued as of June 30, 2012 and December 31, 2011.

On September 8, 2011, an action entitled Cooper Electric Supply Co. v. Southside Electric, Inc. was filed in the Superior Court of New Jersey.  GEM succeeded to the business of Southside Electric, Inc. ("Southside") pursuant to a share exchange between Southside and the Company in May of 2010.  We were served in October 2011.  The plaintiff asserts damages in the amount of approximately $23,700 for non-payment for goods supplied by the plaintiff to Southside.  The Company's management believes the resolution of this matter will not materially affect the Company's financial position, results of operations or liquidity.  As of June 30, 2012, this amount is reflected in accounts payable.

On September 26, 2011, the landlord for the Company's former Teaneck, New Jersey office filed a complaint for unpaid rent and legal fees of $15,179 in Superior Court of New Jersey. A judgment was granted in his favor in such amount. These amounts were accrued at December 31, 2011 and June 30, 2012.

Operating Leases

In 2011, the Company leased office space in Teaneck, New Jersey and in Sunshine and Midtown, Miami, Florida.  As of December 31, 2011, all office space leases were terminated.  In October 2011, the Company moved its corporate office to Baton Rouge, Louisiana.  The Company is utilizing office space, at no charge, from its Chief Financial Officer.  Rent expense for the six months ended June 30, 2012 and for the fiscal year ended December 31, 2011 was $0 and $77,062, respectively.  Of the amount incurred for 2011, $12,900 is included in accrued expenses at June 30, 2012 and December 31, 2011.