NOTE 21.

LEGAL PROCEEDINGS

From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. We are not currently a party to any legal proceedings, the adverse outcome of which, in management's opinion, individually or in the aggregate, would have a material adverse effect on the results of our operations or financial position. There are no material proceedings to which any director, officer or any of our affiliates, any owner of record or beneficially of more than five percent of any class of our voting securities, or any associate of any such director, officer, our affiliates, or security holder, is a party adverse to us or our consolidated subsidiary or has a material interest adverse thereto.

In April 2009, we were served with a complaint in an action in the Supreme Court for New York County, State of New York. The plaintiff, R.C.C. Ventures, LLC, alleged that it was due a fee for its performance in procuring or arranging a loan for us. On April 19, 2012, we reached a settlement with R.C.C. Ventures, LLC, of all outstanding litigation between the two companies. As a result of the settlement, we reported a charge of $24,000 for the year ended December 31, 2012.