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Composition of Certain Financial Statement Captions
9 Months Ended
Sep. 30, 2012
Composition of Certain Financial Statement Captions [Abstract]  
Composition of Certain Financial Statement Captions

6. Composition of Certain Financial Statement Captions


Other Assets


In February 2010, the Company signed a letter of intent to enter into a services and asset acquisition agreement with a network operator. The agreement provides for a payment of $350,000 which was fully paid in October 2010. The payments were made in advance of taking possession of the video distribution system and video content rights provided in the agreement. If the network operator does not fulfill remaining conditions of the agreement pertaining to the transfer of rights and licenses, which are subject to content provider approval, the asset may be determined to be impaired. If the Company does not obtain the necessary financing to operate the system, the asset may be determined to be impaired.


On March 3, 2011 the Company received a "notice of exercise of video system reversionary rights." Currently, there is a dispute between UTOPIA and Connected Lyfe as to who has not performed under the existing contract. As stated in the notice, UTOPIA had been working with Connected Lyfe on a resolution. At this time, due to the dispute based on "performance" of the contract, legal notices have been received and the company plans to either continue to work with UTOPIA on a solution or follow through with the legal proceedings and counter actions.