Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Commitments and Contingencies

13.  Commitments and Contingencies:

The Company is aware of various threatened or pending litigation claims against the Company relating to its products and services and other claims arising in the ordinary course of its business.  At September 30, 2011 and 2010, no material liabilities have been recorded in the accompanying financial statements.  The Company has given its insurance carrier notice of such claims and it believes there is sufficient insurance coverage to cover any such claims.   In any event, the Company believes the disposition of these matters will not have a material adverse effect on the results of operations and financial condition of the Company.

In connection with the merger agreement described in Note 14, the Company is aware of three, as of now, uncertified class action lawsuits that have been filed against the Company and its Board of Directors.  The Company has given its insurance carrier notice of such claims, counsel has been retained to defend the lawsuits, and the Company believes that there is sufficient insurance coverage to pay any damages awarded as a result of the asserted claims.  At this time, it cannot be determined if the Company will be deemed liable for any damages as a result of the lawsuits.  However, the Company believes that the claims in the lawsuits have no merit.