Commitments and Contingencies

3 Months Ended

Aug. 31, 2011

Commitment and Contingencies

Commitments and Contingencies Disclosure [Text Block]

Note 5: Commitments and Contingencies

On June 10, 2011, the Company renewed the line of credit.(the “Line”) with its bank which has a borrowing limit in the amount of $400,000. The Line is secured by substantially all of the Company’s assets, bears interest at 1.0% plus prime, and expires on February 24, 2012. The balance at August 31, 2011 was zero.

On February 13, 2009, the Company entered into a loan agreement with its bank for an equipment loan (“Loan”) for $133,000 at an interest rate of 6.50%. The related equipment serves as collateral for the Loan. The Loan is payable in thirty-six monthly payments of approximately $4,000.  As of August 31, 2011 $23,664 was owed on the Loan.

On June 18, 2009, the Company entered into an agreement to lease a building in Irvine, California. The lease commenced September 1, 2009 and ends August 31, 2016.  The initial base rent was set at $18,490 per month with scheduled annual increases through the end of the lease term.