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SUBSEQUENT EVENTS - Note 28
12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
SUBSEQUENT EVENTS - Note 28

NOTE 28 - SUBSEQUENT EVENTS

Portables obtained a new loan of $3,000,000 on March 27, 2012 with M&T Bank of New York. This debt is secured by a $1.3 million certificate of deposit provided by Portables Unlimited, Inc., a non-controlling owner of Portables, and real estate owned by AUM Realty (a related party to Portables Unlimited, Inc.) for $1.7 million. The loan is also personally guaranteed by the owners of Portables Unlimited, Inc. Interest on the loan is due and payable on a monthly basis equal to Libor plus 3.00%, with the maturity date of March 26, 2015.

On February 8, 2012, the Board of Directors approved the grant of 170,000 shares of common stock to the six Directors for their service for the year 2012, and such shares were issued on February 28, 2012.

The Company has acquisition payables outstanding to Portables in the amount of $1,350,000. The Company also has not yet arranged a $500,000 Letter of Credit in Portables' name to secure obligations to T-Mobile. On April 13, 2012, we received notice that we are in default on the Securities Purchase Agreement. The Securities Purchase Agreement provides that if we are in default, the Company's ownership of Portables will be reduced from 55% to 46%. If such event, the Company will account for the investment in Portables using the equity method. The Securities Purchase Agreement provides that in case of a default by the Company, CNCG will be entitled to enforce certain rescission rights against the Company, as more fully described in the Securities Purchase Agreement. Also, in case of a default, Portables, CNCG and the other member of Portables may bring claims for indemnification against the Company for a breach under the Securities Purchase Agreement, as more fully described in the Securities Purchase Agreement.