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10. LITIGATION AND CONTINGENT LIABILITIES
12 Months Ended
Dec. 31, 2012
Litigation And Contingent Liabilities  
NOTE 10 - LITIGATION AND CONTINGENT LIABILITIES

NOTE 10 - LITIGATION AND CONTINGENT LIABILITIES

 

Various creditors of the Company have potential claims against the Company for unpaid invoices relating to services provided to the Company.  The amount of unpaid bills over 90 days old that exist within accounts payable on the balance sheet is $437,930 and $349,245 as of December 31, 2012 and 2011, respectively.

 

The Company has certain claims against it for unpaid salary and benefits due to former officers and employees that exist on the balance sheet as accrued liabilities as of December 31, 2012 and 2011. Management is in the process of negotiating with a number of these claimants in order to reach agreements that would allow these liabilities to be settled through agreed upon cash payments as well as issuance of stock and stock options.  As of December 31, 2012 and 2011, the total amount of claims for accrued but unpaid salary and benefits is $441,764 for both years. In March 2013, management entered into settlement agreements with certain debtors to settle their claims through the issuance of common stock. See Note 14 for more details.