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</LabelSeparator><Level>2</Level><ElementName>us-gaap_CommitmentsAndContingenciesDisclosureTextBlock</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="D130101_130630" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;!--egx--&gt;&lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify'&gt;&lt;b&gt;Note 3.&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; Commitments and Contingencies&lt;/b&gt;&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;margin-right:-4.5pt;text-align:justify'&gt;&amp;nbsp;&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify'&gt;In February 2013, the Company&amp;#146;s Board of Directors received a letter from counsel on behalf of one of our stockholders (&amp;#147;Counsel letter&amp;#148;), demanding a review by the Board of option plan issuances in 2010 and 2011 to members of management.&amp;#160; In response, the Board formed a Special Committee to evaluate the 2004 and 2010 Stock Option Plans for the issuances in 2010 pursuant to the multi-year employment agreements with Messrs. Kasmoch, Bohmer and McHugh under the 2004 Option Plan, and the 2011 award to Mr. Kasmoch under the 2010 Option Plan.&amp;#160; The Special Committee and the Board finished reviewing the awards in May 2013, sent a letter in reply to the Counsel letter and anticipate a satisfactory resolution will be reached with the stockholder, avoiding any potential legal proceedings.&amp;#160; If the stockholder elects to proceed even after analyzing the reply of the Special Committee and the Board, in that instance the Company would vigorously defend against such action.&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in'&gt;&amp;nbsp;&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify'&gt;On May 16, 2013, the Company&amp;#146;s Board of Directors approved an amendment to each of the Company&amp;#146;s executive officer&amp;#146;s respective employment agreement.&amp;#160; Additional information is available in the Form 8-K filed by the Company on May 22, 2013.&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify'&gt;&amp;nbsp;&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify'&gt;The Company&amp;#146;s executive and administrative offices are located in Toledo, Ohio.&amp;#160; In April 2011, the Company signed a 68 month lease with Deerpoint Development Co., Ltd.&amp;#160; The total minimum rental commitment for the year ending December 31, 2013 is $30,600 and for the years 2014 through 2016 is $40,800 each year.&amp;#160; The total rental expense included in the statements of operations for the six months ended June 30, 2013 and 2012 is approximately $20,400 and $18,700, respectively.&amp;#160; The total rental expense included in the statements of operations for the three months ended June 30, 2013 and 2012 is approximately $10,200 and $9,300, respectively.&amp;#160; The Company also leases various office equipment on a month-to-month basis.&lt;/p&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:45.0pt;margin-bottom:.0001pt;text-align:justify;margin-left:0in;text-indent:.5in'&gt;&amp;nbsp;&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify'&gt;In October 2010, the Company began to lease property in Emlenton, Pennsylvania under a lease with Allegheny-Clarion Valley Development Corporation, for one year.&amp;#160; After September 2011, the Company operated under a month-to-month lease agreement, for a reduced rate.&amp;#160; The total rental expense included in the statements of operations for each of the six months and three months ended June 30, 2013 and 2012 is $6,000 and $3,000, respectively.&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in'&gt;&amp;nbsp;&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify'&gt;In June 2009, the Company began to maintain an office in West Unity, Ohio under a lease with D&amp;amp;B Colon Leasing, LLC, for one year.&amp;#160; In June 2010, the Company renewed the lease for an additional year through May 31, 2011, and is currently operating under a month to month lease.&amp;#160; The total rental expense included in the statements of operations for each of the six months and three months ended June 30, 2013 and 2012 is $15,000 and $7,500, respectively.&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in'&gt;&amp;nbsp;&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify'&gt;The Company maintains an office in Daytona Beach under a lease with the County of Volusia, Florida, which was renewed in March, 2009 for five years.&amp;#160; The total minimum rental commitment for the year ending December 31, 2013 is $48,000 and for 2014 is $12,000.&amp;#160; The total rental expense included in the statements of operations for each of the six months and three months ended June 30, 2013 and 2012 is $24,000 and $12,000, respectively.&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in'&gt;&amp;nbsp;&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify'&gt;Management believes that all of the Company&amp;#146;s properties are adequately covered by insurance.&lt;/p&gt; &lt;p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in'&gt;&amp;nbsp;&lt;/p&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:45.0pt;margin-bottom:.0001pt;text-align:justify;margin-left:0in'&gt;The Company operates in an environment with many financial risks, including, but not limited to, major customer concentrations, customer contract termination provisions, competing technologies, infringement and/or misappropriation of intellectual property rights, the highly competitive and, at times, seasonal nature of the industry and worldwide economic conditions.&amp;#160; Various federal, state and governmental agencies are considering, and some have adopted, laws and regulations regarding environmental protection which could adversely affect the business activities of the Company.&amp;#160; The Company cannot predict what effect, if any, current and future regulations may have on the operations of the Company.&lt;/p&gt; &lt;p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:45.0pt;margin-bottom:.0001pt;text-align:justify;margin-left:0in;text-indent:.5in'&gt;&amp;nbsp;&lt;/p&gt; 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