Note 4 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Notes

Note 4 - Commitments and Contingencies

NOTE 4 - COMMITMENTS AND CONTINGENCIES

Sendio Facility Operating Lease and Purchase Agreement

On May 28, 2008, and amended on December 2, 2009 and June 22, 2011, Sendio s.r.o. entered into a lease agreement for its former office and manufacturing facilities located in the city of Olomouc in the Czech Republic.  Effective December 9, 2008 and amended June 22, 2011, Sendio entered  into a Purchase Agreement, effective December 9, 2008 and amended March 3, 2009 and December 2, 2009 (the “Purchase Agreement”), for the same facilities with Milan Gottwald (“Mr. Gottwald”), the owner. On February 13, 2012, Sendio filed a petition of insolvency with the Regional Court in Olomouc, Czech Republic.  In March, 2012 the court determined that Sendio was insolvent, and control of the legal entity passed to a court appointed trustee. The trustee will oversee the orderly sale of the assets and use proceeds to satisfy the liabilities of Sendio. Our lease obligation and the obligation to purchase the Sendio facility were terminated. Our lease for the premises was terminated effective March 15, 2012 and our obligation to acquire the building was terminated on February 8, 2012.

Other Lease Agreements

On July 11, 2011 we entered into a month to month lease agreement for office space in New Hampshire.  Monthly rental payments were $1,445 under the lease.  The lease was terminated on March 31, 2012.  On November 1, 2010, we entered into a six month lease agreement for office space located in New York City, New York. The lease continued on a month to month basis. Monthly rental payments were $1,320 under the lease.  The lease was terminated on March 31, 2012.

Total rent expense was $0, $155,614, $8,782 and $413,796 for the three and nine months ended September 30, 2012 and 2011, respectively.

Investment Banking Agreements

On June 7, 2011, we entered into an agreement with Rodman & Renshaw, LLC to act as our exclusive placement agent for the sale of securities on June 22, 2011.  The agreement specified cash compensation of 7% of the purchase price paid in an offering plus warrants equal to 7% of common shares issued or issuable under the offering on the same terms as offered to investors in the private placement.  In addition, cash compensation of 7% of any proceeds from the exercise of warrants issued in conjunction with a private placement will be paid.  The agreement terminated 30 days after a successful private placement.  The obligation for fees and warrants survives for 18 months for proceeds raised from investors in the private placement. 

On January 24, 2011, we entered into an agreement with Rodman & Renshaw, LLC to act as our exclusive placement agent for the sale of securities on February 8, 2011.  The agreement specified cash compensation of 7% of the purchase price paid in an offering plus warrants equal to 7% of common shares issued or issuable under the offering on the same terms as offered to investors in the private placement.  In addition, cash compensation of 7% of any proceeds from the exercise of warrants issued in conjunction with a private placement will be paid.  The agreement terminated 30 days after a successful private placement.  The obligation for fees and warrants survives for 18 months for proceeds raised from investors in the private placement.