Note 4 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Notes

Note 4 - Commitments and Contingencies

NOTE 4 - COMMITMENTS AND CONTINGENCIES

Lease Agreement

On December 18, 2012 we entered into a 6 month lease for office space in New York, New York.  Monthly rental payments are $2,035.  In June, 2013 this was extended to December 31, 2013 on the same terms.

Total rent expense was $18,542 and $8,782 for the nine months ended September 30, 2013 and 2012, respectively.

Liabilities of Sendio

In September 2007, we formed Sendio, s.r.o. (“Sendio”) in the Czech Republic as a wholly-owned subsidiary for the purpose of operating a research and development and pilot manufacturing facility. 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 any proceeds to satisfy the liabilities of Sendio.  These liabilities have been recorded as a current liability on our balance sheet as of September 30, 2013 under the caption “Liabilities of Sendio”.