Quarterly report pursuant to Section 13 or 15(d)

COMMITMENTS AND CONTINGENCIES

v2.4.0.6
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
NOTE 9 - COMMITMENTS AND CONTINGENCIES

Legal Matters

 

From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business.  As of December 31, 2012, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations.

 

Operating Agreements

 

In November 2009, the Company entered into a commercialization agreement whereby the Company agreed to pay royalties of 2% of net revenues.  Additionally, the Company agreed to pay 5% of each and every license agreement subscribed for.  The contact is cancellable at any time by either party.  To date, no amounts are owed under the agreement.

 

In May 2011, the Company entered into an agreement with a consultant whereby the consultant would provide acquisition services and be paid success fees in cash and equity based upon a stipulated percentage of the transaction price. No such acquisitions have occurred as of the date of this filing.

 

Operating Leases

 

In September 2009, the Company entered into month to month lease agreement with monthly rent at $1,016 per month which in fiscal 2012, became subject to a 3.5% escalation clause of $1,052 per month.