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Commitments and Contingencies
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6 Months Ended |
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Jun. 30, 2012
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| Commitments and Contingencies [Abstract] | |
| Commitments and Contingencies |
NOTE 12. Commitments and Contingencies On May 22, 2012, a lawsuit was filed against the Company in Santo Domingo, Dominican Republic (Case No. FP-12-461) by Viaimport, SRL, a former customer of the Company, and served on the Company on July 12, 2012. The complaint alleges breach of contract and seeks U.S. $1 million in damages. The Company believes that the case is without merit and intends to vigorously defend itself. Although the lawsuit is in its early stages, at this time we do not believe it will have a material adverse effect on our financial condition. However, the ultimate legal and financial liability with respect to this matter cannot be estimated with certainty and is complicated by the foreign venue of the case. The Company may become involved in certain other legal proceedings and claims which arise in the normal course of business. Other than as described above, as of the filing date of this report, the Company did not have any significant litigation outstanding. The Company leases its corporate office under an operating lease agreement that will expire on September 30, 2012. On May 23, 2012, the Company entered into an amendment to that lease agreement under which the Company will occupy an alternate property owned by the same landlord for an additional five year term commencing October 1, 2012 and ending September 30, 2017. The new property is approximately 10% larger, but the initial rental rate will be 44% lower than the expiring rate on the existing property. Future minimum payments under the amendment are $916,000. |