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Commitments and Contingencies
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9 Months Ended |
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Sep. 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 this case is without merit and intends to vigorously defend itself. In addition, on August 31, 2012, the Company filed a lawsuit against Viaimport and its principal, Omar Hassan, in Miami-Dade County Florida (Case No. 12-34647CA32) for non-payment of purchase obligations aggregating $288,559 and other damages. Although both lawsuits are in their 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 these matters cannot be estimated with certainty and the Dominican Republic case is complicated by its foreign venue.
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 leased its corporate office under an operating lease agreement that expired on September 30, 2012. On May 23, 2012, the Company entered into an amendment to that lease agreement under which the Company now occupies as its corporate office an alternate property owned by the same landlord for an additional five year term that commenced October 1, 2012 and will end September 30, 2017. The new property is approximately 10% larger, but the initial rental rate is 44% lower than the expiring rate on the previous property. Future minimum payments under the amendment are $916,000. |