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8. COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2011
Commitments and Contingencies Disclosure [Text Block]
8.    COMMITMENTS AND CONTINGENCIES

On September 14, 2007, the Company entered into a stock purchase agreement, under which it agreed to acquire Wow Technologies, Inc. (“Wow”) for up to 4,220,020 shares of common stock.  The Company agreed to issue one share of its common stock for each 14 shares of Wow common stock presented for exchange.  In addition, the Company agreed to allow $280,000 of convertible notes issued by Wow to convert into shares of the Company's common stock, such that Wow convertible noteholders would be entitled to receive the same number of shares of Company common stock that they would have received had they converted their Wow notes into Wow common stock immediately prior to the share exchange agreement.  The maximum number of shares issuable for Wow common stock and in conversion of Wow convertible notes was 4,220,020.

The Company agreed to conduct an initial closing when certificates representing at least 50.1% of ownership of Wow were presented for exchange.  The Company held the initial closing in December 2007, and has continued to issue shares of its common stock in exchange for Wow common stock as certificates are presented since that date.  The Company issued 2,479,826 shares, 329,711 shares, 524,688  shares, 11,430 shares and 5,322 in exchange for Wow common stock in 2007, 2008, 2009, 2010 and 2011 respectively.  The Company is contingently obligated to issue an additional 475,665 shares in exchange for 6,659,316 shares of Wow common stock that were still outstanding as of December 31, 2011.

In 2009, Wow filed a voluntary Chapter 11 bankruptcy case in the United States Bankruptcy Court for the District of Nevada, Case No. 09-11878-BAM.  In September 2009, the Bankruptcy Court confirmed a plan of reorganization in Wow’s bankruptcy case.  Under the confirmed plan, the Wow agreed to satisfy the remaining $200,000 of convertible notes by payment of 10% of the amount of the debt through equal monthly payments over a sixty months following confirmation of the plan.

As a result of the modification Wow's obligations under its Chapter 11 plan of reorganization, the remaining $200,000 of Wow convertible notes are no longer convertible into the Company's common stock.

Office lease – The Company has an operating lease for an office space that expires May 31, 2013. The monthly lease payment totals $3,145 per month. Lease payments plus common area maintenance fees for the year ended December 31, 2010 and 2011 totaled $38,803 and $39,538 respectively.  Minimum office lease obligations for 2012 and 2013 total $37,740 and $15,725 respectively.

Pending of threatened litigation – We may become involved in litigation from time to time in the ordinary course of business. However at December 31, 2011, to the best of our knowledge, no such litigation exists or is threatened.