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Note 11. Subsequent Events
3 Months Ended
Mar. 31, 2014
Note 11. Subsequent Events  
Subsequent Events

11.  Subsequent Events

 

In May 2014, the Company settled a lawsuit brought by a former employee for back pay, reimbursement of expenses and other unspecified damages.  The case was settled in May 2014 pursuant to the Company’s agreement to pay the employee $30,088, with $5,088 due upon execution of the settlement agreement plus an additional $25,000 payable in installments of $12,500 each in June and July 2014, respectively.  In the event that the Company defaults on its settlement obligations, the employee will receive a consent judgment for $60,000 less any payments previously made.

 

On May 5, 2014, the maturity date of the $30,000 note payable to a Company shareholder was extended for one year to May 19, 2015.   Interest on the note through May 19, 2014, was paid at the time of the extension.  See Note 8.