Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

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Commitments and Contingencies
 9 Months Ended
Sep. 30, 2011
Notes to Financial Statements  
Note 13.Commitments and Contingencies

As discussed in Note 5, the Company has entered in an “Exclusive Patent and Know-How License Agreement Including Transfer of Ownership” that requires minimum license maintenance costs.  The Company is planning on using the intellectual property granted by the patents for the foreseeable future.  The license agreement is considered expired on the October 14, 2025, the date the patent expires.

 

For the Period  Ending September 30,  

License

Maintenance

Fees

  
2012   $ 200,000  
2013     200,000  
2014     200,000  
2015     200,000  
2016     200,000  
Thereafter     1,800,000  
    $ 2,800,000  

  

As discussed in Note 9, the Company has two promissory notes that are due on September 30, 2014.

 

Future principal payments under the promissory notes are as follow:

 

For the Period  Ending September 30,      
2012   $ -  
2013     125,000  
2014     25,000  
    $ 150,000