Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

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Commitments and Contingencies
 3 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
Commitments and Contingencies

Note 10 – Commitments and Contingencies

 

As discussed in Note 6, 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. Future minimum maintenance fee payments are as follows:

 

 

Twelve months ended September 30,  
2012  $           200,000
2013               200,000
2014               200,000
2015               200,000
2016               200,000
Thereafter            1,800,000
   $        2,800,000

 

 

Property Leases

 

On June 1, 2011, the Company entered into a 36 month lease for warehouse space in Centralia, Washington, commencing August 1, 2011.  The lease provides for the option to extend the lease on a month to month basis. Rent is $1,900 monthly throughout the term of the lease.

 

Future minimum lease payments under this non-cancelable leases are approximately as follows:

 

 

Twelve months ended June 30,  
2012  $             22,800
2013                 22,800
2014                 20,900
2015  - 
Thereafter  - 
   $             66,500

 

 

The Company also leases office space in Grand Forks, ND, which has a renewable annual term and requires quarterly rental payments of $1,259.