NOTE 11 – SUBSEQUENT EVENTS

Management has evaluated events subsequent to March 31, 2013 through the date that the accompanying condensed consolidated financial statements were filed with the Securities and Exchange Commission for transactions and other events, which may require adjustment of and/or disclosure in such financial statements.

Line of credit 

As described in Note 4, the Company maintains a line of credit with a stockholder pursuant to which the stockholder agreed to provide the Company with a revolving line of credit for $1,500,000 (“Line of Credit”). As of May 9, 2013, the Company had borrowing availability totaling $502,000 under the original terms of the Line of Credit. In May 2013 the parties negotiated an amendment to covenants of the Line of Credit.  Under this amendment, the Company agreed that any additional borrowing under the Line of Credit would be subject to it providing evidence, at the sole discretion of the lender, of its ability to repay any additional borrowings under the Line of Credit within ninety (90) days of such borrowing. There have been no advances under the amended Line of Credit as of the date of this filing.