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COMMITMENTS AND CONTINGENCIES
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9 Months Ended |
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Sep. 30, 2012
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| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES |
NOTE 8 - COMMITMENTS AND CONTINGENCIES
a. General Partner Obligations
The Company had served as general partner in several real estate development partnerships until 2005 when they reduced their position to one partnership (Canyon Shadows) of which they became a limited partner during the 2005 refinance of the project . The Company may no longer be held liable for certain liabilities, as this obligation was terminated with the sale of Canyon Shadows LP in February 2012.
b. Stock Escrow and Security Agreement
In 2004 and 2005, the Company entered into a Stock Escrow and Security Agreement with Angus Holdings, LLC ("Angus") and Douglas Morgan whereby the Company borrowed funds under the terms of a convertible promissory note. Angus has recently confirmed that they have no balance due from the Company and the entire balance has been recaptured as debt forgiveness in the current quarter. The Company still has $10,383 outstanding on its books as of June 30, 2012. Although the Company has not had request to convert these loans in many years and feels the statute of limitations has passed, they have kept reserve liabilities open in the event some settlement is eventually reached. Currently, there is no stock being held in escrow.
c. Litigation
At March 31, 2012, the Company paid in full a judgment dating back to 2002, when a former employee received a legal judgment against the Company totaling $20,110. At December 31, 2003, this liability is recorded at the settled amount plus accrued interest imputed at 8% annually for a total liability of $23,021. This amount was adjusted for another judgment which was then being recorded as accounts payable of December 31, 2004. During 2007, there was a partial payment of the settlement, and the combined balance of $39,372 was settled during the quarter ending March 31, 2012, eliminating the liability on the Companys books. |