In accordance with ASC Topic 855, “Subsequent Events”, the Company evaluated subsequent events through January 23, 2013, the date these financial statements were available to be issued. During such evaluation no subsequent events were identified except those discussed below.
On January 15, 2013, the Company received a short-term advance of $20,000 from a shareholder. Interest is at 10% for 4 months.
Subsequent to October 31, 2012, the Company was named as a defendant in a claim asserting libel, slander, and torturous interference. The Company did not respond in a timely manner to the summons & complaint in the Minnesota action, and as a result a default judgment hearing is scheduled during February 2013. The Company has filed a motion for an extension to respond to the summons. Additionally, the Company has recorded a contingent liability of approximately $190,000 related to the default judgment.