NOTE 5: COMMITMENTS AND CONTINGENCIES NASDAQ listing issues On October 21, 2011, we received a letter from NASDAQ stating that we had 180 calendar days, or until April 18, 2012, to regain compliance with Listing Rule 5550 (a) (2) (a) (the  Bid Price Rule ), for which compliance is necessary in order to be eligible for continued listing on The NASDAQ Capital Market. The letter from NASDAQ indicated that our non-compliance with the Bid Price Rule was as a result of the closing bid price for our common stock being below $1.00 per share for the thirty consecutive business days preceding that letter. Although we were not compliant by April 18, 2012, since as of that date we met the continued listing requirement for market value of publicly held shares and all other initial listing standards for The NASDAQ Capital Market, and since we provided the required written notice to NASDAQ of our intention to cure the deficiency during the second compliance period, including a reverse stock split if necessary, we were granted an additional 180 calendar day compliance period. We may be considered compliant with the Bid Price Rule, subject to the NASDAQ staff s discretion, if our common stock closes at $1.00 per share or more for a minimum of ten consecutive business days before the October 15, 2012 extended deadline. During the compliance period(s), our stock will continue to be listed and eligible for trading on The NASDAQ Capital Market. Our closing share price was $0.71 per share on August 10, 2012. We have incurred losses since our inception, and our operations have been financed primarily through the issuance of equity (publicly traded shares and convertible equivalents) and debt. Our access to funding under the LPC Purchase Agreement requires, among other things, that our common stock be traded on NASDAQ or a similar national exchange. In addition, the terms of the 8% Senior Convertible Debentures and the 8% Subordinated Convertible Debentures (and the related warrants), which we issued from December 2004 through April 200