NOTE 10. Commitments and Contingencies Contractual Obligations The following table summarizes scheduled maturities of our contractual obligations extending beyond one year for which cash flows are fixed and determinable as of December 31, 2011. Category Payments Due in Fiscal Total 2012 2013 2014 2015 2016 Thereafter Short-term convertible debentures (1) $ 1,688,205 $ 1,688,205 $ - $ - $ - $ - $ - Interest payments (2) - - - - - - - Operating lease commitments (3) 74,757 68,993 5,764 - - - - Unconditional purchase obligations (4) - - - - - - - Total contractual obligations $ 1,762,962 $ 1,757,198 $5,764 $ - $ - $ - $ - (1) Represents the outstanding Series A Convertible Debentures that originally matured November 8, 2008, and were amended October 15, 2010. Under terms of the amendment, the Company and the debenture holders agreed to an extension of the maturity date to June 30, 2011. The Company is currently in default under the amendment agreement and is negotiating with the debenture holders to extend the maturity date. Commencing March 3, 2011, the Company may force a conversion of the debentures if certain trading price and volume conditions are met. (2) The outstanding Series A convertible debentures, under the October 15, 2010 amendment, did not bear interest through the new maturity date of June 30, 2011, and the amendment agreement does not require interest after the maturity date. The Company is in negotiations with the debenture holders to extend the maturity date of the convertible debentures, and the holders may require interest to be paid for such extension. (3) Represents projected rent cost for the existing office lease, which expires on January 31, 2012. Total rental expense included in the accompanying consolidated statements of earnings was $70,160 in fiscal 2011, and $158,319 in fiscal 2010. (4) The company currently does not have any outstanding unconditional purchase obligations. They would though include inventory commitments, future royalty, consulting agreements, other than month-to-month