One of the company's involved, was issued a subpoena from the SEC. Another had an agreement with Gendarme.
Item 7 Other information. On August 11, 2010, the United States Securities and Exchange Commission (the “SEC”) notified the Company that it is conducting an investigation into the trading of the Company’s common stock. In conjunction with the investigation, the SEC issued a subpoena to the Company. The Company is cooperating fully with the SEC’s investigation.
ONCP 141 Capital"On March 15, 2010, the Company entered into a Revolving Credit and Security Agreement with Gendarme Capital Corporation whereby Gendarme provided the Company up to $20,000 per month to a maximum of $150,000. The Agreement is secured by 346,566 shares of Series A Convertible Preferred Stock owned by each of Errol Stone and Paul D. Strickland, Jr. As of June 30, 2010, $148,000 was outstanding. A default on this debt could trigger Gendarme taking the secured stock pledged by the Issuer’s management and would result in a change of control of the Company."
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