The $300k debt reduction could knock $125K CD off the books.
From the PR:
The Company is also pleased to announce its plans to execute papers this week as part of the $300,000 debt reduction that will resolve a legal matter which will pave the way for a judgment to be removed completely. The money being used to reduce the liabilities by over $300,000 will not result in the issuance of any Common or Preferred stock or the creation of new debt. The Company’s CEO is using his personal funds to finance the reduction in debt and resolve the legal matter.
During February 2005, a lawsuit was commenced in the Supreme Court of the State of New York, County of Monroe, under the caption Stephen E. Webster v. Richard Dwyer, Matthew P. Dwyer, Phillip Mistretta, Total Digital Displays, Inc., Leslie W. Kernan, Jr., Lacy Katzen LLP, et al. The plaintiff, Stephen E. Webster, previously purchased a $125,000 debenture from Total Identity Corporation and is seeking payment of the convertible debenture by alleging that he was fraudulently induced to purchase the debenture. The Company has filed various motions in its defense and in September 2005 a judgment was grant against the Company and other parties for $125,000 plus 9% interest per annum. In February of 2006 the judgment was vacated. In March of 2006 the Company’s attorneys filed a motion to withdraw as counsel, which was granted. On August 2, 2006 the Supreme Court granted a judgment against the Company for $125,000 and post judgment interest at 9%. The judgment is recorded as a current liability as of September 30, 2006.
