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Re: janice shell post# 79239

Friday, 10/31/2014 4:18:08 PM

Friday, October 31, 2014 4:18:08 PM

Post# of 220769
well if he owned 60% of the company - I am sure he had a say in what was going on.

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of interest in last amended quarterly:

http://www.sec.gov/Archives/edgar/data/1543098/000121390014007277/f10q0614a1_codesmart.htm

Litigations, Claims and Assessments

From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. The Company is currently not aware of any such legal proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.

On July 18, 2014, the Company's then Chief Executive Officer was indicted by the U.S. Attorney on 10 counts of securities fraud. The Securities and Exchange Commission filed a civil action on the same date against the Company’s then Chief Executive Officer. The Company was not named in either action and to date has not been implicated in the case.

On September 2, 2014, the Company was notified by a letter from counsel representing ICD Capital LLC and certain individual investors (collectively the “Investors”) who purchased securities from the Company pursuant to a private placement in June, 2013 of their intent to commence a legal action against the Company and certain of its officers and directors. The letter alleges a series of improper actions by the Company and its directors and officers which led the Investors to invest and which are alleged to constitute common law and federal securities law violations. Upon the receipt of adequate funding, of which there can be no assurance, the Company intends to respond to the letter, as well as any lawsuit which may be filed and served.



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