Lawsuit by Dr. Ramesh Pandey. On August 22, 2007 Dr. Ramesh Pandey filed suit in New Jersey state court seeking damages alleged at not less than $1,150,000 with respect to claims for funds advanced to the Company as well as back wages and an assertion of the right to receive royalty payments with respect to products sold by the Company. In addition, he sought damages of not less than $25,000 with respect to claims that he has not received back from the Company certain personal property as well as claims related to reasonable compensation for mental and emotional distress related to actions of the Company and a claim seeking punitive damages. The Company does not agree with all of the assertions of Dr. Pandey and intends to answer or otherwise plead on a timely basis with respect to the lawsuit