how would anyone know how "smoothly" a global settlement will go with 50 holders? Your guidance was provided in recent 10Q,
7. LOSS CONTINGENCY ACCRUAL
Since the entry of the court order for related to Alpha Capital referenced in Note 6, the Company has become aware of two additional lawsuits by different holders asserting substantially similar claims and allegations. As previously disclosed in the current report on Form 8-K filed by the Company on September 22, 2011, in the event all other holders of convertible notes and warrants issued by the Company similarly situated to Alpha Capital were to file substantially similar actions based upon claims and allegations substantially similar to those asserted by Alpha Capital, the Company estimates that the number of shares of common stock such holders of convertible notes and warrants could demand would be approximately 387,000,000.
The Company recorded $33,789,565 as “finance cost” and “loss contingency accrual” on the accompanying consolidated statements of operations and balance sheets, respectively which represents the fair value of the 387,290,640 shares of common stock valued at $0.104 per share less the fair value of the warrant derivative liability of $6,411,339. The $0.104 common stock fair value was determined by taking the $0.14 market value of the common stock on October 14, 2011 and reducing it by 26% which is the potential dilution of the shares to be issued.
