On or about January 30, 2012 the Arizona Corporation Commission issued a Temporary Order to Cease and Desist against SouthWest BioFuels and Rick Jimenez, the former CEO of SouthWest Bio-Fuels and current CEO of the Company. The Cease and Desist Order alleges that SouthWest BioFuels, LLC (which merged with the Company in November of 2011) and its CEO, Rick Jimenez violated Arizona securities laws in connection with the solicitation of investors for SouthWest BioFuels. Any costs associated with the resolution of this matter are as yet unknown.