Calypso Wireless (fka CLYW)

[bob41]

the Q is filed:

http://www.10kwizard.com/filing.php?param=&repo=tenk&ipage=3835442&g=&type=&trad....

ITEM 1. LEGAL PROCEEDINGS

On December 6, 2005, Robert Leon, the Company's former Chief Technology Officer, commenced an action against the Company seeking additional compensation and reimbursement of certain expenses. The Company believes that it has fully complied with all of its obligations to Mr. Leon and does not expect the outcome of the action to materially adversely effect the Company.


The Company has received two purchase orders for the C1250i dual mode cellular phone, from Inversion CCS and Serinova, which purchase orders require and must be secured by letters of credit. Delivery is anticipated during 2006, 2007 and 2008. The Company is dependent upon its continued ability to raise sufficient capital to fund its acquisitions and produce its C1250i dual mode cellular phone in order to fulfill these orders and any other orders that it may receive in the future.