Quarterly report pursuant to sections 13 or 15(d)

Commitment And Contingencies

Commitment And Contingencies
9 Months Ended
Feb. 29, 2012
Commitment And Contingencies [Abstract]  
Commitment And Contingencies

9 - Commitment and Contingencies

On or about December 22, 2011, William Carmichael and Mojdeh Javadi (the "Plaintiffs") filed a complaint against the Company in the Circuit Court of the State of Oregon for the County of Clackamas, alleging breach of contract. The Plaintiffs allege that the Company entered into a contract with the Plaintiffs in November 2007, then breached the terms of the contract by failing to issue warrants to the Plaintiffs entitling them to purchase shares of the Company's stock. The Plaintiffs seek compensatory damages in an amount not less than $1,387,500, as well as costs and disbursements. On February 7, 2012, service of the complaint was accepted on behalf of the Company. An answer to the complaint was filed February 15, 2012. The Company plans to vigorously defend against Plaintiff's claims. As of February 29, 2012, legal counsel advised the Company that they are unable to evaluate the merits of the claim or estimate a range of potential loss.

In addition, from time to time, we are involved in claims and suits that arise in the ordinary course of our business. Management currently believes that resolving any such claims against us will not have a material adverse impact on our business, financial position or results of operations.