Visitors Services, Inc. ("VSI"), a former wholly owned subsidiary of
TSIG, filed a voluntary petition for relief under Chapter 7 of the United States
Bankruptcy Code for the Middle District of Florida, Tampa Division on March 5,
1999. Creditors of VSI, including the Internal Revenue Service, may assert a
claim against the Company. A contingency exists with respect to these matters,
including final determination of the Companies' ultimate amount of liability, if
any. A liability of $605,588 has been accrued by TSIG relative to this matter as
of September 30, 2000. TSIG has also accrued $571,992 in federal payroll taxes
due and unpaid for 1999 and the fourth quarter of 1998. Management is in
frequent contact with the Internal Revenue Service and intends to use proceeds
from capital raised subsequent to its planned acquisitions to pay these
obligations. However, no assurances can be given that such capital will be
available in the amount required or, if available, that it can be on terms
satisfactory to the Company. |
