CRITICAL ACCOUNTING POLICIES AND ESTIMATES
In consultation with our Board of Directors, we have identified the
following accounting principles that we believe are key to an understanding of
our financial statements. These important accounting policies require
management's most difficult, subjective judgments.
Our Chairman and Chief Executive Officer controls USDR Aerospace, Ltd.
("Aerospace"), which has licensed its intellectual property to us. In the past,
Aerospace provided employees and product development services to us. During the
period from May 17, 2002 through May 1, 2003 management was required to estimate
the value of the property and services (including product development services)
provided to us by Aerospace. Since inception (March 20, 2002), management
estimated that Aerospace provided property and services to us totaling
approximately $2.9 million for which, as of December 31, 2003, we owed Aerospace
$306,695. |
