ITEM 1. LEGAL PROCEEDINGS
The Company was named as a defendant in an action entitled, S2 Consultants, LLC and Westminster Securities Corporation, Plaintiffs, v. PracticeXpert, Inc., Defendant, filed in the United States District Court for the District of New Jersey on August 10, 2004. The complaint in the action contains two counts, the first alleging breach of contract by the Company and the second count alleges unjust enrichment for unspecified damages purportedly caused by the alleged non-payment of a finder's fee due in connection with arranging the Company's $5.8 million private placement transaction which closed on April 28, 2004, and the acquisition of Cancer Care Network, Inc. The complaint also seeks recovery of the plaintiffs' attorney's fees and costs, and interest on the amount owed, as claimed by plaintiffs in the action. The Company intends to vigorously defend itself in this action.
In addition to the proceedings described above, in the normal course of business, we are subject to proceedings, lawsuits and other claims. These matters are subject to many uncertainties and outcomes that are not predictable with assurance. Consequently, we are unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters. |
