3 days and this stock is sub $6, EOS:"ITEM 3. DEFAULTS UPON SENIOR SECURITIES
In November, the Company received from Oeri Finance, Inc. ("Oeri"), a Swiss investment firm headed by Felix A. Oeri, a former board member of the Company, a demand for payment of $728,125 of the total $2,667,500 allegedly owed to Oeri by the Company. However, the Company's Board of Directors has determined that, in light of the federal investigation which apparently focuses on Oeri's and Irving
Kott's prior involvement with the Company as well as Irving Kott's involvement due to the search of Oeri's office in connection with the investigation (see Note 6 to the Consolidated Financial Statements), it may not be in the best interest of the Company's shareholders to pay the alleged debt at present.
Instead, the Board had decided to delay payment on all alleged debt owed to
Oeri. The Company's Management is not aware of any wrongdoing, but believes
that if the Company should suffer a loss as a result of the actions or omissions
of Oeri, then such loss may be used to offset the debt it allegedly owes to
Oeri. At present, Management intends to continue to pay interest on the alleged
debt to Oeri.
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