To: jbIII who wrote (236 ) 12/3/2000 9:26:12 PM From: TideGlider Read Replies (1) | Respond to of 381 another line from the TIGI SEC filing secinfo.com exerpts Visitors Services, Inc. ("VSI"), a formerly 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 TSIG. A contingency exists with respect to these matters, including final determination of the Company's ultimate amount of liability, if any. In addition, a contingency exists with respect to the determination if TSIG is required to reimburse an officer/director of TSIG/VSI for Internal Revenue Service penalties assessed due to non-payment of the trust fund portion of payroll taxes not remitted. A liability of $605,588 was accrued by TSIG related 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. ************************************************ The Company also has an 8% convertible debenture with an outstanding balance of $2,668,138 as of September 30, 2000 that is due no later than December 31, 2000. The Company currently does not have capital sufficient to repay this obligation. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.