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<br />CO/lcclllrariolls (~f Credit Nisk - The Company m;jintains cash balances with high credit quality financial <br />institutions :md by pOlicy. limits the amoUlll of credit exposure to any onl' fin:lllcial institution. While at <br />tim..:$ bank h:danccs exceed federally insured limits. the Company believes such amonnts are lHII in excess <br />of operating requirem;:nts. At December 3 L 1009. the Company's unillSllred cash balances totaled <br />approximately S I ,780,000. <br /> <br />/lCCOflIllS Receivable - The Company considers accounts receivable to he fully collectible; accordingly. no <br />allowauce for doubtful accounts is required. If alllonllls become uncollectible. they will be charged to <br />operations when that determination is made. <br /> <br />I'ropl'T"ty ami EquipmclIl- ProperlY and equipmclll is stated at caS! Jess accumulated depreciation. <br />Depreciation is recorded using the iviodiiied Accelerated Cost Recovery System (1vIACRS) for both <br />financial rep0l1ing and income tax purposes. <br /> <br />Atll'C/"lisilt,t.; - The Company expenses advertising costs as they are incurred. Advertising expense for the <br />year ended December 31. 1009 was S 17,451 <br /> <br />Impairl1lclIl (~r Loltg-Lil'cd ASSCTS - In accordance with SFAS No. 144. ACCU/lllfiJlg for /lIIpairmCIll or <br />Disposal t?f Long-Lived AS.leIS, the Company evaluates the carrying value of long-lived assets whenever <br />events or changes in circumstances indicate that the carrying amount of stich assets may not be <br />recoverable. An impairmcllI loss is recorded when the net book value of assets exceed their rair value, as <br />measured by projected undiscountcd fumrc cash flows. The mnount of impairmenl, if an)', is measured <br />using a fair valne equal to the discounted fUlllre cash tlows. No impairment charges were recorded during <br />the year ended December 3 1.2009. <br /> <br />Subseqlll'1Il EI'ClllS - SubseqllcllI eVents Iwvc been evaluated through April 16. 20 J O. which i~ the date the <br />financial statements were available 10 be issued. <br /> <br />Reccm Accounting Pro1l0/l/lCCl/Il!IIfS - In June 1009, the Financial AccoullIing Standards Board ("FASB") <br />issued SFAS No. 168. The FASB ACCOlllllillg Swnt!art!s CodUicarioll (lilt! The Hierarchy (~f"Gcneral/y <br />Accepted ACCOl!/llillg Principles a rep!acemcnl of I,:.\SB Statcment No. 162 ("SFAS 168"). SFAS J 68 will <br />supersede existing non-SI'::C accounting and reponing standards. The codification will not change GAAP <br />but will rather organize it into a new hierarchy with two levels: amhoritative and non-authorit:nive. All <br />authoritative GAAP will CatTY equal weight and be organized in a tOpical stl1lctllre. SFAS 168 is effective <br />for interim and annual reponing periods ending after September 15,2009. The adoption of SFAS 168 did <br />not h:\vc a material effect on Ihe Company's financial condition. <br /> <br />In May 2009, the FASH issued SFAS No. 165 Suhseqllent Evellts ("SFAS HiS''). SPAS 165 provides <br />guidance Oil the recognition of slIbsequcnl events and requires additional disclosure on the {ilne period <br />evaluated for such events. SFAS J65 is effective for interim and annual reponing periods ending after <br />June 15.2009, nnd shall be applied prospectively, The adoption of SFAS 165 did not have a material <br />effecl on the Company's financial condition. <br /> <br />"6. <br />