Note 7. Litigation
In an action pending in the United States District Court for the District of Delaware, the Court recently ruled that the ‘859 Patent owned by the Company is invalid. The Company's only significant asset is the ‘859 Patent. Management disagrees with the Court's findings and continues to prosecute an appeal of this decision before the United States Court of Appeals for the Federal Circuit. Pursuant to a reexamination proceeding, the United States Patent and Trademark Office has issued an Final Office Action ruling that all claims of the '859 Patent are invalid. Management also disagrees with the findings and determination made by the United States Patent and Trademark Office and continues to prosecute an appeal of the determination to the Board of Patent Appeals and Interferences.