Note 2. Summary of Significant
Use of Estimates
of financial statements in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Concentration of Credit Risk
that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, accounts receivable,
and notes receivable, including receivables from major customers. The company places its cash equivalents with a high credit quality
financial institution. The company periodically maintains cash balances at a commercial bank in excess of the Federal Deposit
Insurance Corporation insurance limit of $250,000. At January 31, 2012 and 2011, the Companys uninsured cash balance was
$0. The Company grants credit to domestic and international clients in various industries. Exposure to losses on accounts receivable
is principally dependent on each client's financial position. The Company performs ongoing credit evaluations of its clients'
Estimated Fair Value of Financial
amounts of cash and cash equivalents, investments and other long-term liabilities approximate fair value at January 31, 2012 and
July 31, 2011. The carrying value of all other financial instruments potentially subject to valuation risk, principally consisting
of accounts receivable and accounts payable, also approximate fair value.
has no unrecognized tax benefits. Should the Company determine that any penalty and interest be accrued as a result of current
or future tax positions taken on its returns, such penalties and interest will be accrued in its financial statements as other
non-interest expense and as interest expense during the period in which such determination is made.
files federal and state income tax returns. These returns are subject to examination by taxing authorities for all tax years after