NOTE 4. COMMITMENTS AND CONTINGENCIES
Certain conditions may exist which may result in a loss to the Company, but
which will only be resolved when one or more future events occur or fail to
occur. The Company's management and its legal counsel assess such contingent
liabilities, and such assessment inherently involves an exercise of judgment. In
assessing loss contingencies related to legal proceedings that are pending
against the Company, or unasserted claims that may result in such proceedings,
the Company's legal counsel evaluates the perceived merits of any legal
proceedings or unasserted claims as well as the perceived merits of the amount
of relief sought or expected to be sought therein.
If the assessment of a contingency indicates that it is probable that a material
loss has been incurred and the amount of the liability can be estimated, the
estimated liability would be accrued in the Company's financial statements. If
the assessment indicates that a potentially material loss contingency is not
probable but is reasonably possible, or is probable but cannot be estimated, the
nature of the contingent liability, together with an estimate of the range of
possible loss if determinable and material, would be disclosed. Loss
contingencies considered remote are generally not disclosed unless they arise
from guarantees, in which case the guarantees would be disclosed.
At September 30, 2012, the Company was not involved in any litigation.