| Commitments Disclosure [Text Block] |
7. COMMITMENTS
The company has entered into several contracts that obligate it to future office space lease payments and consulting contracts for financial and investor relations services. The following is a summary of these commitments:
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At March 31, 2011, the Company entered into a three (3) year lease for office space at approximately $132,480 per year, with an option to renew for an additional three years at approximately $137,655 per year. In the fourth quarter of 2011, the office owner space declared bankruptcy and the Company has not been required to pay any rent payments. However, the Company has continued to accrue monthly rent based on the contracted amount through December 31, 2011. In addition, the Company has written off the related $34,000 security deposit, as it is not expected to be recovered. The Company now treats the lease as a month-to-month lease. Total rent expense was $2,468, $20,408 and $224,167 for the three months ended March 31, 2012 and 2011, and for the period from September 3, 2009 (inception) through March 31, 2012, respectively.
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During 2011, pursuant to the terms of a master agreement, the Company has committed to purchase 250 charging stations over the year, 25 units per month, for an amount in excess of $3,100 per unit. If the Company fails to take delivery of the total specified number units, it will be responsible for reimbursement of certain price discounts on units previously received.
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The Company has certain lawsuits pending. The first is for past due fees due to a consulting firm in the amount of $41,000. Although the outcome of this matter is uncertain, the Company has reserved for this amount in accounts payable and accrued expenses at March 31, 2012 and December 31, 2011. Additionally, In March and April 2012, a former officer and director of the Company filed declaratory actions against the Company relating to compensatory matters, certain warrant exercise rights and the termination of his employment. No determination can be made as to the outcome of this matter at this time. Management believes these suits to be without merit and intends to vigorously defend itself.
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