"We continued to make progress in the development and marketing of our Nunchi technology," added Falk. The Company reported that it filed six patent applications related to Nunchi. They are:

                     Application No.      Filing Date
                        12/891,875         09-28-2010
                        13/047,163         03-14-2011
                        13/047,206         03-14-2011
                        13/047,290         03-14-2011
                        13/047,306         03-14-2011
                        13/047,420         03-14-2011

The Company responded to USPTO office actions related to the applications and is hopeful that some patents will be granted this year. Falk concluded, "We continue to have licensing and partnering related discussions with wireless communications providers and hardware manufacturers and continuing Flash-R patent activities."