In 2012 the Company filed an action in the Superior Court of California, Orange County against former independent contractors and their company who previously engaged in equity fund raising efforts for the Company.  The civil complaint alleged, among other claims, that the three individual defendants and their suspended business entity were engaging in business torts and breach of contract activities to the harm and detriment of the Company.  One of the defendants in the case also had certain other employment-related judgments against the Company assigned to them.  In early 2013, that defendant, Mr. Bill Bowman, filed an involuntary bankruptcy proceeding against the Company.  Following discussions in January 2013 and culminating in a written Settlement Agreement and Mutual General Release dated March 13, 2013, the parties reached a settlement whereby the Company agreed to pay and satisfy the two-employment related judgments and a vendor judgment assigned to Mr. Bill Bowman.  In exchange for the settlement agreement and payments, Mr. Bowman, as  the sole holder of the assigned judgments, agreed to dismiss the involuntary bankruptcy petition pursuant to an order to dismiss filed April 2, 2013, which is pending with the Court, and the three individual defendants agreed to surrender their stock holdings (totaling 1,200 shares) in TransBioTec, Inc., a California corporation, and cease any and all pending judgment collection efforts through the end of 2013 to allow the Company time to perform on its agreement to satisfy the balance of the remaining two judgments that were partially satisfied with the initial settlement agreement terms.