I didn't know we had such a policy....when were shareholders told? I must have missed this somewhere.

Dividend Policy 10-K (Filed: 16-08-2010)

On February 22, 2007, our Board of Directors adopted a semi-annual dividend payment policy, subject to determination by our Board of Directors in light of our financial condition, other possible applications of our available resources, and relevant business considerations. We paid no dividends during the fiscal years ended May 31, 2010 and 2009.

We were issued two dividends; one in March of 2006 and one in April 2006…any guesses as to why? Read on….

Item 3.02 Unregistered Sale of Equity Securities.

On February 23, 2006, the Company issued 20,877,430 shares of its Common Stock to Swartz Private Equity, LLC. The issuance occurred as a consequence of the conversion by Swartz Private Equity, LLC of $109,842 of accrued interest on, and the principal amount of, a $723,167 debenture issued by the Company to Swartz Private Equity, LLC on March 23, 2004. The conversion was made in accordance with the terms of the debenture. The Company relied on Section 4(2) of the Securities Act (the “Act”) for an exemption from the registration requirements of the Act with regard to this issuance.

8-K (Filed: 17-03-2006)