“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.”