Recent Developments

Purchase of Desert Hot Springs Real Estate. In December 2008, we purchased two lots consisting of 3.5 acres in Desert Hot Springs, California. This property is zoned for residential dwellings. We are determining whether to build finished lots or in the alternative to sell the land to a developer. The value of the property has been assessed at $100,814.

Distribution of San Diego County Real Estate. In February 2009, we transferred a condominium located in Carlsbad, California and a residential property located in Oceanside, California. We recognized a gain on sale of assets of $1,015,178 in connection with this transaction resulting from the reduction and elimination of the debt associated with these properties.