 that: On October 00, 0000, a former officer and director of the Company filed a lawsuit against the Company to force the Company to permit him to sell his restricted shares. The complaint also seeks damages of $00,000 for miscellaneous compensation and punitive damages of $0,000,000. The Company considers this former officer an "insider" subject to the rules under Section 000 of the Securities and Exchange Act of 0000. The Company feels it is acting properly and will defend itself vigorously. In addition, the Company intends to file a counter claim. IDN's Third Quarter 0000 00-QSB, p. 0. 