This excerpt taken from the AMTY 10-Q filed May 10, 2006.
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation, under the supervision and with the participation of our management, including the our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective in timely alerting them to material information relating to us and required to be included in our periodic Commission filings, and that all information required to be disclosed by us in our periodic Commission filings is recorded, processed, summarized and reported within the time periods specified in Rule 13a-15(e) and Rule 15d-15(e) of the Securities Exchange Act of 1934, as amended. There was no change in our internal control over financial reporting that occurred during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, ours internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In November 2005, Continental Automotive Licensing Corp. (Petitioner) filed a Petition for Cancellation #92045199 (Petition) in the United States Patent and Trademark Office (the Trademark Office) against Richard A. Steinke, our Chairman, President and Chief Executive Officer. Petitioner alleges that it is being, has been, and will be damaged by the continued existence of the Amerityre® trademark and has asked the Trademark Office to cancel the registration. This registered trademark (Registration No. 2,401,989) was issued November 7, 2000 by the Trademark Office to Mr. Steinke and assigned by him to us in June 2001. We believe that the Petition is without merit and we expect to vigorously defend our use of the trademark. The potential financial impact is impossible for the Company to evaluate or quantify at this early stage of the proceedings. We are currently in discovery and we have made extensive discovery requests in response to the petition. The Petitioner has requested and been granted an extension to reply to our requests.
For information regarding risk factors, see Part I. Item 6. Managements Discussion and Analysis or Plan of Operation, Risk Factors, in our Annual Report on Form 10-KSB for the year ended June 30, 2005, except that we have removed the risk factors relating to our ability to continue as a going concern. In connection with the preparation of our financial statement for the periods ended December 31, 2005 and March 31, 2006, we analyzed our cash needs. Based on this analysis, we have concluded that the combination of our current cash and cash equivalents and the potential business prospects for our products and technology, is sufficient to meet our cash requirements, thus eliminating the need for the going concern qualification effective as of our December 31, 2005 Form 10-Q. Our auditors concurred with this determination. For additional information, please see Part I. Item 2. Managements Discussion and Analysis or Plan of Operation, Liquidity and Capital Resources in this Report.
Therefore, we believe the risk factors with the following headings are no longer applicable to us.