RESTATEMENT OF FINANCIAL STATEMENTS	6 Months Ended
Jun. 30, 2013
Restatement Of Financial Statements
NOTE 12. RESTATEMENT OF FINANCIAL STATEMENTS	Because the results of operations for the quarter ended June 30, 2013 included the accrued liability related to the Keen action noted above, we are no longer in compliance with the financial covenants contained in our credit agreements with PNC Bank. According to our most recent borrowing base calculation, we had approximately $3.5 million total availability under the $4 million revolving credit line, under which we currently have a zero balance. Based upon the non-compliance mentioned above, we were notified that we will be unable to draw down on the line. Additionally, PNC Bank has informed us that they have elected not to exercise their rights and remedies under the above-mentioned credit agreements. However, they may choose to do so in the future, including acceleration of the approximately $3.4 million outstanding under the mortgage note payable. We anticipate a resolution prior to the end of the next quarter. Because of the PNC Bank’s ability to accelerate the mortgage note payable, approximately $3.2 million of the mortgage note payable previously classified as long-term has been reclassified as a current liability at June 30, 2013. The Company has been in discussions with PNC Bank concerning the terms of a proposed agreement which, among other things and subject to mutually agreeable terms, PNC Bank would agree to forebear from exercising its rights and remedies under the credit agreement for a specified period of time. PNC Bank is considering the Company’s request. In addition, the Company has received a non-binding term sheet from a new bank concerning the proposed refinancing of the above-mentioned outstanding mortgage indebtedness on a long-term basis. The Company is awaiting credit approval from this bank for the proposed transaction. However, there can be no assurance that the Company will be able to enter into the aforementioned proposed agreement with PNC Bank or to refinance its existing mortgage indebtedness.

RESTATEMENT OF FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2013

NOTE 12. RESTATEMENT OF FINANCIAL STATEMENTS

Because the results of operations for the quarter ended June 30, 2013 included the accrued liability related to the Keen action noted above, we are no longer in compliance with the financial covenants contained in our credit agreements with PNC Bank. According to our most recent borrowing base calculation, we had approximately $3.5 million total availability under the $4 million revolving credit line, under which we currently have a zero balance. Based upon the non-compliance mentioned above, we were notified that we will be unable to draw down on the line. Additionally, PNC Bank has informed us that they have elected not to exercise their rights and remedies under the above-mentioned credit agreements. However, they may choose to do so in the future, including acceleration of the approximately $3.4 million outstanding under the mortgage note payable. We anticipate a resolution prior to the end of the next quarter.

Because of the PNC Bank’s ability to accelerate the mortgage note payable, approximately $3.2 million of the mortgage note payable previously classified as long-term has been reclassified as a current liability at June 30, 2013.

The Company has been in discussions with PNC Bank concerning the terms of a proposed agreement which, among other things and subject to mutually agreeable terms, PNC Bank would agree to forebear from exercising its rights and remedies under the credit agreement for a specified period of time. PNC Bank is considering the Company’s request. In addition, the Company has received a non-binding term sheet from a new bank concerning the proposed refinancing of the above-mentioned outstanding mortgage indebtedness on a long-term basis. The Company is awaiting credit approval from this bank for the proposed transaction. However, there can be no assurance that the Company will be able to enter into the aforementioned proposed agreement with PNC Bank or to refinance its existing mortgage indebtedness.