-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 ImO24BJ1ZrMDEQP6QaGqfFrTIFlMb/0k+6bK+7oEXnPE1p0LNKsqa0JFNKqjQ4TH
 4hMGgectLO4x1JDEWy4D8Q==

<SEC-DOCUMENT>0000921895-08-001197.txt : 20080609
<SEC-HEADER>0000921895-08-001197.hdr.sgml : 20080609
<ACCEPTANCE-DATETIME>20080423163938
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000921895-08-001197
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20080423

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LGL GROUP INC
		CENTRAL INDEX KEY:			0000061004
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPONENTS, NEC [3679]
		IRS NUMBER:				381799862
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		2525 SHADER ROAD
		CITY:			ORLANDO
		STATE:			FL
		ZIP:			32804
		BUSINESS PHONE:		(407) 298-2000

	MAIL ADDRESS:	
		STREET 1:		2525 SHADER ROAD
		CITY:			ORLANDO
		STATE:			FL
		ZIP:			32804

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LYNCH CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>
  <head>
    <title>cor03725_04232008.htm</title>
<!-- Licensed to: Olshan-->
<!-- Document Created using EDGARizer 4.0.5.0 -->
<!-- Copyright 1995 - 2008 EDGARfilings, Ltd., an IEC company. All rights reserved -->
</head>
    <body bgcolor="#ffffff" style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
    <div style="DISPLAY: block; MARGIN-LEFT: -36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">[</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><img src="logo.jpg" alt=""></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2525
Shader Road</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: -9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;Orlando,
FL 32804</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: -9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;Phone
(407) 298-2000 X146</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: -9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;Fax
(407) 578-7731</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April 23,
2008</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dennis C.
Hult</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Staff
Accountant</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
STATES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100 F
Street, N.W.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
DC 20549</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Re:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
LGL Group, Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Item 4.02 Form 8-K</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Filed April 16, 2008</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>File No. 1-0016</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dear Mr.
Hult:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It was a
pleasure talking with you yesterday. As we discussed, listed below are our
responses to your letter dated April 17, 2008:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Please tell us whether you
      intend to file restated financial statements</font>. We submitted a letter
      to the Office of the Chief Accountant, Division of Corporation Finance of
      the Securities and Exchange Commission (&#8220;SEC&#8221;) on April 17, 2008. In our
      letter, the Company stated that it determined that the accounting
      treatment for certain foreign currency transactions was inappropriate and
      that certain accounting errors were made in 2006 and prior years. At
      December 31, 2006, the accumulated net credit balance was $172,000. As
      discussed within our April 17, 2008 letter, the Company has determined
      that recognizing the correction of this error in Q1 2007 would not have a
      material effect on the Company&#8217;s 2007 financial statements, Q1 2007
      results, nor on prior period financial statements, and has requested
      guidance from and concurrence with our conclusion from the SEC. If the SEC
      agrees with our conclusion, all three 10-Qs for 2007 need to be restated.
      </font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Please tell us if your
      certifying officers reconsidered the effect on the adequacy of your
      disclosure controls and procedures as of the end of the period covered by
      your Form&#160;&#160;&#160;10-Q for the period March 31, 2007 in light of
      the material error you have disclosed. Additionally, tell us what affect
      the error had on your current evaluation of disclosure controls and
      procedures as of your fiscal year end December 31, 2007. </font>No
      disclosure was previously made for the quarter ended March 31, 2007 by the
      former principal executive and financial officers of the Company.
      Disclosures were made by the former executives for the quarters ended June
      30, 2007 and September 30, 2007. The error was taken into consideration by
      the Company&#8217;s principal executive and financial officers in evaluating the
      overall effectiveness of the Company&#8217;s internal disclosure controls and
      procedures. Listed below are the proposed disclosures that will be
      included in the Company&#8217;s 10-K for the year ended December 31,
      2007.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Item
9A(T).&#160;&#160;Controls and Procedures.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Evaluation
of our Disclosure Controls and Procedures</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under the
supervision and with the participation of our management, including our Chief
Executive Officer and Chief Financial Officer, we evaluated the effectiveness of
the design and operation of our disclosure controls and procedures (as defined
under Exchange Act Rule 13a-15(e)) as of December 31, 2007 during the months of
February and March, 2008. Based on this evaluation, management has concluded
that as of December 31, 2007, such disclosure controls and procedures were
ineffective.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company did not effectively communicate and implement the Company&#8217;s compliance
program. Specifically, internal controls were not properly identified,
communicated and implemented by the responsible personnel across the Company in
a timely manner. As a result, the Company had operating deficiencies primarily
due to undocumented evidence of the review and approval of key internal
controls. Our risk oversight function lacked enterprise-wide direction and
coordination with senior management in rolling out the Company&#8217;s compliance
program.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Management&#8217;s
Report on Internal Controls Over Financial Reporting</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
is responsible for establishing and maintaining adequate internal control over
financial reporting.&#160;&#160;Under the supervision and with the participation
of management, including our Chief Executive Officer and Chief Financial
Officer, management assessed the effectiveness of internal control over
financial reporting as of December 31, 2007 based on the guidance for smaller
companies in using the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) <font style="DISPLAY: inline; FONT-STYLE: italic">Internal
Controls &#8211; Integrated Framework </font>as it relates to the effectiveness of
internal control over financial reporting.&#160;&#160;Based on that assessment,
management has concluded that the Company&#8217;s internal controls over financial
reporting were not effective as of December 31, 2007 to provide reasonable
assurance regarding the reliability of its financial reporting and the
preparation of its financial statements for external purposes in accordance with
United States generally accepted accounting principles. As a result of its
assessment of our internal control over financial reporting, management
identified the material weaknesses discussed below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Material
weaknesses were found in the following areas:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Inadequate Entity-Level
      Controls </font>- The Company did not effectively communicate and
      implement the Company&#8217;s compliance program. Specifically, key internal
      controls were not identified, communicated and implemented by the
      responsible personnel across the Company in a timely manner. As a result,
      the Company had operating deficiencies primarily due to undocumented
      evidence of the review and approval of key internal
    controls.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Enterprise-Wide Risk Oversight
      -</font> Our risk oversight function lacked enterprise-wide direction and
      coordination with senior management in rolling out the Company&#8217;s
      compliance program.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Financial Statement Close and
      Reporting Process</font> - We had inadequate procedures and personnel to
      reasonably ensure that accurate, reliable quarterly financial statements
      were prepared and reviewed on a timely
basis.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Inventory Controls</font> &#8211;
      The Company did not have documented evidence of the review and approval of
      key internal controls related to the following sub
    processes:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventory
      Valuation</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventory
      Receiving</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">Inventory
      Obsolescence</font></font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Information Technology
      Company-Level Internal Controls - </font>We did not maintain effective
      internal control over financial reporting related to information
      technology applications and infrastructure. Specifically, we identified
      material weaknesses relating to our information technology company-level
      controls concerning:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">System
      and Program Change Management</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Logical
      Access to Programs and Data</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
Annual Report does not include an attestation report of our registered public
accounting firm regarding internal control over financial
reporting.&#160;&#160;Management&#8217;s report was not subject to attestation by our
registered public accounting firm pursuant to temporary rules of the Securities
and Exchange Commission that permit the Company to provide only management&#8217;s
report in this Annual Report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Plans
for Remediation of Material Weaknesses</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
is currently addressing each of the material weaknesses in internal controls,
and is committed to remediating them as soon as possible. Management will devote
significant time and resources to the remediation effort. Management&#8217;s
remediation plans include the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Financial Management -
      </font>We have hired a new Chief Financial Officer and a new Corporate
      Controller who have accounting, internal control and financial reporting
      expertise. In addition, management has hired external consultants to
      assist in the review of our internal control over financial
      reporting.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Review of Internal Controls
      </font>- Management has engaged external consultants to assist in
      reviewing our internal controls with the intent of improving the design
      and operating effectiveness of controls and
  processes.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Development of Compliance
      Program -</font> Management is in the process of hiring external
      consultants to assist in the development and implementation of a
      compliance program specific to our
needs.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Improving Information
      Technology Company-Level Internal Controls </font>&#8211; We are developing
      mitigating controls to offset material weaknesses in system and program
      change management, and system access while we implement an ERP
      solution.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Enterprise Resource
      Planning</font> &#8211; We are developing and implementing an ERP strategy
      solution. We need to perform the following steps, which we expect to take
      approximately 12 months:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
      state analysis of our systems from an internal control and business needs
      perspective.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Select
      an ERP solution, incorporating required re-engineering processes and
      controls.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Data
      conversion and implementation
testing.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Changes
in Internal Control Over Financial Reporting</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
were no significant changes in our internal control over financial reporting
that occurred during the last fiscal quarter that have materially affected, or
are reasonably likely to materially affect, our internal control over financial
reporting.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
requested in your letter, the Company acknowledges the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company is responsible for the adequacy and accuracy of the disclosure in
      the filing.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Staff
      comments or changes to disclosures in response to staff comments do not
      foreclose the Commission from taking any action with respect to the
      filing.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company may not assert staff comments as a defense in any proceeding
      initiated by the Commission or any person under the federal securities
      laws of the United States.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If you
have any questions, please feel free to call me at (407) 298-2000 extension
146.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Very
truly yours,</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">/s/ <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Harold
Castle</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Harold
Castle</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
Financial Officer</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">cc:&#160;&#160;Mark
A. Spelker, J.H. Cohn LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Anthony
Pustorino, Audit Committee Chair, LGL</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;David
J. Adler,&#160;&#160;Olshan Grundman Frome Rosenzweig &amp; Wolosky
LLP</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div><br></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
  </body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>logo.jpg
<TEXT>
begin 644 logo.jpg
M_]C_X``02D9)1@`!``$`8`!@``#__@`?3$5!1"!496-H;F]L;V=I97,@26YC
M+B!6,2XP,0#_VP"$``@%!@<&!0@'!@<)"`@)#!0-#`L+#!@1$@X4'1D>'AP9
M'!L@)"XG("(K(AL<*#8H*R\Q,S0S'R8X/#@R/"XR,S$!"`D)#`H,%PT-%S$A
M'"$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q,3$Q
M,3$Q,3$Q,?_$`:(```$%`0$!`0$!```````````!`@,$!08'"`D*"P$``P$!
M`0$!`0$!`0````````$"`P0%!@<("0H+$``"`0,#`@0#!04$!````7T!`@,`
M!!$%$B$Q008346$'(G$4,H&1H0@C0K'!%5+1\"0S8G*""0H6%Q@9&B4F)R@I
M*C0U-C<X.3I#1$5&1TA)2E-455976%E:8V1E9F=H:6IS='5V=WAY>H.$A8:'
MB(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4U=;7
MV-G:X>+CY.7FY^CIZO'R\_3U]O?X^?H1``(!`@0$`P0'!00$``$"=P`!`@,1
M!`4A,08205$'87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A)?$7&!D:)B<H
M*2HU-C<X.3I#1$5&1TA)2E-455976%E:8V1E9F=H:6IS='5V=WAY>H*#A(6&
MAXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3U-76
MU]C9VN+CY.7FY^CIZO+S]/7V]_CY^O_``!$(`&T`DP,!$0`"$0$#$0'_V@`,
M`P$``A$#$0`_`/?Z`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"
M@`H`*`"@#E?&/C[1_"SK;3L]WJ#_`'+.W&YSZ9]*Z*6'G5U6B,*M>-/3J8!\
M0?$;6;:1],\,VNF0NIV-=3?O![@<<_A6_L\/!ZRN8^TKR7NQL<U\/H/B+IFI
M7LR6%S=)TFAU*<QJ[9ZH3GGZ<5T5WAY)*]O0PH+$1DW8[N/QU=6!QXH\-:EI
M2CK<1K]IA'U9.GY5Q/#J7\.2?X'6J[C\<;'3:3J^GZQ:BYTN\ANH3_%$P./K
MZ5SSA*#M)6-XSC+8NU)0UW6-"[L$5>22<`4)!>QE2ZXTV4T>RFU!NGF`B.(?
M\#/7\,UJJ=OB=C)U+_`KE61/%TP)2;1[+/1=DDY'U.5_E5?N5W?X"_>OLC&U
M;Q%XK\*(+O7M.L]3TM3^]N=/++)"/4QMG(^AK2-.E5T@[/S,Y3J4]9*Z.QTR
M_M=4L(+ZPF6:VG0/&Z]"#7-*+@^5[G1&2DKHLU)04`%`!0`4`%`!0!S7Q%\2
M-X8\-RW-NN^]F80VJ8SND;@5OAZ7M)V>QC6J<D=-S,^'/@:/1(O[6UC%YKEW
M^\EGD^8QD\X7T^M:8BNY^Y'2*(HT5'WI;G<5R'2%`!0!SFJ^"]+O+DWMCYFD
MZCU%W8GRV/\`O#[K#ZBMXUY15GJO,QE1BW=:,RI_%VH^&)FL?$L,5Z0N8[ZS
MX7&>#.G_`"R_WN5K148U5S4]/+_+N9NK*GI+4W+/2CJ7EWNKW27RL`\4,1_T
M=!V(_O\`U/Y5DY\GNQ5OS-%#FUD[_D;:J%4*H``Z`=JQ-A:`&RQI-$\4J*\;
MJ596&0P/4&A.VJ$U?1G!_"*-]._X2#0]Q:#3-098<]E;D#_/K79BFI<L^Z.7
M#+EYH=F=]7&=84`%`!0`4`%`!0!POBRV_M7XC^'+&12T%JDEVRGH2,`?SKKI
M/DHR:]#FJ+FJ)'=5R'2%`!0`4`8>HZE=7EVVF:'@2J<7%VRY2W'H/[S^W;O6
MT8**YI_<8RDV^6'WES3-&L].MI(8X_-,YS/)+\SSD]2Q/6HE-R=RXP458PI=
M+O?"<KW7A^-[G2F.Z?3`>8O5H?3_`'.A[5LI*KI/1]_\S-Q=/6.W8Z33;^UU
M.RBO+&598)1E6'Z@^A'I6$HN#LS6,E)719J2@H`XGX;+YNK>*[]/]5/JC1H>
MQV#!_4UUXC2,(^1RT-7)^9VU<AU!0`4`%`!0`4`?/WQ'U?6U^(E[86&JWMNK
MRQQQHD[*BD@=@>.37MX>G#V*DT>+B)S]JXQ9E^+[#Q3X3U2V.JZQ*]W+$?+E
MANG9E7/(R<$"M*,J56+Y49UHU:+U9C_\)+KP_P"8WJ/_`($O_C6OL:?\J,/;
M3[G9^&O"OC[7=/2_&N7-A:R#=&US=R`N/4*.WUKDJ5L/3?+RW?H=M*C6FKMV
M16\7:-XW\*6B7EYKT\]H[!1-!>OP3Z@\U5*="J[*.OH15IUJ2O?0S_"8\7^*
MK^2RTO7KM98H_-;SKQU&,X[9YYJZOL:*O*/X$4?:U7:+,FXU77M*NI[#^U[R
M-K>5E<17#;=V>36JA3FN:QE*=2#Y;GI/P$U74=0U35DU"_NKI8X8RHFE+A3D
M],UP8Z$8Q5E8[\#.4F[L]@KRSU#FM3LI]`O9=8T:$RVTIW7]C'_'ZRQC^^.X
M_B`]<5T1DJBY)[]'^AC).#YH_-&_97<%]:175G*LT$RAD=3P16#3B[,U335T
M5?$>J1Z)H5]J<Q`6UA:3![G'`_$X%53@YR443.7)%LS_`(?:5)H_A&QM[D8N
MI%,]P3U,CG<V?SQ^%:5YJ=1M;$48\D$CH*P-@H`*`"@`H`*`/G;Q_P#\E;F_
MZ^X/_9:]VA_NYXE?_>#9_:%'_$^TLY_Y8/\`S%8Y?\+-,?NCSK1((KG6M/M[
MC_4RW,:/_NE@#7?-M1;1P4TG-)GK'Q@2[U;Q7HWAN.\%A8SQE]S$B,MG'('4
M`?SKS,)RPA*I:[/5Q5Y34+V1S7C+P7JWA7PEYDFOK>Z;).N+=`=N[G#`DG'X
M5O1KPJU/ALS"M0G3I_%H6OV?_P#D;[SM_H9_]#%+'_PUZA@/B9Q/BOCQ/JO_
M`%]R?SKKI?`CCK?&ST+]G;_D+ZS_`-<(_P"9KAS#X8G=E^[/;*\D]8*`.99?
M^$7UC>F5TC49/G7M;3GN/16[^_UKH_BQMU7XHP_A2\F5O%7_`!/O$>G>'(_F
MMH2+Z_QTV*?W:'_>;G'HM.E^[@ZG79"J>_-0^;.OKF.@*`"@`H`*`"@`H`^<
M/B3<1VOQ3NYY3\D5Q$[`=<`*3_*O=PZO021X>(TKW.I\3>./AUXFN8I]7L=1
MGDA4JA"%<`_1JYZ>'Q%)6BT=52M1J.[1YUXHN=#DUGS?"\4UK9!5*K*3N#CJ
M>2>]=U)34;5-SSZSCS7IG=R^.?"/C#1+>T\=V\\-[;#`N;=3@GNP(Z9]",5Q
M_5ZM&3=)Z'<J].K%*HM2IX[\9>&[_P`%6?A_PZUQ(EM(H5IE*X51UZ<YS^E5
M0H5(U'.9%>M!T^2)C_"SQ3IOA37KB]U/S3%);F)?*7<<[@>1^%:XJC*K%*)C
MA*BI2;D;>H:W\++V>XN9-+U$W$[,[-AAECW^]ZUC&GB8I*Z.B4Z#UL7/V=B#
MK&M;2,>3'CV&XTLP^&(8%>\['ME>0>J%`&#XPUG1;#3+FVU>>)C)$2+7</,E
M]`J]<YZ5M1A.4DXF-6<$FI&7\,K:2VM;W^TED&LRR![KS""=I'[L`^@7`^N:
MTQ+NUR[$8=6O?<[*N4Z0H`*`(YQ*8\6[I&^1\SH6&,\\`CMGOQ[]*:MU`DI`
M%`!0!CW_`(5T#4+I[J^TBSN)Y/O221`L?QK6-:I%63,W2A)W:(/^$(\+_P#0
M`T__`+\+3^L5?YF+V-/^4S+GP?X<T_5XWDT2P-E>8CYA&(I?X?H&Z?4#UK55
MZDHZ2U1DZ,(2O;1D>G>$?#NI:O<7":)8I8VA,$8$(`FD_C;W`^Z/?-$JU2,4
MN;5BC1A*3=M$:_\`PA'A?_H`:?\`]^%K+ZQ5_F9M[&G_`"A_PA'A?_H`Z?\`
M]^%H^L5?YF'L:?\`*'_"$>%_^@!I_P#WX6CV]7^9A[&G_*7M)T'2=&>1]*TZ
MVLWE`#F&,*6`]<5$JDY_$[E1IQA\*L:-06%`'ANO>#-4\8^.;O5M#D633Q<+
M']LE?;M*?>V#N`1U'?->O"O&C249[GESHRJU.:+T/4M2A.EZKIFHABROMLKE
MC_$&^XQ^C<?\"KSXOFBX_-';)<DE+Y'05@;A0`4`%`!0`4`%`!0`4`97BAR=
M*:TB17GO&$$089`8_P`7_`0"WX5K2^*_8RJOW;=S(L]2U/3+B'P[8Z5%<36L
M!?S9)_)22,$`,,*<L<_,/7/K6CC&2]HV91E*'[M+8O?;O$W_`$`[#_P8G_XW
M4<E+^9_=_P`$TYJO\J^\K:AKOB#3TA:?0[+$TRPKMU`_>8X'_+.JC3IRVD_N
M_P""3*I4CO'\2S]N\3?]`.P_\&)_^-U/)2_F?W?\$KFJ_P`J^\9-J?B6&%Y6
MT.QVHI8XU$]O^V="A2O\3^[_`((N:K_*OO"#4_$LT*2IH5B%=0PSJ)R,_P#;
M.FX4OYG]W_!!2J?RK[REKZ^+]4T]K*VL+*R68A9I$OVW^7_$JGR_E)'&>U53
M]C"5VV_E_P`$F?M9*UK?,-!U'6!8FUTKP[806UBYMEC^WD!2OI^[Z43A"]Y2
M=WKM_P`$(3G:T8K3S)=7_P"$DU+3+BR?1K&/S4(5QJ!^1NJM_J^QP?PHA[*$
ME)2?W?\`!"?M)1<>5?>+'KGB+^T/[/;1+$W*PB5B+\A2,XX_=^M+V=.W-S.W
MI_P052I?EY=?4M?;O$W;0[#_`,&)_P#C=3R4OYG]W_!*YJG9?>5[OQ#J^F26
MK:KH]O%;SSK#OAO#(RENAVE!G\ZJ-*$[J,M?3_@@ZDXVYD=-7.;A0`4`%`!0
M`4`9`)N_$Q!'[NPAXR.-[]?_`!T#\S6OPP]3+>IZ%=S_`,5[$/\`J'/_`.C%
MIK^%\R?^7R]#B=3\1W]]>:W?7?B&ZT33-,N/LD265J)F+XSO?@G'Y5UQI1BH
MQ4;MZZF$IN3;O9(Z6\N3>^&?#UR;L7IENK9OM(C\OS<D?-M[9]*YXKEG)6MH
MS23O"+OU1C_$SQ'=Z1XFTZV&LW.E6$EO(\SV\"RMN'3@@\5KAJ2G!OENR*]1
MQFE>QL>#+[5]2^'S7>NL'GECD,<F`IDBYVLP'`)%9UHQA5M`TIRE*E=D'BK6
M;_3/#>B6NERK;W&I2Q6PN"H;R@1R0#WITZ<93DY;(F4W&G%+J-T*]U;1_'O_
M``CFHZI+JUO<67VF*::-5DB8'!!VC!!_PHG&$Z7M(JVHX.4*G(W<T='E>#1=
M?EA;9)'=W#*WH0!@U$U>44^R'!VC)KNSFI/$VL#P?X0O%OF%Q?WT,5R^Q<R*
M6Y&,<?A70J4/:35MD9.I)0B[]3L(_P#D>I/^P>/_`$97+_RZ^9T?\O?D>::O
MXN\0)JVLQ6.MW)OK:^6*RTY+19$F4D9!(&0.O>NZ%&GRQ;CI;5W.-U9\S2EL
M=[XY,C:9I!F&V0WT!91V/>N2A;FE;LSJK;1OW.KKF.@*`"@`H`*`"@#+T-#Y
MNH3-C,ERP_`<"M)]$94^K,O4]0L],\;P2ZA=0VL;Z>X5I7"@G>O`)[UI&$I4
MFHKJ9RDHU4Y/H8.MZ3X,U/4;F]@\3_V:]ZNR\2TO45+E?1@<_F*WA*O!)<E[
M;:&<_8R>DK%K5-3\.6.CZ-INF:K:-!9W5NBKYX8A%/4_@.M3&G5<I2E%ZIA.
MI248QC):,O7USX1OM=MM6N-:M6N+:)X53[2NQE;J"O>HC"M&+BHNWH:.=%RY
MN8JZ7-X5\.Z%?V.EZ[`UM)ODCADNE<19!RJ=P/:JE&K.:<HZ^A//2C%I2'WE
MWX2UWPU;:?JNK6>U41E*W(1XW`X*G/!%)0K4YN48L7/2E!1<AGAM?"6A7DU]
M_P`))'?W\Z"-KJ\O$=P@Z*.@`IU%6FK<MEY(<)48._-J2>&_$&@"UU2*[U6Q
M"37LQVO,HW*<>_2BI1J75HO85*K3M*[6[,G3=!\#V&I6]R/$GGV]G(9;2REO
ME,,#'N!_B:TE.O)6Y=^MA+V*=^8V8_$FA_\`"9//_:]EY1L0@?SUQG?TSGK6
M3HU/9VY7N4JU/VE^9;$FB7GA+1;S4+FTURU,FH3>=-YETI`;&./04IPK323C
MMY%1G1@VU+<J^,M=TG4(=,@L-1M;F7[?$=D4H8XSZ"KH4IQ;<E;1DU:L)647
MU.WKB.L*`"@`H`*`"@#(TB40ZGJ-@_$BR>>@Q]Y&[CUYR*UFO=4C*&DG$OWE
MC:7J!+RVAN%4Y`E0-C\ZB,G'X78MQ4M&BM_8&C?]`FQ_\!T_PJ_;5/YG]Y/L
MH=D4=5LO#5C&([JQLHWG!5(XX5\Q\]E`&351J59:IO0F4:4=&D<RVD7UNBS7
M.A1W.DJV?*BBC%\%'3=V8>P.?K6_M$]%*S_`Y^1K>.GXG0Z-_P`(GK(;^S[2
MP:5/]9"]NJ2QG_:0@,/RK&;K0W;^\WA[*>R7W&G_`&!HV<_V599_ZX+_`(5G
M[6I_,_O-/9P[(/[`T;_H$V/_`(#I_A3]M4_F8O90[(/[`T?/_(*LN./]0O\`
MA2]K4_F8_9P[(R&TW2]3OUM]-TVR%K`^;FX6!,,1_P`LU./7J?3BM?:3BKR;
MOT,>2$I6BE8U_P"P-'QC^RK+'IY"_P"%9>UJ?S,V]G#L@_L#1A_S";'_`,!T
M_P`*?MJG\S^\7LH=D.30])C<-'IEFC#HRP*"/R%)U9O1R8U3@MD7ZS+"@`H`
M*`"@`H`S]6TE+\Q31S26MY!GR;B+[RYZ@@\,I[@U<)\NG0B4.;79E4?\)+%\
MA_LJX`X$A\R(_4K\W\ZO]UYD?O5V$-AKEX,7FJQ6D9X*64.&_P"^W)_0"CFA
M'97]0Y:CW=O0M:9H>GZ8[2V\):X?[]Q*QDE?ZNV342J2EHRHTXPV-&H-#,UC
MP[I.L%6U"RCDE3[DH^61/HPP1^=:0JSA\+,YTXSW13CT#4+,8TWQ#>JG:.[5
M;@#\3AO_`!ZJ]I%[Q7RT)]G)?#+]2>.W\1+\KZCIS#^_]C<-^7F8I7I]G]__
M``!I5.Z^[_@A_8MQ=#&K:I/=)WAC`AC/L0O)'L31[1+X4+V;?Q2O^!J6\$5M
M"L-O&L4:#"HHP`*S;;U9JDEHB2D,*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@
3`H`*`"@`H`*`"@`H`*`"@#__V3\_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
