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Stockholders' Equity
 3 Months Ended
Mar. 31, 2012
Stockholders' Equity [Abstract]  
Stockholders' Equity

NOTE 10 — STOCKHOLDERS' EQUITY

Preferred Stock:

The Company's Board has the ability to issue, without approval by the common shareholders, up to 500,000 shares of $1 par value preferred stock having rights and preferences as the Board may determine in its sole discretion.

Common Stock:

At March 31, 2012, there are 1,231,125 shares of common stock reserved for future issuance pursuant to the exercise or issuance of stock options.

 

Warrants:

On March 15, 2012, the Company issued to Citizens Bank a warrant to purchase 75,000 shares of the Company's common stock at an exercise price of $0.10 per share in connection with the March 2012 financing described in Note 7. The warrant has a term of ten years. The fair value of the warrant of $163,000 was recorded as a deferred financing cost which is being amortized to interest expense over the term of the related debt.

Comprehensive Income (loss):

Comprehensive income (loss) is the change in equity of a business enterprise from transactions and other events and circumstances from non-owner sources. Excluding net income (loss), the components of comprehensive income (loss) are from foreign currency translation adjustments and changes in the fair value of hedging instruments.

The following summarizes the components of accumulated other comprehensive loss at March 31, 2012 and December 31, 2011:

 

     March 31,
2012		     December 31,
2011		  

Cumulative translation adjustment

    $ (1,355,000 )   $ (1,312,000 )

Change in fair value of interest rate hedge (net of tax) (1)

      (616,000 )     (703,000 )
  

 

 

    

 

 

  

Total

    $ (1,971,000 )   $ (2,015,000 )
  

 

 

    

 

 

  

 

(1) Net of deferred income tax asset of $425,000 and $458,000 at March 31, 2012 and December 31, 2011, respectively, which have been fully reserved by a valuation allowance at the end of each period.