<SEC-DOCUMENT>0001144204-12-021222.txt : 20120824
<SEC-HEADER>0001144204-12-021222.hdr.sgml : 20120824
<ACCEPTANCE-DATETIME>20120412142747
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001144204-12-021222
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20120412

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN LEARNING Corp
		CENTRAL INDEX KEY:			0000774517
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-SOCIAL SERVICES [8300]
		IRS NUMBER:				112601199
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		ONE JERICHO PLAZA
		CITY:			JERICHO
		STATE:			NY
		ZIP:			11753
		BUSINESS PHONE:		5169388000

	MAIL ADDRESS:	
		STREET 1:		ONE JERICHO PLAZA
		CITY:			JERICHO
		STATE:			NY
		ZIP:			11753

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAN CLAIMS EVALUATION INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">April 12, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ms. Tia L. Jenkins</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Senior Assistant Chief Accountant</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">U.S. Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Office of Beverages, Apparel and Mining</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Washington, D.C. 20549-3561</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
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    <TD STYLE="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; text-align: justify">Re:</TD>
    <TD STYLE="width: 94%; padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">American Learning Corporation</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">Form 10-K for Fiscal Year Ended March 31, 2011</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">Filed June 28, 2011</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">Form 10-Q for Fiscal Quarter Ended September 30, 2011</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">Filed November 14, 2011</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">Supplemental Response Letter Dated January 26, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-autospace: none; font-weight: bold; text-align: justify">File No. 000-14807</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dear Ms. Jenkins:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We received your subsequent comments letter
dated April 2, 2012 (the &ldquo;Subsequent Comments Letter&rdquo;). In the Subsequent Comments Letter, you requested additional
information based on your review of our supplemental response letter dated January 26, 2012 (the &ldquo;Supplemental Response Letter&rdquo;)
to your initial comments letter dated January 13, 2012. For purposes of our response, the terms &ldquo;we,&rdquo; &ldquo;us,&rdquo;
&ldquo;our,&rdquo; &ldquo;the Company&rdquo; or any derivative thereof, shall mean American Learning Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following sections and responses relate
to the specific paragraphs listed in the Subsequent Comments Letter:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Form 10-K for the Fiscal Year Ended
March 31, 2011</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Supplemental Response Letter dated January
26, 2012</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Consolidated Statements of Cash Flows,
page F-5</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.</TD><TD STYLE="text-align: justify">We note your response to comment 3 in our letter dated January 13, 2012 and we reissue it in part.
Noncash investing and financing activities, such as the $450,000 note receivable, should be disclosed in a separate note or schedule
on the face of the statement of cash flows or in a note to the financial statements that is referenced to the statement. Please
revise in any amended or future filing.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><U>Response</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In response to your comment,
we will present the $450,000 note receivable as a supplemental disclosure of noncash investing activity on the face of the statement
of cash flows in all future filings where applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt"><U>Notes to
Consolidated Financial Statements, page F-6</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>(1) Summary of Significant Accounting
Policies, page F-6</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>(e) Revenue Recognition, page F-6</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<OL START="2" TYPE="1" STYLE="margin-top: 0in; font-family: Times New Roman, Times, Serif">

<LI STYLE="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We note your response to comments 4 and
5 in our letter dated January 13, 2012 and your proposed revenue recognition policy disclosure. Please provide this information
in your revenue recognition policy in all future filings.</LI>

</OL STYLE="font-family: Times New Roman, Times, Serif">

<P STYLE="font: 10pt Courier; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify"><U>Response</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In the Supplemental Response
Letter, we had proposed draft language describing our revenue recognition policy. The revised disclosure was included in our Form
10-Q for Fiscal Quarter Ended December 31, 2011, filed with the Securities and Exchange Commission on February 14, 2012. We will
continue to use this language in all future filings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>(2) Discontinued Operations, Page F-8</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<OL START="3" TYPE="1" STYLE="margin-top: 0in; font-family: Times New Roman, Times, Serif">

<LI STYLE="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In response to comment 7 in our letter
dated January 13, 2012, you state that the balance of goodwill remains unchanged because it was not determined to be impaired.
Please note that our comment is not a matter of impairment. We are asking you to explain how you disposed of part of a reporting
unit that constituted a business without reducing the goodwill balance that was attributable to the unit in its entirety. Please
advise and refer to the guidance of ASC 350-20-35-52. Impairment testing may have been warranted after you reduced goodwill to
reflect the disposal of the Upstate business.</LI>

</OL STYLE="font-family: Times New Roman, Times, Serif">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt"><U>Response</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">We determined that the fair value
of goodwill attributable to the Upstate Region was $70,000. Under the <FONT STYLE="color: #252525">guidance provided by SAB 99,
we deemed the amount to be immaterial for the following reasons: the calculation of the fair value of goodwill attributable to
the Upstate Region is not a precise measurement, the change in earnings is negligible considering the Company&rsquo;s recorded
loss of $1.1 million and substantial recurring losses, the Company&rsquo;s shares are thinly traded and we do not believe that
recording an adjustment for this amount would have had an impact on analysts' expectations for the Company. We also believe that
recording an adjustment would not have affected the Company&rsquo;s compliance with regulatory requirements or loan covenants,
or affect management's compensation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 18pt"></TD><TD STYLE="width: 17pt">4.</TD><TD STYLE="text-align: justify">Tell us how any fixed assets located in the Upstate Region and accounts receivable attributable
to the Upstate Region factored into the calculation of the gain.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 35pt"></TD><TD STYLE="text-align: justify"><U>Response</U>:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">Fixed assets (including testing
instruments and leasehold improvements) used in the Upstate Region were predominately fully depreciated and/or previously expensed
at the time of the disposal of the Upstate Region. In the Asset Purchase Agreement providing for such disposal, a total value of
$10,000 was assigned to these fixed assets and included in the gain from discontinued operations in the statement of operations.</P>

<P STYLE="font: 10pt Courier; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt">As per the terms of the Asset Purchase Agreement, accounts
receivable were considered an excluded asset and not included in the assets sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 17pt">5.</TD><TD STYLE="text-align: justify">We note your response to comment 8 in our letter dated January 13, 2012 that you accrued expenses
of $75,312 related to the sale of the Upstate Region business. Please tell us how you considered the accrued expenses on the computation
of the gain of $360,702.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify"><U>Response</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 35pt"></TD><TD STYLE="text-align: justify">As per our response in the Supplemental Response Letter, the sale of the Upstate Region was negotiated
during the quarterly period ended March 31, 2011. The Asset Purchase Agreement was signed and the transaction became effective
on March 31, 2011. We accrued an estimate of the additional costs to be incurred in winding down the Upstate Region operations
subsequent to year end and presented these costs as a separate component of the discontinued operations presented on the face of
the statement of operations.</TD></TR></TABLE>

<P STYLE="font: 10pt Courier; margin: 0pt 0 0pt 35pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -17pt">6.&#9;&#9;Please
explain to us the nature of the litigation referred to in the agreement of sale of ITG and the date the litigation commenced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -17pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 35pt"></TD><TD STYLE="text-align: justify"></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 35pt"></TD><TD STYLE="text-align: justify"><U>Response</U>:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 35pt"></TD><TD STYLE="text-align: justify">On January 11, 2011, the Company filed for and succeeded in obtaining a temporary restraining order
against Liberty Resources, Inc. (&ldquo;Liberty&rdquo;) to preliminarily enjoin Liberty from inducing John Torrens, the former
majority shareholder of ITG and then current President of ITG, to breach his agreements with the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">Liberty and the Company both desired
to discontinue any litigation in favor of Liberty acquiring certain assets of ITG and Torrens desired to acquire all of the Company&rsquo;s
rights, title and interest in and to any non-disclosure, non-solicitation and non-competition covenants granted by Torrens to the
Company. Accordingly, all parties negotiated and entered into an Asset Purchase Agreement providing for the sale of the Upstate
Region business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt"><U>Form 10-Q
for the six months ended September 30, 2011</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt"><U>Financial
Statements, page 2</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt"><U>Statements
of Operations, page 4</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 17pt">7.</TD><TD STYLE="text-align: justify">You have not provided a substantive response to comment 11 in our letter dated January 13, 2102.
Explain to us the specific nature of revenues and expenses that you reported as income from discontinued operations in periods
after you sold the Upstate Region business and explain the nature of your continued involvement with the business and when you
anticipated it ending. We may have further comments upon review of your response.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify"><U>Response</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify; text-indent: -35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35pt; text-align: justify">Subsequent to the sale of the
Upstate Region, the Company was not actively involved in any operations in the respective territories involved in the sale and
did not retain the ability to influence the operating or financial policies of the disposed component. However, the Company continued
to actively pursue the collection of accounts receivable recorded from periods prior to the sale. Certain accounts receivable previously
considered uncollectible were ultimately paid by the respective municipalities. In addition, certain services provided in the Upstate
Region were subsequently denied by municipalities which required a refund of funds previously received. To avoid the distortion
of results from continuing operations, the gain/loss on discontinued operations was presented as a separate component on the face
of the statement of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Please contact me if you require any further
information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Respectfully submitted,</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>/s/ Gary J Knauer</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Gary J. Knauer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Chief Financial Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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