Note 2 - Liquidity

The Company’s primary sources of liquidity are its existing cash balances, cash generated from operations and amounts available under the Santander Financing (as defined in Note 6 below). As of June 30, 2015, the Company had approximately $2,847 outstanding under the Revolver (as defined in Note 6 below) and $418 of additional availability for borrowing under the Revolver. The Company anticipates these sources of liquidity, along with the expected refinancing or extension of the Company’s Revolver and Term Loan (both of which expire on February 1, 2016), will be sufficient to fund its operating activities, anticipated capital expenditures (which will be curtailed during this interim period) and debt repayment obligations for the next twelve months. The additional liquidity derived from the implementation of certain cost reduction programs (including the previously implemented two–phase program, as well as the phase three program that is anticipated to be implemented in September 2015) should be sufficient for the Company’s ongoing operations. If anticipated operating results are not achieved, and or sufficient funds are not obtained, from the Company’s expected refinancing, further reductions in operating expenses may need to be substantial and could have a material adverse effect on the Company’s ability to achieve its intended business objectives.

Historically, the Company’s primary long-term obligations are for payment of interest and principal on its Revolver and Term Loan, both of which expire on February 1, 2016. The Company expects to use cash generated from operations to meet its long-term obligations, and anticipates refinancing its debt obligations at or prior to maturity.