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Subsequent Events
3 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events

(15) Subsequent Events

 

In October 2012 the Company’s $3.0 million revolving credit facility expired. The Company had no outstanding balance on the revolving credit facility.

 

As disclosed in the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 9, 2012, the Company terminated Mr. Porter’s employment on August 3, 2012. In a letter to the Company dated October 17, 2012, Mr. Porter demanded substantial monetary compensation from the Company as a result of his termination. The Company has not yet been served with a formal complaint. The Company believes that Mr. Porter’s claims are without merit and intends to vigorously defend any such actions by Mr. Porter.

 

 As disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 7, 2012, on October 31, 2012, the Company received a notice from Mr. Porter, stating that he intends to nominate four of the six directors eligible for election to the Board of Directors of the Company at the Company’s 2012 Annual Meeting of Shareholders.

 


As disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 5, 2012, on November 1, 2012, the Board of Directors of the Company approved a waiver of the Company’s Code of Ethics and Business Conduct to the extent necessary to allow Thomas B. Pickens III, Chairman and Chief Executive Officer of the Company, to purchase shares of the Company’s common stock in one or more transactions and agreed to waive certain provisions of the Company’s Rights Agreement, dated July 29, 2009, between the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent (as amended, the “Rights Plan”), in order to allow a Mr. Pickens to consummate these acquisitions without triggering the operative provisions of the Rights Plan. Mr. Pickens subsequently purchased 1,783,746 shares of our common stock at $0.90 per share.

 

On November 13, 2012, the Company received a notification letter from The Nasdaq Stock Market (“NASDAQ”) stating that, based upon the closing bid price of the Company’s common stock for the last 30 consecutive business days, the Company no longer meets the requirement that listed securities maintain a minimum bid price of $1.00 per share in accordance with NASDAQ Marketplace Rule 5550(a)(2). The notification has no immediate effect on the listing of the Company’s common stock, which will continue to trade on the NASDAQ Capital Market.

 

The notification letter states that the NASDAQ listing rules provide the Company a compliance period of 180 calendar days, or until May 13, 2013, in which to regain compliance. If at any time during this 180 day period the closing bid price of the Company’s security is at least $1.00 per share for a minimum of ten consecutive business days, the Company will have regained compliance.

 

The notification letter also states that, in the event the Company does not regain compliance, the Company may be eligible for additional time. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other NASDAQ initial listing standards, with the exception of the minimum bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period. If the Company meets these requirements, NASDAQ will inform the Company that it has been granted an additional 180 calendar days. However, if it appears to NASDAQ staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, NASDAQ will provide the Company with notice that its securities will be subject to delisting.

 

The Company intends to actively monitor the bid price for its common stock between now and May 13, 2013, and will consider available options to regain compliance with the minimum bid price requirement.