NOTE 1: RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

On March 14, 2014, the Audit Committee of the Board of Directors (the "Audit Committee") of the Company, in consultation with management, determined that, due to an error in the application of U.S. generally accepted accounting principles ("GAAP") for income taxes related to the determination of the valuation allowance needed to reflect its deferred tax assets at the amount that is more than likely than not realizable, the Company's previously filed consolidated financial statements and related financial statement schedules as of and for the year ended December 31, 2012, contained in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2012, should be restated. In addition, the Audit Committee concluded that, due to similar errors in income tax accounting, the condensed interim financial statements as of March 31, 2013, June 30, 2013 and September 30, 2013 included in the Company's Quarterly Reports on Forms 10-Q for the respective fiscal quarters then ended should be restated.

Effects of the Restatement

The following tables provide a summary of selected line items from the Company's consolidated statement of operations, consolidated statement of comprehensive income (loss), consolidated statement of cash flows and consolidated statement of shareholders' equity for the year ended December 31, 2012 and consolidated balance sheet as of December 31, 2012 affected by this restatement. The restatement impacted the consolidated statement of operations for the three months ended December 31, 2012, and, therefore, no restatement was required for any interim periods prior to the three month period ended December 31, 2012. The restatement impacted the condensed consolidated statements of operations and statements of comprehensive income (loss) for the three months ended March 31, 2013, for the three and six months ended June 30, 2013, and for the three and nine months ended September 30, 2013, and the condensed consolidated statements of cash flows for the three, six and nine months ended March 31, 2013, June 30, 2013 and September 30, 2013, respectively, and the condensed consolidated balance sheets as of March 31, 2013, June 30, 2013, and September 30, 2013 (see Note 18).

CONSOLIDATED STATEMENT OF OPERATIONS


		For the Year Ended December 31, 2012
		($ in thousands, except per share amounts)
				Correction of
		As previously reported		Income Taxes				As restated

Income tax expense (benefit)	$	(4,481	)	$	1,437		$	(3,044	)
Net loss		(9,452	)		(1,437	)		(10,889	)
Net loss applicable to common stock		(9,477	)		(1,437	)		(10,914	)
Basic loss per common share		(1.66	)		(0.25	)		(1.91	)
Diluted loss per common share		(1.66	)		(0.25	)		(1.91	)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)


	For the Year Ended December 31, 2012
	($ in thousands)
				Correction of
		As previously reported		Income Taxes				As restated

Net loss	$	(9,452	)	$	(1,437	)	$	(10,889	)
Comprehensive loss		(8,472	)		(1,437	)		(9,909	)

CONSOLIDATED BALANCE SHEET


	As of December 31, 2012
	($ in thousands)
				Correction of
		As Previously Reported		Deferred Taxes			As Restated

Current assets:
Prepaid income taxes	$	1,222	$	(298	)	$	924
Deferred income taxes		268		(151	)		117
Total current assets		8,453		(449	)		8,004
Long-term assets:
Deferred income taxes		874		(874	)		-
Total assets		43,445		(1,323	)		42,122
Long-term liabilities:
Deferred income taxes		-		114			114
Total liabilities		28,910		114			29,024
Retained earnings		13,628		(1,437	)		12,191
Total shareholders' equity		14,535		(1,437	)		13,098
Total liabilities and shareholders' equity		43,445		(1,323	)		42,122

CONSOLIDATED STATEMENT OF CASH FLOWS


	For the Year Ended December 31, 2012
	($ in thousands)
					Correction of
		As Previously Reported			Income Taxes			As Restated

Net loss	$	(9,452	)	$	(1,437	)	$	(10,889	)
Deferred income taxes		(3,949	)		1,139			(2,810	)
Prepaid income taxes		1,493			298			1,791
Net cash used in operating activities		(2,583	)		-			(2,583	)

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY


		As previously reported						Correction of income taxes						As restated
		Retained						Retained						Retained
		Earnings			Total Shareholders' Equity			Earnings			Total Shareholders' Equity			Earnings			Total Shareholders' Equity
		($ in thousands)
Balance, December 31, 2011	$	29,364		$	24,876		$	-		$	-		$	29,364		$	24,876
Net losss for the year		(9,452	)		(9,452	)		(1,437	)		(1,437	)		(10,889	)		(10,889	)
Balance, December 31, 2012		13,628			14,535			(1,437	)		(1,437	)		12,191			13,098