12. Subsequent Events

In regards to transaction alternatives being reviewed by the Company pursuant to a restructuring plan submitted to the Company's secured lenders, the Company had reviewed the potential sale of both the newspaper segment and of certain operating divisions encompassed within other segments. The Company has identified one division, which at the balance sheet date of April 30, 2012 appeared to have characteristics which would indicate a reasonable possibility of the division being sold within one year. The Company ultimately determined that substantial uncertainty existed at the balance sheet date which, did not rise to a level to make the sale probable. The primary drivers of this decision were as follows: (1)any transaction required Lender approval (2) only limited due diligence had been performed at April 30, 2012 and substantial due diligence was still pending after the balance sheet date (3) a partial exclusivity agreement and letter of interest had not been signed until after the balance sheet date (4) the Buyer had no contractual obligation to continue its due diligence efforts and could unilaterally exit from pursuing the transaction (5) there were no financial penalties for the Buyer not pursuing the transaction (6) and various other factors.

The Company believes that after the balance sheet of April 30, 2012 additional facts and circumstances regarding this transaction have increased the likelihood of this division being sold and as such the Company has provided the appropriate disclosure. The factors that have increased the likelihood of a sale are primarily focused on due diligence being substantially complete and the Company actively working on the negotiation of an asset purchase agreement with a potential buyer. The transaction would still require approval of the secured lenders.

As a result of the provisions of the Limited Forbearance Agreement the Company had agreed to pursue the sale of certain assets and assess if the market assessments of such assets would yield the appropriate financial return for the Company to pursue such transactions. As a result of this process the Company has identified one division which it is actively working to sell and which is classified as a component of the printing segment. The Company actively began negotiating an asset purchase agreement after quarter end and if the Company is able to successfully negotiate an asset purchase agreement and attain lender approval, it would expect this transaction to close in the third quarter of 2012. The following is a summary of the assets which are currently being classified as held and used but which subsequent to quarter end have been determined to have a higher degree of probability of meeting the classification of held for sale:

		April 30, 2012
Assets held for sale (excludes certain divisional assets):
Accounts receivable, net	$	2,318,271
Inventory		1,049,114
Prepaid expenses and other current assets		54,795
Total current assets held for sale	$	3,422,180
Long-term assets held for sale:
Property, plant and equipment, net	$	59,266
Intangible assets		3,752
Total long-term assets held for sale	$	63,018
Liabilities held for sale	$	1,721,615
Retained earnings	$	2,653,477

		Three months ended				Six months ended
		April 30, 2012		April 30, 2011		April 30, 2012		April 30, 2011
Sales	$	4,139,848	$	4,522,659	$	7,911,661	$	9,222,204
Income before income taxes		129,932		261,980		227,102		442,666
Net income		77,282		156,950		134,402		264,546
Earnings per share		0.01		0.02		0.01		0.03

The Company has assessed if there is an impairment charge that may be warranted for these assets which were deemed to be held and used at April 30, 2012 and subsequent to April 30, 2012 may have a higher probability of meeting the held for sale classification. The Company believes based on the targeted purchase price and adjusted for selling costs the Company anticipates recording a gain on the applicable asset sale. The Company does not currently anticipate that other costs incurred in connection with the sale activity being contemplated will result in any material costs to be incurred with the activity and that the purchase price adjusted for selling costs and other costs would be in excess of carrying value. The Company continues to assess the costs of this activity and is unable to currently estimate the total costs due to various uncertainties still pending within the provisions of the asset purchase agreement being negotiated.