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Management Plans - Capital Resources
6 Months Ended
Jun. 30, 2011
Management Plans - Capital Resources
Note 9.  Management Plans – Capital Resources

The Company reported net losses for the three and six months ended June 30, 2011 and 2010, a stockholders’ deficit at June 30, 2011 and December 31, 2010, and a decline in the Company’s 2011 and 2010 sales for the six months ended June 30, 2011 and 2010 as compared to prior six month periods in 2010 and 2009, respectively.  The Company’s capital resources are summarized as follows.

The Company believes the capital resources available under its factoring line of credit, cash from additional related party loans and cash generated by improving the results of its operations provide sources to fund its ongoing operations and to support the internal growth it expects to achieve for at least the next 12 months. The Company will continue to implement expense reductions if it does not realize improved sales or improved gross profit margins.  The Company reduced its operating loss and net loss during the three months ended June 30, 2011.  However, if the Company does not continue to improve the results of its operations in future periods, it expects that additional working capital will be required to fund its business.  Although the Company has no assurances, it believes that related parties, who have previously provided working capital to the Company, will continue to provide working capital loans on similar terms, as in the past, as may be necessary to fund the on-going operations for at least the next 12 months.  If the Company experiences significant growth in its sales, it believes that this may require it to increase its financing line or obtain additional working capital from other sources to support its sales growth.  There is no assurance that in the event it needs additional funds that adequate additional working capital will be available or, if available, will be offered on acceptable terms.