Liquidity

6 Months Ended

Jun. 30, 2011

Liquidity

Liquidity

2. Liquidity— Our cash balance was $1.35 million at June 30, 2011. Our available liquidity is limited to our existing working capital and cash flow that we will be able to generate from operations in the balance of 2011. While we continue to believe we have opportunities for new business in the near term, we may not have sufficient liquidity to sustain our operations through June 30, 2012. If we fail to meet our revenue expectations in our forecast for the balance of 2011 and beyond, it is probable that our independent registered public accounting firm will include an explanatory paragraph with respect to our ability to continue as a going concern in its report on our financial statements for the year ending December 31, 2011. These factors may make it more difficult for us to sign new contracts with clients and to obtain necessary capital or credit, and may have other effects that further adversely affect our ability to return to profitability.

If we fail to meet our revenue expectations in our forecast for the balance of calendar year 2011 or we are unable to control our expenses as planned, we could be required to seek other sources of liquidity during 2011 or seek or implement alternative strategies, which may include selling or liquidating assets, ceasing operations or, if appropriate, filing for bankruptcy. We are very carefully monitoring our forecasts for new business and our liquidity, and our Board of Directors has discussed and will continue to evaluate our options in light of our current cash position in order to satisfy our debts and maximize value for our stockholders. There can be no assurance that existing cash will be sufficient, that we will have access to the capital or credit markets if needed or that any of our strategies can be implemented on satisfactory terms, on a timely basis or at all to provide additional liquidity or maintain our current position.