Liquidity.

6 Months Ended

Jun. 30, 2012

Liquidity.

Liquidity.

5.Liquidity.

As of June 30, 2012, the Company had a working capital deficit of $829, as compared to the working capital deficit of $2,170 at December 31, 2011.  Net cash provided by operations for the six months ended June 30, 2012 was $845 versus $1,711 for the same prior year period.

As of June 30, 2012, the Company had fully drawn down its credit facility’s limit of Czech Koruna (“CZK”) 35,000.  The credit line matures on November 4, 2012, while the amortized loan matures on November 4, 2013.  The Company expects to pay a quarterly payment of $378 each at the end of August and November of 2012 and February and May of 2013, to repay the amortized loan.  The Company expects to repay both loan and line of credit on or before their dates of maturity and was in full compliance with the credit facility’s financial covenants at June 30, 2012.

The Company’s management believes that its cash resources at June 30, 2012, in addition to the anticipated cash to be provided by existing operations, will be sufficient to satisfy its accounts payable and other current obligations and to fund its operating activities for the next twelve months.