NOTE 2 - GOING CONCERN

6 Months Ended

Jun. 29, 2013

Going Concern Disclosure [Abstract]

Going Concern Disclosure [Text Block]

NOTE 2 – GOING CONCERN

For most of 2012, the Company had operated under difficult circumstances.  For the year ended December 29, 2012, the Company reported a net loss of approximately $33.6 million that included a non-cash charge of approximately $16.9 million related to a goodwill impairment and a non-cash charge of approximately $6.8 million related to a valuation allowance established in connection with the Company’s deferred tax assets.   During 2012, its net borrowings under its revolving credit facilities increased approximately $10.5 million to fund its operations.  Due to challenging market conditions, its revenues and profitability declined during 2012.  Although the Company implemented a profit improvement plan in the fourth quarter of 2012, the results of that plan are not expected to be fully realized until later this year.  These circumstances raised substantial doubt about the Company's ability to continue as a going concern.  

During the first six months of 2013, the Company has reduced its net borrowings under its credit facilities by approximately $12.1 million, resulting in a $14.7 million balance as of June 29, 2013.  In addition, on July 15, 2013, the Company entered into a definitive agreement to sell substantially all of its Gulf Coast engineering and in-plant operations, with an expected closing date of August 30, 2013.  Net proceeds from the sale of these operations are anticipated to be approximately $18.0 million, subject to certain adjustments.  The Company plans to use the net proceeds to repay advances under the PNC Credit Facility and for working capital. The Company is presently negotiating the terms for an amended revolving credit facility.  Refer to Note 10 – Subsequent Event for additional information, including proforma financial information, related to the proposed sale of these Gulf Coast operations.