10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q/A

(Amendment No. 1)

(Mark One)

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: December 31, 2011

or

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from: to

Commission File Number: 0-28034

AdvanSource Biomaterials Corporation

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	04-3186647 (I.R.S. Employer Identification No.)
229 Andover Street, Wilmington, Massachusetts (Address of principal executive offices)	01887 (Zip Code)

(978) 657-0075

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x  No q

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes xq  No q

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

q  Large Accelerated Filer

q  Accelerated Filer

q  Non-accelerated Filer

x  Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes q  No x

As of November 2, 2012, there were 21,490,621 of the registrant’s Common Stock outstanding.

EXPLANATORY PARAGRAPH

Advansource Biomaterials Corporation is filing this Amendment No. 1 (“Amendment No. 1”) to its Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2011, originally filed with the Securities and Exchange Commission on February 14, 2012 (the “Original Filing”), for the sole purpose of including Interactive Data Files (Exhibit 101) formatted in XBRL (“Extensible Business Reporting Language”) with detail tagging of the notes to the consolidated financial statements as required by Rule 405 of Regulation S-T. We are also filing currently dated certifications of our Chief Executive Officer and Chief Financial Officer (Exhibits 31.1, 31.2, 32.1 and 32.2, respectively), as required under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

No changes have been made to the Original Filing other than the furnishing of the exhibits as set forth in Item 6 herein. This Amendment No. 1 continues to speak as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the Form 10-Q.

- 2 -

PART II.

OTHER INFORMATION

Item 6.

Exhibits

Exhibit No.	Description
31.1*	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Principal Financial and Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document.
101.SCH**	XBRL Taxonomy Extension Schema Document.
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document.

*

Included herewith.

**

Filed with this report in accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subjected to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AdvanSource Biomaterials Corporation
	By:	/s/ Michael F. Adams
		Michael F. Adams President and Chief Executive Officer (Principal Executive Officer)
	By:	/s/ David Volpe
		David Volpe Chief Financial Officer (Principal Financial and Accounting Officer)
Dated:  November 5, 2012

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Michael F. Adams, hereby certify that:

1.

I have reviewed this Amendment No. 1 to the Quarterly Report on Form 10-Q/A of AdvanSource Biomaterials Corporation (the “Company”);

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4.

The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Companyis made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.

Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.

Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5.

The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

Date:  November 5, 2012

/s/ Michael F. Adams

Michael F. Adams

President & Chief Executive Officer

(Principal Executive Officer)

EX-31.2

U  

EX-32.1

U  

EX-32.2

U  

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Inventories

9 Months Ended

Dec. 31, 2011

Notes

Inventories

6.       Inventories

Inventories, net, are stated at the lower of cost (first in, first out) or market and consist of the following:

(in thousands)	December 31, 2011	March 31, 2011
Raw materials, net	$274	$199
Work in progress	--	12
Finished goods, net	210	189
Total inventories, net	$484	$400

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Related Party Transactions

9 Months Ended

Dec. 31, 2011

Notes

Related Party Transactions

5.       Related Party Transactions

On January 1, 2007, the Company entered into a consulting agreement with Michael L. Barretti, a member of its Board of Directors, for an annualized fee of $50,000.  During the three and nine months ended December 31, 2010, the Company recognized $13,000 and $38,000, respectively, of expense related to services incurred under this agreement, which was recorded as selling, general and administrative expense.  In April 2010, the Company and Mr. Barretti mutually agreed to terminate the consulting agreement as of December 31, 2010.  A payment of approximately $37,000, representing the prorated consulting fee for the remaining nine (9) months through December 31, 2010, was paid to Mr. Barretti in April 2010.  Mr. Barretti continues as a director of the Company.

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011		Mar. 31, 2011
Current assets
Cash and cash equivalents	$ 860		$ 477
Accounts receivable-trade, net	161	[1]	69	[2]
Accounts receivable-other	164		84
Inventories, net	484		400
Prepaid expenses and other current assets	332		67
Total current assets	2,001		1,097
Property, plant and equipment, net	2,535		2,700
Deferred financing costs, net	102
Total assets	4,638		3,797
Current liabilities
Accounts payable	92		192
Accrued expenses	270		203
Current portion of financing obligation	32
Deferred revenue	48		41
Total current liabilities	442		436
Long-term liabilities
Long-term financing obligation	1,968
Total long-term liabilities	1,968
Total liabilities	2,410		436
Commitments and contingencies
Stockholders' equity
Preferred stock		[3]		[4]
Common stock	22	[5]	21	[6]
Additional paid-in capital	37,969		37,928
Accumulated deficit	(35,733)		(34,558)
Treasury stock	(30)	[7]	(30)	[8]
Total stockholders' equity	2,228		3,361
Total liabilities and stockholders' equity	$ 4,638		$ 3,797

[1] Net of allowance of $5 as of December 31, 2011.

[2] Net of allowance of $5 as March 31, 2011.

[3] $.001 par value, 5,000,000 shares authorized; 500,000 shares issued and none outstanding as of December 31, 2011.

[4] $.001 par value, 5,000,000 shares authorized; 500,000 shares issued and none outstanding as of March 31, 2011.

[5] $.001 par value, 50,000,000 shares authorized; 21,533,922 shares issued and 21,457,230 shares outstanding as of December 31, 2011.

[6] $.001 par value, 50,000,000 shares authorized; 21,426,747 shares issued and 21,350,055 shares outstanding as of March 31, 2011.

[7] 76,692 shares at cost at December 31, 2011.

[8] 76,692 shares at cost at March 31, 2011.

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Revenue Recognition

9 Months Ended

Dec. 31, 2011

Notes

Revenue Recognition

3.       Revenue Recognition

The Company generates revenue primarily from (i) the sale of polymer products and (ii) license, royalty and development agreements.

Product Sales

Revenues generated from the sale of polymer products is recognized upon shipment, provided that a purchase order has been received or a contract has been executed, there are no uncertainties regarding customer acceptance, the sales price is fixed or determinable and collection is deemed reasonably assured.  If uncertainties regarding customer acceptance exist, the Company recognizes revenues when those uncertainties are resolved and title has been transferred to the customer.  Amounts collected or billed prior to satisfying the above revenue recognition criteria are recorded as deferred revenue.

License, Royalty and Development Fees

The Company also receives license, royalty and development fees, pursuant to agreements with its customers, for the use of its proprietary polymer biomaterials.  The terms of the various license, royalty and development agreements may contain multiple deliverables which may include (i) licenses to use the Company’s polymer biomaterials in the customer’s end-product medical device, (ii) research and development activities, (iii) services and/or (iv) the manufacturing of polymer biomaterials.  Payments to the Company under these agreements may include non-refundable license fees, payments for research and development activities, payments for the manufacture of polymer materials, payments based upon the achievement of certain milestones, payments for the use of the Company’s polymer biomaterials in the customer’s end-product, and/or royalties earned on the sale of the customer’s end-product.

In October 2009, the FASB issued Accounting Standards Update (“ASU”) 2009-13, “Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”).”  The Company adopted the provisions of the new multiple-element arrangement guidance summarized in  ASU 2009-13 on April 1, 2011 on a prospective basis.  Therefore, this guidance is applicable to any contract entered into or modified on or subsequent to the date of adoption.  This guidance establishes a new hierarchy for determining the amount of arrangement consideration to allocate to each separable deliverable in an arrangement.  For those deliverables that qualify as separate units of accounting, the Company must assign value based on each deliverable’s  vendor-specific objective evidence (“VSOE”) of fair value if available, third-party evidence (“TPE”) of its value if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE or TPE is available.  Arrangement consideration is then allocated to all deliverables using the relative selling price method.  The residual method of allocation is not permissible under the new guidance.

In determining the separate units of accounting, management evaluates whether the delivered element has standalone value to the customer based on the consideration of the relevant facts and circumstances for each arrangement.  Factors considered in this determination include the customer’s research, development, production and product commercialization capabilities and the availability of these capabilities, as well as polymer development and manufacture expertise in the general marketplace.  In addition, the Company considers whether the customer can use the license for its intended purpose without the receipt of the remaining deliverables, whether the value of the license is dependent on the undelivered items and whether there are other vendors that can provide the undelivered item.

Management performs extensive analysis to determine the value, or selling price, of each unit of accounting.  The Company has been unable to establish VSOE due to the fact that it does not typically enter into arrangements where technology is licensed separately, rather, its arrangements are commingled with fees from royalties, usage of polymers within customer end-products, minimum purchases of polymer products manufactured and sold to customers by the Company, or a combination of the aforementioned.  Additionally, the Company has been unable to obtain TPE for any of its deliverables, without undue cost and effort.  Generally, the Company’s go-to-market strategy differs from that of its peers and its offerings contain a significant level of customization and differentiation such that the Company’s services are not interchangeable with those of its competitors.  Furthermore, the Company is unable to reliably determine what similar competitor products’ selling prices are on a standalone basis.

Management’s ESP is used for the Company’s licensing, royalty and development arrangements.  The Company determines that ESP for the elements of these arrangements is based on several factors, including, but not limited to, the terms of the arrangements, market conditions, historical analysis of contracts having similar elements, and the Company’s internal costs and gross margin objectives.  The determination of ESP is made through consultation with and formal approval by the Company’s management.  ESP for certain consultative services was determined based on consideration of time incurred by the Company to perform these services, consulting fees charged on a per-hour basis by the Company and by its vendors, and the Company’s pricing methodologies.

The Company’s arrangements generally do not include any provisions for cancellation, termination, or refunds that would significantly impact recognized revenue.

In June 2011, the Company entered into a non-exclusive license agreement and a consulting services agreement (collectively, the “Agreements”) with a major international developer and manufacturer of medical devices (“Customer”), which generally provides the Customer the right to use and know-how to produce a specific proprietary polymer biomaterial for a specific field of use (the “Licensed Polymer”) within the Customer’s suite of medical device products.  In accordance with the applicable accounting guidance, the Company determined the Agreements included the following units of accounting:  (i) transfer of technology and know-how related to the Licensed Polymer, (ii) consulting services related to the establishment of a facility to manufacture the Licensed Polymer by the Customer, (iii) assisting the Customer in validating the Licensed Polymer produced by the Customer, and (iv) consulting with the Customer in connection with the Customer’s efforts to obtain various regulatory approvals for medical devices incorporating the Licensed Polymer.

Upon the execution of the Agreements, the Company received an up-front payment of $150,000, and in July 2011, the Company received an additional $250,000 upon the transfer of technology and know-how related to the Licensed Polymer.  The Agreements also provide for additional payments upon the achievement of certain milestones, as previously described, each of which the Company considers substantive, and could total up to an additional $1,100,000.  The Agreements do not provide for any royalties or other fees upon the achievement of any or all of the milestones.  The Company determined that the transfer of technology and know-how of the Licensed Polymer represented a separate unit of accounting, and upon delivery, in accordance with the applicable accounting guidance, the Company recognized $400,000 of revenue during the nine month period ended December 31, 2011.  There were no additional milestones representing separate units of accounting  that resulted in the recognition of additional revenue on the Agreements during the three months ended December 31, 2011.

The adoption of this guidance resulted in an increase to revenue during the nine month period ended December 31, 2011 of approximately $400,000 over the amount which would have been recognized under the principles used in fiscal 2011.  Prior to the adoption of this guidance, the Company would have been required to defer revenue for license, royalty or development agreements until completion of the contracts or until recognized utilizing a proportional performance method of revenue recognition, based on the terms of the various agreements.

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Property, Plant and Equipment: Property, Plant and Equipment (Tables)

9 Months Ended

Dec. 31, 2011

Tables/Schedules

Property, Plant and Equipment

(in thousands)	December 31, 2011	March 31, 2011
Land	$500	$500
Building	2,705	2,705
Machinery, equipment and tooling	1,235	1,275
Furniture, fixtures and office equipment	285	285
	4,725	4,765
Less:  accumulated depreciation	(2,190)	(2,065)
	$2,535	$2,700

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Stock-Based Compensation

9 Months Ended

Dec. 31, 2011

Notes

Stock-Based Compensation

4.       Stock-Based Compensation

AdvanSource’s 1996 Employee, Director and Consultants Stock Option Plan (the “1996 Plan”) was approved by AdvanSource’s Board of Directors and Stockholders in March 1996.  A total of 7,000,000 shares were reserved for issuance under the 1996 Plan.  Under the terms of the 1996 Plan the exercise price of Incentive Stock Options issued under the 1996 Plan must be equal to the fair market value of the common stock at the date of grant.  In the event that Non Qualified Options are granted under the 1996 Plan, the exercise price may be less than the fair market value of the common stock at the time of the grant (but not less than par value).  In October 2003, the Company’s shareholders approved the AdvanSource 2003 Stock Option Plan (the “2003 Plan”), which authorizes the issuance of 3,000,000 shares of common stock with terms similar to the 1996 Plan.  In January 2006, the Company registered an additional 489,920 total shares of common stock in the 1996 Plan and 2003 Plan.  Total shares of common stock registered under the 1996 Plan and 2003 Plan (collectively, the “Plans”) are 10,489,920.  Substantially all of the stock options granted pursuant to the 1996 Plan provide for the acceleration of vesting of the shares of Common Stock subject to such options in connection with certain changes in control of the Company.  A similar provision is not included in the 2003 Plan.  Normally, options granted expire ten years from the grant date.

Activity under the Plans for the nine months ended December 31, 2011 is as follows:

	Options Outstanding	Weighted Average Exercise Price per Share	Weighted Average Remaining Contractual Term in Years	Aggregate Intrinsic Value (in thousands)
Options outstanding as of April 1, 2011	2,623,937	$1.09
Granted	--	--
Exercised	--	--
Cancelled, expired or forfeited	(297,816)	$1.04
Options outstanding as of December 31, 2011	2,326,121	$1.09	5.80	$--
Options exercisable as of December 31, 2011	2,046,121	$1.21	5.45	$--
Options vested or expected to vest as of December 31, 2011	2,326,121	$1.09	5.80	$--

The Company’s unaudited condensed consolidated statements of operations include stock-based compensation expense related to the Company’s stock option plans for employee and non-employee director awards and participation in the Company’s employee stock purchase plan in the amount of $11,000 and $27,000 for the three months ended December 31, 2011 and 2010, respectively; and $34,000 and $103,000 for the nine months ended December 31, 2011 and 2010, respectively.  There was no income tax benefit related to these costs.  As of December 31, 2011, the total amount of unrecognized stock-based compensation expense was approximately $51,000 which will be recognized over a weighted average period of 1.38 years.

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Revenues
Product sales	$ 179	$ 264	$ 694	$ 1,027
License, royalty and development fees	177	163	825	394
Total revenues	356	427	1,519	1,421
Cost of sales	204	348	578	1,070
Gross profit	152	79	941	351
Operating expenses
Research, development and regulatory	147	215	455	550
Selling, general and administrative	469	667	1,422	1,956
Impairment of long-lived assets			15
Total operating expenses	616	882	1,892	2,506
Income (loss) from operations	(464)	(803)	(951)	(2,155)
Interest and other expenses
Interest expense	36		73
Loss on extinguishment of promissory note	151		151
Total interest and other expense	187		224
Net loss	$ (651)	$ (803)	$ (1,175)	$ (2,155)
Net loss per common share, basic and diluted	$ (0.03)	$ (0.04)	$ (0.05)	$ (0.10)
Shares used in computing net loss per common share, basic	21,457	21,312	21,397	21,293
Shares used in computing net loss per common share, diluted	21,457	21,312	21,397	21,293

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Concentrations of Credit Risk and Major Customers

9 Months Ended

Dec. 31, 2011

Notes

Concentrations of Credit Risk and Major Customers

14.    Concentrations of Credit Risk and Major Customers

For the three and nine months ended December 31, 2011, four (4) and three (3) customers, respectively, represented 75% and 67%, respectively, of the Company’s total revenues.  For the three and nine months ended December 31, 2010, three (3) customers, respectively, represented 59% and 64%, respectively, of the Company’s total revenues.

As of December 31, 2011, the Company had accounts receivable-trade, net, of $101,000, or 63%, due from two (2) customers.  As of March 31, 2011, the Company had accounts receivable-trade, net, of $44,000, or 64%, due from three (3) customers.

As of December 31, 2011, the Company had $165,000 due from four (4) customers related to receivables on royalties, license and annual usage fees.  As of March 31, 2011, the Company had $84,000 due from two (2) customer related to receivables on royalties, license and annual usage fees.  These amounts are classified as accounts receivable-other in the accompanying unaudited condensed consolidated balance sheets.

Because of the concentration of the Company’s credit risk and customers, the Company’s results are susceptible to significant fluctuation from period-to-period, and we caution investors that past results may not be indicative of future performance.

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Document and Entity Information (USD $)	9 Months Ended
	Dec. 31, 2011	Feb. 14, 2012	Sep. 30, 2011
Document and Entity Information: [Abstract]
Entity Registrant Name	Advansource Biomaterials Corporation
Document Type	10-Q
Document Period End Date	Dec. 31, 2011
Amendment Flag	true
Amendment Description	Amendment No. 1
Entity Central Index Key	0001011060
Current Fiscal Year End Date	--03-31
Entity Common Stock, Shares Outstanding		21,457,230
Entity Public Float			$ 1,272,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

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Cornova

9 Months Ended

Dec. 31, 2011

Notes

Cornova

15.    Cornova

The Company partnered with CorNova, Inc. (“CorNova”), a privately-held, development stage company, which is developing medical devices for cardiovascular applications.  As a result of several dilutive financings by CorNova, the Company’s ownership interest decreased, accordingly, the Company began using the cost method of accounting during fiscal 2009.  As of December 31, 2011, the Company’s ownership interest in CorNova was less than 1.5%.  The Company has no additional obligation to contribute assets or additional common stock nor to assume any liabilities or to fund any losses that CorNova may incur.  There is no value assigned to the Company’s investment in CorNova at December 31, 2011 and March 31, 2011.

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities
Net loss	$ (1,175)	$ (2,155)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation	150	187
Amoritization of deferred financing costs	15
Loss on extinguishment of promissory note	151
Impairment of long-lived assets	15
Stock-based compensation	34	103
Changes in assets and liabilities:
(Increase) decrease in accounts receivable-trade	(92)	55
(Increase) decrease in accounts receivable-other	(80)	(5)
(Increase) decrease in inventories	(84)	(32)
(Increase) decrease in prepaid expenses and other current assets	(265)	15
Increase (decrease) in accounts payable	(100)	25
Increase (decrease) in accrued expenses	67	114
Increase (decrease) in deferred revenue	7	(8)
Net cash flows used in operating activities	(1,357)	(1,701)
Purchases of property, plant and equipment		(2)
Net cash flows used in investing activities		(2)
Cash flows from financing activities
Issuance of common stock	8	8
Proceeds from sale-leaseback financing transaction	2,000
Deferred financing costs	(169)
Proceeds from issuance of promissory note	800
Repayment of promissory note	(800)
Prepayment penalty on promissory note	(99)
Net cash flows provided by (used in) financing activities	1,740	8
Net change in cash and cash equivalents	383	(1,695)
Cash and cash equivalents at beginning of period	477	3,055
Cash and cash equivalents at end of period	860	1,360
Supplemental disclosures of cash flow information
Interest paid	$ 49