XML 18 R19.htm IDEA: XBRL DOCUMENT  v2.3.0.11
MANAGEMENT PLAN
6 Months Ended
Jul. 03, 2011
Management Plan [Abstract]  
MANAGEMENT PLAN

NOTE N — MANAGEMENT PLAN

In 2011, the Company’s management plan is to continue cost cutting efforts, by improving gross margins viastrategic sourcing and improved efficiencies. Additionally, during the last part of 2010, the Company added salesmen in key areas, in order to grow core revenues, and may add additional salesmen. The Company continues pursuing the divestiture ofHKEC, as this business does not fit with the Company’s core business competencies. The Company continues to also consider strategic alternatives, including those that may affect it’s capital structure. Lastly, the Company will pursuerenewing it’s lending facility with Wells Fargo. By doing such, management believes the Company can significantly reduce its interest expense, increase its base borrowing and eliminate lending restrictions currently in place.

The Company has obtained a 60-day extension (the “Ninth Amendment”) of its Wells Fargo line of credit, through August 30,2011. The Company and Wells Fargo have not yet finalized the new credit facility which the Company needs to be able to retire the Wells Fargo line of credit by the August 30, 2011 termination date and to operate throughout 2011. Additionally,$4,000 of other debt is currently scheduled to mature in 2011. These conditions, coupled with its recurring losses from operations, raise substantial doubt as to the Company’s ability to continue as a going concern. No adjustments to thereported financial statements have been made that may result from this uncertainty.