Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

We evaluate all subsequent events and transactions for potential recognition or disclosure in our financial statements.

As noted in Note 9, during the second quarter, we became aware of a covenant breach, by HRM, contained in the Note Purchase Agreement. On July 17, 2012, we notified HRM of the breach and requested that HRM remedy the breach. On July 20, 2012, our Board of Directors unanimously agreed to enter into negotiations with HRM to settle the outstanding note receivable and to terminate our partnership interest in Acadia Acquisition Partners, L.P. We expect to settle the total outstanding note receivable and the partnership interest at an amount equal to $1,750,000. The impairment charge of $316,000 on the note receivable was recorded during the quarter ended June 30, 2012.

On July 20, 2012, our Board of Directors declared a dividend of one preferred share purchase right for each outstanding share of common stock, $0.0001 par value per share, of the Company. The dividend is payable to the stockholders of record on August 3, 2012. Each Right entitles the registered holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock, $0.0001 par value (Preferred Shares), of the Company, at a price of $27.00 per one one-hundredth of a Preferred Share, subject to adjustment. The description and terms of the Rights are set forth in a Rights Agreement, dated July 20, 2012, between the Company and Continental Stock Transfer & Trust Company, as Rights Agent. See Note 11, and Exhibit 4.1 to this Form 10-Q for more detail.