SUBSEQUENT EVENTS - RIGHTS OFFERING

3 Months Ended

Mar. 29, 2014

SUBSEQUENT EVENTS - RIGHTS OFFERING

SUBSEQUENT EVENTS - RIGHTS OFFERING

14. SUBSEQUENT EVENTS - RIGHTS OFFERING

The Company commenced a rights offering with the existing holders of its common stock on May 9, 2014.  Upon completion of the rights offering, assuming the rights offering is fully subscribed, the Company expects to receive aggregate proceeds of approximately $15.0 million before expenses, subject to the reduction or cancellation by the Company in its sole discretion.

The rights offering will be made through the Company’s distribution to its existing stockholders of non-transferable subscription rights to purchase their pro rata portion of newly issued shares of the Company’s common stock at a subscription price of $2.00 per share.  The record date for the distribution of the rights is May 8, 2014 and the rights offering is currently set to expire on May 22, 2014

The Company intends to use the net proceeds of the rights offering to for working capital.  However, the Company cannot assure any stockholders that the capital raised through the rights offering, if any, will be sufficient for this purpose.