Note 12.

Liquidity

Management has forecasted revenues and related costs as well as investing plans and financing needs to determine liquidity to meet cash flow requirements and believes the Company will have sufficient liquidity at least through December 31, 2014. This forecast was based on current cash levels and debt obligations, and the best estimates of revenues primarily from existing customers and gave consideration to the continued and possible increased levels of uncertainty in demand in the markets in which the Company operates. The Company’s ability to maintain current operations is dependent upon its ability to achieve these forecasted results, which the Company believes will occur.

The Company currently does not have any available sources of additional external funding. The revolving line of credit arrangement with its senior lender expired on April 13, 2012. There was no balance outstanding under this arrangement at maturity. The Company did not have the need to draw on the revolving line of credit since the original commitment date of January 13, 2009. The Company does not anticipate the need for a similar credit facility in 2014; although it may pursue revolving credit arrangements as working capital requirements increase. The Company’s ability to obtain a new line of credit, if deemed necessary, is not certain.

During the second quarter of 2013 the Company enacted various cost cutting measures which included management wage reductions and reduced work hours where feasible. Due to increased customer demand during the fourth quarter all wage reductions ended and employees returned to full work schedules. Should projected sales and gross profit fall below levels expected to be achieved, cost reduction actions could be reinstituted, which we believe would facilitate the continued operation of the Company. The implementation of such reductions and the timing of their impact are not fully predictable.

During the third quarter of 2013, the Company replaced an existing Promissory Note with The Huntington National Bank with a new Promissory Note which extended the maturity date from February 2014 to August 2016. The Company also agreed to payment schedule modifications for two loans with the Ohio Development Services Agency and one loan with the Ohio Air Quality Development Authority as discussed in Note 4 of the financial statements. These debt modifications will ease cash flow requirements relating to debt servicing in 2014.