Adjustment of Prior Year Financial Statement Amounts

6 Months Ended

Jun. 30, 2011

Adjustment of Prior Year Financial Statement Amounts

2. Adjustment of Prior Year Financial Statement Amounts

During the three months ended December 31, 2010, the Company determined that certain immaterial corrections were required to be made to previously issued financial statements.  Specifically, the Company determined that its valuation allowance for deferred tax assets was understated and as a result income tax expense was also understated.  This error was caused by improperly considering as a source of future taxable income the reversal of taxable temporary differences associated with goodwill that have an indefinite reversal period.  Accordingly, an increase in the valuation allowance is required for deferred tax assets.

The following table summarizes the effects of the corrections to the Company’s consolidated balance sheet and consolidated statement of operations as of and for the three and six months ended June 30, 2010.

	As Adjusted			As Previously Reported
As of June 30, 2010
Consolidated Balance Sheet:
Deferred tax liability	$	940,197		$	312,670
Total liabilities		11,254,055			10,626,528
Shareholders’ equity		26,791,550			27,419,077
For the three months ended June 30, 2010
Consolidated Statement of Operations:
Income taxes		124,944			81,159
Net loss		(976,640	)		(932,855	)
Net loss per common share		(0.15	)		(0.14	)
For the six months ended June 30, 2010
Consolidated Statement of Operations:
Income taxes		225,222			137,652
Net loss		(1,555,329	)		(1,467,759	)
Net loss per common share		(0.25	)		(0.24	)

The adjustment does not impact the previously reported total amounts of consolidated cash flows from operating, investing and financing activities.