Accounting Changes and Error Corrections

6 Months Ended

Jun. 30, 2015

Accounting Changes and Error Corrections:

Immaterial Error Correction

Correction of an Immaterial Error

The Company identified an immaterial error related to its classification on the consolidated balance sheet for an accrued liability that is due more than a year after the balance sheet date. The Company determined that in accounting for this accrued liability, it did not properly classify it in long-term liabilities on the consolidated balance sheet as of December 31, 2014.  The Company reviewed the impact of this error on the prior periods in accordance with SEC guidelines on materiality of the error from a qualitative and quantitative perspective and determined that the error was not material to the prior period consolidated financial statements.  However, the Company has corrected the balance sheet for the year ended December 31, 2014 by increasing the long-term accrued expenses and decreasing the accounts payable and accrued expenses in current liabilities by $213,000.  The impact of the error increased our working capital ratio from .56:1 to .57:1 as of December 31, 2014.  In addition, the error had no impact on our financial bank covenants as of December 31, 2014.