SUBSEQUENT EVENT

On April 29, 2013, the Company announced the separation of Walter J. Parks, Chief Operating Officer (“C.O.O.”) and Chief Financial Officer, effective on May 3, 2013. There are no disagreements between Mr. Parks and the Company on any matter relating to the Company’s operations, policies and practices. The Company has promoted Liyuan Woo to the position of Chief Financial Officer; she will also retain the Principal Accounting Officer title. The Chief Operating Officer position will not be filled and Steve Birkhold, the Company’s Chief Executive Officer, will assume the C.O.O. responsibilities. The Company will accrue for costs associated with this separation in the fiscal fourth quarter of 2013. The Separation Agreement has been included as an exhibit to this Form 10-Q.