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THESTREET, INC.
10-K
--12-31
32336594
85000000
false
0001080056
Yes
No
Accelerated Filer
No
2011
FY
2011-12-31
<p>
<font size="2"><b>(1) Organization, Nature of Business and
Summary of Operations and Significant Accounting
Policies</b></font>
</p><br/><p>
<font size="2"><b>Organization and Nature of
Business</b></font>
</p><br/><p>
<font size="2">          TheStreet,
Inc. together with its wholly owned subsidiaries
(“we”, “us” or the “Company”),
is a leading digital financial media company whose collection
of digital services provides users, subscribers and
advertisers with a variety of content and tools through a
range of online, social media, tablet and mobile channels.
Our mission is to provide actionable ideas from the world of
investing, finance and business in order to break down
information barriers, level the playing field and help all
individuals and organizations grow their wealth. With a
robust suite of digital services, TheStreet offers the tools
and insight needed to make informed decisions about earning,
investing, saving and spending money.</font>
</p><br/><p>
<font size="2">          In
June 2005, the Company committed to a plan to discontinue the
operations of its wholly-owned subsidiary, Independent
Research Group LLC, which operated the Company’s
securities research and brokerage segment. Accordingly, the
operating results relating to this segment have been
segregated from continuing operations and reported as a
separate line item on the consolidated statements of
operations. See Note 2 to Consolidated Financial Statements
(Discontinued Operations). Since that time the Company has
only had one reportable operating segment.</font>
</p><br/><p>
<font size="2">          Substantially
all of the Company’s revenue in 2011, 2010 and 2009 was
generated from customers in the United States. During 2011,
2010 and 2009, all of the Company’s long-lived assets
were located in the United States.</font>
</p><br/><p>
<font size="2"><b>Use of Estimates</b></font>
</p><br/><p>
<font size="2">          The
preparation of financial statements in conformity with U.S.
generally accepted accounting principles (“GAAP”)
requires management to make estimates and assumptions.
Significant estimates include the allowance for doubtful
accounts receivable, valuation allowance of deferred taxes,
the useful lives of long-lived and intangible assets, the
valuation of goodwill and intangible assets, the carrying
value of marketable securities, as well as accrued expense
estimates including income tax liabilities and certain
estimates and assumptions used in the calculation of the fair
value of equity compensation issued to employees, that affect
the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and
expense during the reporting period. Actual results could
differ from those estimates.</font>
</p><br/><p>
<font size="2"><b>Consolidation</b></font>
</p><br/><p>
<font size="2">          The
consolidated financial statements have been prepared in
accordance with GAAP and include the accounts of TheStreet,
Inc. and its wholly-owned subsidiaries. All intercompany
balances and transactions have been eliminated in
consolidation.</font>
</p><br/><p>
<font size="2"><b>Revenue Recognition</b></font>
</p><br/><p>
<font size="2">          The
Company generates its revenue primarily from premium and
marketing services.</font>
</p><br/><p>
<font size="2">          Premium
services include subscription fees paid by customers for
access to particular investment information and rate services
for the term of the subscription as well as syndication and
licensing revenue. Subscriptions are generally charged to
customers’ credit cards or are directly billed to
corporate subscribers. These are generally billed in advance
on a monthly or annual basis. The Company calculates net
subscription revenue by deducting from gross revenue an
estimate of potential refunds from cancelled subscriptions as
well as chargebacks of disputed credit card charges. Net
subscription revenue is recognized ratably over the
subscription periods. Deferred revenue relates to
subscription fees for which amounts have been collected but
for which revenue has not been recognized because services
have not yet been provided.</font>
</p><br/><p>
<font size="2">          Subscription
revenue is subject to estimation and variability due to the
fact that, in the normal course of business, subscribers may,
for various reasons contact us or their credit card companies
to request a refund or other adjustment for a previously
purchased subscription. With respect to most of our annual
subscription products, we offer the ability to receive a
refund during the first 30 days but none thereafter.
Accordingly, we maintain a provision for estimated future
revenue reductions resulting from expected refunds and
chargebacks related to subscriptions for which revenue was
recognized in a prior period. The calculation of this
provision is based upon historical trends and is reevaluated
each quarter. The provision was not material for the three
years ended December 31, 2011.</font>
</p><br/><p>
<font size="2">          Marketing
services include advertising revenue, which is derived from
the sale of Internet sponsorship arrangements and from the
delivery of banner, tile, contextual, performance-based and
interactive advertisement and sponsorship placements in our
advertising-supported Web sites, and is recognized as the
advertising is displayed, provided that collection of the
resulting receivable is reasonably assured. Marketing
services revenue also includes licensing fees paid by third
parties to obtain the right to display the Company’s
awards logos on their Web sites and marketing materials in
relation to certain award designations.</font>
</p><br/><p>
<font size="2">          Marketing
services also include revenue associated with the
Company’s former subsidiary, Promotions.com, which the
Company sold in December 2009 – see Note 3 (Acquisitions
and Divestitures) for further discussion. Promotions.com
generated revenue from Web site design, promotion management
and hosting services. The Company typically entered into
arrangements on a fixed fee basis for these services. Revenue
generated from Web site design services was recognized upon
acceptance from the customer or on a straight-line basis over
the hosting period if the Company performed Web site design
services and hosted the software. Revenue from promotions
management services was recognized straight-line over the
promotion period as the promotions were designed to only
operate on Promotions.com’s proprietary platform.
Hosting services were recognized straight-line over the
hosting period. Revenue for contracts with multiple elements
was allocated based on the element’s fair value. Fair
value was determined based on the prices charged when each
element was sold separately. Elements qualified for
separation when the services had value on a stand-alone basis
and fair value of the undelivered elements existed.
Determining fair value and identifying separate elements
required judgment, as generally fair value was not readily
identifiable as the Company did not sell those elements
individually at consistent pricing.</font>
</p><br/><p>
<font size="2"><b>Cash, Cash Equivalents and Restricted
Cash</b></font>
</p><br/><p>
<font size="2">          The
Company considers all short-term investment-grade securities
with original maturities of three months or less from the
date of purchase to be cash equivalents. The Company has a
total of approximately $1.7 million of cash that serves as
collateral for an outstanding letter of credit, and which
cash is therefore restricted. The letter of credit serves as
a security deposit for the Company’s office space in New
York City. As the lease agreement allows for a reduction in
the amount of the security deposit as of November 2012, a
portion of the restricted cash has been classified as a
current asset.</font>
</p><br/><p>
<font size="2"><b>Property and Equipment</b></font>
</p><br/><p>
<font size="2">          Property
and equipment are stated at cost, net of accumulated
depreciation and amortization. Property and equipment are
depreciated on a straight-line basis over the estimated
useful lives of the assets. The estimated useful life of
computer equipment, computer software and telephone equipment
is three years; of furniture and fixtures is five years; and
of capitalized software and Web site development costs is
variable based upon the applicable project. During the year
ended December 31, 2011, completed capitalized software and
Web site development projects were deemed to have a two to
three year useful life. Leasehold improvements are amortized
on a straight-line basis over the shorter of the respective
lease term or the estimated useful life of the asset.</font>
</p><br/><p>
<font size="2"><b>Capitalized Software and Web Site
Development Costs</b></font>
</p><br/><p>
<font size="2">          The
Company expenses all costs incurred in the preliminary
project stage for software developed for internal use and
capitalizes all external direct costs of materials and
services consumed in developing or obtaining internal-use
computer software in accordance with Accounting Standards
Codification (“ASC”) 350, <i>Intangibles –
Goodwill and Other</i> (“ASC 350”)<i>.</i> In
addition, for employees who are directly associated with and
who devote time to internal-use computer software projects,
to the extent of the time spent directly on the project, the
Company capitalizes payroll and payroll-related costs of such
employees incurred once the development has reached the
applications development stage. For the years ended December
31, 2011, 2010 and 2009, the Company capitalized software
development costs totaling approximately $0.9 million, $0.8
million and $0.5 million, respectively. All costs incurred
for upgrades, maintenance and enhancements that do not result
in additional functionality are expensed.</font>
</p><br/><p>
<font size="2">          The
Company also accounts for its Web site development costs
under ASC 350<i>,</i> which provides guidance on the
accounting for the costs of development of company Web sites,
dividing the Web site development costs into five stages: (1)
the planning stage, during which the business and/or project
plan is formulated and functionalities, necessary hardware
and technology are determined, (2) the Web site application
and infrastructure development stage, which involves
acquiring or developing hardware and software to operate the
Web site, (3) the graphics development stage, during which
the initial graphics and layout of each page are designed and
coded, (4) the content development stage, during which the
information to be presented on the Web site, which may be
either textual or graphical in nature, is developed, and (5)
the operating stage, during which training, administration,
maintenance and other costs to operate the existing Web site
are incurred. The costs incurred in the Web site application
and infrastructure stage, the graphics development stage and
the content development stage are capitalized; all other
costs are expensed as incurred. Amortization of capitalized
costs will not commence until the project is completed and
placed into service. For the years ended December 31, 2011,
2010 and 2009, the Company capitalized Web site development
costs totaling approximately $0.4 million, $0.6 million and
$0.3 million, respectively.</font>
</p><br/><p>
<font size="2">          Capitalized
software and Web site development costs are amortized using
the straight-line method over the estimated useful life of
the software or Web site. Total amortization expense was
approximately $2.2 million, $1.6 million and $1.2 million,
for the years ended December 31, 2011, 2010 and 2009,
respectively.</font>
</p><br/><p>
<font size="2"><b>Goodwill and Other Intangible
Assets</b></font>
</p><br/><p>
<font size="2">          Goodwill
represents the excess of purchase price and related
acquisition costs over the value assigned to the net tangible
and identifiable intangible assets of businesses acquired.
Under the provisions of ASC 350, goodwill and
indefinite-lived intangible assets are required to be tested
for impairment on an annual basis and between annual tests
whenever indications of impairment exist. Impairment exists
when the carrying amount of goodwill and indefinite-lived
intangible assets exceeds its implied fair value, resulting
in an impairment charge for this excess.</font>
</p><br/><p>
<font size="2">          The
Company evaluates goodwill and indefinite-lived intangible
assets for impairment using a two-step impairment test
approach at the Company level. In the first step, the fair
value of the Company is compared to its book value, including
goodwill and indefinite-lived intangible assets. If the fair
value of the Company is less than the book value, a second
step is performed that compares the implied fair value of the
Company’s goodwill and indefinite-lived intangible
assets to the book value of the goodwill and indefinite-lived
intangible assets. The fair value for the goodwill and
indefinite-lived intangible assets is determined based on the
difference between the fair value of the Company and the net
fair values of identifiable assets and liabilities. If the
fair value of the goodwill and indefinite-lived intangible
assets is less than the book value, the difference is
recognized as impairment. We test for goodwill impairment at
the enterprise level as the Company is considered to operate
as a single reporting unit.</font>
</p><br/><p>
<font size="2">          The
Company evaluates the remaining useful lives of intangible
assets each year to determine whether events or circumstances
continue to support their useful life. There have been no
changes in useful lives of intangible assets for each period
presented.</font>
</p><br/><p>
<font size="2">          Based
upon annual impairment tests performed as of September 30,
2011 and 2010, no impairment was indicated as the
Company’s fair value, excluding a control premium,
exceeded its book value by approximately 6% and 38%,
respectively. Had a control premium been factored into the
Company’s Common Stock fair value calculation, the
excess of the fair value over its book value would have been
greater. As of December 31, 2011, the Company performed an
interim impairment test of its goodwill due to certain
potential impairment indicators, including a decline in the
Company’s Common Stock price as well as the loss of
certain key personnel. The fair value of the Company’s
goodwill was estimated using a market approach, based upon
actual prices of the Company’s Common Stock excluding
any control premium, and the estimated fair value of the
company’s outstanding preferred shares. The fair value
of the Company’s outstanding preferred shares requires
significant judgments, including the estimation of the amount
of time until a liquidation event occurs as well as an
appropriate cash flow discount rate. Further, in assigning a
fair value to the Company’s preferred stock, the Company
also considered that the preferred shareholders are entitled
to receive a $55 million liquidation preference upon
liquidation or dissolution of the Company or upon any change
of control event (as defined in the Certificate of
Designation of Series B Preferred Stock). Additionally, the
holders of the preferred shares are entitled to receive
dividends and to vote as a single class together with the
holders of the Common Stock on an as-converted basis and
provided certain preferred share ownership levels are
maintained, are entitled to representation on the
Company’s board of directors and may unilaterally block
issuance of certain classes of capital stock, the purchase or
redemption of certain classes of capital stock, including
Common Stock (with certain exceptions) and any increases in
the per-share amount of dividends payable to thje holders of
the Common Stock. As a result of this December 31, 2011
impairment test, the Company concluded that goodwill was not
impaired. A dcecrease in the price of the Company’s
Common Stock, or changes in the estimated value of the
Company’s preferred shares, could materially affect the
determination of the fair value and could result in an
impairment charge to reduce the carrying value of goodwill,
which could be material to the Company’s financial
position and results of operations. Additionally, the Company
believes that there were no events or changes in
circumstances since September 30, 2011 that would lead us to
believe there was any triggering event that would warrant an
interim review for impairment of our indefinite-lived
intangible assets.</font>
</p><br/><p>
<font size="2">          In
connection with the disposition of certain assets of
TheStreet Ratings business (those pertaining to banking and
insurance ratings) in May 2010 (see Note 3 (Acquisitions and
Divestitures)), the Company concluded that this event
warranted an additional impairment test which resulted in no
additional impairment as the Company’s fair value
exceeded its book value by approximately 45%.</font>
</p><br/><p>
<font size="2">          In
the first quarter of 2009, the Company performed an interim
impairment test of its goodwill and indefinite-lived
intangible assets due to certain impairment indicators,
including a continued decline in both advertising and
subscription revenue resulting from the challenging economic
environment and a reduction in the Company’s enterprise
value. As a result of this test, the Company recorded an
impairment charge of approximately $22.6 million, as follows:
the total Company fair value was estimated using a
combination of a discounted cash flow model (present value of
future cash flows) and the Company’s business enterprise
value based upon the fair value of its outstanding common and
preferred shares. The fair value of the Company’s
goodwill and indefinite-lived intangible assets is the
residual fair value after allocating the Company’s total
fair value to its other assets and liabilities. This analysis
resulted in an impairment charge of approximately $19.8
million. The review also revealed an additional impairment to
the Company’s intangible assets related to certain
customer relationships and noncompete agreements of
approximately $2.8 million. See Note 3 (Acquisitions and
Divestitures) for further information related to the
individual impairments recorded.</font>
</p><br/><p>
<font size="2"><b>Long-Lived Assets</b></font>
</p><br/><p>
<font size="2">          The
Company evaluates long-lived assets, including amortizable
identifiable intangible assets, for impairment whenever
events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Upon such an
occurrence, recoverability of assets is measured by comparing
the carrying amount of an asset to forecasted undiscounted
net cash flows expected to be generated by the asset. If the
carrying amount of the asset exceeds its estimated future
cash flows, an impairment charge is recognized for the amount
by which the carrying amount of the asset exceeds the fair
value of the asset. Management does not believe that there is
any impairment of long-lived assets at December 31,
2011.</font>
</p><br/><p>
<font size="2"><b>Income Taxes</b></font>
</p><br/><p>
<font size="2">          The
Company accounts for its income taxes in accordance with ASC
740-10, <i>Income Taxes</i> (“ASC 740-10”). Under
ASC 740-10, deferred tax assets and liabilities are
recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts
of existing assets and liabilities and their tax bases. ASC
740-10 also requires that deferred tax assets be reduced by a
valuation allowance if it is more likely than not that some
or all of the deferred tax assets will not be realized based
on all available positive and negative evidence. As of
December 31, 2011 and 2010, we maintained a full valuation
allowance against our deferred tax assets due to our prior
history of pre-tax losses and uncertainty about the timing of
and ability to generate taxable income in the future and our
assessment that the realization of the deferred tax assets
did not meet the “more likely than not” criterion
under ASC 740-10.</font>
</p><br/><p>
<font size="2">          ASC
740-10 also prescribes a recognition threshold and a
measurement attribute for the financial statement recognition
and measurement of tax positions taken or expected to be
taken in a tax return. For those benefits to be recognized, a
tax position must be more likely than not to be sustained
upon examination by taxing authorities. Differences between
tax positions taken or expected to be taken in a tax return
and the benefit recognized and measured pursuant to the
interpretation are referred to as “unrecognized
benefits.” A liability is recognized for an unrecognized
tax benefit because it represents an enterprise’s
potential future obligation to the taxing authority for a tax
position that was not recognized as a result of applying the
provisions of ASC 740-10. As of December 31, 2011 and 2010,
no liability for unrecognized tax benefits was required to be
recorded. Interest costs related to unrecognized tax benefits
would be classified within “Net interest income” in
the consolidated statements of operations. Penalties would be
recognized as a component of “General and
administrative” expenses. There is no interest expense
or penalty related to tax uncertainties reported in the
consolidated statements of operations.</font>
</p><br/><p>
<font size="2">          Deferred
tax assets pertaining to windfall tax benefits on exercise of
share awards and the corresponding credit to additional
paid-in capital are recorded if the related tax deduction
reduces tax payable. The Company has elected the
“with-and-without approach” regarding ordering of
windfall tax benefits to determine whether the windfall tax
benefit did reduce taxes payable in the current year. Under
this approach, the windfall tax benefits would be recognized
in additional paid-in capital only if an incremental tax
benefit is realized after considering all other tax benefits
presently available to the Company.</font>
</p><br/><p>
<font size="2">          The
Company files income tax returns in the United States
(federal) and in various state and local jurisdictions. In
most instances, the Company is no longer subject to federal,
state and local income tax examinations by tax authorities
for years prior to 2008, and is not currently under
examination by any federal, state or local jurisdiction. It
is not anticipated that unrecognized tax benefits will
significantly change in the next twelve months.</font>
</p><br/><p>
<font size="2"><b>Fair Value of Financial
Instruments</b></font>
</p><br/><p>
<font size="2">          The
carrying amounts of cash and cash equivalents, restricted
cash, accounts and other receivables, accounts payable,
accrued expenses and deferred revenue approximate fair value
due to the short-term maturities of these instruments.</font>
</p><br/><p>
<font size="2"><b>Business Concentrations and Credit
Risk</b></font>
</p><br/><p>
<font size="2">          Financial
instruments that subject the Company to concentrations of
credit risk consist primarily of cash, cash equivalents and
restricted cash. The Company maintains all of its cash, cash
equivalents and restricted cash in six domestic financial
institutions, and performs periodic evaluations of the
relative credit standing of these institutions. As of
December 31, 2011, the Company’s cash and cash
equivalents primarily consisted of money market funds and
checking accounts.</font>
</p><br/><p>
<font size="2">          For
the years ending December 31, 2011, 2010 and 2009, no
individual client accounted for 10% or more of consolidated
revenue. As of December 31, 2011, one client accounted for
more than 10% of our gross accounts receivable balance. As of
December 31, 2010, one client accounted for more than 10% of
our gross accounts receivable balance. As of December 31,
2009, two clients accounted for more than 10% each of our
gross accounts receivable balance.</font>
</p><br/><p>
<font size="2">          The
Company’s customers are primarily concentrated in the
United States and we carry accounts receivable balances. The
Company performs ongoing credit evaluations, generally does
not require collateral and establishes an allowance for
doubtful accounts based upon factors surrounding the credit
risk of customers, historical trends and other information.
To date, actual losses have been within management’s
expectations.</font>
</p><br/><p>
<font size="2"><b>Other Comprehensive (Loss)
Income</b></font>
</p><br/><p>
<font size="2">          Comprehensive
(loss) income is a measure which includes both net loss and
other comprehensive (loss) income. Other comprehensive (loss)
income results from items deferred from recognition into the
statement of operations. Accumulated other comprehensive
(loss) income is separately presented on the Company’s
consolidated balance sheet as part of stockholders’
equity.</font>
</p><br/><p>
<font size="2"><b>Net Loss Per Share of Common
Stock</b></font>
</p><br/><p>
<font size="2">          Basic
net loss per share is computed using the weighted average
number of common shares outstanding during the period.
Diluted net loss per share is computed using the weighted
average number of common shares and, if dilutive, potential
common shares outstanding during the period. Potential common
shares consist of restricted stock units (using the treasury
stock method), the incremental common shares issuable upon
the exercise of stock options (using the treasury stock
method), and the conversion of the Company’s convertible
preferred stock and warrants (using the if-converted method).
For the years ended December 31, 2011 and 2010, approximately
4.5 million and 4.0 million, respectively, unvested
restricted stock units, vested and unvested options and
warrants to purchase Common Stock were excluded from the
calculation, as their effect would be anti-dilutive because
the exercise prices were greater than the average market
price of the Common Stock during the respective periods and
because the Company recorded a net loss.</font>
</p><br/><p>
<font size="2"><b>Advertising Costs</b></font>
</p><br/><p>
<font size="2">          Advertising
costs are expensed as incurred with the exception of direct
response radio and television advertising, which is
capitalized and expensed over a one year period. For the
years ended December 31, 2011, 2010 and 2009, advertising
expense totaled approximately $3.7 million, $4.1 million and
$1.7 million, respectively. As of December 31, 2011, 2010 and
2009, there was approximately $0.0 million, $0.3 million and
$0.1 million, respectively, of deferred direct response
advertising costs.</font>
</p><br/><p>
<font size="2"><b>Stock-Based Compensation</b></font>
</p><br/><p>
<font size="2">          We
account for stock-based compensation under ASC 718-10,
<i>Share Based Payment Transactions</i> (“ASC
718-10”). This requires that the cost resulting from all
share-based payment transactions be recognized in the
financial statements based upon estimated fair values.</font>
</p><br/><p>
<font size="2">          Stock-based
compensation expense recognized for the years ended December
31, 2011, 2010 and 2009 was approximately $3.4 million, $2.3
million and $2.7 million, respectively. As of December 31,
2011, there was approximately $5.4 million of unrecognized
stock-based compensation expense remaining to be recognized
over a weighted-average period of 2.3 years.</font>
</p><br/><p>
<font size="2">          The
Company estimates the fair value of share-based payment
awards on the date of grant. The value of stock options
granted to employees and directors is estimated using an
option-pricing model. The value of each restricted stock unit
under the Company’s 2007 Performance Incentive Plan (the
“2007 Plan”) is equal to the closing price per
share of the Company’s Common Stock on the date of
grant. The value of the portion of the award that is
ultimately expected to vest is recognized as expense over the
requisite service periods.</font>
</p><br/><p>
<font size="2">          Stock-based
compensation expense recognized in the Company’s
consolidated statements of operations for the years ended
December 31, 2011, 2010 and 2009 includes compensation
expense for all share-based payment awards based upon the
estimated grant date fair value. The Company recognizes
compensation expense for share-based payment awards on a
straight-line basis over the requisite service period of the
award. As stock-based compensation expense recognized in the
years ended December 31, 2011, 2010 and 2009 is based upon
awards ultimately expected to vest, it has been reduced for
estimated forfeitures. The Company estimates forfeitures at
the time of grant which are revised, if necessary, in
subsequent periods if actual forfeitures differ from those
estimates.</font>
</p><br/><p>
<font size="2">          The
Company estimates the value of employee stock options on the
date of grant using the Black-Scholes option-pricing model.
This determination is affected by the Company’s stock
price as well as assumptions regarding expected volatility,
risk-free interest rate, and expected dividends. The amount
of equity-based compensation expense recorded each period is
net of estimated forfeitures. The weighted-average fair value
of employee stock options granted during the years ended
December 31, 2011 and 2010 was $0.89 and $1.15, respectively,
using the Black-Scholes model with the weighted-average
assumptions presented below. No employee stock options were
granted during the year ended December 31, 2009. Because
option-pricing models require the use of subjective
assumptions, changes in these assumptions can materially
affect the fair value of the options. The assumptions
presented in the table below represent the weighted-average
value of the applicable assumption used to value stock
options at their grant date. In determining the volatility
assumption, the Company used a historical analysis of the
volatility of the Company’s share price for the
preceding period equal to the expected option lives. The
expected option lives, which represent the period of time
that options granted are expected to be outstanding, were
estimated based upon the “simplified” method for
“plain-vanilla” options. The risk-free interest
rate assumption was based upon observed interest rates
appropriate for the term of the Company’s employee stock
options. The dividend yield assumption was based on the
history and expectation of future dividend payouts. The
periodic expense is determined based on the valuation of the
options, and at that time an estimated forfeiture rate is
used to reduce the expense recorded. The Company’s
estimate of pre-vesting forfeitures is primarily based on the
Company’s historical experience and is adjusted to
reflect actual forfeitures as the options vest.</font>
</p><br/><table align="center" border="0" cellspacing="0" cellpadding="0" width="60%">
<tr style="FONT-SIZE:1PX">
<td width="30%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2">For the Years Ended December 31,</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr style="FONT-SIZE:1 PX">
<td valign="bottom">
<p>
 
</p>
</td>
<td valign="bottom">
<p>
 
</p>
</td>
<td colspan="5" valign="bottom" style="BORDER-BOTTOM:SOLID BLACK 1PX">
 
</td>
<td valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2011</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2010</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr style="FONT-SIZE:1 PX">
<td valign="bottom">
<p>
 
</p>
</td>
<td valign="bottom">
<p>
 
</p>
</td>
<td colspan="2" valign="bottom" style="BORDER-BOTTOM:SOLID BLACK 1PX">
 
</td>
<td valign="bottom">
<p>
 
</p>
</td>
<td colspan="2" valign="bottom" style="BORDER-BOTTOM:SOLID BLACK 1PX">
 
</td>
<td valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Expected option lives</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="center">
<font size="2">3.5 years</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="center">
<font size="2">3.5 years</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Expected volatility</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="2">54.86%</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="2">56.97%</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Risk-free interest rate</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="center">
<font size="2">1.20%</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="center">
<font size="2">1.67%</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Expected dividends</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="2">3.93%</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="2">3.69%</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          The
Company utilizes the alternative transition method for
calculating the tax effects of stock-based compensation.
Under the alternative transition method the Company
established the beginning balance of the additional paid-in
capital pool (“APIC pool”) related to the tax
effects of employee stock-based compensation and then
determines the subsequent impact on the APIC pool and cash
flows of the tax effects of employee stock-based compensation
awards that are outstanding.</font>
</p><br/><p>
<font size="2"><b>2007 Performance Incentive Plan</b></font>
</p><br/><p>
<font size="2">          In
2007, the Company adopted the 2007 Plan, whereby executive
officers, directors, employees and consultants may be
eligible to receive cash or equity-based performance awards
based on set performance criteria.</font>
</p><br/><p>
<font size="2">          In
2011, 2010 and 2009, the Compensation Committee granted
short-term cash performance awards, payable to certain
officers upon the Company’s achievement of specified
performance goals for such year. The target short-term cash
bonus opportunities for officers reflected a percentage of
the officer’s base salary. The short-term cash
incentives were based upon achievement of certain financial
targets (which, depending upon the year, related to revenue,
Adjusted EBITDA or free cash flow, as defined by the
Compensation Committee). Potential payout with respect to
each measure was zero if a threshold percentage of the target
was not achieved and a sliding scale thereafter, subject to a
cap, starting at a figure less than 100% if the threshold was
achieved but the target was not met and ending at a figure
above 100% if the target was exceeded. Short-term incentives
of approximately $1.1 million, $2.2 million and $2.0 million
were deemed earned with respect to the years ended December
31, 2011, 2010 and 2009, respectively.</font>
</p><br/><p>
<font size="2"><b>Common Stock Purchase Warrants</b></font>
</p><br/><p>
<font size="2">          The
Company accounts for the issuance of Common Stock purchase
warrants issued in connection with capital financing
transactions in accordance with the provisions of ASC 815,
<i>Derivatives and Hedging</i> (“ASC 815”). The
Company classifies as equity any contracts that (i) require
physical settlement or net-share settlement or (ii) gives the
Company a choice of net-cash settlement or settlement in its
own shares (physical settlement or net-share settlement). The
Company classifies as assets or liabilities any contracts
that (i) require net-cash settlement (including a requirement
to net-cash settle the contract if an event occurs and if
that event is outside the control of the Company) or (ii)
gives the counterparty a choice of net-cash settlement or
settlement in shares (physical settlement or net-share
settlement).</font>
</p><br/><p>
<font size="2">          The
Company assessed the classification of its derivative
financial instruments as of December 31, 2007, which consist
of Common Stock purchase warrants, and determined that such
derivatives met the criteria for equity classification. No
additional Common Stock purchase warrants have been issued
since that date nor has there been any change to the
classification.</font>
</p><br/><p>
<font size="2"><b>Convertible Instruments</b></font>
</p><br/><p>
<font size="2">          The
Company evaluates and accounts for conversion options
embedded in its convertible instruments in accordance with
ASC 815.</font>
</p><br/><p>
<font size="2">          ASC
815 generally provides three criteria that, if met, require
companies to bifurcate conversion options from their host
instruments and account for them as free-standing derivative
financial instruments. These three criteria include
circumstances in which (a) the economic characteristics and
risks of the embedded derivative instrument are not clearly
and closely related to the economic characteristics and risks
of the host contract, (b) the hybrid instrument that embodies
both the embedded derivative instrument and the host contract
is not remeasured at fair value under otherwise applicable
generally accepted accounting principles with changes in fair
value reported in earnings as they occur, and (c) a separate
instrument with the same terms as the embedded derivative
instrument would be considered a derivative instrument. ASC
815 also provides an exception to this rule when the host
instrument is deemed to be conventional.</font>
</p><br/><p>
<font size="2">          The
Company accounts for convertible instruments (when it has
determined that the embedded conversion options should not be
bifurcated from their host instruments) in accordance with
ASC 815. Accordingly, the Company records, when necessary,
discounts to convertible notes for the intrinsic value of
conversion options embedded in debt instruments based upon
the differences between the fair value of the underlying
Common Stock at the commitment date of the note transaction
and the effective conversion price embedded in the note. Debt
discounts under these arrangements are amortized over the
term of the related debt to their earliest date of
redemption. The Company also records when necessary deemed
dividends for the intrinsic value of conversion options
embedded in preferred shares based upon the differences
between the fair value of the underlying Common Stock at the
commitment date of the note transaction and the effective
conversion price embedded in the note.</font>
</p><br/><p>
<font size="2">          The
Company evaluated the conversion option embedded in the
Series B Convertible Preferred Stock that it issued during
the year ended December 31, 2007 and determined that such
conversion option does not meet the criteria requiring
bifurcation of these instruments. The characteristics of the
Common Stock that is issuable upon a holder’s exercise
of the conversion option embedded in the Series B Convertible
Preferred Stock are deemed to be clearly related to the
characteristics of the preferred shares. Additionally, the
Company’s conversion options, if free standing, would
not be considered derivatives.</font>
</p><br/><p>
<font size="2"><b>Preferred Stock</b></font>
</p><br/><p>
<font size="2">          The
Company applies the guidance in ASC 480, <i>Distinguishing
Liabilities from Equity</i> (“ASC 480”) when
determining the classification and measurement of its
convertible preferred shares. Preferred shares subject to
mandatory redemption (if any) are classified as liability
instruments and are measured at fair value. Accordingly the
Company classifies conditionally redeemable preferred shares
(if any), which includes preferred shares that feature
redemption rights that are either within the control of the
holder or subject to redemption upon the occurrence of
uncertain events not solely within the Company’s
control, as temporary equity. At all other times, the Company
classifies its preferred shares as a component of
stockholders’ equity.</font>
</p><br/><p>
<font size="2">          The
Company’s Series B Convertible Preferred Stock does not
feature any redemption rights within the holders’
control or conditional redemption features not solely within
the Company’s control as of December 31, 2011.
Accordingly, the Series B Convertible Preferred Stock is
presented as a component of stockholders’ equity.</font>
</p><br/><p>
<font size="2"><b>Subsequent Events</b></font>
</p><br/><p>
<font size="2">          The
Company has evaluated subsequent events for recognition or
disclosure. See Note 19 (Subsequent Event).</font>
</p><br/><p>
<font size="2"><b>New Accounting Pronouncements</b></font>
</p><br/><p>
<font size="2">          In
October 2009, the Financial Accounting Standards Board
(“FASB”) issued ASU 2009-13 (an update to ASC
605-25), <i>Revenue Recognition: Multiple-Element
Arrangements</i> (“ASU 2009-13”) which is effective
for annual periods beginning on or after June 15, 2010;
however, early adoption was permitted. In arrangements with
multiple deliverables, ASU 2009-13 permits entities to use
management’s best estimate of selling price to value
individual deliverables when those deliverables have never
been sold separately or when third-party evidence is not
available. In addition, any discounts provided in
multiple-element arrangements are allocated on the basis of
the relative selling price of each deliverable. The
implementation of ASU 2009-13 did not have a material impact
on the Company’s consolidated financial
statements.</font>
</p><br/><p>
<font size="2">          In
April 2010, the FASB issued ASU No. 2010-17,
<i>Milestone Method of Revenue Recognition, a consensus of
the FASB Emerging Issues Task Force</i> (“ASU
2010-17”). ASU 2010-17 provides guidance on the criteria
that should be met for determining whether the milestone
method of revenue recognition is appropriate. A vendor can
recognize consideration that is contingent upon achievement
of a milestone in its entirety as revenue in the period in
which the milestone is achieved only if the milestone meets
all criteria to be considered substantive. This statement is
effective prospectively for milestones achieved in fiscal
years, and interim periods within those years, beginning on
or after June 15, 2010. The implementation of ASU 2010-17 did
not have a material impact on the Company’s consolidated
financial statements.</font>
</p><br/><p>
<font size="2">          In
May 2011, the FASB issued ASU No. 2011-04, <i>Amendments
to Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs (“</i>ASU
2011-04<i>”).</i> ASU 2011-04 provides new guidance for
fair value measurements intended to achieve common fair value
measurement and disclosure requirements in U.S. GAAP and
International Financial Reporting Standards. The amended
guidance provides a consistent definition of fair value to
ensure that the fair value measurement and disclosure
requirements are similar between U.S. GAAP and International
Financial Reporting Standards. The amended guidance changes
certain fair value measurement principles and enhances the
disclosure requirements, particularly for Level 3 fair value
measurements. The amended guidance is effective for interim
and annual periods beginning after December 15, 2011. Early
adoption was not permitted. The implementation of ASU 2011-04
is not expected to have a material impact on the
Company’s consolidated financial statements.</font>
</p><br/><p>
<font size="2">          In
June 2011, the FASB issued ASU No. 2011-05, <i>Presentation
of Comprehensive Income</i> (“ASU 2011-05”). Under
the amendments in ASU 2011-05, an entity has two options for
presenting its total comprehensive income: to present total
comprehensive income and its components along with the
components of net income in a single continuous statement, or
in two separate but consecutive statements. The amendments in
ASU 2011-05 are required to be applied retrospectively and
are effective for fiscal years, and interim periods within
those years, beginning after December 15, 2011, with early
adoption permitted. The Company intends to conform to the new
presentation required in ASU 2011-05 beginning with its Form
10-Q for the three months ended March 31, 2012.</font>
</p><br/><p>
<font size="2">          In
September 2011, the FASB issued ASU 2011-08, <i>Testing for
Goodwill Impairment</i> (“ASU 2011-08”). ASU
2011-08 permits an entity to make a qualitative assessment of
whether it is more likely than not that a reporting
unit’s fair value is less than its carrying amount
before applying the two-step goodwill impairment test. If an
entity concludes it is not more likely than not that the fair
value of a reporting unit is less than its carrying amount,
it need not perform the two-step impairment test. ASU 2011-08
is effective for annual and interim goodwill impairment tests
performed for fiscal years beginning after December 31, 2011.
Early adoption was not permitted. The implementation of ASU
2011-08 is not expected to have a material impact on the
Company’s consolidated financial statements.</font>
</p><br/><p>
<font size="2"><b>Reclassifications</b></font>
</p><br/><p>
<font size="2">          Certain
prior period amounts have been reclassified to conform to
current year presentation.</font>
</p><br/>
<p>
<font size="2"><b>(2) Discontinued Operations</b></font>
</p><br/><p>
<font size="2">          In
June 2005, the Company committed to a plan to discontinue the
operations of the Company’s securities research and
brokerage segment. Accordingly, the operating results
relating to this segment have been segregated from continuing
operations and reported as a separate line item in the
accompanying consolidated statements of operations.</font>
</p><br/><p>
<font size="2">          For
the years ended December 31, 2011, 2010 and 2009, there was
no net revenue from discontinued operations. Loss from
discontinued operations was immaterial during the same
periods.</font>
</p><br/><p>
<font size="2">          There
were no remaining liabilities of the discontinued operation
as of December 31, 2011.</font>
</p><br/><p>
<font size="2">          The
following table displays the net activity and balances of the
provisions related to discontinued operations:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="17%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="7%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="1">Initial<br />
Charge</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="1">Year 2005<br />
Activity</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="1">Year 2006<br />
Activity</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="1">Year 2007<br />
Activity</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="1">Year 2008<br />
Activity</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="1">Year 2009<br />
Activity</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="1">Year 2010<br />
Activity</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="1">Year 2011<br />
Activity</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="1">Balance<br />
12/31/2011</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">Net asset write-off</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">666,546</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">(666,546</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1">Severance payments</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">1,134,323</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">(905,566</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">(6,332</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">(222,425</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="margin-left:8.65;text-indent:-8.65">
<font size="1">Extinguishment of lease and other
obligations</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">582,483</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">(531,310</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">(51,173</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">9,817</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">(6,317</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">(2,760</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">1,131</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">(1,871</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">2,383,352</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">(2,103,422</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">(57,505</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">9,817</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">(6,317</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">(2,760</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">(221,294</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">(1,871</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="3" width="100%" noshade="noshade" />
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>(3)</b> <b>Acquisitions and
Divestures</b></font>
</p><br/><p>
<font size="2">          <u>Corsis
Technology Group II LLC (renamed Promotions.com
LLC)</u></font>
</p><br/><p>
<font size="2">          On
August 2, 2007, the Company acquired, through a newly-created
subsidiary, 100% of the membership interests of Corsis
Technology Group II LLC, a leading provider of custom
solutions for advertisers, marketers and content publishers.
The acquisition of Corsis also included the Promotions.com
business, which was a full-service online promotions agency
that implemented interactive promotions campaigns for some of
the largest brands in the world. The purchase price of the
acquisition was approximately $20.7 million, consisting of
approximately $12.5 million in cash and the issuance of
694,230 unregistered shares of the Company’s Common
Stock, having a value on the closing date of approximately
$8.2 million.</font>
</p><br/><p>
<font size="2">          In
the first quarter of 2009, the Company performed an interim
impairment test of its intangible assets due to certain
impairment indicators, including a continued decline in both
advertising and subscription revenue resulting from the
challenging economic environment and a reduction in the
Company’s enterprise value. As a result of this test,
the Company determined that the carrying value of the
Promotions.com client relationships exceeded its fair value
at March 31, 2009 and recorded an impairment charge of
approximately $0.5 million.</font>
</p><br/><p>
<font size="2">          On
December 18, 2009, the Company sold all of its membership
interest in its Promotions.com subsidiary, for an aggregate
price of approximately $3.1 million. The purchaser was a
company owned by the managers of the Promotions.com business,
who prior to the closing were employees of the Company. In
connection with the sale, the Company received payment of
approximately $1.0 million in cash and notes in an aggregate
principal amount of approximately $2.1 million. The notes
were paid in installments between April 2010 and April 2011.
Loss on disposition of assets totaled approximately $0.5
million.</font>
</p><br/><p>
<font size="2">          <u>Kikucall,
Inc. – Related Party Transaction</u></font>
</p><br/><p>
<font size="2">          On
December 16, 2009 (the “Closing Date”), the
Company, through a wholly-owned acquisition subsidiary,
acquired all of the outstanding securities of Kikucall, Inc.,
a subscription marketing services company (the
“Acquisition”), for an aggregate purchase price of
approximately $5.2 million, subject to adjustment as provided
therein. In connection with the Acquisition, the Company paid
approximately $3.8 million in cash and issued to the target
company’s stockholders 647,901 unregistered shares
of the Company’s Common Stock, having a value on the
payment date of approximately $1.4 million, a portion of
which was placed in escrow pursuant to the terms of an escrow
agreement entered into in connection with the Acquisition. In
the first quarter of 2011, the Company received approximately
$16,000 in cash and 3,338 shares of the Company’s Common
Stock related to a working capital adjustment to the purchase
price; the remaining assets in escrow (together with interest
and dividends) were delivered to or as directed by
Kikucall’s stockholder representative in two
installments in 2011.</font>
</p><br/><p>
<font size="2">          Two
of the Company’s directors, Daryl Otte (who is also our
chief executive officer) and Martin Peretz, were directors of
the acquired company, and, both directly and indirectly
through investment vehicles, were stockholders and creditors
of the acquired company. As a result of the Acquisition, the
following aggregate amounts were received (on or after the
Closing Date) by (i) Mr. Otte, (ii) Dr. Peretz, (iii)
investment vehicles in which Mr. Otte and Dr. Peretz had a
direct or indirect interest and (iv) other investment
vehicles in which Dr. Peretz had a direct or indirect
interest, or by Dr. Peretz’s children: (i) approximately
$204,000 cash and 37,596 shares of Common Stock; (ii)
approximately $156,000 cash and 20,023 shares of Common
Stock; (iii) approximately $717,000 cash and 171,603 shares
of Common Stock; and (iv) approximately $734,000 cash and
82,565 shares of Common Stock. Mr.Otte and Dr. Peretz each
donated to charity an amount that approximated the respective
gain such donor recognized as a result of the Acquisition.
The negotiation of the Acquisition was overseen by the
Company’s Audit Committee, comprised solely of
independent directors, on behalf of the Company and the
Acquisition was unanimously approved by the Audit Committee
and the Company’s board of directors.</font>
</p><br/><p>
<font size="2">          Based
on the Company’s evaluation, the Company recorded
approximately $4.7 million of goodwill and approximately $0.5
million of intangible assets related to software which is
being amortized over its estimated useful life of five years.
The goodwill is not deductible for tax purposes.</font>
</p><br/><p>
<font size="2">          Unaudited
pro forma consolidated financial information is presented
below as if the Acquisition had occurred as of the first day
of the earliest period presented. The results have been
adjusted to account for the amortization of acquired
intangible assets. The pro forma information presented below
does not purport to present what actual results would have
been if the Acquisition had occurred at the beginning of such
periods, nor does the information project results for any
future period. The unaudited pro forma consolidated financial
information should be read in conjunction with the historical
financial information of the Company included in this report.
The unaudited pro forma consolidated financial information
for the year ended December 31, 2009 is as follows:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="70%">
<tr style="FONT-SIZE:1PX">
<td width="54%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="top">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Total net revenue</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">60,963,012</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="top" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Net loss</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">47,661,651</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Basic and diluted net loss per
share</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.53</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="top" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Weighted average basic and diluted
shares outstanding</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">31,234,361</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          <u>TheStreet
Ratings</u></font>
</p><br/><p>
<font size="2">          On
May 4, 2010, the Company sold certain assets of TheStreet
Ratings business (those pertaining to banking and insurance
ratings) for an aggregate price of approximately $1.7
million, subject to adjustment as provided in the agreement.
The purchaser is an entity under the same control as was the
entity from which the Company had purchased TheStreet Ratings
business in August 2006. In connection with the sale, the
purchaser assumed a net $0.3 million of liabilities ($0.4
million of deferred revenue liabilities offset in part by
working capital items) and paid the Company $1.3 million in
cash, subject to adjustment. Gain on disposition of assets
approximated $1.3 million.</font>
</p><br/>
<p>
<font size="2"><b>(4) Net Loss Per Share</b></font>
</p><br/><p>
<font size="2">          Basic
net loss per share is computed using the weighted average
number of common shares outstanding during the period.
Diluted net loss per share is computed using the weighted
average number of common shares and, if dilutive, potential
common shares outstanding during the period. Potential common
shares consist of restricted stock units (using the treasury
stock method), the incremental common shares issuable upon
the exercise of stock options (using the treasury stock
method), and the conversion of the Company’s convertible
preferred stock and warrants (using the if-converted
method).</font>
</p><br/><p>
<font size="2">For the years ended December 31, 2011 and
2010, respectively, approximately 4.5 million and 4.0 million
unvested restricted stock units, vested and unvested options
and warrants to purchase Common Stock were excluded from the
calculation, as their effect would be anti-dilutive because
the exercise prices were greater than the average market
price of the Common Stock during the respective periods and
because the Company recorded a net loss.</font>
</p><br/><p>
<font size="2">          The
following table reconciles the numerator and denominator for
the calculation.</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="49%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p align="center">
 
</p>
</td>
<td width="1%" valign="bottom">
<p align="center">
 
</p>
</td>
<td width="11%" valign="bottom">
<p align="center">
 
</p>
</td>
<td width="3%" valign="bottom">
<p align="center">
 
</p>
</td>
<td width="1%" valign="bottom">
<p align="center">
 
</p>
</td>
<td width="11%" valign="bottom">
<p align="center">
 
</p>
</td>
<td width="3%" valign="bottom">
<p align="center">
 
</p>
</td>
<td width="1%" valign="bottom">
<p align="center">
 
</p>
</td>
<td width="11%" valign="bottom">
<p align="center">
 
</p>
</td>
<td width="1%" valign="bottom">
<p align="center">
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<p align="center">
<font size="2"><b>For the Years Ended December
31,</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2011</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2010</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2009</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Basic and diluted net loss per
share</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Numerator:</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Loss from continuing operations</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">8,182,323</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">5,327,268</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">47,702,313</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Loss from discontinued operations</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,798</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">7,339</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">15,321</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Preferred stock cash dividends</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">385,696</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">385,696</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">385,696</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Numerator for basic and diluted earnings
per share – Net loss attributable to common
stockholders</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">8,569,817</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">5,720,303</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">48,103,330</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Denominator:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Weighted average basic and diluted
shares outstanding</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">31,953,683</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">31,593,341</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">30,586,460</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Basic and diluted net loss per
share:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Loss from continuing operations</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.26</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.17</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.56</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Loss from discontinued operations</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.00</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.00</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.00</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Preferred stock cash dividends</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.01</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.01</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.01</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Net loss attributable to common
stockholders</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.27</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.18</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.57</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>(5) Cash and Cash Equivalents, Marketable
Securities and Restricted Cash</b></font>
</p><br/><p>
<font size="2">          The
Company’s cash and cash equivalents primarily consist of
money market funds and checking accounts totaling
approximately $44.9 million. Marketable securities consist of
liquid short-term U.S. Treasuries, government agencies,
certificates of deposit (insured up to FDIC limits),
investment grade corporate and municipal bonds, corporate
floating rate notes, and two municipal auction rate
securities (“ARS”) issued by the District of
Columbia with a par value of approximately $1.9 million. As
of December 31, 2011, the total fair value of these
marketable securities was approximately $28.8 million and the
total cost basis was approximately $29.2 million. The maximum
maturity for any investment is three years. The ARS pay
interest in accordance with their terms at each respective
auction date, typically every 35 days, and mature in the year
2038. The Company accounts for its marketable securities in
accordance with the provisions of ASC 320-10. The Company
classifies these securities as available for sale and the
securities are reported at fair value. Unrealized gains and
losses are recorded as a component of accumulated other
comprehensive income and excluded from net loss. See Note 16
(Comprehensive Loss). Additionally, the Company has a total
of approximately $1.7 million of cash that serves as
collateral for an outstanding letter of credit, and which
cash is therefore restricted. The letter of credit serves as
a security deposit for the Company’s office space in New
York City. As the lease agreement allows for a reduction in
the amount of the security deposit as of November 2012, a
portion of the restricted cash has been classified as a
current asset.</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="70%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2"><b>As of December 31,</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2011</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2010</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Cash and cash equivalents</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">44,865,191</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">20,089,660</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Current and noncurrent marketable
securities</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">28,789,603</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">56,805,373</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Current and noncurrent restricted
cash</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,660,370</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,660,370</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Total cash and cash equivalents, current
and noncurrent marketable securities and current and
noncurrent restricted cash</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">75,315,164</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">78,555,403</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>(6) Fair Value Measurements</b></font>
</p><br/><p>
<font size="2">          The
Company measures the fair value of its financial instruments
in accordance with ASC 820-10, which refines the definition
of fair value, provides a framework for measuring fair value
and expands disclosures about fair value measurements. ASC
820-10 defines fair value as the price that would be received
to sell an asset or paid to transfer a liability (an exit
price) in an orderly transaction between market participants
at the reporting date. The statement establishes consistency
and comparability by providing a fair value hierarchy that
prioritizes the inputs to valuation techniques into three
broad levels, which are described below:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="2%" valign="top">
<p>
 
</p>
</td>
<td width="98%" valign="top">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2"><b>•</b></font>
</p>
</td>
<td valign="top">
<p>
<font size="2">Level 1: Inputs are quoted market prices
in active markets for identical assets or liabilities
(these are observable market inputs).</font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2"><b>•</b></font>
</p>
</td>
<td valign="top">
<p>
<font size="2">Level 2: Inputs are inputs other than
quoted prices included within Level 1 that are
observable for the asset or liability (includes quoted
market prices for similar assets or identical or
similar assets in markets in which there are few
transactions, prices that are not current or vary
substantially).</font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2"><b>•</b></font>
</p>
</td>
<td valign="top">
<p>
<font size="2">Level 3: Inputs are unobservable inputs
that reflect the entity’s own assumptions in
pricing the asset or liability (used when little or no
market data is available).</font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Financial
assets and liabilities included in our financial statements
and measured at fair value as of December 31, 2011 are
classified based on the valuation technique level in the
table below:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="42%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Description:</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Total</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Level 1</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Level 2</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Level 3</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Cash and cash equivalents (1)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">44,865,191</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">44,865,191</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Marketable securities (2)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">28,789,603</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">27,379,603</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,410,000</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Total at fair value</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">73,654,794</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">72,244,794</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,410,000</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">(1) Cash and cash equivalents, totaling
approximately $44.9 million, consists primarily of money
market funds and checking accounts for which we determine
fair value through quoted market prices.</font>
</p><br/><p>
<font size="2">(2) Marketable securities consist of liquid
short-term U.S. Treasuries, government agencies, certificates
of deposit (insured up to FDIC limits), investment grade
corporate and municipal bonds and corporate floating rate
notes for which we determine fair value through quoted market
prices. Marketable securities also consist of two municipal
ARS issued by the District of Columbia having a fair value
totaling approximately $1.4 million as of December 31, 2011.
Historically, the fair value of ARS investments approximated
par value due to the frequent resets through the auction
process. Due to events in credit markets, the auction events,
which historically have provided liquidity for these
securities, have been unsuccessful. The result of a failed
auction is that these ARS holdings will continue to pay
interest in accordance with their terms at each respective
auction date; however, liquidity of the securities will be
limited until there is a successful auction, the issuer
redeems the securities, the securities mature or until such
time as other markets for these ARS holdings develop. For
each of our ARS, we evaluate the risks related to the
structure, collateral and liquidity of the investment, and
forecast the probability of issuer default, auction failure
and a successful auction at par, or a redemption at par, for
each future auction period. Temporary impairment charges are
recorded in accumulated other comprehensive income, whereas
other-than-temporary impairment charges are recorded in our
consolidated statement of operations. As of December 31,
2011, the Company determined there was a decline in the fair
value of its ARS investments of $0.4 million from its cost
basis, which was deemed temporary and was included within
accumulated other comprehensive (loss) income. The Company
used a discounted cash flow model to determine the estimated
fair value of its investment in ARS. The assumptions used in
preparing the discounted cash flow model include estimates
for interest rate, timing and amount of cash flows and
expected holding period of ARS.</font>
</p><br/><p>
<font size="2">          The
following table provides a reconciliation of the beginning
and ending balance for the Company’s marketable
securities measured at fair value using significant
unobservable inputs (Level 3):</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="58%">
<tr style="FONT-SIZE:1PX">
<td width="73%" valign="bottom">
<p>
 
</p>
</td>
<td width="5%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="17%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Marketable<br />
Securities</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Balance at December 31, 2010</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,810,000</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Decrease in fair value of
investment</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">400,000</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Balance at December 31, 2011</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,410,000</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>(7) Property and Equipment</b></font>
</p><br/><p>
<font size="2">          Property
and equipment are stated at cost, net of accumulated
depreciation and amortization. Property and equipment are
depreciated on a straight-line basis over the estimated
useful lives of the assets. The estimated useful life of
computer equipment, computer software and telephone equipment
is three years; of furniture and fixtures is five years; and
of capitalized software and Web site development costs is
variable based upon the applicable project. Leasehold
improvements are amortized on a straight-line basis over the
shorter of the respective lease term or the estimated useful
life of the asset. If the useful lives of the assets differ
materially from the estimates contained herein, additional
costs could be incurred, which could have an adverse impact
on our expenses.</font>
</p><br/><p>
<font size="2">          Property
and equipment as of December 31, 2011 and 2010 consists of
the following:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="96%" style="margin-left:4%">
<tr style="FONT-SIZE:1PX">
<td width="70%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2"><b>December 31,</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2011</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2010</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Computer equipment</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">16,430,436</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">18,245,134</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Furniture and fixtures</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,456,085</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,454,268</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Leasehold improvements</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,074,492</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,033,689</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">21,961,013</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">23,733,091</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Less accumulated depreciation and
amortization</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">13,466,365</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">12,845,359</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Property and equipment, net</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">8,494,648</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">10,887,732</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Included
in computer equipment are capitalized software and Web site
development costs of approximately $8.1 million and $7.3
million at December 31, 2011 and 2010, respectively. A
summary of the activity of capitalized software and Web site
development costs is as follows:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="44%">
<tr style="FONT-SIZE:1PX">
<td width="65%" valign="bottom">
<p>
 
</p>
</td>
<td width="6%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="22%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Balance December 31, 2010</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">7,312,439</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Additions</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,254,310</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Deletions</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(450,832</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Balance December 31, 2011</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">8,115,917</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Depreciation
and amortization expense for the above noted property and
equipment aggregated approximately $4.4 million, $3.3 million
and $3.2 million for the years ended December 31, 2011, 2010
and 2009, respectively. The Company does not include
depreciation and amortization expense in cost of
services.</font>
</p><br/>
<p>
<font size="2"><b>(8) Goodwill and Other Intangible
Assets</b></font>
</p><br/><p>
<font size="2">          The
Company’s goodwill and other intangible assets and
related accumulated amortization as of December 31, 2011 and
2010 consist of the following:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="96%" style="margin-left:4%">
<tr style="FONT-SIZE:1PX">
<td width="70%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2"><b>December 31,</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2011</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2010</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Total goodwill not subject to
amortization</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">24,057,616</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">24,057,616</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Other intangible assets not subject to
amortization:</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Trade name</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">720,000</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">720,000</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Total other intangible assets not
subject to amortization</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">720,000</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">720,000</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Other intangible assets subject to
amortization:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Customer relationships</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">6,862,136</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">6,862,136</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Software models</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,841,194</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,841,194</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Noncompete agreements</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,339,535</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,339,535</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Products database</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">137,000</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">137,000</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Total other intangible assets subject to
amortization</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">10,179,865</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">10,179,865</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Less accumulated amortization</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(5,529,730</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(4,174,403</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Net other intangible assets subject to
amortization</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">4,650,135</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">6,005,462</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Total other intangible assets</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">5,370,135</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">6,725,462</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Amortization
expense totaled approximately $1.4 million, $1.4 million and
$1.8 million for the years ended December 31, 2011, 2010 and
2009, respectively. The estimated amortization expense for
the next five years is as follows:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="30%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="16%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="2">For the Years<br />
Ended<br />
December 31,</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Amount</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="center">
<font size="2">2012</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,118,236</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="2">2013</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">793,814</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="center">
<font size="2">2014</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">793,814</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="2">2015</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">686,214</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="center">
<font size="2">2016</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">686,214</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="2">Thereafter</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">571,843</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="center">
<font size="2">Total</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,650,135</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>(9) Accrued Expenses</b></font>
</p><br/><p>
<font size="2">          Accrued
expenses as of December 31, 2011 and 2010 consist of the
following:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="70%" style="margin-left:4%">
<tr style="FONT-SIZE:1PX">
<td width="40%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2"><b>December 31,</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2011</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2010</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Payroll and related costs</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,095,130</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,666,233</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Restructuring and other charges (see
Note 15)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,654,012</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">844,761</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Professional fees</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">648,342</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">869,962</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Advertising</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">447,741</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">545,277</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Business development</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">355,392</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">515,690</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Other liabilities</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,770,185</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,797,141</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Total accrued expenses</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">7,970,802</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">8,239,064</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>(10) Income Taxes</b></font>
</p><br/><p>
<font size="2">          The
Company accounts for its income taxes in accordance with ASC
740-10. Under ASC 740-10, deferred tax assets and liabilities
are recognized for the future tax consequences attributable
to differences between the financial statement carrying
amounts of existing assets and liabilities and their tax
bases. ASC 740-10 also requires that deferred tax assets be
reduced by a valuation allowance if it is more likely than
not that some or all of the deferred tax assets will not be
realized based on all available positive and negative
evidence.</font>
</p><br/><p>
<font size="2">          As
of December 31, 2011 and 2010, respectively, the Company had
approximately $143 million and $136 million of federal and
state net operating loss carryforwards. The Company had
recognized a deferred tax asset for a portion of such net
operating loss carryforwards in the amount of approximately
$16.1 million as of December 31, 2008. During the three
months ended March 31, 2009, the Company recorded a valuation
allowance against these deferred tax assets as management
concluded that it was more likely than not that the Company
would not realize the benefit of this portion of its deferred
tax assets by generating sufficient taxable income in future
years. The decision to record the valuation allowance was
based on management evaluating all positive and negative
evidence. The significant negative evidence included an
anticipated loss for the year ended December 31, 2009, an
expected cumulative pre-tax loss for the three years ended
December 31, 2009, the inability to carryback the net
operating losses, limited future reversals of existing
temporary differences and the limited availability of tax
planning strategies. The Company’s position on its
valuation allowance remains the same at December 31,
2011.</font>
</p><br/><p>
<font size="2">          The
Company has not recognized a deferred tax asset for the net
operating loss carryforwards at December 31, 2011 and expects
to continue to provide a full valuation allowance until, or
unless, it can sustain a level of profitability that
demonstrates its ability to utilize these assets. Subject to
potential Section 382 limitations as discussed below, the
federal losses are available to offset future taxable income
through 2031 and expire from 2020 through 2031. Since the
Company does business in various states and each state has
its own rules with respect to the number of years losses may
be carried forward, the state net operating loss
carryforwards expire from 2012 through 2031. The net
operating loss carryforwards as of December 31, 2011 and 2010
include approximately $17 million and $17 million,
respectively, related to windfall tax benefits for which a
benefit would be recorded to additional paid in capital when
realized.</font>
</p><br/><p>
<font size="2">          In
accordance with Section 382 of the Internal Revenue code, the
ability to utilize the Company’s net operating loss
carryforwards could be limited in the event of a change in
ownership and as such a portion of the existing net operating
loss carryforwards may be subject to limitation. Such an
ownership change would create an annual limitation on the
usage of the Company’s net operating loss carryforward.
The ultimate realization of net operating loss carryforwards
is dependent upon the generation of future taxable income
during the periods following an ownership change. As such, a
portion of the existing net operating loss carryforwards may
be subject to limitation. During the year ended December 31,
2009, the Company acquired approximately $3 million of net
operating loss carryforwards when it acquired the stock of
Kikucall, Inc. In accordance with Section 382 of the Internal
Revenue code, the usage of the Kikucall, Inc. net operating
loss carryforward could be limited.</font>
</p><br/><p>
<font size="2">          The
Company is subject to federal, state and local corporate
income taxes. The components of the provision for income
taxes reflected on the consolidated statements of operations
from continuing operations are set forth below:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="56%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<p align="center">
<font size="2">For the Years Ended December 31,</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2011</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2010</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2009</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<p align="center">
<font size="2">(in thousands)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Current taxes:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">U.S. federal</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(364</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">State and local</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">93</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Total current tax benefit</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(271</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Deferred taxes:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">U.S. federal</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">13,944</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">State and local</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,461</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Total deferred tax expense</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">16,405</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Total tax expense</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">16,134</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          A
reconciliation of the statutory U.S. federal income tax rate
to the Company’s effective income tax rate is set forth
below:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="55%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="9%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="9%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<p align="center">
<font size="2">For the Years Ended December 31,</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2011</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2010</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2009</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">U.S. statutory federal income tax
rate</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">34.0</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">%</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">34.0</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">%</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">34.0</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">%</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">State income taxes, net of federal tax
benefit</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">6.0</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">6.0</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3.5</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Effect of permanent differences</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1.6</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2.3</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(9.7</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Change to valuation allowance</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(38.4</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(42.3</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(76.7</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Other</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">0.0</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4.6</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2.2</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Effective income tax rate</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.0</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">%</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.0</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">%</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(51.1</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)%</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Deferred
income taxes reflect the net tax effects of temporary
difference between the financial reporting and tax bases of
assets and liabilities and are measured using the enacted tax
rates and laws that will be in effect when such differences
are expected to reverse. Significant components of the
Company’s net deferred tax assets and liabilities are
set forth below:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="70%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2">As of December 31,</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2011</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2010</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2">(in thousands)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Deferred tax assets:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Operating loss carryforward</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">57,960</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">55,314</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Windfall tax benefit carryforward</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(7,204</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(6,945</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Goodwill</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,483</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,124</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Intangible assets</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">961</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">778</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Accrued expenses</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,735</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,972</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Other</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,532</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">821</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Total deferred tax assets</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">57,467</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">54,064</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Deferred tax liabilities:</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Depreciation</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(2,280</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1,261</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Trademarks/goodwill</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(288</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(288</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Total deferred tax liabilities</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(2,568</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1,549</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Less: valuation allowance</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(55,187</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(52,803</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Net deferred tax liability</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(288</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(288</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          The
implementation of ASC 740-10 did not result in any current
adjustment or any cumulative effect, and therefore, no
adjustment was recorded to retained earnings upon adoption.
For the years ended December 31, 2011, 2010 and 2009, the
Company performed a tax analysis in accordance with ASC
740-10. Based upon such analysis the Company was not required
to accrue any liabilities pursuant to ASC 740-10 for the
years ended December 31, 2011, 2010 and 2009,
respectively.</font>
</p><br/>
<p>
<font size="2"><b>(11) Stockholders’ Equity</b></font>
</p><br/><p>
<font size="2"><b>Preferred Stock</b></font>
</p><br/><p>
<font size="2"><u>Securities Purchase Agreement</u></font>
</p><br/><p>
<font size="2">          On
November 15, 2007, the Company entered into a Securities
Purchase Agreement (the “Purchase Agreement”) with
TCV VI, L.P., a Delaware limited partnership, and TCV Member
Fund, L.P., a Delaware limited partnership (collectively, the
“Purchasers”).</font>
</p><br/><p>
<font size="2">          Pursuant
to the Purchase Agreement, the Company sold the Purchasers an
aggregate of 5,500 shares of its newly-created Series B
convertible preferred stock, par value $0.01 per share
(“Series B Preferred Stock”), that are immediately
convertible into an aggregate of 3,856,942 shares of its
Common Stock at a conversion price of $14.26 per share, and
warrants (the “Warrants”) to purchase an aggregate
of 1,157,083 shares of Common Stock for $15.69 per share. The
consideration paid for the Series B Preferred Stock and the
Warrants was $55 million. As of December 31, 2011, no Series
B Preferred Stock has been converted. Neither the Series B
Preferred Stock nor the Warrants have been registered and the
Company has not registered the shares of Common Stock
issuable upon the conversion of the Series B Preferred
Stock or upon the exercise of the Warrants.</font>
</p><br/><p>
<font size="2"><u>Investor Rights Agreement</u></font>
</p><br/><p>
<font size="2">          On
November 15, 2007, the Company also entered into an Investor
Rights Agreement with the Purchasers (the “Investor
Rights Agreement”) pursuant to which, among other
things, the Company agreed to grant the Purchasers certain
registration rights including the right to require the
Company to file a registration statement within 30 days to
register the Common Stock issuable upon conversion of the
Series B Preferred Stock and upon exercise of the Warrants
and to use its reasonable best efforts to cause the
registration to be declared effective within 90 days after
the date the registration is filed. To date, no such request
has been made.</font>
</p><br/><p>
<font size="2"><u>Certificate of Designation</u></font>
</p><br/><p>
<font size="2">          Pursuant
to a Certificate of Designation for the Series B Preferred
Stock (the “Certificate of Designation”) filed by
the Company with the Secretary of State of the State of
Delaware on November 15, 2007: (i) the Series B Preferred
Stock has a purchase price per share equal to $10,000 (the
“Original Issue Price”); (ii) in the event of any
Liquidation Event (as defined in the Certificate of
Designation), the holders of shares of Series B Preferred
Stock are entitled to receive, prior to any distribution to
the holders of the Common Stock, an amount per share equal to
the Original Issue Price, plus any declared and unpaid
dividends; (iii) the holders of the Series B Preferred Stock
have the right to vote on any matter submitted to a vote of
the stockholders of the Company and are entitled to vote that
number of votes equal to the aggregate number of shares of
Common Stock issuable upon the conversion of such
holders’ shares of Series B Preferred Stock; (iv) for so
long as 40% of the shares of Series B Preferred Stock remain
outstanding, the holders of a majority of such shares will
have the right to elect one person to the Company’s
board of directors; (v) the Series B Preferred Stock
automatically converts into an aggregate of 3,856,942 shares
of Common Stock in the event that the Common Stock trades on
a trading market at or above a closing price equal to $28.52
per share for 90 consecutive trading days and any demand
registration previously requested by the holders of the
Series B Preferred Stock has become effective; and (vi) so
long as 30% of the shares of the currently-outstanding Series
B Preferred Stock remain outstanding, the affirmative vote of
the holders of a majority of such shares will be necessary to
take any of the following actions: (a) authorize, create or
issue any class or classes of our capital stock ranking
senior to, or on a parity with (as to dividends or upon a
liquidation event) the Series B Preferred Stock or any
securities exercisable or exchangeable for, or convertible
into, any now or hereafter authorized capital stock ranking
senior to, or on a parity with (as to dividends or upon a
liquidation event) the Series B Preferred Stock (including,
without limitation, the issuance of any shares of Series B
Preferred Stock (other than shares of Series B Preferred
Stock issued as a stock dividend or in a stock split)); (b)
any increase or decrease in the authorized number of shares
of Series B Preferred Stock; (c) any amendment, waiver,
alteration or repeal of our certificate of incorporation or
bylaws in a way that adversely affects the rights,
preferences or privileges of the Series B Preferred Stock;
(d) the payment of any dividends (other than dividends paid
in the capital stock of the Company or any of its
subsidiaries) in excess of $0.10 per share per annum on the
Common Stock unless after the payment of such dividends we
have unrestricted cash (net of all indebtedness for borrowed
money, purchase money obligations, promissory notes or bonds)
in an amount equal to at least two times the product obtained
by multiplying the number of shares of Series B Preferred
Stock outstanding at the time such dividend is paid by the
liquidation preference; and (e) the purchase or redemption
of: (1) any Common Stock (except for the purchase or
redemption from employees, directors and consultants pursuant
to agreements providing us with repurchase rights upon
termination of their service with us) unless after such
purchase or redemption we have unrestricted cash (net of all
indebtedness for borrowed money, purchase money obligations,
promissory notes or bonds) equal to at least two times the
product obtained by multiplying the number of shares of
Series B Preferred Stock outstanding at the time such
dividend is paid by the liquidation preference; or (2) any
class or series of now or hereafter of our authorized stock
that ranks junior to (upon a liquidation event) the Series B
Preferred Stock.</font>
</p><br/><p>
<font size="2"><u>Warrants</u></font>
</p><br/><p>
<font size="2">          As
discussed above, the Warrants entitle the Purchasers to
purchase an aggregate of 1,157,083 shares of Common Stock for
$15.69 per share. The Warrants expire on the fifth
anniversary of the date they were first issued, or earlier in
certain circumstances. As of December 31, 2011, no Warrants
have been exercised.</font>
</p><br/><p>
<font size="2"><b>Treasury Stock</b></font>
</p><br/><p>
<font size="2">          In
December 2000, the Company’s Board of Directors
authorized the repurchase of up to $10 million worth of the
Company’s Common Stock, from time to time, in private
purchases or in the open market. In February 2004, the
Company’s Board of Directors approved the resumption of
the stock repurchase program (the “Program”) under
new price and volume parameters, leaving unchanged the
maximum amount available for repurchase under the Program.
However, the affirmative vote of the holders of a majority of
the outstanding shares of Series B Preferred Stock, voting
separately as a single class, is necessary for the Company to
repurchase its Common Stock (except as described above).
During the years ended December 31, 2011 and 2010, the
Company did not purchase any shares of Common Stock under the
Program. Since inception of the Program, the Company has
purchased a total of 5,453,416 shares of Common Stock at an
aggregate cost of approximately $7.3 million. In addition,
pursuant to the terms of the Company’s 1998 Stock
Incentive Plan (the “1998 Plan”) and 2007 Plan, and
certain procedures adopted by the Compensation Committee of
the Board of Directors, in connection with the exercise of
stock options by certain of the Company’s employees, and
the issuance of shares of Common Stock in settlement of
vested restricted stock units, the Company may withhold
shares in lieu of payment of the exercise price and/or the
minimum amount of applicable withholding taxes then due.
Through December 31, 2011, the Company had withheld an
aggregate of 665,383 shares which have been recorded as
treasury stock. In addition, the Company received an
aggregate of 208,270 shares as partial settlement of the
working capital and debt adjustment from the acquisition of
Corsis Technology Group II LLC, 104,055 of which were
received in December 2008 and 104,215 of which were received
in September 2009, and 3,338 shares as partial settlement of
the working capital adjustment from the acquisition of
Kikucall, Inc., which were received in March 2011. These
shares have been recorded as treasury stock.</font>
</p><br/><p>
<font size="2"><b>Dividends</b></font>
</p><br/><p>
<font size="2">          During
the year ended December 31, 2011, the Company paid four
quarterly cash dividends of $0.025 per share on its Common
Stock and its Series B Preferred Stock on a converted common
share basis. For the year ended December 31, 2011, dividends
paid totaled approximately $3.8 million, as compared to
approximately $3.7 million for the year ended December 31,
2010. The Company’s Board of Directors reviews the
dividend payment each quarter and there can be no assurance
that the Company will continue to pay this cash dividend in
the future.</font>
</p><br/><p>
<font size="2"><b>Stock Options</b></font>
</p><br/><p>
<font size="2">          Under
the terms of the 1998 Plan, 8,900,000 shares of Common Stock
of the Company were reserved for awards of incentive stock
options, nonqualified stock options, restricted stock,
deferred stock, restricted stock units, or any combination
thereof. Under the terms of the 2007 Plan, 4,250,000 shares
of Common Stock of the Company were reserved for awards of
incentive stock options, nonqualified stock options, stock
appreciation rights, restricted stock, restricted stock units
or other stock-based awards. The 2007 Plan also authorized
cash performance awards. Additionally, under the terms of the
2007 Plan, unused shares authorized for award under the 1998
Plan are available for issuance under the 2007 Plan. No
further awards will be made under the 1998 Plan. Awards may
be granted to such directors, employees and consultants of
the Company as the Compensation Committee of the Board of
Directors shall select in its discretion or delegate to
management to select. Only employees of the Company are
eligible to receive grants of incentive stock options. Awards
generally vest over a three- to five-year period and stock
options generally have terms of five years. As of December
31, 2011, there remained 947,681 shares available for future
awards under the 2007 Plan. Stock-based compensation expense
for the years ended December 31, 2011, 2010 and 2009 was
approximately $3.4 million, $2.3 million and $2.7 million,
respectively.</font>
</p><br/><p>
<font size="2">          A
stock option represents the right, once the option has vested
and become exercisable, to purchase a share of the
Company’s Common Stock at a particular exercise price
set at the time of the grant. A restricted stock unit
(“RSU”) represents the right to receive one share
of the Company’s Common Stock (or, if provided in the
award, the fair market value of a share in cash) on the
applicable vesting date for such RSU. Until the stock
certificate for a share of Common Stock represented by an RSU
is delivered, the holder of an RSU does not have any of the
rights of a stockholder with respect to the Common Stock.
However, the grant of an RSU includes the grant of dividend
equivalents with respect to such RSU. The Company records
cash dividends for RSUs to be paid in the future at an amount
equal to the rate paid on a share of Common Stock for each
then-outstanding RSU granted. The accumulated dividend
equivalents related to outstanding grants vest on the
applicable vesting date for the RSU with respect to which
such dividend equivalents were credited, and are paid in cash
at the time a stock certificate evidencing the shares
represented by such vested RSU is delivered.</font>
</p><br/><p>
<font size="2">          A
summary of the activity of the 1998 and 2007 Plans pertaining
to stock option grants is as follows:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="42%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Shares<br />
Underlying<br />
Awards</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Weighted<br />
Average<br />
Exercise<br />
Price</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Aggregate<br />
Intrinsic<br />
Value<br />
($000)</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Weighted<br />
Average<br />
Remaining<br />
Contractual Life<br />
(In Years)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Awards outstanding, December 31,
2010</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">845,528</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">6.92</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Options granted</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">730,250</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2.83</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Options cancelled</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(310,669</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3.26</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Options expired</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(256,565</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">8.74</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Awards outstanding, December 31,
2011</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,008,544</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4.63</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3.27</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Awards vested and expected to vest at
December 31, 2011</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">943,279</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">4.75</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3.20</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Awards exercisable at December 31,
2011</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">359,119</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">7.90</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1.54</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          A
summary of the activity of the 1998 and 2007 Plans pertaining
to grants of restricted stock units is as follows:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="42%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Shares<br />
Underlying<br />
Awards</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Weighted<br />
Average<br />
Exercise<br />
Price</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Aggregate<br />
Intrinsic<br />
Value<br />
($000)</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Weighted<br />
Average<br />
Remaining<br />
Contractual<br />
Life (In<br />
Years)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Awards outstanding, December 31,
2010</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,928,393</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Restricted stock units granted</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,375,341</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Restricted stock units settled by
delivery of Common Stock upon vesting</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(680,524</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Restricted stock units cancelled</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(174,834</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Awards outstanding, December 31,
2011</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,448,376</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">4,113</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2.35</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Awards vested and expected to vest at
December 31, 2011</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,074,501</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3,485</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2.21</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Awards exercisable at December 31,
2011</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          A
summary of the status of the Company’s unvested
share-based payment awards as of December 31, 2011 and
changes in the year then ended is as follows:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="95%" align="center">
<tr style="FONT-SIZE:1PX">
<td width="69%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p align="center">
<font size="2"><b>Unvested Awards</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Awards</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Weighted<br />
Average<br />
Grant Date<br />
Fair Value</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td colspan="2" valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="top">
<hr size="1" width="100%" noshade="noshade" />
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Shares underlying awards unvested at
December 31, 2010</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,307,104</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2.72</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Shares underlying options granted</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">730,250</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">0.89</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Shares underlying restricted stock units
granted</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,375,341</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2.82</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Shares underlying options vested</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(150,867</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.92</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Shares underlying restricted stock units
issued</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(680,524</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3.32</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Shares underlying unvested options
cancelled</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(310,669</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1.10</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Shares underlying unvested restricted
stock units cancelled</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(174,834</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2.91</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Shares underlying awards unvested at
December 31, 2011</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">3,095,801</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2.39</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          The
number of employee stock options granted during the years
ended December 31, 2011, 2010 and 2009 were 730,250, 348,500
and zero, respectively. The weighted-average fair value of
employee stock options granted during the years ended
December 31, 2011 and 2010 was $0.89 and $1.15, respectively.
For the years ended December 31, 2011, 2010 and 2009, the
total fair value of share-based awards vested was
approximately $1.9 million, $1.3 million and $4.3 million,
respectively. There were no employee stock options exercised
during the years ended December 31, 2011, 2010 and 2009. As
of December 31, 2011, there was approximately $5.4 million of
unrecognized stock-based compensation expense remaining to be
recognized over a weighted-average period of 2.3
years.</font>
</p><br/>
<p>
<font size="2"><b>(12) Commitments and
Contingencies</b></font>
</p><br/><p>
<font size="2"><b>Operating Leases and Employment
Agreements</b></font>
</p><br/><p>
<font size="2">          The
Company is committed under operating leases, principally for
office space, which expire at various dates through December
31, 2020. Certain leases contain escalation clauses relating
to increases in property taxes and maintenance costs. Rent
and equipment rental expenses were approximately $1.7
million, $1.7 million and $2.4 million for the years ended
December 31, 2011, 2010 and 2009, respectively. Additionally,
the Company has agreements with certain of its outside
contributors, whose future minimum payments are dependent on
the future fulfillment of their services thereunder. As of
December 31, 2011, total future minimum cash payments are as
follows:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="16%" valign="bottom">
<p>
 
</p>
</td>
<td width="6%" valign="bottom">
<p>
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="20" valign="bottom">
<p align="center">
<font size="2"><b>Payments Due by Year</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="20" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" nowrap="nowrap">
<p>
<font size="2"><b>Contractual obligations:</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Total</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2012</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2013</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2014</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2015</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>2016</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>After 2016</b></font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td colspan="2" valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Operating leases</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">16,669,021</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,995,711</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,961,074</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,848,604</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,839,882</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,804,750</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">7,219,000</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td colspan="2" valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Outside contributors</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">420,833</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">375,000</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">45,833</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td colspan="2" valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td colspan="2" valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="2">Total contractual cash
obligations</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">17,089,854</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,370,711</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,006,907</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,848,604</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,839,882</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,804,750</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">7,219,000</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td colspan="2" valign="bottom">
<p style="MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          Future
minimum cash payments for the year ended December 31, 2012
related to operating leases has been reduced by approximately
$0.2 million related to payments to be received related to a
sublease of office space.</font>
</p><br/><p>
<font size="2"><b>Legal Proceedings</b></font>
</p><br/><p>
<font size="2">          As
previously disclosed, in 2001, the Company, certain of its
current or former officers and directors and certain
underwriters were named in a securities class action related
to the Company’s initial public offering
(“IPO”). Similar suits were filed against
approximately 300 other issuers and their underwriters, all
of which are included in a single coordinated proceeding in
the district court (the “IPO Litigations”). The
complaints allege that the prospectus and the registration
statement for the IPO failed to disclose that the
underwriters allegedly solicited and received
“excessive” commissions from investors and that
some investors in the IPO allegedly agreed with the
underwriters to buy additional shares in the aftermarket in
order to inflate the price of the Company’s stock. The
complaints seek unspecified damages, attorney and expert
fees, and other unspecified litigation costs. In 2003, the
district court granted the Company’s motion to dismiss
the claims against it under Rule 10b-5 but motions to dismiss
the claims under Section 11 of the Securities Act of 1933
were denied as to virtually all of the defendants in the
consolidated cases, including the Company. In addition, some
of the individual defendants in the IPO Litigations signed a
tolling agreement and were dismissed from the action without
prejudice on October 9, 2002. In 2003, a proposed collective
partial settlement of this litigation was structured between
the plaintiffs, the issuer defendants in the consolidated
actions, the issuer officers and directors named as
defendants, and the issuers’ insurance companies. The
court granted preliminary approval of the settlement in 2005
but in 2007 the settlement was terminated, in light of a
ruling by the appellate court in related litigation in 2006
that reversed the trial court’s certification of classes
in that related litigation. In 2009, another settlement was
entered into and approved by the trial court. Under the
settlement, the Company’s obligation would be paid by
the issuers’ insurance companies. The settlement was
appealed; in May 2011, the Second Circuit Court of Appeals
dismissed one appeal and remanded another appeal to the
District Court to determine whether the appellant has
standing; in August 2011, the District Court determined that
the applicable appellant did not have standing, which
decision was appealed. In January 2012, the appeal was
dismissed and the settlement is to be effected.</font>
</p><br/><p>
<font size="2">          As
previously disclosed, we conducted a review of the accounting
in our former Promotions.com subsidiary, which subsidiary we
sold in December 2009. As a result of this review, in
February 2010 we filed a Form 10-K/A for the year ended
December 31, 2008 and a Form 10-Q/A for the quarter ended
March 31, 2009, respectively, to restate and correct certain
previously-reported financial information as well as filed
Forms 10-Q for the quarters ended June 30, 2009 and
September 30, 2009, respectively. The SEC commenced an
investigation in March 2010 into the facts surrounding our
restatement of previously issued financial statements and
related matters. We are cooperating fully with the SEC. The
investigation could result in the SEC seeking various
penalties and relief including, without limitation, civil
injunctive relief and/or civil monetary penalties or
administrative relief. The nature of the relief or remedies
the SEC may seek, if any, cannot be predicted at this
time.</font>
</p><br/><p>
<font size="2">          As
previously disclosed, in April 2010, we and one of our
reporters were named in a lawsuit captioned <i>Generex
Biotechnology Corporation v. Feuerstein et al.</i> (N.Y.
Supreme Court, County of New York, Index No. 10104433), in
which plaintiff alleges that certain articles we published
concerning plaintiff were libelous. In May 2010 we filed an
answer denying all claims. In November 2011 the parties
executed a settlement agreement and the action was dismissed
with prejudice. No payments were made to either party.</font>
</p><br/><p>
<font size="2">          In
February 2011, by agreement of plaintiff and the Company, the
Company was dismissed from the Delaware action without
prejudice and named as a defendant in the California action.
In May 2011, the action against the Company and all but
defendant Yelp! Inc. (“Yelp!”) were dismissed for
misjoinder and plaintiff filed separate cases against the
dismissed defendants; the action against the Company is
captioned <i>EIT Holdings LLC v. TheStreet.com, Inc.</i>,
(U.S.D.C., N. D. Cal.). The complaints allege that defendants
infringe U.S. Patent No. 5,828,837 (the “Patent”),
putatively owned by plaintiff, related to a certain method of
displaying information to an Internet-accessible device. In
January 2012, the court in the case against Yelp! granted
Yelp’s motion for summary judgment, finding the Patent
to be invalid. In the event such judgment becomes final and
nonappealable, plaintiff could not obtain an award of relief
against any other party, including the Company, with respect
to claims related to the Patent. The Company intends to
vigorously defend itself and believes it has meritorious
defenses. Due to the early stage of this matter and the
inherent uncertainties of litigation, the ultimate outcome of
this matter is uncertain.</font>
</p><br/><p>
<font size="2">          The
Company is party to other legal proceedings arising in the
ordinary course of business or otherwise, none of which other
proceedings is deemed material.</font>
</p><br/>
<p>
<font size="2"><b>(13) Long Term Investment</b></font>
</p><br/><p>
<font size="2">          During
2008, the Company made an investment in Debtfolio, Inc.,
doing business as Geezeo, an online financial management
solutions provider for banks and credit unions. The
investment totaled approximately $1.9 million for an 18.5%
ownership stake. Additionally, the Company incurred
approximately $0.2 million of legal fees in connection with
this investment. The Company retained the option to purchase
the company based on an equity value of $12 million at any
point prior to April 23, 2009, but did not exercise the
option. During the first quarter of 2009, the carrying value
of the Company’s investment was written down to fair
value based upon an estimate of the market value of the
Company’s equity in light of Debtfolio’s efforts to
raise capital at the time from third parties. The impairment
charge approximated $1.5 million. The Company performed an
additional impairment test as of December 31, 2009 and no
additional impairment in value was noted. During the three
months ended June 30, 2010, the Company determined it
necessary to record a second impairment charge totaling
approximately $0.6 million, writing the value of the
investment to zero. This was deemed necessary by management
based upon their consideration of Debtfolio, Inc.’s
continued negative cash flow from operations, current
financial position and lack of current liquidity. In October
2011, Debtfolio, Inc. repurchased the Company’s
ownership stake in exchange for a subordinated promissory
note in the aggregate principal amount of approximately $0.6
million payable on October 31, 2014. As of December 31, 2011,
we maintain a full valuation allowance against our
subordinated promissory note due to the uncertainty of
eventual collection.</font>
</p><br/>
<p>
<font size="2"><b>(14) Impairment Charge</b></font>
</p><br/><p>
<font size="2">          During
2008, the Company made an investment in Debtfolio, Inc.,
doing business as Geezeo, an online financial management
solutions provider for banks and credit unions. During the
first quarter of 2009, the carrying value of the
Company’s investment was written down to fair value
based upon an estimate of the market value of the
Company’s equity in light of Debtfolio’s efforts to
raise capital at the time from third parties. The impairment
charge approximated $1.5 million. The Company performed an
additional impairment test as of December 31, 2009 and no
additional impairment in value was noted. During the three
months ended June 30, 2010, the Company determined it
necessary to record a second impairment charge totaling
approximately $0.6 million, writing the value of the
investment to zero. This was deemed necessary by management
based upon their consideration of Debtfolio, Inc.’s
continued negative cash flow from operations, current
financial position and lack of current liquidity.</font>
</p><br/><p>
<font size="2">          In
the first quarter of 2009, the Company performed an interim
impairment test of its goodwill, intangible assets and a
long-term investment due to certain impairment indicators,
including a continued decline in both advertising and
subscription revenue resulting from the challenging economic
environment and a reduction in the Company’s enterprise
value. As a result of this test, the Company recorded an
impairment charge approximating $24.1 million, as
follows:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="2%" valign="top">
<p>
 
</p>
</td>
<td width="98%" valign="top">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2">•</font>
</p>
</td>
<td valign="top">
<p>
<font size="2">The total Company fair value was
estimated using a combination of a discounted cash flow
model (present value of future cash flows) and the
Company’s business enterprise value based upon the
fair value of its outstanding common and preferred
shares. The fair value of the Company’s goodwill
is the residual fair value after allocating the
Company’s total fair value to its other assets,
net of liabilities. This analysis resulted in an
impairment of the Company’s goodwill of
approximately $19.8 million. The review also revealed
an additional impairment to the Company’s
intangible assets related to certain customer
relationships and noncompete agreements of
approximately $2.8 million.</font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="top">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="top">
<p>
<font size="2">•</font>
</p>
</td>
<td valign="top">
<p>
<font size="2">The carrying value of the Company’s
long term investment was written down to fair value
based upon the most current estimate of the market
value of the Company’s equity stake in Debtfolio,
Inc. The impairment approximated $1.5 million. (See
Note 13 (Long-Term Investment)).</font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>(15) Restructuring and Other
Charges</b></font>
</p><br/><p>
<font size="2">          In
March 2009, the Company announced and implemented a
reorganization plan, including an approximate 8% reduction in
the Company’s workforce, to align the Company’s
resources with its strategic business objectives.
Additionally, effective March 21, 2009 the Company’s
then chief executive officer tendered his resignation,
effective May 8, 2009 the Company’s then chief financial
officer tendered his resignation, and in December 2009 the
Company sold its Promotions.com subsidiary and entered into
negotiations to sublease certain office space maintained by
Promotions.com. As a result of these activities, the Company
incurred restructuring and other charges from continuing
operations of approximately $3.5 million during the year
ended December 31, 2009. Included in this charge were
severance and other payroll related expenses totaling
approximately $1.9 million, approximately $0.8 million
related to the sublease of office space previously occupied
by our former Promotions.com subsidiary, approximately $0.6
million of professional fees and approximately $0.2 million
related to the write-off of certain assets.</font>
</p><br/><p>
<font size="2">          Total
cash outlay for the restructuring and other charges will
approximate $3.0 million, of which approximately $0.7 million
is included in accrued expenses on the Company’s
consolidated balance sheet as of December 31, 2011.</font>
</p><br/><p>
<font size="2">          The
following table displays the activity of the restructuring
and other charges reserve account from the initial charges
during the first quarter 2009 through December 31,
2011:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="47%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="9%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="9%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="9%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="8%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Workforce<br />
Reduction</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Lease<br />
Terminations</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Asset<br />
Write-Off</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">Total</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Initial charge</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,741,752</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">242,777</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,984,529</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Additions</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">726,385</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">750,000</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,476,385</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Noncash deductions</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(208,918</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(242,777</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(451,695</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Payments</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1,779,163</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(1,779,163</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Balance December 31, 2009</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">480,056</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">750,000</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">1,230,056</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Payments</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(152,634</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(232,661</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(385,295</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Balance December 31, 2010</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">327,422</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">517,339</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">844,761</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Payments</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(170,396</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(170,396</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Balance December 31, 2011</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">327,422</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">346,943</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">674,365</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><p>
<font size="2">          In
December 2011, the Company announced a management transition
under which the Company’s chief executive officer will
step down from his position by March 31, 2012. The
Company’s Board of Directors has formed a committee to
search for his successor. Additionally, in December 2011, a
senior vice president separated from the Company. As a result
of these activities, the Company incurred restructuring and
other charges from continuing operations of approximately
$1.8 million during the year ended December 31, 2011.</font>
</p><br/><p>
<font size="2">          Total
cash outlay for the restructuring and other charges will
approximate $1.2 million, all of which is included in accrued
expenses on the Company’s consolidated balance sheet as
of December 31, 2011.</font>
</p><br/>
<p>
<font size="2"><b>(16) Comprehensive Loss</b></font>
</p><br/><p>
<font size="2">          Comprehensive
loss consists of the following:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="59%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="9%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="9%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="9%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<p align="center">
<font size="2">For the Years Ended December 31,</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="8" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2011</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2010</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2009</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Net loss</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(8,184,121</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(5,334,607</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(47,717,634</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Recovery (temporary impairment) of
ARS</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(400,000</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">65,000</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">185,000</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Unrealized (loss) gain on marketable
securities</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(325,911</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(78,287</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">744,802</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Reclass from AOCI to earnings due to
sale</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">226</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(295,430</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Comprehensive loss</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(8,910,032</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(5,347,668</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(47,083,262</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>(17) Other Liabilities</b></font>
</p><br/><p>
<font size="2">          Other
liabilities consist of the following:</font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="50%">
<tr style="FONT-SIZE:1PX">
<td width="49%" valign="bottom">
<p>
 
</p>
</td>
<td width="5%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="15%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="5%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="15%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="2%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<p align="center">
<font size="2">As of December 31,</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="5" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2011</font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2">2010</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Deferred rent</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">3,277,478</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">2,933,014</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Deferred revenue</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">1,077,852</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Other liabilities</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">214,167</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">15,167</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">4,569,497</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">2,948,181</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/>
<p>
<font size="2"><b>(18) Employee Benefit Plan</b></font>
</p><br/><p>
<font size="2">          The
Company maintains a noncontributory savings plan in
accordance with Section 401(k) of the Internal Revenue Code.
The 401(k) plan covers all eligible employees and provides an
employer match of 50% of employee contributions, up to a
maximum of 4% of each employee’s total compensation
within statutory limits. The Company’s matching
contribution totaled approximately $0.3 million, $0.3 million
and $0.4 million for the years ended December 31, 2011, 2010
and 2009, respectively.</font>
</p><br/>
<p>
<font size="2"><b>(19) Subsequent Event</b></font>
</p><br/><p>
<font size="2">          On
March 7, 2012, the Company announced that it had hired
Elisabeth DeMarse to become President and Chief Executive
Officer. Daryl Otte shall continue as the Company’s
Chief Executive Officer through the filing of this report and
thereupon resign his offices with the Company, at which point
Ms. DeMarse shall assume her offices that day. In addition,
Ms. DeMarse was appointed as a director of the Company,
effective upon Mr. Otte’s resignation from the Board of
Directors.</font>
</p><br/>
<p>
<font size="2"><b>(20) Selected Quarterly Financial Data
(Unaudited)</b></font>
</p><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="43%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="11" valign="bottom">
<p align="center">
<font size="2"><b>For the Year Ended December 31,
2011</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="11" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>First Quarter</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Second Quarter</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Third Quarter</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<p align="center">
<font size="2"><b>Fourth Quarter</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
<td colspan="2" valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td colspan="11" valign="bottom">
<p align="center">
<font size="2"><b>(In thousands, except per share
data)</b></font>
</p>
</td>
<td valign="bottom">
<p align="center">
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Total revenue</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">14,121</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">15,029</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">14,341</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">14,269</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Total operating expense</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">16,959</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">16,859</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">15,993</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">16,764</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Loss from continuing operations before
income taxes</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,640</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,653</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,497</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,392</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Provision for income tax</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Loss from continuing operations</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,640</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,653</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,497</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,392</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Loss from discontinued operations</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(2</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Net loss</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,642</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,653</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,497</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,392</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Preferred stock dividends</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">96</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">97</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">96</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">97</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">Net loss attributable to common
stockholders</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,738</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,750</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(1,593</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(2,489</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p>
<font size="2">Basic and diluted net loss per
share:</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Loss from continuing operations</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.09</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.05</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.05</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.08</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Loss from discontinued operations</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.00</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">—</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Net loss</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.09</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.05</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.05</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.08</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Preferred stock dividends</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.00</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.00</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.00</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p align="right">
<font size="2">(0.00</font>
</p>
</td>
<td valign="bottom">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="1" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
<tr>
<td valign="bottom" style="background-color: #E5FFFF;">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="2">Net loss attributable to common
stockholders</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.09</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.05</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.05</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">$</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p align="right">
<font size="2">(0.08</font>
</p>
</td>
<td valign="bottom" style="background-color: #E5FFFF;">
<p>
<font size="2">)</font>
</p>
</td>
</tr>
<tr>
<td valign="bottom">
<p style="MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT">
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<hr size="3" width="100%" noshade="noshade" />
</td>
<td valign="bottom">
<p>
<font size="1"> </font>
</p>
</td>
</tr>
</table><br/><table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="FONT-SIZE:1PX">
<td width="43%" valign="bottom">
<p>
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="3%" valign="bottom">
<p>
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
<td width="10%" valign="bottom">
<p align="right">
 
</p>
</td>
<td width="1%" valign="bottom">
<p>
 
</p>
</td>
</tr>
<tr>
<td valign=&q