Quarterly report pursuant to sections 13 or 15(d)

Vendor Concessions

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Vendor Concessions
9 Months Ended
Sep. 30, 2012
Vendor Concessions [Abstract]  
Vendor Concessions
9. Vendor Concessions:

As the Company’s financial condition deteriorated during the last several months, it became necessary for the Company to accelerate its cash conservation measures, including delaying or withholding payments to vendors. In conjunction with the Investment by RVL 1 LLC, certain accounts payable vendors and service providers agreed to accept payments less than the outstanding balance owed to them. For the three months ended September 30, 2012, the Company recognized a gain from vendor concessions of $153,522 which is included in selling, general and administrative expense and caused basic and diluted loss per share for the three and nine months ended September 30, 2012 to decrease by $0.01. As a result of the Investment and subsequent payments to our suppliers and service providers, the Company believes it has successfully restored its relationship and credit with the Company’s primary vendors.