ITEM 5. OTHER INFORMATION.
Effective September 21, 2009, Roy Williams resigned as a director of the Company. On or about September 30, 2009, Bryan Eisenberg and Jeffrey Eisenberg resigned as directors of the Company. In September 2009, William Schloth resigned as a director of the Company. Their resignations as directors were not based on any disagreement with us on any matter relating to our operations, policies or practices.
In connection therewith, the board of directors reduced the number of authorized directors to three and appointed Greg Goldberg to fill one of the newly created vacancy on the board. Mr. Goldberg was appointed as a nominee of Professional Traders Fund and Professional Offshore Opportunity Fund, the holders of senior secured convertible debentures that are currently in default. Upon the successful restructuring of a majority of certain subordinated unsecured convertible notes, the holders of these notes will be entitled to nominate a third member to the board.
