Basis of Presentation (continued) Sample Clauses

Basis of Presentation (continued) other obligations. The Company believes that based on the availability under the senior secured revolving credit facility (Note 6) the effects of the debt amendments (Note 19), the additional member (debt or equity) contribution in 2008 (Note 19) and anticipated cash flow from operations, the Company will be able to maintain its debt compliance, make required principal and interest payments on debt and fund its working capital and capital expenditure requirements through January 1, 2009.

Basis of Presentation (continued). The misappropriation had a material effect on the Company’s current and previously issued financial statements. As a result, the Company restated its 2006 financial statements in accordance with Financial Accounting Standard No. 154, Accounting Changes and Error Corrections. The amount of the loss attributable to 2006 is $3,261,132 and is shown separately on the consolidated statement of operations. The previously issued 2006 financial statements have also been restated for the effects of the correction of other errors. These other adjustments relate primarily to the Company’s review of the underlying asset and liability accounts examined in connection with its investigation of the misappropriation. A prior period adjustment to retained earnings of $1,626,012, net of tax, was also made to account for the misappropriation losses and other accounting errors that were incurred prior to January 1, 2006. No amounts that may be recoverable have been recorded as a receivable as of December 31, 2006 or 2007. The following line items have accordingly been adjusted for the year ended December 31, 2006: Net sales $ 106,778,136 — $ (354,636 ) $ 106,423,500 Cost of sales 40,067,698 — (97,082 ) 39,970,616 Pre-publication, publishing rights and developed technology amortization 11,370,463 $ (30,660 ) (4,532 ) 11,335,271 Total cost of sales 51,438,161 (30,660 ) (101,614 ) 51,305,887 Selling and administrative 45,810,829 (55,000 ) (119,480 ) 45,636,349 Other intangible asset amortization 1,013,098 — — 1,013,098 Tradename and intangible asset impairment charge — — — — Acquired in-process research and development — — — — Embezzlement expense — 3,261,132 — 3,261,132 Total cost and expenses 98,262,088 3,175,472 (221,094 ) 101,216,466 Income (loss) from operations 8,516,048 (3,175,472 ) (133,542 ) 5,207,034 Interest and other expenses (1,308,055 ) — (56,062 ) (1,364,117 ) Income (loss) from operations before taxes 7,207,993 (3,175,472 ) (189,604 ) 3,842,917 Income tax provision (benefit) 3,045,551 437,803 (80,112 ) 3,403,242 Net income (loss) $ 4,162,442 $ (3,613,275 ) $ (109,492 ) $ 439,675 1. Basis of Presentation (continued) Balance Sheet Items Assets Liabilities and stockholders’ equity 1. Basis of Presentation (continued) Cash Flow Statement Operating activities Investing activities Financing activities

Basis of Presentation (continued). Reclassifications