Item 8.01 - Other Events.

The following is to update and correct information we previously reported in Part I of our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2008, in Item 1 (Financial Statements), under footnote 9 to the Notes to Condensed Consolidated Financial Statements, and in Item 3 (Management's Discussion and Analysis), under the caption "Liquidity and capital resources."

With reference to the Loan and Security Agreement we entered into on January 29, 2007 with Comerica Bank, as subsequently amended (the "2007 Credit Facility"), and which matures on October 1, 2009, we are required to maintain or achieve certain financial ratios and covenants, as measured on a quarterly basis. At September 30, 2008, we were not in compliance with the covenant to maintain a "Tangible Net Worth" (as defined in the 2007 Credit Facility) of not less than $25,000,000; our Tangible Net Worth at September 30, 2008 was $24,230,000. Comerica Bank has provided a waiver to us of that covenant shortfall for our quarter ended September 30, 2008. We anticipate that our Tangible Net Worth will continue to be less than $25,000,000 for some period, and that we will need to seek additional waivers of this covenant for future quarters, or to request that Comerica Bank agree to further modify the terms of the 2007 Credit Facility to reduce this requirement. We plan to continue active discussions with Comerica Bank regarding revisions to our credit facility.

---