Item 8.01. Other Events.
As previously reported, we did not make the quarterly interest payment due on January 31, 2009 under our Senior Secured Convertible Notes. In addition, we did not make the quarterly interest payment due today, April 30, 2009. Each failure to make an interest payment constitutes an event of default under our Senior Secured Convertible Notes. We have not received a notice of default or acceleration from the note holders as of the date of this filing, which is required prior to any of the principal amount becoming due and payable as a result of such defaults. Upon the occurrence and during the continuation of any event of default, all amounts outstanding under the Senior Secured Convertible Notes bear interest at a default rate of 15.0% per annum.
We were unable to issue shares for the April 30, 2009 interest payment because, due to our share price, the number of shares to be issued would require shareholder approval under applicable NASDAQ rules. In addition, given our current level of cash and cash equivalents and the impact of the economic downturn on our business, we are preserving cash in order to meet our existing operating commitments. It is uncertain whether we will have sufficient cash available to pay our next quarterly interest payment due under the Senior Secured Convertible Notes.

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