Note 16 – Subsequent Events

As part of the Company’s initiatives to reduce labor costs and improve operating efficiencies in response to the challenges in the marketplace and general market conditions, we reduced our workforce in January 2013. We laid off 13 employees in the United States and 163 employees in the Philippines reducing our workforce to a total of 1,194 employees. The severance charges of approximately $493,000 was recorded in marketing expense, general and administrative expense, fulfillment expense and technology expense for $250,000, $94,000, $42,000 and $107,000, respectively, in January 2013. We do not expect to incur material additional charges subsequent to January 2013.