Page 4 of 7 – SEC Filing
The Reporting Person attended a meeting held on December 6, 2017 organized by the Chairman of the Board
of Directors of the Issuer (the “Board”) at which other shareholders of the Issuer were present at which time
the Issuer’s performance, operations, strategic direction, management and Board composition were discussed. These discussions
are ongoing.
The Reporting Person may engage
in discussions with management, the Board, other shareholders of the Issuer and other relevant parties,
including representatives of any of the foregoing, concerning the Reporting Person’s investment in the Shares and the
Issuer, including, without limitation, matters concerning the Issuer’s business, operations, governance, Board
composition, management, capitalization and strategic plans. The Reporting Person may exchange information with any persons
pursuant to appropriate confidentiality or similar agreements or otherwise, work together with any persons pursuant to joint
agreements or otherwise, propose changes in the Issuer’s business, operations, governance, Board
composition, management, capitalization
or strategic plans, or propose or engage in one or more other actions set forth under subparagraphs (a)-(j) of Item 4 of
Schedule 13D.
The Reporting Person intends to review its investment
in the Issuer on a continuing basis. Depending on various factors, including, without limitation, the outcome of any discussions
referenced above, the Issuer’s financial position and strategic direction, actions taken by management or the Board,
price levels of the Shares, other investment opportunities available to the Reporting Person, conditions in the securities market
and general economic and industry conditions, the Reporting Person may in the future take such actions with respect to its investment
in the Issuer as it deems appropriate, including, without limitation, purchasing additional Shares or selling some or all of its
Shares, engaging in short selling of or any hedging or similar transactions with respect to the Shares and/or otherwise changing
its intention with respect to any and all matters referred to in Item 4 of Schedule 13D.
| Item 5. | INTEREST IN SECURITIES OF THE COMPANY. |
(a) The aggregate percentage of Shares
reported to be beneficially owned by the Reporting Persons is based upon 15,004,270 Shares outstanding as of November 3, 2017,
as reported in the Issuer’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 filed with the
Securities and Exchange Commission on November 9, 2017.
As of the date hereof, the Reporting
Person may be deemed to beneficially own 1,118,075 Shares, representing approximately 7.5% of the Shares outstanding.
(b) The Reporting Person has sole voting
and dispositive power over 1,118,075 Shares, which power is exercised by the Managing Member.
(c) Information concerning transactions
in the Shares effected by the Reporting Person during the past sixty days is set forth in Schedule A hereto and is incorporated
herein by reference. All of the transactions in Shares listed hereto were effected in the open market through various brokerage
entities.
(d) No person other than
the Reporting Person and the Contrarian Funds is known to have the right to receive or the power to direct the receipt
of dividends from, or the proceeds from the sale of, the Shares. Contrarian Capital Fund I, L.P., a Contrarian Fund,
has the right to receive dividends from, and proceeds from the sale of, more than 5% of the Shares.
(e) Not applicable.
