Commitments and Contingencies Stock Repurchase Program On February 4, 2009, the Company s board of directors authorized a stock buyback program to repurchase up to an aggregate of $2.0 million of its issued and outstanding common shares. The timing and extent of the repurchase depends upon market conditions, applicable legal requirements, and other factors. During the three and six months ended June 30, 2012 , the Company repurchased 211,177 shares and 272,057 shares respectively of its common stock under the stock buyback program. Through June 30, 2012 the Company has repurchased 854,882 shares of its common stock at a cost of $1.6 million at a weighted average price of $1.91 per share. Outstanding Letter of Credit The Company has an outstanding letter of credit of $0.2 million to secure the Company s performance under an insurance agreement. Legal Matters In the normal course of business, the Company has been, and will likely continue to be, subject to litigation or administrative proceedings incidental to its business, such as claims related to customer disputes, employment practices, wage and hour disputes, product liability, professional liability, commercial disputes, licensure restrictions or denials, and warranty or patent infringement. Responding to litigation or administrative proceedings, regardless of whether they have merit, can be expensive and disruptive to normal business operations. As litigation and the administrative proceedings are inherently uncertain, the Company cannot predict the outcome of such matters. While the ultimate outcome of litigation is always uncertain, the Company does not believe that any currently known matters will have a material adverse effect on its business or financial results.