5)   Inventory Write-down

In accordance with  applicable accounting guidance we regularly evaluate whether inventory is stated at the lower of cost or market. As a result of suspending the sale of product and services through the seminar sales channel for our StoresOnline division (see Note 13), we concluded that the market value for certain inventory items associated with the sale of products and services through the seminar sales channel were less than their cost. As such, $227,000 of inventory was written-off and charged to cost of sales for the three and six months ended June 30, 2011.