Time America, Inc. (Time America) develops, manufactures and markets a line of time and labor management software and hardware products targeting small, medium-sized and enterprise-level companies. The Company's products are internally developed software applications that maintain and automate the process of collecting time and human resource data. Time America provides automated interfaces to a number of payroll, accounting and enterprise resource planning software solutions and enables users to generate a variety of reports that track and analyze workforce productivity. The Company's products also automatically accrue vacation, sick and personal time, and replace the traditional punch clock with a fully automated system. Time America's solutions are offered in a 100% Web-based licensed or hosted model, client/server configuration, and in a personal computer (PC)-based application. The Company also provides a suite of maintenance and professional services to its customers. The Company markets and sells its products to customers in the United States and in certain foreign countries through its direct sales and support organization, its Reseller Program and its Business Alliance Program. The Reseller Program comprises a network of approximately 250 value-added resellers located throughout the United States and in certain foreign countries. The Business Alliance Program allows organizations to align with Time America through the use of private label, original equipment manufacturers or referral programs. During the fiscal year ended June 30, 2005, the Company's direct sales efforts accounted for approximately 44% of its total revenues, while reseller sales efforts accounted for approximately 56%. Software Solutions As of June 30, 2005, Time America offered a suite of seven different software solutions to meet the needs of a variety of clients. Features that are common to the software solutions include time management, attendance management, workforce scheduling, customization, accrual management, strategic reporting, and job and task tracking. The Company's suite of software products includes NETtime, GENESIS SQL, GENESIS PRO, HourTrack, TA100 PRO, TA50 PRO and TA50XL. NETtime is a 100% Web-based software application provided to customers through a licensed and hosted model, which allows for unique customization and flexibility. NETtime is flexible and scalable, and has the capability of working in any environment required by clients. The Company's customers can also order additional Time America products, obtain system help, or contact a support representative directly from the NETtime Website. HourTrack is the predecessor to NETtime and is a client-server software system that is primarily used by medium and enterprise level companies. The GENESIS SQL product is a client-server software system that is primarily used by medium and enterprise level companies. It is the Company's most feature-rich product in its suite of software solutions, with over 15 years of product evolution. GENESIS SQL supports complex pay rules and has the most robust scheduling functionality of Time America's product suite. GENESIS SQL also has access control and occurrence ratings modules that are not found in any of the Company's other products. GENESIS PRO is a medium- and enterprise-level PC-based software application that has the same feature set of GENESIS SQL. The TA100 PRO PC-based time and attendance solution is designed for companies with fewer than 500 employees. An optional feature of the TA100 PRO solution includes a Bell Control Module that allows a client to define bell-ringing schedules and prompt terminals to activate a user supplied bell, alarm, or other audible signaling device. The TA50 PRO is an easy to use, but powerful PC-based time and attendance solution designed for companies with fewer than 200 employees. TA50 PRO enables companies to automate their timekeeping and attendance tracking with built-in setup wizards and a simplified user interface. Time America also offers the TA50XL, a user-friendly PC-base