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| R | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-------------------------------------------------------------------------------------------|

| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------------|

| New York                                                       |   | 11-2153962                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |
| 2929 California Street, Torrance, California                   |   | 90503                                |
| (Address of principal executive offices)                       |   | Zip Code                             |
| Large accelerated filer £ | Accelerated filer R                           | Non-accelerated filer £ | Smaller reporting company £ |
|--------------------------------|-----------------------------------------------|------------------------------|----------------------------------|
|                           | (Do not check if a smaller reporting company) |

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| EXPLANATORY NOTE                                                                                        | 3      |
|---------------------------------------------------------------------------------------------------------|--------|
|                                                                                                    |   |
| PART III                                                                                                |   |
| Item 10. Directors, Executive Officers and Corporate Governance                                         | 4      |
| Item 11. Executive Compensation                                                                         | 9      |
| Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 32     |
| Item 13. Certain Relationships and Related Transactions and Director Independence                       | 34     |
| Item 14. Principal Accounting Fees and Services                                                         | 35     |
|                                                                                                    |   |
| PART IV                                                                                                 |   |
| Item 15. Exhibits, Financial Statement Schedules                                                        | 36     |
|                                                                                                    |   |
| SIGNATURES                                                                                              | 37     |

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| Name              |   | Age    |   | Position with the Company                                                                                                                         |
|-------------------|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|              |   |   |   |                                                                                                                                              |
| Selwyn Joffe      |   | 55     |   | Chairman of the Board of Directors, President and Chief Executive Officer                                                                         |
|              |   |   |   |                                                                                                                                              |
| Mel Marks         |   | 85     |   | Director                                                                                                                                          |
|              |   |   |   |                                                                                                                                              |
| Scott J. Adelson  |   | 52     |   | Director                                                                                                                                          |
|              |   |   |   |                                                                                                                                              |
| Rudolph J. Borneo |   | 72     |   | Director, Chairman of the Compensation Committee and member of the Ethics and Nominating and Corporate Governance Committees                      |
|              |        |        |        |                                                                                                                                                   |
| Philip Gay        |   | 55     |   | Director, Chairman of the Audit Committee and Ethics Committee, and member of the Compensation and Nominating and Corporate Governance Committees |
|              |   |   |   |                                                                                                                                              |
| Duane Miller      |   | 66     |   | Director, member of the Audit, Compensation, Ethics and Nominating and Corporate Governance Committees                                            |
|              |   |   |   |                                                                                                                                              |
| Jeffrey Mirvis    |   | 49     |   | Director, member of the Compensation Committee                                                                                                    |

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| Name            |   | Age    |   | Position with the Company                       |
|-----------------|--------|--------|--------|-------------------------------------------------|
|            |   |   |   |                                            |
| Kevin Daly      |   | 54     |   | Chief Accounting Officer                        |
|            |   |   |   |                                            |
| Steve Kratz     |   | 58     |   | Chief Operating Officer                         |
|            |   |   |   |                                            |
| David Lee       |   | 43     |   | Chief Financial Officer                         |
|            |   |   |   |                                            |
| Doug Schooner   |   | 44     |   | Vice President, Global Manufacturing Operations |
|            |   |   |   |                                            |
| Michael Umansky |   | 71     |   | Vice President, Secretary and General Counsel   |

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|  | · | Provide appropriate incentives to our executive officers to implement our strategic business objectives and achieve the desired company performance; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Reward our executive officers for their contribution to our success in building long-term shareholder value; and |
|--|--------|------------------------------------------------------------------------------------------------------------------|

|  | · | Provide compensation that will attract and retain superior talent and reward performance. |
|--|--------|-------------------------------------------------------------------------------------------|

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|  | · | Provide timely and accurate services and information to our management, Board of Directors and other stakeholders |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

|  | · | Improve top-level financial knowledge and accounting controls and maintain regulatory compliance with accounting standards and practices |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Keep abreast of all financial accounting pronouncements that may affect our financial reporting or financial strategies |
|--|--------|-------------------------------------------------------------------------------------------------------------------------|

|  | · | Monitor all metrics that may have an impact on our financial performance |
|--|--------|--------------------------------------------------------------------------|

|  | · | Maintain an effective treasury function, including budgeting and forecasting |
|--|--------|------------------------------------------------------------------------------|

|  | · | Manage our cash flows |
|--|--------|-----------------------|

|  | · | Minimize the loan and interest expenses we incur |
|--|--------|--------------------------------------------------|

|  | · | Manage our shareholder relations |
|--|--------|----------------------------------|

|  | · | Evaluate and manage the key operating metrics for us |
|--|--------|------------------------------------------------------|

|  | · | Increase quality of our product |
|--|--------|---------------------------------|

|  | · | Implement strategies aimed at reducing our product costs and warranty rates |
|--|--------|-----------------------------------------------------------------------------|

|  | · | Manage our recovery operations |
|--|--------|--------------------------------|

|  | · | Improve our customer support services |
|--|--------|---------------------------------------|

|  | · | Manage and improve the performance of our information technology systems |
|--|--------|--------------------------------------------------------------------------|

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|  | · | Maximize all manufacturing efficiencies to ensure fill rates to our customers |
|--|--------|-------------------------------------------------------------------------------|

|  | · | Ensure the quality of our products through the manufacturing process |
|--|--------|----------------------------------------------------------------------|

|  | · | Maintain appropriate levels of offshore production volume and capacity |
|--|--------|------------------------------------------------------------------------|

|  | · | Maintain a global manufacturing and multifunctional support group |
|--|--------|-------------------------------------------------------------------|

|  | · | Reorganize special order department to maintain ability of changing unit technology |
|--|--------|-------------------------------------------------------------------------------------|

|  | · | Complete the reorganization of the production shop |
|--|--------|----------------------------------------------------|

|  | · | Maintain our recovery remanufacturing process |
|--|--------|-----------------------------------------------|

|  | · | Improve product costs |
|--|--------|-----------------------|

|  | · | Limit our legal and other risk exposure |
|--|--------|-----------------------------------------|

|  | · | Manage any litigation |
|--|--------|-----------------------|

|  | · | Control our legal and insurance costs |
|--|--------|---------------------------------------|

|  | · | Maintain our compliance standards, including compliance with SEC rules and regulations |
|--|--------|----------------------------------------------------------------------------------------|

|  | · | Manage our investor relations communications |
|--|--------|----------------------------------------------|

|  | · | Develop and protect intellectual property for our business processes |
|--|--------|----------------------------------------------------------------------|

|  | · | Advise on and implement any transactional business opportunities, including acquisitions, financings, SEC correspondence and customer contracts |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Oversee certain administrative functions, including human resource functions |
|--|--------|------------------------------------------------------------------------------|

|  | · | Determine and negotiate all required insurance |
|--|--------|------------------------------------------------|

|  | · | Supervise contractual obligations |
|--|--------|-----------------------------------|

| Name            |   | Base Salary |    |   | Bonus  |   |
|-----------------|--------|-------------|---------|--------|--------|--------|
|            |   |             |    |   |        |   |
| David Lee       |   | $           | 220,000 |   |   | $      | 31,267 |   |
| Kevin Daly      |   | $           | 208,000 |   |   | $      | 16,767 |   |
| Steve Kratz     |   | $           | 350,000 |   |   | $      | 37,267 |   |
| Michael Umansky |   | $           | 506,000 |   |   | $      | 22,433 |   |
| Doug Schooner   |   | $           | 250,000 |   |   | $      | 21,767 |   |

|  | · | Overall responsibility for the financial results of the Company |
|--|--------|-----------------------------------------------------------------|

|  | · | Develop key strategies in all areas aimed at driving our Company value |
|--|--------|------------------------------------------------------------------------|

|  | · | Strengthen our relationships with key customers through long-term arrangements |
|--|--------|--------------------------------------------------------------------------------|

|  | · | Ensure appropriate information is communicated to our Board of Directors |
|--|--------|--------------------------------------------------------------------------|

|  | · | Ensure that the appropriate management team and corporate focus is in place |
|--|--------|-----------------------------------------------------------------------------|

|  | · | Develop an appropriate succession plan |
|--|--------|----------------------------------------|

|  | · | Maintain the appropriate financial structure for our Company, including, but not limited to, budgets and operating focus |
|--|--------|--------------------------------------------------------------------------------------------------------------------------|

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|  | · | Make decisions on all key initiatives proposed by senior management |
|--|--------|---------------------------------------------------------------------|

|  | · | Build sales |
|--|--------|-------------|

|  | · | Evaluate and propose systems and initiatives for continuous improvement in all disciplines of our business |
|--|--------|------------------------------------------------------------------------------------------------------------|

|  | · | Identify and drive any acquisitions |
|--|--------|-------------------------------------|

|  | · | Integrate acquired businesses |
|--|--------|-------------------------------|

|  | · | Prepare the infrastructure and develop plans to grow the Company |
|--|--------|------------------------------------------------------------------|

----

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| Name & Principal Position |  | Fiscal Year |   | Salary |    |   | Bonus (1) |   |      | Stock Awards |   |   | Options Awards (2) |   |   | Non-Equity Incentive Plan Compensation |    |   | Change in Pension Value and Nonqualified Deferred Compensation Earnings (3) |   |   | All Other Compensation (4) |   |   | Total  |   |
|-------------------------------|--|-------------|--------|--------|---------|--------|-----------|--------|-----------|--------------|--------|--------|--------------------|--------|--------|----------------------------------------|---------|--------|-----------------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|--------|--------|
|                          |  |        |   |        |    |   |           |   |      |              |   |   |                    |   |   |                                        |    |   |                                                                             |   |   |                            |   |   |        |   |
| Selwyn Joffe                  |  | 2013        |   | $      | 586,923 |   |      | $      | 1,037,707 |         |   | $      | 330,539            |   |   | $                                      | 682,556 |   |                                                                        | $      | -      |                       |   | $      | -      |   |   | $ | 565,442 |   |   | $ | 3,203,167 |   |
| Chairman of the Board,        |  | 2012        |   |   | 500,000 |   |      |   | 450,100   |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | -      |   |   |   | 111,610 |   |   |   | 1,061,710 |   |
| President and CEO             |  | 2011        |   |   | 500,000 |   |      |   | 700,100   |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | -      |   |   |   | 189,572 |   |   |   | 1,389,672 |   |
|                          |  |        |   |   |    |   |      |   |      |         |   |   |               |   |   |                                   |    |   |                                                                        |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| David Lee                     |  | 2013        |   | $      | 220,000 |   |      | $      | 31,267    |         |   | $      | -                  |   |   | $                                      | 90,442  |   |                                                                        | $      | -      |                       |   | $      | -      |   |   | $ | 56,977 |   |   | $ | 398,686 |   |
| Chief Financial Officer       |  | 2012        |   |   | 183,767 |   |      |   | 68,100    |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | -      |   |   |   | 64,680 |   |   |   | 316,547 |   |
|                          |  | 2011        |   |   | 178,500 |   |      |   | 65,100    |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | -      |   |   |   | 64,871 |   |   |   | 308,471 |   |
|                          |  |        |   |   |    |   |      |   |      |         |   |   |               |   |   |                                   |    |   |                                                                        |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Kevin Daly                    |  | 2013        |   | $      | 208,000 |   |      | $      | 16,767    |         |   | $      | -                  |   |   | $                                      | 48,294  |   |                                                                        | $      | -      |                       |   | $      | -      |   |   | $ | 22,334 |   |   | $ | 295,395 |   |
| Chief Accounting Officer      |  | 2012        |   |   | 183,554 |   |      |   | 48,100    |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | -      |   |   |   | 25,195 |   |   |   | 256,849 |   |
|                          |  | 2011        |   |   | 180,000 |   |      |   | 65,100    |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | -      |   |   |   | 24,725 |   |   |   | 269,825 |   |
|                          |  |        |   |   |    |   |      |   |      |         |   |   |               |   |   |                                   |    |   |                                                                        |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Steve Kratz                   |  | 2013        |   | $      | 350,000 |   |      | $      | 37,267    |         |   | $      | -                  |   |   | $                                      | 108,003 |   |                                                                        | $      | -      |                       |   | $      | -      |   |   | $ | 19,448 |   |   | $ | 514,718 |   |
| Chief Operating Officer       |  | 2012        |   |   | 306,340 |   |      |   | 60,100    |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | -      |   |   |   | 258,438 |   |   |   | 624,878 |   |
|                               |  | 2011        |   |   | 300,000 |   |      |   | 95,100    |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | -      |   |   |   | 21,511 |   |   |   | 416,611 |   |
|                          |  |        |   |   |    |   |      |   |      |         |   |   |               |   |   |                                   |    |   |                                                                        |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Michael Umansky               |  | 2013        |   | $      | 506,000 |   |      | $      | 22,433    |         |   | $      | -                  |   |   | $                                      | 64,977  |   |                                                                        | $      | -      |                       |   | $      | 35,977 |   |   | $ | 52,063 |   |   | $ | 681,450 |   |
| Vice President, Secretary     |  | 2012        |   |   | 406,000 |   |      |   | 80,100    |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | 8,228  |   |   |   | 56,677 |   |   |   | 551,005 |   |
| and General Counsel           |  | 2011        |   |   | 406,000 |   |      |   | 60,100    |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | 30,360 |   |   |   | 55,307 |   |   |   | 551,767 |   |
|                          |  |        |   |   |    |   |      |   |      |         |   |   |               |   |   |                                   |    |   |                                                                        |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Doug Schooner                 |  | 2013        |   | $      | 250,000 |   |      | $      | 21,767    |         |   | $      | -                  |   |   | $                                      | 62,929  |   |                                                                        | $      | -      |                       |   | $      | 189    |   |   | $ | 58,377 |   |   | $ | 393,362 |   |
| Vice President,               |  | 2012        |   |   | 223,411 |   |      |   | 100,100   |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | 63     |   |   |   | 65,767 |   |   |   | 389,341 |   |
| Manufacturing                 |  | 2011        |   |   | 219,986 |   |      |   | 80,100    |         |   |   | -                  |   |   |                                   | -       |   |                                                                        |   | -      |                       |   |   | 307    |   |   |   | 65,467 |   |   |   | 365,860 |   |

----

| (1) | Bonus amounts for each named executive officer represent the bonus amount earned for each respective fiscal year and include a $100 bonus paid to each of the Company’s employees during December of each year, including the named executive officers. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Option award amounts represent the aggregate grant date fair value of options granted during the fiscal years ended March 31, 2013, 2012, and 2011. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | All amounts represent nonqualified deferred compensation earnings. |
|-----|--------------------------------------------------------------------|

| (4) | The following chart is a summary of the items that are included in the “All Other Compensation” totals: |
|-----|---------------------------------------------------------------------------------------------------------------------|

|     Name |   |    Automobile Expenses |   |   |   Health Insurance Premiums |   |   |   401K Employer's Contribution |   |   | Deferred Compensation Plan Employer's Contribution |   |   |     Other (1) |   |   |     Total |   |
|------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|--------|------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|-----------------------------------|--------|--------|-------------------------------|--------|
|                         |   |                                       |   |   |                                       |   |   |                                          |   |   |                                                         |   |   |                                   |   |   |                               |   |
| Selwyn Joffe                 |   | $                                     | 20,586 |   |                                  | $      | 77,830 |                                     |   | $      | 4,717                                                   |   |   | $                                 | -      |   |                          | $      | 462,310 |   |   | $ | 565,442 |   |
| David Lee                    |   | $                                     | -      |   |                                  | $      | 53,830 |                                     |   | $      | 3,147                                                   |   |   | $                                 | -      |   |                          | $      | - |   |   | $ | 56,977 |   |
| Kevin Daly                   |   | $                                     | -      |   |                                  | $      | 18,884 |                                     |   | $      | 3,450                                                   |   |   | $                                 | -      |   |                          | $      | - |   |   | $ | 22,334 |   |
| Steve Kratz                  |   | $                                     | -      |   |                                  | $      | 18,884 |                                     |   | $      | 564                                                     |   |   | $                                 | -      |   |                          | $      | - |   |   | $ | 19,448 |   |
| Michael Umansky              |   | $                                     | 2,190  |   |                                  | $      | 37,557 |                                     |   | $      | 4,090                                                   |   |   | $                                 | 8,226  |   |                          | $      | - |   |   | $ | 52,063 |   |
| Doug Schooner                |   | $                                     | -      |   |                                  | $      | 53,830 |                                     |   | $      | 4,547                                                   |   |   | $                                 | -      |   |                          | $      | - |   |   | $ | 58,377 |   |

----

| (1) | $462,310 of other compensation paid to Mr. Joffe consists of $454,675, which is the net purchase price of options purchased by the Company in January 2013 pursuant to an option purchase agreement and $7,635 is the compensation expense in connection with the 1,500 options exercised in April 2012. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|       Name |       Grant Date |   |   All Other Stock Awards: Number of Shares of Stock or Units |   |   | All Other Option Awards: Number of Securities Underlying Options |   |    |     Exercise or Base Price of Option Awards |   |   |    Grant Date Fair Value of Stock and Option Awards |   |
|------------------------------------------|------------------------------------------------|--------|------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|---------|-----------------------------------------------------------------|--------|--------|--------------------------------------------------------------------|--------|
|                                     |                                           |   |                                                                        |   |   |                                                                  |   |    |                                                                 |   |   |                                                                    |   |
| Selwyn Joffe                             | 12/28/2012                                     |   |                                                                   | 51,167 |   |                                                             |   | -       |                                                            |   | $      | -                                                                  |   |   | $ | 330,539 |   |
| Selwyn Joffe                             | 12/28/2012                                     |   |                                                                   | -      |   |                                                             |   | 109,100 |                                                            |   | $      | 6.46                                                               |   |   | $ | 319,326 |   |
| Selwyn Joffe                             | 12/28/2012                                     |   |                                                                   | -      |   |                                                             |   | 124,100 |                                                            |   | $      | 6.46                                                               |   |   | $ | 363,230 |   |
| David Lee                                | 12/28/2012                                     |   |                                                                   | -      |   |                                                             |   | 30,900  |                                                            |   | $      | 6.46                                                               |   |   | $ | 90,442 |   |
| Kevin Daly                               | 12/28/2012                                     |   |                                                                   | -      |   |                                                             |   | 16,500  |                                                            |   | $      | 6.46                                                               |   |   | $ | 48,294 |   |
| Steve Kratz                              | 12/28/2012                                     |   |                                                                   | -      |   |                                                             |   | 36,900  |                                                            |   | $      | 6.46                                                               |   |   | $ | 108,003 |   |
| Michael Umanksy                          | 12/28/2012                                     |   |                                                                   | -      |   |                                                             |   | 22,200  |                                                            |   | $      | 6.46                                                               |   |   | $ | 64,977 |   |
| Doug Schooner                            | 12/28/2012                                     |   |                                                                   | -      |   |                                                             |   | 21,500  |                                                            |   | $      | 6.46                                                               |   |   | $ | 62,929 |   |

|    Name |   | Number of Securities Underlying Unexercised Options (#) Exercisable vested |    |   | Number of Securities Underlying Unexercised Options (#) Unexercisable unvested |   |   |  Number of Securities Underlying Unexercised Unearned Options (#) |   |   |  Option Exercise Price ($) |   |  Option Expiration Date         |        |
|------------------------|--------|----------------------------------------------------------------------------|---------|--------|-------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------|--------|--------|---------------------------------|--------|--------------------------------------|--------|
|                   |   |                                                                            |    |   |                                                                                     |   |   |                                                                        |   |   |                                 |   |        |        |
| Selwyn Joffe           |   |                                                                            |    |   |                                                                                     |   |   |                                                                        |   |   |                                 |   |             |        |
|                   |   |                                                                       | 100,000 |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 6.345 |   | 1/13/2014 |  |
|                   |   |                                                                       | 200,000 |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 9.270 |   | 7/20/2014 |  |
|                   |   |                                                                       | 150,000 |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 10.010 |   | 11/2/2015 |  |
|                   |   |                                                                       | 250,000 |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 12.000 |   | 8/29/2016 |  |
|                   |   |                                                                       | 109,100 |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 6.460 |   | 12/27/2022 |  |
|                   |   |                                                                       | 41,367  |   |                                                                                |   | 82,733 | (1)                                                                    |   |   | -                               |   |                                 | $      | 6.460 |   | 12/27/2022 |  |
| David Lee              |   |                                                                       |    |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 |   |   |   |    |  |
|                   |   |                                                                       | 5,000   |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 10.10 |   | 11/2/2015 |  |
|                   |   |                                                                       | 2,500   |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 12.00 |   | 8/29/2016 |  |
|                   |   |                                                                       | 10,300  |   |                                                                                |   | 20,600 | (1)                                                                    |   |   |                            |   |                                 | $      | 6.460 |   | 12/27/2022 |  |
| Kevin Daly             |   |                                                                       |    |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 |   |   |   |    |  |
|                   |   |                                                                       | 5,000   |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 10.15 |   | 1/3/2016 |  |
|                   |   |                                                                       | 2,500   |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 12.00 |   | 8/29/2016 |  |
|                   |   |                                                                       | 5,500   |   |                                                                                |   | 11,000 | (1)                                                                    |   |   |                            |   |                                 | $      | 6.460 |   | 12/27/2022 |  |
| Steve Kratz            |   |                                                                       |    |   |                                                                                |   |   |                                                                   |   |   |                            |   |                                 |   |   |   |       |  |
|                   |   |                                                                       | 2,500   |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 8.70 |   | 5/11/2014 |  |
|                   |   |                                                                       | 6,000   |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 10.10 |   | 11/2/2015 |  |
|                   |   |                                                                       | 10,000  |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 12.00 |   | 8/29/2016 |  |
|                   |   |                                                                       | 12,300  |   |                                                                                |   | 24,600 | (1)                                                                    |   |   |                            |   |                                 | $      | 6.460 |   | 12/27/2022 |  |
| Michael Umansky        |   |                                                                       |    |   |                                                                                |   |   |                                                                   |   |   |                            |   |                                 |   |   |   |       |  |
|                   |   |                                                                       | 25,000  |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 10.01 |   | 11/2/2015 |  |
|                   |   |                                                                       | 20,000  |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 12.00 |   | 8/29/2016 |  |
|                   |   |                                                                       | 7,400   |   |                                                                                |   | 14,800 | (1)                                                                    |   |   |                            |   |                                 | $      | 6.460 |   | 12/27/2022 |  |
| Doug Schooner          |   |                                                                       |    |   |                                                                                |   |   |                                                                   |   |   |                            |   |                                 |   |   |   |       |  |
|                   |   |                                                                       | 12,000  |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 8.70 |   | 5/11/2014 |  |
|                   |   |                                                                       | 12,000  |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 10.01 |   | 11/2/2015 |  |
|                   |   |                                                                       | 20,000  |   |                                                                                |   | -      |                                                                   |   |   | -                               |   |                                 | $      | 12.00 |   | 8/29/2016 |  |
|                   |   |                                                                       | 7,167   |   |                                                                                |   | 14,333 | (1)                                                                    |   |   | -                               |   |                                 | $      | 6.46 |   | 12/27/2022 |  |

----

|  | (1) | This award vests in three equal installments beginning each anniversary from the grant date, December 28, 2012, subject to continued employment. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

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|                   |   | Option Awards                         |    |   | Stock Awards                     |   |
|------------------------|--------|---------------------------------------|---------|--------|----------------------------------|--------|
|    Name |   | Number of Shares Acquired on Exercise |    |   |  Value Realized on Exercise |   |   | Number of Shares Acquired on Vesting |   |   |  Value Realized on Vesting |   |
|                   |   |                                       |    |   |                                  |   |   |  |   |   |  |   |
| Selwyn Joffe           |   |                                  | 103,000 |   |                             | $      | 462,310 |   |   |   | 51,167 |   |   | $ | 330,539 |   |
| David Lee              |   |                                  | -       |   |                             | $      | - |   |   |   | - |   |   | $ | - |   |
| Kevin Daly             |   |                                  | -       |   |                             | $      | - |   |   |   | - |   |   | $ | - |   |
| Steve Kratz            |   |                                  | -       |   |                             | $      | - |   |   |   | - |   |   | $ | - |   |
| Michael Umansky        |   |                                  | -       |   |                             | $      | - |   |   |   | - |   |   | $ | - |   |
| Doug Schooner          |   |                                  | -       |   |                             | $      | - |   |   |   | - |   |   | $ | - |   |
|   Name |   | Executive Contributions in Last FY(1) |   |   | Registrant contribution in last FY(2) |   |   | Aggregate Earnings in Last FY |   |   | Aggregate Withdrawals/Distributions |   |   | Aggregate Balance at Last FY |   |
|------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|--------|-------------------------------|--------|--------|-------------------------------------|--------|--------|------------------------------|--------|
|             |   |                                       |   |   |                                       |   |   |                               |   |   |                                     |   |   |                              |   |
| Selwyn Joffe     |   | $                                     | -      |   |                                  | $      | -      |                          |   | $      | -                                   |   |   | $                            | -      |   |   | $ | - |   |
| David Lee        |   | $                                     | -      |   |                                  | $      | -      |                          |   | $      | -                                   |   |   | $                            | -      |   |   | $ | - |   |
| Kevin Daly       |   | $                                     | -      |   |                                  | $      | -      |                          |   | $      | -                                   |   |   | $                            | -      |   |   | $ | - |   |
| Steve Kratz      |   | $                                     | -      |   |                                  | $      | -      |                          |   | $      | -                                   |   |   | $                            | -      |   |   | $ | - |   |
| Michael Umansky  |   | $                                     | 32,904 |   |                                  | $      | 8,226  |                          |   | $      | 27,751                              |   |   | $                            | -      |   |   | $ | 409,128 |   |
| Doug Schooner    |   | $                                     | -      |   |                                  | $      | -      |                          |   | $      | 189                                 |   |   | $                            | -      |   |   | $ | 1,862 |   |

----

|  | (2) | The amounts set forth in this column are included in the “Salary” and “Bonus” columns, as applicable, in our “Summary Compensation Table.” |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | See description of the Non-Qualified Deferred Compensation Plan in the “Grants of Plan Based Awards” section. The following table shows our contribution to each named executive officer’s account: |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name            |   | Contribution |   |   | Interest (a) |   |   | Total  |   |
|-----------------|--------|--------------|--------|--------|--------------|--------|--------|--------|--------|
|            |   |              |   |   |              |   |   |        |   |
| Selwyn Joffe    |   | $            | -      |   |         | $      | -      |   |   | $ | - |   |
| David Lee       |   | $            | -      |   |         | $      | -      |   |   | $ | - |   |
| Kevin Daly      |   | $            | -      |   |         | $      | -      |   |   | $ | - |   |
| Steve Kratz     |   | $            | -      |   |         | $      | -      |   |   | $ | - |   |
| Michael Umansky |   | $            | 8,226  |   |         | $      | -      |   |   | $ | 8,226 |   |
| Doug Schooner   |   | $            | -      |   |         | $      | -      |   |   | $ | - |   |

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| (a) | No interest is paid by the registrant. |
|-----|----------------------------------------|

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| Benefit                   |   | Termination by Company for Cause (1) |    |   | Death (2) |   |    | Disability (3) |   |   | Voluntary Termination by Mr. Joffe for Good Reason or Termination by Company w/o Cause (4) |   |   | After Change in Control: Voluntary Termination by Mr. Joffe (5) |    |
|---------------------------|--------|--------------------------------------|---------|--------|-----------|--------|---------|----------------|--------|--------|--------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|---------|
|                      |   |                                      |    |   |           |   |    |                |   |   |                                                                                            |   |   |                                                                 |    |
| Salary Contribution       |   | $                                    | -       |   |      | $      | -       |           |   | $      | -                                                                                          |   |   | $                                                               | 600,000 |   |   | $ | 1,200,000 |   |
| Bonus (6)                 |   | $                                    | -       |   |      | $      | -       |           |   | $      | -                                                                                          |   |   | $                                                               | 75,100  |   |   | $ | 150,200 |   |
| Executive Awards (7)      |   | $                                    | -       |   |      | $      | -       |           |   | $      | -                                                                                          |   |   | $                                                               | -       |   |   | $ | - |   |
| Healthcare                |   | $                                    | -       |   |      | $      | -       |           |   | $      | 24,000                                                                                     |   |   | $                                                               | 155,660 |   |   | $ | - |   |
| Automobile Allowance (8)  |   | $                                    | -       |   |      | $      | -       |           |   | $      | -                                                                                          |   |   | $                                                               | 36,000  |   |   | $ | - |   |
| Accrued Vacation Payments |   | $                                    | 159,774 |   |      | $      | 159,774 |           |   | $      | 159,774                                                                                    |   |   | $                                                               | 252,082 |   |   | $ | 159,774 |   |

----

| (1) | Upon a termination for cause, Mr. Joffe will be entitled to his accrued salary, bonus, if any, reimbursable expenses, and benefits owing to him through the day of his termination. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Mr. Joffe’s employment term will end on the date of his death. Upon such event, Mr. Joffe’s estate will be entitled to receive his accrued salary, bonus, if any, benefits (including accrued but unused vacation time) and reimbursable expenses, owing to Mr. Joffe through the date of his death. In addition, Mr. Joffe’s estate will assume Mr. Joffe’s rights under our 1994 stock option plan and the related rights under his employment agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | If during the employment term, Mr. Joffe becomes disabled and is terminated by us, Mr. Joffe will be entitled to receive his accrued salary, bonus, if any, reimbursable expenses, and benefits owing to Mr. Joffe through the date of termination. In addition, Mr. Joffe will be entitled to receive the benefits payable pursuant to a disability insurance policy, which we pay Mr. Joffe $24,000 annually to be used by Mr. Joffe to purchase the same for his benefit. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Upon a termination by Mr. Joffe for good reason or by us without cause, Mr. Joffe will be entitled to receive through the later of the date which is two years after the termination date or August 31, 2015: (i) his salary at the annual rate as in effect immediately prior to the termination date; (ii) his average bonus earned for the two years immediately prior to the year in which his employment agreement is terminated (or if such termination occurs within the first three months of our fiscal year, for the second and third years preceding the year in which such termination occurs); (iii) the benefits; and (iv) reimbursable expenses. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (5) | If a change in control occurs and Mr. Joffe voluntarily terminates his employment agreement for good reason or Mr. Joffe’s employment is terminated by us without cause within two years following a change in control, then Mr. Joffe will be entitled to receive either the severance benefit as described in the next sentence of this footnote or the benefits described in the immediately preceding footnote, whichever is more favorable to Mr. Joffe, and we will pay Mr. Joffe any reimbursable expenses owed to him through the termination date. The severance benefit will be equal to (i) two times Mr. Joffe’s salary at the annual rate in effect immediately prior to the date of the change in control plus (ii) two times Mr. Joffe’s average bonus earned for the two years immediately prior to the year in which the change in control occurs. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The bonus amounts do not include Mr. Joffe's Non-OGSM bonus of $125,000, his bonus to pay certain tax obligations of $162,607, his signing bonus of $250,000 and his guaranted bonus of $750,000 because such bonuses are not included in the definition of bonuses payable upon termination in Mr. Joffe's current employment agreement.  Because the amounts shown in the table are calculated as of March 31, 2013, the bonus amounts also do not reflect any bonuses with respect to fiscal 2013 performance that may be paid in the future. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Upon the termination of his employment agreement, for any reason other than termination by us for cause or termination by Mr. Joffe without good reason, any Executive Awards under our 2010 Incentive Plan which are not fully vested will immediately vest and remain exercisable by Mr. Joffe for a period of two years or, if shorter, until the ten year anniversary of the date of grant of each such Executive Award. The inherent value shown in the table is the additional compensation expense we would have recorded upon the immediate vesting of all Executive Awards which were not fully vested at March 31, 2013. Executive Awards include incentive stock options and nonqualified stock options, restricted stock, restricted stock units, performance awards, dividend equivalent rights, stock payments, deferred stock, deferred stock units, SARs and cash awards. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Mr. Joffe is entitled to receive an automobile allowance until March 31, 2012 in the amount of $1,500 per month, payable monthly. In addition, all costs of operating the automobile, including fuel, oil, insurance, repairs, maintenance and other expenses, are our responsibility. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | · | Stock Options. Stock options provide for the purchase of shares of our common stock in the future at an exercise price set on the grant date. ISOs, by contrast to NSOs, may provide tax deferral beyond exercise and favorable capital gains tax treatment to their holders if certain holding period and other Code requirements are satisfied. The exercise price of a stock option may not be less than 100% of the fair market value of the underlying share on the date of grant (110% in the case of ISOs granted to certain significant shareholders), except with respect to certain substitute options granted in connection with a corporate transaction. The term of a stock option may not be longer than ten years (or five years in the case of ISOs granted to certain significant shareholders). Vesting conditions determined by the plan administrator may apply to stock options, may include continued service, performance and/or other conditions. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Stock Appreciation Rights. SARs entitle their holder, upon exercise, to receive from us an amount equal to the appreciation of the shares subject to the award between the grant date and the exercise date. The exercise price of a SAR may not be less than 100% of the fair market value of the underlying share on the date of grant (except with respect to certain substitute SARs granted in connection with a corporate transaction) and the term of a SAR may not be longer than ten years. Vesting conditions determined by the plan administrator may apply to SARs, and may include continued service, performance and/or other conditions. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Restricted Stock; Deferred Stock; RSUs; Performance Awards. Restricted stock is an award of nontransferable shares of our common stock that remain forfeitable unless and until specified conditions are met, and which may be subject to a purchase price. For shares of restricted stock with performance-based vesting, dividends which are paid prior to vesting will only be paid to the extent that the performance-based vesting conditions are subsequently satisfied and the shares vest. Deferred stock and RSUs are contractual promises to deliver shares of our common stock in the future, which may also remain forfeitable unless and until specified conditions are met. Delivery of the shares underlying these awards may be deferred under the terms of the award or at the election of the participant, if the plan administrator permits such a deferral. Performance awards are contractual rights to receive a range of shares of our common stock, cash, or a combination of cash and shares, in the future based on the attainment of specified performance goals, in addition to other conditions which may apply to these awards. Conditions applicable to restricted stock, deferred stock, RSUs and performance shares may be based on continuing service with us or our affiliates, the attainment of performance goals and/or such other conditions as the plan administrator may determine. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | · | Stock Payments. Stock payments are awards of fully vested shares of our common stock that may, but need not be, made in lieu of base salary, bonus, fees or other cash compensation otherwise payable to any individual who is eligible to receive awards. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Dividend Equivalent Rights. Dividend equivalent rights represent the right to receive the equivalent value of dividends paid on shares of our common stock and may be granted alone or in tandem with awards other than stock options or SARs. Dividend equivalents are credited as of dividend payments dates during the period between the date an award is granted and the date such award vests, is exercised, is distributed or expires, as determined by the plan administrator. Dividend equivalents with respect to an award with performance-based vesting that are based on dividends paid prior to the vesting of such award will only be paid to the extent that the performance-based vesting conditions are subsequently satisfied and the award vests. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name             |   | Fees Earned or Paid in Cash |   |   | Stock Awards |   |   | Option Awards (1) |   |   | All Other Compensation |   |   | Total |      |
|------------------|--------|-----------------------------|--------|--------|--------------|--------|--------|-------------------|--------|--------|------------------------|--------|--------|-------|-----------|
|             |   |                             |   |   |              |   |   |                   |   |   |                        |   |   |       |      |
| Philip Gay       |   | $                           | 90,000 |   |         | $      | -      |              |   | $      | 9,006                  |   |   | $     | -         |   |   | $ | 99,006 |   |
| Rudolph Borneo   |   | $                           | 65,500 |   |         | $      | -      |              |   | $      | 9,004                  |   |   | $     | -         |   |   | $ | 74,504 |   |
| Scott J. Adelson |   | $                           | 48,000 |   |         | $      | -      |              |   | $      | 12,501                 |   |   | $     | -         |   |   | $ | 60,501 |   |
| Duane Miller     |   | $                           | 71,000 |   |         | $      | -      |              |   | $      | 5,730                  |   |   | $     | -         |   |   | $ | 76,730 |   |
| Jeffrey Mirvis   |   | $                           | 67,000 |   |         | $      | -      |              |   | $      | 9,325                  |   |   | $     | -         |   |   | $ | 76,325 |   |
| Mel Marks        |   | $                           | -      |   |         | $      | -      |              |   | $      | -                      |   |   | $     | 1,000,000 |   |   | $ | 1,000,000 |   |

----

| (1) | Option award amounts reflect the aggregate grant date fair value of option awards. |
|-----|------------------------------------------------------------------------------------|

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| Name and Address of Beneficial Shareholder                          |   | Amount and Nature of Beneficial Ownership (1) |      |   | Percent of Class |   |
|---------------------------------------------------------------------|--------|-----------------------------------------------|-----------|--------|------------------|--------|
| Raging Capital Management, LLC (2)                                  |   |                                               |      |   |                  |   |
| Ten Princeton Avenue, Rocky Hill, New Jersey 08553                  |   |                                          | 1,433,660 |   |             |   | 9.9 | % |
| Nantahala Capital Management, LLC (2)                               |   |                                          |      |   |             |   |   |   |
| 19 Old Kings Highway South, Suite 200, Darien, CT 06820             |   |                                          | 1,366,613 |   |             |   | 9.5 | % |
| Wellington Trust Company, NA (2)                                    |   |                                          |      |   |             |   |   |   |
| 280 Congress Street, Boston, MA 02210                               |   |                                          | 1,144,694 |   |             |   | 7.9 | % |
| River Road Asset Management, LLC (2)                                |   |                                          |      |   |             |   |   |   |
| 462 S. 4th St., Ste 1600 Louisville, KY 40202                       |   |                                          | 955,440   |   |             |   | 6.6 | % |
| Selwyn Joffe (3)                                                    |   |                                          | 930,997   |   |             |   | 6.0 | % |
| Mel Marks (4)                                                       |   |                                          | 521,046   |   |             |   | 3.6 |   |
| Scott Adelson (5)                                                   |   |                                          | 47,000    |   |             |   | * |   |
| Rudolph Borneo (6)                                                  |   |                                          | 66,000    |   |             |   | * |   |
| Philip Gay (7)                                                      |   |                                          | 46,000    |   |             |   | * |   |
| Duane Miller (8)                                                    |   |                                          | 37,000    |   |             |   | * |   |
| Jeffrey Mirvis (9)                                                  |   |                                          | 40,000    |   |             |   | * |   |
| Doug Schooner (10)                                                  |   |                                          | 51,259    |   |             |   | * |   |
| Steve Kratz (11)                                                    |   |                                          | 30,800    |   |             |   | * |   |
| Michael Umansky (12)                                                |   |                                          | 52,400    |   |             |   | * |   |
| David Lee (13)                                                      |   |                                          | 19,800    |   |             |   | * |   |
| Kevin Daly (14)                                                     |   |                                          | 16,000    |   |             |   | * |   |
| Directors and executive officers as a group — 12 persons (15) |   |                                          | 1,858,302 |   |             |   | 12.5 | % |

----

| (1) | The listed shareholders, unless otherwise indicated in the footnotes below, have direct ownership over the amount of shares indicated in the table. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Based on information contained in filings made by such stockholders with the SEC on as reported in each such stockholder's most recent Schedule 13F filing or most recent Schedule 13G filing, whichever is more recent. Since there may have been subsequent purchases or sales of securities, this information may not reflect the current holdings by these stockholders. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes 100,000 shares issuable upon exercise of currently exercisable options under the 1994 Stock Option Plan; 600,000 shares issuable upon exercise of options under the 2003 Long Term Incentive Plan, and 150,467 shares issuable upon exercise of options under the 2010 Incentive Award Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes 484,956 shares held by a limited liability limited partnership the general partner of which is a corporation wholly owned by Mr. Marks. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes 37,000 shares issuable upon exercise of currently exercisable options granted under the 2004 Non-Employee Director Stock Option Plan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes 46,000 shares issuable upon exercise of currently exercisable options granted under the 2004 Non-Employee Director Stock Option Plan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Represents 46,000 shares issuable upon exercise of currently exercisable options granted under the 2004 Non-Employee Director Stock Option Plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

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| (8) | Represents 37,000 shares issuable upon exercise of currently exercisable options granted under the 2004 Non-Employee Director Stock Option Plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Includes 34,000 shares issuable upon exercise of currently exercisable options granted under the 2004 Non-Employee Director Stock Option Plan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Represents 44,000 shares issuable upon exercise of currently exercisable options under the 2003 Long Term Incentive Plan, 7,167 shares issuable upon exercise of currently exercisable options under the 2010 Incentive Award Plan and includes 92 shares of common stock held by The Schooner 2003 Family Trust. Mr. Schooner expressly disclaims ownership of the shares held by The Schooner 2003 Family Trust. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Represents 18,500 shares issuable upon exercise of currently exercisable options under the 2003 Long Term Incentive Plan and 12,300 shares issuable upon exercise of currently exercisable options under the 2010 Incentive Award Plan. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Represents 45,000 shares issuable upon exercise of currently exercisable options under the 2003 Long Term Incentive Plan and 7,400 shares issuable upon exercise of currently exercisable options under the 2010 Incentive Award Plan. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Includes 7,500 shares issuable upon exercise of currently exercisable options under the 2003 Long Term Incentive Plan and 10,300 shares issuable upon exercise of currently exercisable options under the 2010 Incentive Award Plan. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Includes 7,500 shares issuable upon exercise of currently exercisable options under the 2003 Long Term Incentive Plan and 5,500 shares issuable upon exercise of currently exercisable options under the 2010 Incentive Award Plan. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15) | Includes 100,000 shares issuable upon exercise of currently exercisable options granted under the 1994 Stock Option Plan; 722,500 shares issuable upon exercise of currently exercisable options granted under the 2003 Long Term Incentive Plan; 193,134 shares issuable upon exercise of currently exercisable options granted under the 2010 Incentive Award Plan; and 200,000 shares issuable upon exercise of currently exercisable options granted under the 2004 Non-Employee Director Stock Option Plan. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|               |   | 2013   |      |   | 2012   |   |      | 2011   |   |
|--------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Audit Fees         |   | $      | 2,519,000 |   |   | $      | 3,553,000 |   |   | $ | 1,143,000 |   |
| Audit Related Fees |   |   | 13,000    |   |   |   | -         |   |   |   | - |   |
| Tax Fees           |   |   | 283,000   |   |   |   | 346,000   |   |   |   | 126,000 |   |
| All Other Fees     |   |   | -         |   |   |   | 85,000    |   |   |   | 300,000 |   |
|               |   |   |      |   |   |   |      |   |   |   |   |   |
| Total              |   | $      | 2,815,000 |   |   | $      | 3,984,000 |   |   | $ | 1,569,000 |   |

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| Number   |  | Description of Exhibit                                                                                                                          |  | Method of Filing |
|--------------------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--|------------------|
|               |  |                                                                                                                                                      |  |             |
|               |  |                                                                                                                                                      |  |             |
| 31.1               |  | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002                                                        |  | Filed herewith.  |
|               |  |                                                                                                                                                      |  |             |
| 31.2               |  | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002                                                        |  | Filed herewith.  |
|               |  |                                                                                                                                                      |  |             |
| 31.3               |  | Certification of Chief Accounting Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002                                                       |  | Filed herewith.  |
|               |  |                                                                                                                                                      |  |             |
| 32.1               |  | Certifications of Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 |  | Filed herewith.  |

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|                 | MOTORCAR PARTS OF AMERICA, INC. |
|----------------------|---------------------------------|
|                 |                            |   |
| Dated: July 29, 2013 | By:                             | /s/ David Lee |
|                 |                            | David Lee |
|                 |                            | Chief Financial Officer |
|                 |                            |   |
| Dated: July 29, 2013 | By:                             | /s/ Kevin Daly |
|                 |                            | Kevin Daly |
|                 |                            | Chief Accounting Officer |
| /s/ Selwyn Joffe   | Chief Executive Officer and Director | July 29, 2013 |
|--------------------|--------------------------------------|---------------|
| Selwyn Joffe       | (Principal Executive Officer)        |          |
|               |                                 |          |
| /s/ David Lee      | Chief Financial Officer              | July 29, 2013 |
| David Lee          | (Principal Financial Officer)        |          |
|               |                                 |          |
| /s/ Kevin Daly     | Chief Accounting Officer             | July 29, 2013 |
| Kevin Daly         | (Principal Accounting Officer)       |          |
|               |                                 |          |
| /s/ Mel Marks      | Director                             | July 29, 2013 |
| Mel Marks          |                                 |          |
|               |                                 |          |
| /s/ Scott Adelson  | Director                             | July 29, 2013 |
| Scott Adelson      |                                 |          |
|               |                                 |          |
| /s/ Rudolph Borneo | Director                             | July 29, 2013 |
| Rudolph Borneo     |                                 |          |
|               |                                 |          |
| /s/ Philip Gay     | Director                             | July 29, 2013 |
| Philip Gay         |                                 |          |
|               |                                 |          |
| /s/ Duane Miller   | Director                             | July 29, 2013 |
| Duane Miller       |                                 |          |
|               |                                 |          |
| /s/ Jeffrey Mirvis | Director                             | July 29, 2013 |
| Jeffrey Mirvis     |                                 |          |

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