Until March 1997, the Company operated seven (7) Karate Centers one (1) directly and six (6) through wholly owned subsidiaries. During the two year period following the Company's initial public offering in 1993, the Company pursued an aggressive expansion program. The Company long believed that by increasing the number of students and overall revenues it would reduce its overhead costs per student. This would enable the Company to operate profitably. However, after some time, it became apparent to management that despite having the necessary capital, the Company was incapable of training and developing a sufficient number of instructors skilled in the...