NRS is a private provider of specialized education services for children and youth facing learning, language , and social challenges. The Company operates three schools located in New Jersey with customized programs for each student. Legislation provides a process by which a student suspected of having a disability is referred by his or her teacher, parent or student sponsor to the school district's professional evaluation staff, who determines the student's eligibility for special education services. When a student is determined to be eligible for special education services, such services must, by law be provided. These services can be provided by the public school itself, or, if the school does not have sufficient resources to meet the academic and therapeutic needs of that student, by a contractor, such as NRS. Generally, such students are educated in significantly different environments than they would have experienced in traditional classrooms. Special education students receive highly individualized academic instruction in significantly smaller class settings. In addition, many of the Company's students typcially demonstrate social or behavioral disabilities and require teachers and other professional service staff to help them achieve academic goals. The schools also regularly monitor, manage, and track the behavioral patterns of each student. Because the Company's schools provide highly specialized education services that are mandated by federal, state, and local laws and regulations and funded with public dollars, each school must be credentialed by the New Jersey Department of Education. Each of the Company's schools is appropriately licensed.