2018 Q1 Form 10-Q Financial Statement

#000158080818000033 Filed on September 24, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q1
Revenue $49.18M $60.29M
YoY Change -18.42% 12.05%
Cost Of Revenue $11.88M $14.74M
YoY Change -19.39% 11.46%
Gross Profit $37.30M $49.19M
YoY Change -24.18% 21.23%
Gross Profit Margin 75.84% 81.6%
Selling, General & Admin $38.50M $33.91M
YoY Change 13.53% 1.44%
% of Gross Profit 103.21% 68.94%
Research & Development $18.80M $17.04M
YoY Change 10.3% 15.33%
% of Gross Profit 50.4% 34.64%
Depreciation & Amortization $2.134M $1.800M
YoY Change 18.56% -5.26%
% of Gross Profit 5.72% 3.66%
Operating Expenses $57.30M $50.95M
YoY Change 12.45% 1.91%
Operating Profit -$20.00M -$1.761M
YoY Change 1035.49% -81.31%
Interest Expense $33.00K $44.00K
YoY Change -25.0% -65.08%
% of Operating Profit
Other Income/Expense, Net $533.0K $798.0K
YoY Change -33.21% 796.63%
Pretax Income -$19.46M -$963.0K
YoY Change 1921.08% -89.68%
Income Tax $200.0K $374.0K
% Of Pretax Income
Net Earnings -$19.67M -$1.337M
YoY Change 1371.2% -85.98%
Net Earnings / Revenue -39.99% -2.22%
Basic Earnings Per Share -$0.27 -$0.02
Diluted Earnings Per Share -$0.27 -$0.02
COMMON SHARES
Basic Shares Outstanding 68.35M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $130.7M $116.2M
YoY Change 12.48% 8.09%
Cash & Equivalents $46.96M $30.58M
Short-Term Investments $83.70M $85.60M
Other Short-Term Assets $14.40M $6.200M
YoY Change 132.26% -3.13%
Inventory $16.19M $16.51M
Prepaid Expenses
Receivables $53.97M $61.84M
Other Receivables $0.00 $0.00
Total Short-Term Assets $209.0M $200.7M
YoY Change 4.12% 16.02%
LONG-TERM ASSETS
Property, Plant & Equipment $9.634M $8.131M
YoY Change 18.48% -5.9%
Goodwill $1.307M $1.300M
YoY Change 0.54%
Intangibles $4.829M
YoY Change
Long-Term Investments
YoY Change
Other Assets $7.229M $4.569M
YoY Change 58.22% 10.92%
Total Long-Term Assets $23.00M $20.28M
YoY Change 13.41% 58.93%
TOTAL ASSETS
Total Short-Term Assets $209.0M $200.7M
Total Long-Term Assets $23.00M $20.28M
Total Assets $232.0M $221.0M
YoY Change 4.97% 18.97%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $7.632M $8.522M
YoY Change -10.44% -10.88%
Accrued Expenses $25.49M $29.89M
YoY Change -14.71% 22.28%
Deferred Revenue $59.36M
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $98.86M $97.19M
YoY Change 1.72% 14.72%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $884.0K $912.0K
YoY Change -3.07% -29.03%
Total Long-Term Liabilities $884.0K $912.0K
YoY Change -3.07% -29.03%
TOTAL LIABILITIES
Total Short-Term Liabilities $98.86M $97.19M
Total Long-Term Liabilities $884.0K $912.0K
Total Liabilities $131.6M $132.4M
YoY Change -0.6% 20.24%
SHAREHOLDERS EQUITY
Retained Earnings -$264.3M -$246.9M
YoY Change 7.06% 6.7%
Common Stock $1.000K $1.000K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $100.4M $88.59M
YoY Change
Total Liabilities & Shareholders Equity $232.0M $221.0M
YoY Change 4.97% 18.97%

Cashflow Statement

Concept 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income -$19.67M -$1.337M
YoY Change 1371.2% -85.98%
Depreciation, Depletion And Amortization $2.134M $1.800M
YoY Change 18.56% -5.26%
Cash From Operating Activities -$352.0K $545.0K
YoY Change -164.59% -94.78%
INVESTING ACTIVITIES
Capital Expenditures $1.133M $678.0K
YoY Change 67.11% -51.15%
Acquisitions
YoY Change
Other Investing Activities $640.0K -$300.0K
YoY Change -313.33% -99.57%
Cash From Investing Activities -$494.0K -$980.0K
YoY Change -49.59% -98.61%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $1.269M $2.065M
YoY Change -38.55% 458.11%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $1.243M $2.040M
YoY Change -39.07% 491.3%
NET CHANGE
Cash From Operating Activities -$352.0K $545.0K
Cash From Investing Activities -$494.0K -$980.0K
Cash From Financing Activities $1.243M $2.040M
Net Change In Cash $397.0K $1.605M
YoY Change -75.26% -102.68%
FREE CASH FLOW
Cash From Operating Activities -$352.0K $545.0K
Capital Expenditures $1.133M $678.0K
Free Cash Flow -$1.485M -$133.0K
YoY Change 1016.54% -101.47%

Facts In Submission

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NetCashProvidedByUsedInInvestingActivities
-494000 USD
CY2017Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
545000 USD
CY2018Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-352000 USD
CY2017Q1 us-gaap Net Income Loss
NetIncomeLoss
-1337000 USD
CY2018Q1 us-gaap Net Income Loss
NetIncomeLoss
-19670000 USD
CY2017Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-1337000 USD
CY2018Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-19670000 USD
CY2017Q4 us-gaap Noncurrent Assets
NoncurrentAssets
9913000 USD
CY2018Q1 us-gaap Noncurrent Assets
NoncurrentAssets
9634000 USD
CY2017Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
798000 USD
CY2018Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
533000 USD
CY2017Q1 us-gaap Operating Expenses
OperatingExpenses
50952000 USD
CY2018Q1 us-gaap Operating Expenses
OperatingExpenses
57295000 USD
CY2017Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-1761000 USD
CY2018Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-19996000 USD
CY2017Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
5022000 USD
CY2018Q1 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
8217000 USD
CY2017Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
4646000 USD
CY2018Q1 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
7229000 USD
CY2017Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-1000 USD
CY2018Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
-173000 USD
CY2017Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
967000 USD
CY2018Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
884000 USD
CY2017Q1 us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
278000 USD
CY2018Q1 us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-389000 USD
CY2017Q1 us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
18616000 USD
CY2018Q1 us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
27220000 USD
CY2017Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
678000 USD
CY2018Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1133000 USD
CY2017Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
6825000 USD
CY2018Q1 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
14352000 USD
CY2017Q1 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
2065000 USD
CY2018Q1 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
1269000 USD
CY2017Q1 us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
-25000 USD
CY2018Q1 us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
-26000 USD
CY2017Q1 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
7620000 USD
CY2018Q1 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
10709000 USD
CY2017Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
56579000 USD
CY2018Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
58038000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
9913000 USD
CY2018Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
9634000 USD
CY2017Q1 us-gaap Property Plant And Equipment Transfers And Changes
PropertyPlantAndEquipmentTransfersAndChanges
783000 USD
CY2018Q1 us-gaap Property Plant And Equipment Transfers And Changes
PropertyPlantAndEquipmentTransfersAndChanges
561000 USD
CY2017Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
17042000 USD
CY2018Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
18797000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-257025000 USD
CY2018Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-264298000 USD
CY2017Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
63934000 USD
CY2018Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
49183000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
97630000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
65735000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
30062000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
1833000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod1
P9M
CY2018Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod1
P2Y
CY2018Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod1
CY2017Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
26263000 USD
CY2018Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
26904000 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
4316000 USD
CY2018Q1 us-gaap Share Based Compensation
ShareBasedCompensation
8151000 USD
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
51995 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
4700000 USD
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
1100000 USD
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
87000 shares
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
7546000 USD
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
6018000 shares
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
5572000 shares
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
5.18
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
5.19
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue
7027000 USD
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
4688000 shares
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice
5.03
CY2018Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
3.54
CY2018Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
10.74
CY2018Q1 us-gaap Share Price
SharePrice
5.82
CY2018Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P5Y
CY2018Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1
P4Y5M5D
CY2018Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
359000 shares
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
98386000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
100360000 USD
CY2017Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
2985000 USD
CY2018Q1 us-gaap Taxes Payable Current
TaxesPayableCurrent
3118000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3800000 USD
CY2018Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3900000 USD
CY2017Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
68571000 shares
CY2018Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
72232000 shares
CY2018Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentration of Credit Risk and Significant Customers</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, marketable securities and accounts receivable. Our cash, cash equivalents and marketable securities are held and invested in high-credit quality financial instruments by recognized financial institutions and are subject to minimum credit risk.<br clear="none"/> <br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our accounts receivable are&#160;unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk in respect to accounts receivable by performing periodic credit evaluations based on a number of factors, including past transaction experience, evaluation of credit history and review of the invoicing terms of the contract. We generally do not require our customers to provide collateral to support accounts receivable.</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;padding-left:0px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Significant&#160;customers, including distribution channel partners and direct customers, are those which represent more than 10% of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date. </font></div></div>
CY2018Q1 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior year amounts have been reclassified to conform to current year presentation in the condensed consolidated balance sheets and the condensed consolidated statements of cash flows. We have separately presented the line items &#8220;Proceeds from sales of marketable securities&#8221; and &#8220;Maturities of marketable securities&#8221; as opposed to our historical consolidated presentation of &#8220;Proceeds from sales and maturities of marketable securities&#8221; in the condensed consolidated statement of cash flows for the three months ended March 31, 2017.</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>
CY2018Q1 us-gaap Revenue Recognition Customer Acquisitions
RevenueRecognitionCustomerAcquisitions
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:10px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In connection with the adoption of ASC 340-40, we capitalize certain contract acquisition costs consisting of incremental sales commissions incurred to obtain customer contracts. Deferred commissions related to product revenues are recognized upon transfer of control to customers. Deferred commissions related to services revenue are recognized as the related performance obligations are met. Deferred commissions that will be recognized during the succeeding 12-month period are recorded as prepaid expenses and other current assets, and the remaining portion is recorded as other non-current assets. Amortization of deferred commissions is included in sales and marketing expense.</font></div></div>
CY2018Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those estimates and assumptions affect revenue recognition and deferred revenue, the allowance for doubtful accounts, the sales return reserve, the valuation of inventory, the fair value of marketable securities, contingencies and litigation, acquisition related purchase price allocations, accrued liabilities, deferred commissions and the determination of fair value of stock-based compensation. These estimates are based on information available as of the date of the&#160;condensed consolidated financial statements; therefore, actual results could differ from management&#8217;s estimates.</font></div></div>

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