2018 Q4 Form 10-Q Financial Statement

#000003406718000034 Filed on October 25, 2018

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2017 Q3
Revenue $90.32M $87.88M $52.16M
YoY Change 65.75% 68.48% 42.7%
Cost Of Revenue $58.90M $58.16M $35.00M
YoY Change 60.93% 66.16% 24.57%
Gross Profit $31.44M $29.73M $17.16M
YoY Change 76.18% 73.22% 102.93%
Gross Profit Margin 34.81% 33.83% 32.9%
Selling, General & Admin $17.20M $15.05M $10.98M
YoY Change 37.6% 37.05% 15.38%
% of Gross Profit 54.71% 50.63% 63.98%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $2.350M $2.400M $2.680M
YoY Change -6.37% -10.45% -3.25%
% of Gross Profit 7.47% 8.07% 15.62%
Operating Expenses $17.80M $20.91M $29.61M
YoY Change 30.88% -29.39% 171.69%
Operating Profit $13.64M $8.820M -$12.45M
YoY Change 221.3% -170.85% 409.79%
Interest Expense -$500.0K $495.0K $367.0K
YoY Change 25.0% 34.88% 38.49%
% of Operating Profit -3.67% 5.61%
Other Income/Expense, Net -$200.0K -$335.0K -$436.0K
YoY Change -50.0% -23.17% 177.71%
Pretax Income $12.40M $7.990M -$13.25M
YoY Change -4233.33% -160.29% 362.71%
Income Tax -$3.800M $3.080M $812.0K
% Of Pretax Income -30.65% 38.55%
Net Earnings $15.27M $4.910M -$14.06M
YoY Change -879.93% -134.91% 348.47%
Net Earnings / Revenue 16.91% 5.59% -26.96%
Basic Earnings Per Share $1.02 $0.33 -$0.98
Diluted Earnings Per Share $1.02 $0.33 -$0.98
COMMON SHARES
Basic Shares Outstanding 14.90M shares 14.57M shares 14.37M shares
Diluted Shares Outstanding 14.57M shares 14.37M shares

Balance Sheet

Concept 2018 Q4 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $13.40M $11.10M $8.900M
YoY Change 48.89% 24.72% 18.67%
Cash & Equivalents $13.38M $11.10M $8.861M
Short-Term Investments
Other Short-Term Assets $8.100M $6.700M $5.300M
YoY Change 39.66% 26.42% -19.7%
Inventory $51.07M $56.50M $31.49M
Prepaid Expenses
Receivables $59.71M $65.62M $45.44M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $132.2M $139.9M $91.09M
YoY Change 32.27% 53.56% 24.97%
LONG-TERM ASSETS
Property, Plant & Equipment $95.14M $79.78M $59.59M
YoY Change 58.91% 33.9% 0.98%
Goodwill $0.00
YoY Change -100.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $472.0K $346.0K $215.0K
YoY Change 59.46% 60.93% 100.93%
Total Long-Term Assets $108.2M $89.64M $73.78M
YoY Change 47.96% 21.5% -21.55%
TOTAL ASSETS
Total Short-Term Assets $132.2M $139.9M $91.09M
Total Long-Term Assets $108.2M $89.64M $73.78M
Total Assets $240.4M $229.5M $164.9M
YoY Change 38.9% 39.22% -1.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $24.24M $25.07M $15.79M
YoY Change 22.28% 58.72% 34.02%
Accrued Expenses $8.967M $10.43M $4.188M
YoY Change 30.26% 149.07% -21.51%
Deferred Revenue $1.140M $4.310M
YoY Change -80.64%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $3.125M
YoY Change
Total Short-Term Liabilities $64.57M $65.13M $33.03M
YoY Change 41.51% 97.18% 10.23%
LONG-TERM LIABILITIES
Long-Term Debt $38.23M $41.50M $22.00M
YoY Change 112.58% 88.64% 49.66%
Other Long-Term Liabilities $2.958M $2.700M $2.534M
YoY Change -5.16% 6.55% 24.46%
Total Long-Term Liabilities $41.19M $2.700M $2.534M
YoY Change 95.18% 6.55% 24.46%
TOTAL LIABILITIES
Total Short-Term Liabilities $64.57M $65.13M $33.03M
Total Long-Term Liabilities $41.19M $2.700M $2.534M
Total Liabilities $106.1M $110.1M $58.56M
YoY Change 57.69% 88.06% 21.36%
SHAREHOLDERS EQUITY
Retained Earnings $89.29M $74.32M $62.33M
YoY Change 48.64% 19.23% -24.53%
Common Stock $749.0K $749.0K $740.0K
YoY Change 1.08% 1.22% 2.21%
Preferred Stock
YoY Change
Treasury Stock (at cost) $817.0K $815.0K $361.0K
YoY Change 125.69% 125.76% 1344.0%
Treasury Stock Shares 82.19K shares 82.14K shares 39.78K shares
Shareholders Equity $134.3M $119.4M $106.3M
YoY Change
Total Liabilities & Shareholders Equity $240.4M $229.5M $164.9M
YoY Change 38.9% 39.22% -1.24%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $15.27M $4.910M -$14.06M
YoY Change -879.93% -134.91% 348.47%
Depreciation, Depletion And Amortization $2.350M $2.400M $2.680M
YoY Change -6.37% -10.45% -3.25%
Cash From Operating Activities $21.09M $8.130M $3.650M
YoY Change 238.52% 122.74% -61.17%
INVESTING ACTIVITIES
Capital Expenditures -$18.53M -$10.37M -$1.130M
YoY Change 541.18% 817.7% -60.21%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities -$18.53M -$10.37M -$1.130M
YoY Change 543.4% 817.7% -60.35%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -230.0K 6.340M -2.370M
YoY Change -94.47% -367.51% -72.31%
NET CHANGE
Cash From Operating Activities 21.09M 8.130M 3.650M
Cash From Investing Activities -18.53M -10.37M -1.130M
Cash From Financing Activities -230.0K 6.340M -2.370M
Net Change In Cash 2.330M 4.100M 150.0K
YoY Change -387.65% 2633.33% -107.46%
FREE CASH FLOW
Cash From Operating Activities $21.09M $8.130M $3.650M
Capital Expenditures -$18.53M -$10.37M -$1.130M
Free Cash Flow $39.62M $18.50M $4.780M
YoY Change 334.43% 287.03% -60.95%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">COMMITMENTS AND CONTINGENCIES</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-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Contingent Liabilities</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company records an accrual for contingent liabilities when a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than any other amount within the range, that amount is accrued. When no amount within a range of loss appears to be a better estimate than any other amount, the lowest amount in the range is accrued. </font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Anti-dumping and Countervailing Duties </font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2015, U.S. Customs and Border Protection (&#8220;U.S. Customs&#8221;) sent us a Notice of Action that proposed to classify certain of our imports as subject to anti-dumping duties pursuant to a 2010 anti-dumping duty (&#8220;AD&#8221;) order on Oil Country Tubular Goods (&#8220;OCTG&#8221;) from China. A companion countervailing duty (&#8220;CVD&#8221;) order on the same product is in effect as well. The Notice of Action covered one entry of certain raw material steel mechanical tubing made in China and imported into the U.S. from Canada by our DynaEnergetics segment during 2015 for use in manufacturing perforating guns. </font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In July 2015, we sent a response to U.S. Customs outlining the reasons our mechanical tubing imports do not fall within the scope of the AD order on OCTG from China and should not be subject to anti-dumping duties. U.S. Customs proposed to take similar action with respect to other entries of this product and requested an approximately </font><font style="font-family:inherit;font-size:10pt;">$1,100</font><font style="font-family:inherit;font-size:10pt;"> cash deposit or bond for AD/CVD. </font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2015, we posted the bond of approximately </font><font style="font-family:inherit;font-size:10pt;">$1,100</font><font style="font-family:inherit;font-size:10pt;"> to U.S. Customs. Subsequently, U.S. Customs declined to conclude on the Company&#8217;s assertion that the mechanical tubing the Company has been importing is not within the scope of the AD order on OCTG from China. As a result, on September 25, 2015 the Company filed a request for a scope ruling with the U.S. Department of Commerce (&#8220;Commerce Department&#8221;). </font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On February 15, 2016, the Company received the Commerce Department&#8217;s scope ruling, which determined certain imports, primarily used for gun carrier tubing, are included in the scope of the AD/CVD orders on OCTG from China and thus are subject to AD/CVD. On March 11, 2016, the Company filed an appeal with the U.S. Court of International Trade (&#8220;CIT&#8221;) related to the Commerce Department&#8217;s scope ruling. On February 7, 2017, the CIT remanded the scope ruling to the Commerce Department to reconsider its determination. The Commerce Department filed its remand determination with the CIT on June 7, 2017 continuing to find that the Company&#8217;s imports at issue are within the scope of the AD/CVD orders on OCTG from China. On March 16, 2018, the CIT issued its decision on the appeal and sustained the Commerce Department&#8217;s scope ruling. The Company did not appeal this ruling.</font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On December 27, 2016, we received notice from U.S. Customs that it may pursue penalties against us related to the AD/CVD issue and demanding tender of alleged loss of AD/CVD in an amount of </font><font style="font-family:inherit;font-size:10pt;">$3,049</font><font style="font-family:inherit;font-size:10pt;">, which had previously been accrued for in our financial statements. We filed a response to the notice on February 6, 2017. On February 16, 2017, we received notice that U.S. Customs was seeking penalties in the amount of </font><font style="font-family:inherit;font-size:10pt;">$14,783</font><font style="font-family:inherit;font-size:10pt;">. U.S. Customs also reasserted its demand for tender of alleged loss of AD/CVD in the amount of </font><font style="font-family:inherit;font-size:10pt;">$3,049</font><font style="font-family:inherit;font-size:10pt;">. We tendered </font><font style="font-family:inherit;font-size:10pt;">$3,049</font><font style="font-family:inherit;font-size:10pt;"> in AD amounts on March 6, 2017 into a suspense account pending ultimate resolution of the AD/CVD case. We submitted a petition for relief and mitigation of penalties on May 17, 2017. </font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March 27, 2018, we received notice from U.S. Customs Headquarters that it intended to move forward with its pursuit of penalties.&#160;The Company engaged in discussions with U.S. Customs Headquarters regarding the scope of penalties asserted and the arguments set forth in the Company&#8217;s petition for relief and mitigation of penalties. Based on these discussions and the Company&#8217;s assessment of the probable ultimate penalty rate, the Company accrued </font><font style="font-family:inherit;font-size:10pt;">$3,103</font><font style="font-family:inherit;font-size:10pt;"> in the first quarter of 2018.</font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On October 11, 2018, we received a decision from U.S. Customs Headquarters in which a mitigated amount of </font><font style="font-family:inherit;font-size:10pt;">$8,000</font><font style="font-family:inherit;font-size:10pt;"> in penalties was asserted. The Company expects to tender the amount in the fourth quarter of 2018. In its financial statements for the quarter ended September 30, 2018, the Company accrued an additional </font><font style="font-family:inherit;font-size:10pt;">$4,897</font><font style="font-family:inherit;font-size:10pt;"> of penalties. As of </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, the total amount accrued related to AD/CVD penalties was </font><font style="font-family:inherit;font-size:10pt;">$8,000</font><font style="font-family:inherit;font-size:10pt;">. </font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the quarter ended September 30, 2018, the Company paid the remaining accrued AD/CVD and interest of $</font><font style="font-family:inherit;font-size:10pt;">3,461</font><font style="font-family:inherit;font-size:10pt;"> to U.S. Customs.</font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Patent and Trademark Infringement </font></div><div style="line-height:120%;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On July 1, 2016, GEODynamics, Inc., a US-based oil and gas perforating equipment manufacturer based in Fort Worth, Texas (&#8220;GEODynamics&#8221;) filed a patent infringement action against DynaEnergetics US, Inc. (&#8220;DynaEnergetics&#8221;) in the United States District Court for the Eastern District of Texas (&#8220;District Court&#8221;) alleging infringement of US Patent No. 8,544,563 (the &#8220;563 patent&#8221;), based on DynaEnergetics&#8217; US sales of DPEX</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> shaped charges. As part of the defense of this action, on September 20, 2016, DynaEnergetics filed an Inter Parties Review (IPR) against the 563 patent at the U.S. Patent Trial and Appeal Board (&#8220;PTAB&#8221;), requesting invalidation of the 563 patent. On March 17, 2017, DynaEnergetics&#8217; IPR request was instituted by the PTAB, and on March 1, 2018, PTAB issued its decision in favor of DynaEnergetics, invalidating all challenged claims of the 563 patent. In May 2018, GEODynamics filed its notice of appeal with respect to the PTAB decision but withdrew its notice of appeal in September 2018. DynaEnergetics is in the process of filing for dismissal of the District Court case.</font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On April 28, 2017, GEODynamics filed a patent infringement action against DynaEnergetics in District Court alleging infringement of U.S. Patent No. 8,220,394 (the &#8220;394 patent&#8221;), based on DynaEnergetics&#8217; U.S. sales of its DPEX</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> and HaloFrac</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> shaped charges. The 394 patent case went to trial in early October 2018, and on October 10, 2018, the jury found in favor of DynaEnergetics on all counts.</font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On August 21, 2017, GEODynamics filed a patent infringement action against DynaEnergetics GmbH &amp; Co. KG and DynaEnergetics Beteiligungs GmbH, both wholly owned subsidiaries of DMC (collectively, &#8220;DynaEnergetics EU&#8221;), in the Regional Court of D&#252;sseldorf, Germany, alleging infringement of the German part DE 60 2004 033 297 of European patent EP 1 671 013 B1 granted on June 29, 2011, a patent related to the 394 patent (the &#8220;EP 013 patent&#8221;). This action is based on the manufacturing, sale and marketing of DPEX shaped charges in Germany. DynaEnergetics EU denies validity and infringement of the EP 013 patent and is vigorously defending against this lawsuit. DynaEnergetics EU filed its defense at the Regional Court of D&#252;sseldorf and a nullity action against EP 013 at the German Federal Patent Court on February 14, 2018. A trial in the infringement proceedings is scheduled for March 2019, and a trial in the nullity action is not expected before late 2019.</font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On September 27, 2017, DynaEnergetics GmbH &amp; Co. KG filed a revocation action in the Patents Court, Shorter Trials Scheme in the UK against GEODynamics, asserting that the EP 013 patent, as maintained in the UK, is invalid. GEODynamics filed its defense and a counterclaim alleging infringement of the EP 013 patent in November 2017 based on sales and marketing of DPEX</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> shaped charges in the UK. GEODynamics discontinued its counterclaim for infringement on May 9, 2018 and has been ordered to pay costs related thereto at the close of the proceedings. Trial is currently expected to begin in late October 2018.</font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We do not believe that the EP 013 patent or infringement claims based on the patent are valid, and we do not believe it is probable that we will incur a material loss on the EP 013 matter. However, if it is determined that the patent is valid and that DynaEnergetics EU has infringed it, it is reasonably possible that our financial statements could be materially affected. We are not able to provide a reasonable estimate of the range of loss, and we have not accrued for any such losses. Such an evaluation includes, among other things, a determination of the total number of infringing products manufactured in Germany, the scope of potential damages and the relevant period for which damages would apply, if any.</font></div><div style="line-height:120%;text-align:left;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Operating Leases</font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the third quarter of 2018, we signed a lease for new office space for our corporate headquarters and for NobelClad&#8217;s U.S. administrative offices. We expect to move into the new offices during the first quarter of 2019. The annual minimum commitment payments under the&#160;office lease&#160;for the next five years as of&#160;September&#160;30, 2018 are presented below:</font></div><div style="line-height:120%;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:center;text-indent:36px;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:94.7265625%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:85%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:13%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;font-weight:bold;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Office Lease Commitments</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Year ended December&#160;31 -</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:1pt;"><font style="font-family:inherit;font-size:1pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2018</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2019</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">236</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2020</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">286</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2021</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">296</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2022</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">305</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Thereafter</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px dotted #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2,267</font></div></td><td style="vertical-align:bottom;border-bottom:1px dotted #000000;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;height:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total minimum payments</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">3,390</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr></table></div></div></div>

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