2015 Q3 Form 10-Q Financial Statement

#000155279715000075 Filed on November 06, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2014 Q3
Revenue $165.1M $228.0M
YoY Change -27.6% -6.27%
Cost Of Revenue $124.4M $194.1M
YoY Change -35.93% -11.04%
Gross Profit $40.71M $33.90M
YoY Change 20.07% 35.22%
Gross Profit Margin 24.66% 14.87%
Selling, General & Admin $2.703M $2.453M
YoY Change 10.19% 24.33%
% of Gross Profit 6.64% 7.24%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $4.600M $3.800M
YoY Change 21.05% 33.61%
% of Gross Profit 11.3% 11.21%
Operating Expenses $2.703M $2.453M
YoY Change 10.19% 24.33%
Operating Profit $21.85M $17.24M
YoY Change 26.71% 56.95%
Interest Expense $2.843M $2.226M
YoY Change 27.72% 86.43%
% of Operating Profit 13.01% 12.91%
Other Income/Expense, Net
YoY Change
Pretax Income $18.71M $15.02M
YoY Change 24.61% 53.35%
Income Tax $109.0K $177.0K
% Of Pretax Income 0.58% 1.18%
Net Earnings $18.60M $14.84M
YoY Change 25.36% 56.45%
Net Earnings / Revenue 11.27% 6.51%
Basic Earnings Per Share
Diluted Earnings Per Share $762.3K $609.1K
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $0.00 $700.0K
YoY Change -100.0% -89.55%
Cash & Equivalents $204.0K $733.0K
Short-Term Investments
Other Short-Term Assets $421.0K $700.0K
YoY Change -39.86% 18.24%
Inventory $5.018M $9.825M
Prepaid Expenses
Receivables $37.09M $39.53M
Other Receivables $0.00 $0.00
Total Short-Term Assets $42.56M $50.80M
YoY Change -16.24% -19.57%
LONG-TERM ASSETS
Property, Plant & Equipment $255.2M $218.1M
YoY Change 16.99% 11.0%
Goodwill $11.65M $11.65M
YoY Change 0.0% 11.48%
Intangibles $15.72M $11.59M
YoY Change 35.7% -0.52%
Long-Term Investments $30.46M
YoY Change
Other Assets $6.255M $4.024M
YoY Change 55.44% -28.4%
Total Long-Term Assets $319.2M $245.4M
YoY Change 30.11% 9.44%
TOTAL ASSETS
Total Short-Term Assets $42.56M $50.80M
Total Long-Term Assets $319.2M $245.4M
Total Assets $361.8M $296.2M
YoY Change 22.16% 3.06%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.44M $23.67M
YoY Change -47.46% -12.32%
Accrued Expenses $7.400M $12.70M
YoY Change -41.73% -2.31%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $34.33M $45.82M
YoY Change -25.07% -16.6%
LONG-TERM LIABILITIES
Long-Term Debt $325.2M $230.0M
YoY Change 41.39% 42.86%
Other Long-Term Liabilities $10.29M $5.411M
YoY Change 90.09% -32.07%
Total Long-Term Liabilities $339.1M $239.1M
YoY Change 41.85% 38.7%
TOTAL LIABILITIES
Total Short-Term Liabilities $34.33M $45.82M
Total Long-Term Liabilities $339.1M $239.1M
Total Liabilities $373.5M $284.9M
YoY Change 31.09% 25.34%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$11.70M $11.30M
YoY Change
Total Liabilities & Shareholders Equity $361.8M $296.2M
YoY Change 22.16% 3.06%

Cashflow Statement

Concept 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income $18.60M $14.84M
YoY Change 25.36% 56.45%
Depreciation, Depletion And Amortization $4.600M $3.800M
YoY Change 21.05% 33.61%
Cash From Operating Activities $20.20M $20.00M
YoY Change 1.0% 14.94%
INVESTING ACTIVITIES
Capital Expenditures -$4.100M $827.0K
YoY Change -595.77% -69.38%
Acquisitions
YoY Change
Other Investing Activities -$12.30M $0.00
YoY Change -100.0%
Cash From Investing Activities -$16.40M -$700.0K
YoY Change 2242.86% -91.76%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -3.900M -20.90M
YoY Change -81.34% -29.39%
NET CHANGE
Cash From Operating Activities 20.20M 20.00M
Cash From Investing Activities -16.40M -700.0K
Cash From Financing Activities -3.900M -20.90M
Net Change In Cash -100.0K -1.600M
YoY Change -93.75% -92.27%
FREE CASH FLOW
Cash From Operating Activities $20.20M $20.00M
Capital Expenditures -$4.100M $827.0K
Free Cash Flow $24.30M $19.17M
YoY Change 26.74% 30.44%

Facts In Submission

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CY2014Q3 us-gaap Incentive Distribution Distribution Per Year
IncentiveDistributionDistributionPerYear
302000 USD
us-gaap Incentive Distribution Distribution Per Year
IncentiveDistributionDistributionPerYear
491000 USD
CY2015Q3 us-gaap Incentive Distribution Distribution Per Year
IncentiveDistributionDistributionPerYear
1032000 USD
us-gaap Incentive Distribution Distribution Per Year
IncentiveDistributionDistributionPerYear
2396000 USD
CY2014Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
15016000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
50484000 USD
CY2015Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
18711000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
51342000 USD
CY2014Q3 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
0 USD
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
0 USD
CY2015Q3 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
-293000 USD
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
-442000 USD
CY2014Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
177000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
605000 USD
CY2015Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
109000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
426000 USD
us-gaap Income Taxes Paid
IncomeTaxesPaid
18000 USD
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-5050000 USD
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
10558000 USD
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
9102000 USD
us-gaap Increase Decrease In Accounts Receivable Related Parties
IncreaseDecreaseInAccountsReceivableRelatedParties
-7973000 USD
us-gaap Increase Decrease In Accounts Receivable Related Parties
IncreaseDecreaseInAccountsReceivableRelatedParties
-9046000 USD
us-gaap Increase Decrease In Inventories And Other Operating Assets
IncreaseDecreaseInInventoriesAndOtherOperatingAssets
-7328000 USD
us-gaap Increase Decrease In Inventories And Other Operating Assets
IncreaseDecreaseInInventoriesAndOtherOperatingAssets
-5645000 USD
us-gaap Increase Decrease In Other Noncurrent Assets And Liabilities Net
IncreaseDecreaseInOtherNoncurrentAssetsAndLiabilitiesNet
844000 USD
us-gaap Increase Decrease In Other Noncurrent Assets And Liabilities Net
IncreaseDecreaseInOtherNoncurrentAssetsAndLiabilitiesNet
505000 USD
CY2014Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
16520000 USD
CY2015Q3 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
15723000 USD
CY2014Q3 us-gaap Interest Expense
InterestExpense
2226000 USD
us-gaap Interest Expense
InterestExpense
6551000 USD
CY2015Q3 us-gaap Interest Expense
InterestExpense
2843000 USD
us-gaap Interest Expense
InterestExpense
7616000 USD
us-gaap Interest Paid
InterestPaid
5799000 USD
us-gaap Interest Paid
InterestPaid
6289000 USD
CY2014Q4 us-gaap Inventory Net
InventoryNet
10316000 USD
CY2015Q3 us-gaap Inventory Net
InventoryNet
5018000 USD
CY2014Q3 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
200000 USD
us-gaap Lease And Rental Expense
LeaseAndRentalExpense
500000 USD
CY2015Q3 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
300000 USD
us-gaap Lease And Rental Expense
LeaseAndRentalExpense
900000 USD
CY2014Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
331286000 USD
CY2015Q3 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
361803000 USD
CY2014Q4 us-gaap Liabilities Current
LiabilitiesCurrent
30316000 USD
CY2015Q3 us-gaap Liabilities Current
LiabilitiesCurrent
34329000 USD
CY2014Q4 us-gaap Liabilities Noncurrent
LiabilitiesNoncurrent
261189000 USD
CY2015Q3 us-gaap Liabilities Noncurrent
LiabilitiesNoncurrent
339132000 USD
CY2014Q3 us-gaap Limited Liability Company Llc Or Limited Partnership Lp Managing Member Or General Partner Ownership Interest
LimitedLiabilityCompanyLLCOrLimitedPartnershipLPManagingMemberOrGeneralPartnerOwnershipInterest
0.020
us-gaap Limited Liability Company Llc Or Limited Partnership Lp Managing Member Or General Partner Ownership Interest
LimitedLiabilityCompanyLLCOrLimitedPartnershipLPManagingMemberOrGeneralPartnerOwnershipInterest
0.020
CY2015Q3 us-gaap Limited Liability Company Llc Or Limited Partnership Lp Managing Member Or General Partner Ownership Interest
LimitedLiabilityCompanyLLCOrLimitedPartnershipLPManagingMemberOrGeneralPartnerOwnershipInterest
0.020
us-gaap Limited Liability Company Llc Or Limited Partnership Lp Managing Member Or General Partner Ownership Interest
LimitedLiabilityCompanyLLCOrLimitedPartnershipLPManagingMemberOrGeneralPartnerOwnershipInterest
0.020
us-gaap Limited Liability Company Llc Or Limited Partnership Lp Members Or Limited Partners Ownership Interest
LimitedLiabilityCompanyLLCOrLimitedPartnershipLPMembersOrLimitedPartnersOwnershipInterest
0.598
CY2014Q3 us-gaap Limited Partners Capital Account Distribution Amount
LimitedPartnersCapitalAccountDistributionAmount
11850000 USD
us-gaap Limited Partners Capital Account Distribution Amount
LimitedPartnersCapitalAccountDistributionAmount
33601000 USD
CY2015Q3 us-gaap Limited Partners Capital Account Distribution Amount
LimitedPartnersCapitalAccountDistributionAmount
13822000 USD
us-gaap Limited Partners Capital Account Distribution Amount
LimitedPartnersCapitalAccountDistributionAmount
39994000 USD
CY2014Q4 us-gaap Long Term Line Of Credit
LongTermLineOfCredit
251750000 USD
CY2015Q3 us-gaap Long Term Line Of Credit
LongTermLineOfCredit
325150000 USD
us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
-59690000 USD
us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
-24745000 USD
us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-4930000 USD
us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-43878000 USD
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
64429000 USD
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
66762000 USD
us-gaap Net Income Loss Allocated To General Partners
NetIncomeLossAllocatedToGeneralPartners
1511000 USD
CY2014Q3 us-gaap Net Income Loss
NetIncomeLoss
14839000 USD
us-gaap Net Income Loss
NetIncomeLoss
49879000 USD
CY2015Q3 us-gaap Net Income Loss
NetIncomeLoss
18602000 USD
us-gaap Net Income Loss
NetIncomeLoss
50916000 USD
CY2015Q3 us-gaap Net Income Loss Allocated To General Partners
NetIncomeLossAllocatedToGeneralPartners
1383000 USD
CY2014Q3 us-gaap Net Income Loss Allocated To General Partners
NetIncomeLossAllocatedToGeneralPartners
598000 USD
us-gaap Net Income Loss Allocated To General Partners
NetIncomeLossAllocatedToGeneralPartners
3379000 USD
CY2014Q3 us-gaap Net Income Loss Allocated To Limited Partners
NetIncomeLossAllocatedToLimitedPartners
14487000 USD
us-gaap Net Income Loss Allocated To Limited Partners
NetIncomeLossAllocatedToLimitedPartners
50000000 USD
CY2015Q3 us-gaap Net Income Loss Allocated To Limited Partners
NetIncomeLossAllocatedToLimitedPartners
17219000 USD
us-gaap Net Income Loss Allocated To Limited Partners
NetIncomeLossAllocatedToLimitedPartners
48174000 USD
CY2014Q3 us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
10361000 USD
us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
29576000 USD
CY2015Q3 us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
11616000 USD
us-gaap Operating Costs And Expenses
OperatingCostsAndExpenses
33191000 USD
CY2014Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
17242000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
57035000 USD
CY2015Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
21847000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
59400000 USD
CY2014Q4 us-gaap Other Assets Current
OtherAssetsCurrent
768000 USD
CY2015Q3 us-gaap Other Assets Current
OtherAssetsCurrent
421000 USD
CY2014Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
7374000 USD
CY2015Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
6255000 USD
CY2015Q3 us-gaap Other Commitment
OtherCommitment
96000000 USD
CY2014Q4 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
1588000 USD
CY2015Q3 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
2249000 USD
CY2014Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
5889000 USD
CY2015Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
10286000 USD
CY2014Q4 us-gaap Partners Capital
PartnersCapital
39781000 USD
CY2015Q3 us-gaap Partners Capital
PartnersCapital
-11658000 USD
us-gaap Partners Capital Account Contributions
PartnersCapitalAccountContributions
115000 USD
us-gaap Partners Capital Account Distributions
PartnersCapitalAccountDistributions
103217000 USD
us-gaap Partners Capital Account Unit Based Compensation
PartnersCapitalAccountUnitBasedCompensation
298000 USD
us-gaap Partners Capital Other
PartnersCapitalOther
31000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
0 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
400000 USD
us-gaap Payments To Acquire Equity Method Investments
PaymentsToAcquireEquityMethodInvestments
0 USD
us-gaap Payments To Acquire Equity Method Investments
PaymentsToAcquireEquityMethodInvestments
27069000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
4930000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
17598000 USD
us-gaap Proceeds From Issuance Of Common Limited Partners Units
ProceedsFromIssuanceOfCommonLimitedPartnersUnits
22000 USD
us-gaap Proceeds From Issuance Of Common Limited Partners Units
ProceedsFromIssuanceOfCommonLimitedPartnersUnits
31000 USD
us-gaap Proceeds From Long Term Lines Of Credit
ProceedsFromLongTermLinesOfCredit
395900000 USD
us-gaap Proceeds From Long Term Lines Of Credit
ProceedsFromLongTermLinesOfCredit
302064000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
0 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
1189000 USD
CY2014Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
308088000 USD
CY2015Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
321394000 USD
CY2014Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
254779000 USD
CY2015Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
255157000 USD
us-gaap Recognition Of Deferred Revenue
RecognitionOfDeferredRevenue
2002000 USD
us-gaap Recognition Of Deferred Revenue
RecognitionOfDeferredRevenue
0 USD
us-gaap Repayments Of Long Term Lines Of Credit
RepaymentsOfLongTermLinesOfCredit
330700000 USD
us-gaap Repayments Of Long Term Lines Of Credit
RepaymentsOfLongTermLinesOfCredit
228664000 USD
CY2014Q3 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
29682000 USD
us-gaap Revenue From Related Parties
RevenueFromRelatedParties
83855000 USD
CY2015Q3 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
41824000 USD
us-gaap Revenue From Related Parties
RevenueFromRelatedParties
113975000 USD
CY2014Q3 us-gaap Sales Revenue Net
SalesRevenueNet
228036000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
667906000 USD
CY2015Q3 us-gaap Sales Revenue Net
SalesRevenueNet
165092000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
480738000 USD
CY2014Q3 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
198354000 USD
us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
584051000 USD
CY2015Q3 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
123268000 USD
us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
366763000 USD
CY2014Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
2453000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
7358000 USD
CY2015Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
2703000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
9094000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
196000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
298000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1
P5Y
CY2014Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
5443000 USD
CY2015Q3 us-gaap Taxes Payable Current
TaxesPayableCurrent
5114000 USD
CY2014Q3 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
2691000 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
16733000 USD
CY2015Q3 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
3466000 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
8347000 USD
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:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior period amounts have been reclassified in order to conform to the current year presentation. These reclassifications had no effect on net income or shareholders' equity as previously reported.</font></div></div>
us-gaap Property Plant And Equipment Impairment
PropertyPlantAndEquipmentImpairment
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In accordance with ASC 360, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Property, Plant &amp; Equipment</font><font style="font-family:inherit;font-size:10pt;">, we evaluate the realizability of property, plant and equipment as events occur that might indicate potential impairment.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. </font></div></div>

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