2015 Q4 Form 10-Q Financial Statement

#000114420415064963 Filed on November 13, 2015

View on sec.gov

Income Statement

Concept 2015 Q4 2015 Q3 2014 Q4
Revenue $310.0K $273.0K $50.00K
YoY Change 520.0%
Cost Of Revenue $570.0K $404.0K $660.0K
YoY Change -13.64% -30.94%
Gross Profit -$260.0K -$131.0K -$610.0K
YoY Change -57.38% -77.61%
Gross Profit Margin -83.87% -47.99% -1220.0%
Selling, General & Admin $1.030M $1.750M $750.0K
YoY Change 37.33% 52.17% -60.73%
% of Gross Profit
Research & Development $570.0K $667.0K $730.0K
YoY Change -21.92% -13.26% -58.05%
% of Gross Profit
Depreciation & Amortization $90.00K $90.00K $90.00K
YoY Change 0.0% -10.0% -65.38%
% of Gross Profit
Operating Expenses $1.600M $2.416M $1.480M
YoY Change 8.11% 25.7% -59.45%
Operating Profit -$1.860M -$2.547M -$2.090M
YoY Change -11.0% 1.6%
Interest Expense $200.0K $730.0K -$970.0K
YoY Change -120.62% -71.92% -126.15%
% of Operating Profit
Other Income/Expense, Net -$10.00K $718.0K -$10.00K
YoY Change 0.0% -225.96%
Pretax Income -$1.670M -$1.830M -$3.560M
YoY Change -53.09% -40.58% -7220.0%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$1.670M -$1.829M -$3.560M
YoY Change -53.09% -40.56% -7220.0%
Net Earnings / Revenue -538.71% -669.96% -7120.0%
Basic Earnings Per Share -$0.05
Diluted Earnings Per Share -$12.85M -$0.05 -$89.00M
COMMON SHARES
Basic Shares Outstanding 42.99M shares 37.43M shares 16.23M shares
Diluted Shares Outstanding 37.43M shares

Balance Sheet

Concept 2015 Q4 2015 Q3 2014 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.800M $2.000M $1.500M
YoY Change 86.67% -53.49% -37.5%
Cash & Equivalents $2.671M $1.908M $1.453M
Short-Term Investments $100.0K $100.0K $100.0K
Other Short-Term Assets $22.00K $0.00 $33.00K
YoY Change -33.33% -36.54%
Inventory $600.0K $315.0K $234.0K
Prepaid Expenses
Receivables $291.0K $94.00K
Other Receivables
Total Short-Term Assets $4.287M $2.721M $2.056M
YoY Change 108.51% -42.45% -29.83%
LONG-TERM ASSETS
Property, Plant & Equipment $749.0K $796.0K $978.0K
YoY Change -23.42% -35.07% -14.59%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $0.00 $0.00 $0.00
YoY Change
Total Long-Term Assets $790.0K $829.0K $1.025M
YoY Change -22.93% -34.93% -13.58%
TOTAL ASSETS
Total Short-Term Assets $4.287M $2.721M $2.056M
Total Long-Term Assets $790.0K $829.0K $1.025M
Total Assets $5.077M $3.550M $3.081M
YoY Change 64.78% -40.85% -25.15%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.000M $900.0K $700.0K
YoY Change 42.86% -30.77% 16.67%
Accrued Expenses $434.0K $679.0K
YoY Change -36.08% 14.89%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $1.690M $1.500M $1.616M
YoY Change 4.58% -28.37% 7.3%
LONG-TERM LIABILITIES
Long-Term Debt $2.400M $2.400M $2.800M
YoY Change -14.29% -58.62%
Other Long-Term Liabilities $2.600M $3.600M $4.000M
YoY Change -35.0% 16.13% 48.15%
Total Long-Term Liabilities $5.000M $6.000M $6.800M
YoY Change -26.47% -32.58% 151.85%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.690M $1.500M $1.616M
Total Long-Term Liabilities $5.000M $6.000M $6.800M
Total Liabilities $6.700M $7.500M $8.400M
YoY Change -20.24% -31.19% 100.0%
SHAREHOLDERS EQUITY
Retained Earnings -$43.35M -$41.68M -$36.06M
YoY Change 20.23% 27.96% 80.26%
Common Stock $5.000K $4.000K $2.000K
YoY Change 150.0% 100.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$1.580M -$3.960M -$5.295M
YoY Change
Total Liabilities & Shareholders Equity $5.077M $3.550M $3.081M
YoY Change 64.78% -40.85% -25.15%

Cashflow Statement

Concept 2015 Q4 2015 Q3 2014 Q4
OPERATING ACTIVITIES
Net Income -$1.670M -$1.829M -$3.560M
YoY Change -53.09% -40.56% -7220.0%
Depreciation, Depletion And Amortization $90.00K $90.00K $90.00K
YoY Change 0.0% -10.0% -65.38%
Cash From Operating Activities -$2.070M -$1.380M -$2.410M
YoY Change -14.11% -21.14% 13.15%
INVESTING ACTIVITIES
Capital Expenditures -$40.00K -$20.00K -$340.0K
YoY Change -88.24% -71.43% 277.78%
Acquisitions
YoY Change
Other Investing Activities -$10.00K $10.00K $40.00K
YoY Change -125.0% -85.71% -166.67%
Cash From Investing Activities -$40.00K -$20.00K -$300.0K
YoY Change -86.67% 87.5%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.880M 2.320M 0.000
YoY Change -43.41% -100.0%
NET CHANGE
Cash From Operating Activities -2.070M -1.380M -2.410M
Cash From Investing Activities -40.00K -20.00K -300.0K
Cash From Financing Activities 2.880M 2.320M 0.000
Net Change In Cash 770.0K 920.0K -2.710M
YoY Change -128.41% -60.85% 22.07%
FREE CASH FLOW
Cash From Operating Activities -$2.070M -$1.380M -$2.410M
Capital Expenditures -$40.00K -$20.00K -$340.0K
Free Cash Flow -$2.030M -$1.360M -$2.070M
YoY Change -1.93% -19.05% 1.47%

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CY2015Q3 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
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1270000 USD
us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P1Y1M28D
CY2015Q3 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
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us-gaap Proceeds From Warrant Exercises
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CY2015Q3 drio Stock Issued During Period Warrants Exercised
StockIssuedDuringPeriodWarrantsExercised
1923636 shares
CY2015Q2 drio Deemed Dividend Inducement Of Warrant Exercise In May2015
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154000 USD
dei Document Type
DocumentType
10-Q
dei Amendment Flag
AmendmentFlag
false
dei Document Period End Date
DocumentPeriodEndDate
2015-09-30
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2015
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Entity Registrant Name
EntityRegistrantName
LabStyle Innovations Corp.
dei Entity Central Index Key
EntityCentralIndexKey
0001533998
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Entity Filer Category
EntityFilerCategory
Smaller Reporting Company
dei Trading Symbol
TradingSymbol
DRIO
CY2015Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
42993162 shares
CY2015Q3 us-gaap Restricted Cash And Investments Current
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10000 USD
CY2014Q4 us-gaap Restricted Cash And Investments Current
RestrictedCashAndInvestmentsCurrent
0 USD
CY2015Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2014Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2014Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
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CY2015Q3 us-gaap Common Stock Shares Issued
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CY2015Q3 us-gaap Common Stock Shares Outstanding
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42768309 shares
CY2014Q4 us-gaap Common Stock Shares Issued
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CY2014Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
16233430 shares
CY2015Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
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0.0001
CY2014Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2015Q3 us-gaap Preferred Stock Shares Authorized
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CY2014Q4 us-gaap Preferred Stock Shares Authorized
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CY2015Q3 us-gaap Preferred Stock Shares Issued
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0 shares
CY2014Q4 us-gaap Preferred Stock Shares Issued
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CY2014Q4 us-gaap Preferred Stock Shares Outstanding
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CY2015Q3 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
0 USD
CY2014Q3 us-gaap Preferred Stock Dividends Income Statement Impact
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us-gaap Preferred Stock Dividends Income Statement Impact
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0 USD
us-gaap Preferred Stock Dividends Income Statement Impact
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CY2015Q3 drio Deemed Dividend Related To Exchange Agreement
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0 USD
CY2014Q3 drio Deemed Dividend Related To Exchange Agreement
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279000 USD
drio Deemed Dividend Related To Exchange Agreement
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drio Deemed Dividend Related To Exchange Agreement
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CY2015Q3 drio Deemed Dividend Related To Warrants Exchange Agreement
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0 USD
CY2014Q3 drio Deemed Dividend Related To Warrants Exchange Agreement
DeemedDividendRelatedToWarrantsExchangeAgreement
0 USD
drio Deemed Dividend Related To Warrants Exchange Agreement
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drio Deemed Dividend Related To Warrants Exchange Agreement
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0 USD
us-gaap Increase Decrease In Restricted Cash
IncreaseDecreaseInRestrictedCash
10000 USD
us-gaap Increase Decrease In Restricted Cash
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0 USD
us-gaap Payments To Acquire Leases Held For Investment
PaymentsToAcquireLeasesHeldForInvestment
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us-gaap Payments To Acquire Leases Held For Investment
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us-gaap Proceeds From Issuance Of Preferred Stock Preference Stock And Warrants
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0 USD
us-gaap Proceeds From Issuance Of Preferred Stock Preference Stock And Warrants
ProceedsFromIssuanceOfPreferredStockPreferenceStockAndWarrants
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drio Payment For Executives And Directors Under Salary Program
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232000 USD
drio Payment For Executives And Directors Under Salary Program
PaymentForExecutivesAndDirectorsUnderSalaryProgram
0 USD
drio Consideration Granted To Investors From Exchange Agreement
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0 USD
drio Consideration Granted To Investors From Exchange Agreement
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drio Proceeds From Exercise Of Warrants Into Common Stock
ProceedsFromExerciseOfWarrantsIntoCommonStock
453000 USD
drio Proceeds From Exercise Of Warrants Into Common Stock
ProceedsFromExerciseOfWarrantsIntoCommonStock
0 USD
drio Proceeds From Stock Options And Warrants Exercised
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us-gaap Basis Of Accounting
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us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
0 USD
CY2014 drio Stock Issued During Period Value New Issues February2014
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us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
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drio Compensation To Investors From Exchange Agreement
CompensationToInvestorsFromExchangeAgreement
0 USD
drio Compensation To Investors From Exchange Agreement
CompensationToInvestorsFromExchangeAgreement
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drio Issuance Of Common Stock In April And August2015 To Service Provider
IssuanceOfCommonStockInAprilAndAugust2015ToServiceProvider
64000 USD
drio Issuance Of Common Stock In September2015 To Employees
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591000 USD
drio Issuance Of Common Stock In September2015 To Service Provider
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16000 USD
us-gaap Stock Issued During Period Value Share Based Compensation Gross
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drio Stock Issued During Period Value Stock Warrants Exercised
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CY2014 drio Issuance Of Common Stock In February And March2012
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drio Issuance Of Common Stock And Warrants In February And June2013
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us-gaap Revenue Recognition Software
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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 56.7pt" align="justify"></div> <table style="LINE-HEIGHT: 115%; WIDTH: 100%; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 58.5pt; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top" width="78"> <div><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font></div> </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 27pt; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top" width="36"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt"> <font style="FONT-SIZE: 10pt">a.</font></div> </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt" align="justify"><font style="FONT-SIZE: 10pt">Revenue recognition:</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 85.5pt" align="justify"><font style="FONT-SIZE: 10pt">Revenues from product sales are recognized in accordance with Accounting Standard Codification ("ASC") 605-10 &#8220;Revenue Recognition&#8221;, when delivery has occurred, persuasive evidence of an agreement exists, the vendor&#8217;s fee is fixed or determinable, no further obligation exists and collectability is probable.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 112.5pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 85.05pt" align="justify"><font style="FONT-SIZE: 10pt">The Company derives revenues from the sale of its Dario&#153; Smart Meter and its related device-specific disposables test strip cartridges and lancets through independent distributers or directly to end users. 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The selling price for a deliverable is based on its Vendor Specific Objective Evidence (&#8220;VSOE&#8221;), if available, third party evidence (&#8220;TPE&#8221;) if VSOE is not available, or estimated selling price (&#8220;ESP&#8221;) if neither VSOE nor TPE is available. The best estimate of selling price is established considering several internal factors including, but not limited to, historical sales, pricing practices and geographies in which the Company offers its products. The determination of ESP is judgmental.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 85.05pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 85.05pt" align="justify"><font style="FONT-SIZE: 10pt">Revenues from software components in sales arrangement contains multiple elements are recognized when all criteria outlined in ASC 985-605, &#8220;Software Revenue Recognition&#8221; (&#8220;ASC 985-605&#8221;), are met. Revenue from services is recognized when persuasive evidence of an arrangement exists, delivery of the product has occurred or the services have been rendered, the fee is fixed or determinable and collectability is probable.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><b><font style="FONT-SIZE: 10pt"> &#160;</font></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 85.05pt" align="justify"><font style="FONT-SIZE: 10pt">For multiple element arrangements within ASC 985-605, revenues are allocated to the different elements in the arrangement under the &#8220;residual method&#8221; when VSOE of fair value exist for all undelivered elements and no VSOE exists for the delivered elements. Under the residual method, at the outset of the arrangement with the customer, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and is recognized as revenue when the basic criteria in ASC 985-605 have been met. Any discount in the arrangement is allocated to the delivered element.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 85.05pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 85.05pt" align="justify"><font style="FONT-SIZE: 10pt">Since VSOE does not exist for undelivered elements, revenues are recognized as one unit of accounting, on a straight-line basis over the term of the last deliverable based on ASC 605-15, &#8220;Products&#8221; and ASC 985-605.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt 85.05pt" align="justify"><font style="FONT-SIZE: 10pt">Deferred revenues include advances and payments received from customers, for which revenue has not yet been recognized.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 28.35pt; MARGIN: 0in 0in 0pt 56.7pt" align="justify"><font style="FONT-SIZE: 10pt">The Company&#8217;s shipping and handling costs are included in cost of revenues.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2014 us-gaap Stock Issued During Period Value Other
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0 USD

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