2016 Q2 Form 10-Q Financial Statement

#000082787116000074 Filed on August 09, 2016

View on sec.gov

Income Statement

Concept 2016 Q2 2015 Q2
Revenue $40.92M $6.002M
YoY Change 581.74% 3.63%
Cost Of Revenue $11.47M $3.348M
YoY Change 242.68% 115.17%
Gross Profit $29.45M $2.654M
YoY Change 1009.46% -37.35%
Gross Profit Margin 71.96% 44.22%
Selling, General & Admin $11.99M $5.111M
YoY Change 134.59% 91.21%
% of Gross Profit 40.72% 192.58%
Research & Development $3.799M $5.878M
YoY Change -35.37% 29.33%
% of Gross Profit 12.9% 221.48%
Depreciation & Amortization $320.0K $10.00K
YoY Change 3100.0% -50.0%
% of Gross Profit 1.09% 0.38%
Operating Expenses $27.26M $14.34M
YoY Change 90.15% 63.4%
Operating Profit $13.66M -$8.335M
YoY Change -263.84% 179.51%
Interest Expense $3.000K $3.000K
YoY Change 0.0% -40.0%
% of Operating Profit 0.02%
Other Income/Expense, Net $27.00K $5.000K
YoY Change 440.0% -89.58%
Pretax Income $13.68M -$8.330M
YoY Change -264.26% 183.91%
Income Tax $584.0K -$153.0K
% Of Pretax Income 4.27%
Net Earnings $13.10M -$8.177M
YoY Change -260.19% 178.7%
Net Earnings / Revenue 32.01% -136.24%
Basic Earnings Per Share $0.84 -$0.53
Diluted Earnings Per Share $0.80 -$0.53
COMMON SHARES
Basic Shares Outstanding 15.64M shares 15.55M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q2 2015 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $75.60M $103.7M
YoY Change -27.1% 108.23%
Cash & Equivalents $75.56M $13.69M
Short-Term Investments $90.00M
Other Short-Term Assets $328.0K $198.0K
YoY Change 65.66% -51.56%
Inventory $6.363M $2.325M
Prepaid Expenses
Receivables $52.03M $12.98M
Other Receivables $0.00 $0.00
Total Short-Term Assets $135.5M $120.6M
YoY Change 12.4% 108.73%
LONG-TERM ASSETS
Property, Plant & Equipment $2.813M $374.0K
YoY Change 652.14% 4.03%
Goodwill
YoY Change
Intangibles $10.96M
YoY Change
Long-Term Investments
YoY Change
Other Assets $94.00K $104.0K
YoY Change -9.62% 131.11%
Total Long-Term Assets $13.87M $478.0K
YoY Change 2801.05% 18.17%
TOTAL ASSETS
Total Short-Term Assets $135.5M $120.6M
Total Long-Term Assets $13.87M $478.0K
Total Assets $149.4M $121.0M
YoY Change 23.41% 108.1%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $11.43M $4.783M
YoY Change 138.99% 89.76%
Accrued Expenses $23.34M $13.54M
YoY Change 72.37% 81.26%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $35.78M $24.58M
YoY Change 45.56% 51.28%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $5.800M
YoY Change
Total Long-Term Liabilities $5.800M $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $35.78M $24.58M
Total Long-Term Liabilities $5.800M $0.00
Total Liabilities $41.50M $24.60M
YoY Change 68.7% 51.85%
SHAREHOLDERS EQUITY
Retained Earnings -$94.91M -$98.16M
YoY Change -3.31% 3.25%
Common Stock $15.00K $15.00K
YoY Change 0.0% 6.99%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $107.8M $96.45M
YoY Change
Total Liabilities & Shareholders Equity $149.4M $121.0M
YoY Change 23.41% 108.1%

Cashflow Statement

Concept 2016 Q2 2015 Q2
OPERATING ACTIVITIES
Net Income $13.10M -$8.177M
YoY Change -260.19% 178.7%
Depreciation, Depletion And Amortization $320.0K $10.00K
YoY Change 3100.0% -50.0%
Cash From Operating Activities -$2.630M -$12.12M
YoY Change -78.3% 160.09%
INVESTING ACTIVITIES
Capital Expenditures -$100.0K -$290.0K
YoY Change -65.52% 2800.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$74.00M
YoY Change -100.0%
Cash From Investing Activities -$100.0K -$74.29M
YoY Change -99.87% 742800.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 170.0K
YoY Change -100.0% -140.48%
NET CHANGE
Cash From Operating Activities -2.630M -12.12M
Cash From Investing Activities -100.0K -74.29M
Cash From Financing Activities 0.000 170.0K
Net Change In Cash -2.730M -86.24M
YoY Change -96.83% 1594.3%
FREE CASH FLOW
Cash From Operating Activities -$2.630M -$12.12M
Capital Expenditures -$100.0K -$290.0K
Free Cash Flow -$2.530M -$11.83M
YoY Change -78.61% 154.41%

Facts In Submission

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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
us-gaap Net Income Loss
NetIncomeLoss
12202000 USD
CY2015Q2 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-8177000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
11520000 USD
CY2016Q2 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
13099000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
12202000 USD
CY2015Q2 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-8177000 USD
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
11520000 USD
CY2016Q2 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
13099000 USD
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
12202000 USD
CY2015Q2 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
5000 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
11000 USD
CY2016Q2 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
27000 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
47000 USD
CY2015Q2 us-gaap Operating Expenses
OperatingExpenses
14337000 USD
us-gaap Operating Expenses
OperatingExpenses
30556000 USD
CY2016Q2 us-gaap Operating Expenses
OperatingExpenses
27262000 USD
us-gaap Operating Expenses
OperatingExpenses
57750000 USD
CY2015Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-8335000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
11755000 USD
CY2016Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
13656000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
12758000 USD
CY2016Q2 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
2255000 USD
CY2016Q2 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
281000 USD
CY2016Q2 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
564000 USD
CY2016Q2 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
564000 USD
CY2016Q2 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
564000 USD
CY2016Q2 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
0 USD
CY2016Q2 us-gaap Operating Leases Future Minimum Payments Remainder Of Fiscal Year
OperatingLeasesFutureMinimumPaymentsRemainderOfFiscalYear
282000 USD
CY2015Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
0 USD
CY2016Q2 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
286000 USD
CY2015Q4 us-gaap Other Assets Current
OtherAssetsCurrent
220000 USD
CY2016Q2 us-gaap Other Assets Current
OtherAssetsCurrent
328000 USD
CY2015Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
143000 USD
CY2016Q2 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
94000 USD
CY2015Q2 us-gaap Other Sales Revenue Net
OtherSalesRevenueNet
0 USD
us-gaap Other Sales Revenue Net
OtherSalesRevenueNet
30000000 USD
CY2016Q2 us-gaap Other Sales Revenue Net
OtherSalesRevenueNet
0 USD
us-gaap Other Sales Revenue Net
OtherSalesRevenueNet
6000000 USD
us-gaap Payments To Acquire Businesses Gross
PaymentsToAcquireBusinessesGross
0 USD
us-gaap Payments To Acquire Businesses Gross
PaymentsToAcquireBusinessesGross
4850000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
327000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
904000 USD
us-gaap Payments To Acquire Short Term Investments
PaymentsToAcquireShortTermInvestments
89999000 USD
us-gaap Payments To Acquire Short Term Investments
PaymentsToAcquireShortTermInvestments
62000000 USD
CY2015Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
1500000 shares
CY2016Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
1500000 shares
CY2015Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2016Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2015Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2016Q2 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2015Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2016Q2 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2015Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
1865000 USD
CY2016Q2 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
1546000 USD
CY2015Q4 us-gaap Prepaid Insurance
PrepaidInsurance
218000 USD
CY2016Q2 us-gaap Prepaid Insurance
PrepaidInsurance
454000 USD
CY2015Q4 us-gaap Prepaid Taxes
PrepaidTaxes
508000 USD
CY2016Q2 us-gaap Prepaid Taxes
PrepaidTaxes
126000 USD
us-gaap Proceeds From Divestiture Of Businesses
ProceedsFromDivestitureOfBusinesses
6500000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
54331000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
0 USD
us-gaap Proceeds From Sale Maturity And Collection Of Shortterm Investments
ProceedsFromSaleMaturityAndCollectionOfShorttermInvestments
0 USD
us-gaap Proceeds From Sale Maturity And Collection Of Shortterm Investments
ProceedsFromSaleMaturityAndCollectionOfShorttermInvestments
62000000 USD
us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
0 USD
us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
1750000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
1096000 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
0 USD
CY2015Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2205000 USD
CY2016Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2813000 USD
CY2016Q2 us-gaap Purchase Obligation
PurchaseObligation
16128000 USD
CY2016Q2 us-gaap Purchase Obligation Future Minimum Payments Remainder Of Fiscal Year
PurchaseObligationFutureMinimumPaymentsRemainderOfFiscalYear
16128000 USD
CY2015Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
5878000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
12163000 USD
CY2016Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
3729000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
10405000 USD
CY2015Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-107112000 USD
CY2016Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-94910000 USD
CY2015Q2 us-gaap Royalty Revenue
RoyaltyRevenue
2272000 USD
us-gaap Royalty Revenue
RoyaltyRevenue
5525000 USD
CY2016Q2 us-gaap Royalty Revenue
RoyaltyRevenue
31311000 USD
us-gaap Royalty Revenue
RoyaltyRevenue
40779000 USD
CY2015Q2 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
3730000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
6786000 USD
CY2016Q2 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
9607000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
23729000 USD
CY2015Q2 us-gaap Sales Revenue Net
SalesRevenueNet
6002000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
42311000 USD
CY2016Q2 us-gaap Sales Revenue Net
SalesRevenueNet
40918000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
70508000 USD
CY2015Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
5111000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
9097000 USD
CY2016Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
12060000 USD
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
23033000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
1593000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
5289000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1
P4Y
CY2016Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.3011
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.3033
CY2016Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.3156
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.3131
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.0209
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.0209
CY2016Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.0153
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.0190
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.0142
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.0142
CY2016Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.0129
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.0129
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
90343000 USD
CY2016Q2 us-gaap Stockholders Equity
StockholdersEquity
107834000 USD
CY2015Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
15546796 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
15876397 shares
CY2016Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
16466020 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
16526596 shares
CY2015Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
15546796 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
14900498 shares
CY2016Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
15636387 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
15636387 shares
us-gaap Basis Of Accounting
BasisOfAccounting
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Interim Condensed Financial Statements</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (&#8220;U.S. GAAP&#8221;) for interim information and pursuant to the rules and regulations of the Securities and Exchange Commission (the &#8220;SEC&#8221;) for reporting on Form 10-Q. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for the fair presentation of the financial information for the interim periods reported have been made.&#160;Results of operations for the </font><font style="font-family:inherit;font-size:10pt;">three and six months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">June&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;"> are not necessarily indicative of the results for the year ending December 31, </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">2016</font><font style="font-family:inherit;font-size:10pt;"> or any period thereafter. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and related notes included in our annual report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on February 29, 2016.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:justify;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%;padding-bottom:6px;padding-top:6px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain reclassifications have been made to prior year amounts to conform with the current year presentation.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;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%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These financial statements are presented in U.S. dollars and are prepared in accordance with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements including disclosure of contingent assets and contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period and accompanying notes. The Company's critical accounting policies are those that are both most important to the Company's financial condition and results of operations and require the most difficult, subjective or complex judgments on the part of management in their application, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Because of the uncertainty of factors surrounding the estimates or judgments used in the preparation of the financial statements, actual results may materially vary from these estimates.</font></div></div>

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