2019 Q1 Form 10-K Financial Statement

#000157056220000061 Filed on February 25, 2020

View on sec.gov

Income Statement

Concept 2019 Q1 2019 2018 Q4
Revenue $0.00 $34.93M $0.00
YoY Change
Cost Of Revenue $0.00 $8.014M
YoY Change
Gross Profit $0.00 $26.91M
YoY Change
Gross Profit Margin 77.05%
Selling, General & Admin $17.52M $113.6M $12.22M
YoY Change 404.87% 289.74% 640.61%
% of Gross Profit 422.11%
Research & Development $2.353M $3.973M $1.180M
YoY Change 40.23% -38.75% -2.48%
% of Gross Profit 14.76%
Depreciation & Amortization $484.0K $4.132M $0.00
YoY Change 45811.11%
% of Gross Profit 15.35%
Operating Expenses $25.27M $125.9M $13.41M
YoY Change 318.01% 172.76% 368.88%
Operating Profit -$25.27M -$98.95M
YoY Change 318.01% 114.44%
Interest Expense -$230.0K -$6.110M $90.00K
YoY Change -314.95% -808.0%
% of Operating Profit
Other Income/Expense, Net -$618.0K -$7.953M
YoY Change 477.57% 821.55%
Pretax Income -$25.50M -$105.1M -$12.42M
YoY Change 314.47% 124.48% 334.27%
Income Tax -$14.52M -$15.03M $20.00K
% Of Pretax Income
Net Earnings -$10.98M -$90.03M -$12.44M
YoY Change 78.11% 92.11% -379.55%
Net Earnings / Revenue -257.79%
Basic Earnings Per Share
Diluted Earnings Per Share -$401.8K -$3.188M -$454.7K
COMMON SHARES
Basic Shares Outstanding 27.27M shares 27.27M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q1 2019 2018 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $133.7M $129.8M $93.16M
YoY Change 169.56% 39.27%
Cash & Equivalents $54.40M $109.9M $93.16M
Short-Term Investments $79.30M $19.90M $0.00
Other Short-Term Assets $2.800M $5.300M $1.200M
YoY Change 460.0% 341.67% 500.0%
Inventory $2.578M $6.400M $0.00
Prepaid Expenses
Receivables $10.70M $0.00
Other Receivables $0.00
Total Short-Term Assets $139.1M $152.2M $94.34M
YoY Change 177.55% 61.4% 29.54%
LONG-TERM ASSETS
Property, Plant & Equipment $800.0K $5.000M $0.00
YoY Change
Goodwill $21.21M $21.21M
YoY Change 0.0% 0.0%
Intangibles $58.78M $56.08M
YoY Change 4.83% 0.0%
Long-Term Investments
YoY Change
Other Assets $1.045M $2.400M $221.0K
YoY Change 1100.0% -89.6%
Total Long-Term Assets $81.85M $88.20M $77.51M
YoY Change 5.9% 13.81% -2.4%
TOTAL ASSETS
Total Short-Term Assets $139.1M $152.2M $94.34M
Total Long-Term Assets $81.85M $88.20M $77.51M
Total Assets $220.9M $240.4M $171.8M
YoY Change 73.42% 39.93% 12.88%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.863M $5.800M $1.558M
YoY Change 240.59% 262.5% 250.11%
Accrued Expenses $6.735M $15.20M $3.718M
YoY Change 186.35% 310.81% 280.55%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $0.00
YoY Change -100.0%
Total Short-Term Liabilities $9.400M $24.40M $5.276M
YoY Change 159.02% 360.38% -97.52%
LONG-TERM LIABILITIES
Long-Term Debt $72.56M $91.50M $0.00
YoY Change 350.66% 441.42%
Other Long-Term Liabilities $45.90M $45.10M $50.20M
YoY Change 13.05% -10.16%
Total Long-Term Liabilities $72.56M $136.6M $0.00
YoY Change 27.97% 103.58%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.400M $24.40M $5.276M
Total Long-Term Liabilities $72.56M $136.6M $0.00
Total Liabilities $145.6M $161.0M $87.46M
YoY Change 93.03% 84.0% -61.6%
SHAREHOLDERS EQUITY
Retained Earnings -$134.0M -$123.0M
YoY Change 62.78% 62.85%
Common Stock $1.000K $1.000K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $75.36M $79.50M $84.38M
YoY Change
Total Liabilities & Shareholders Equity $220.9M $240.4M $171.8M
YoY Change 73.42% 39.93% 12.88%

Cashflow Statement

Concept 2019 Q1 2019 2018 Q4
OPERATING ACTIVITIES
Net Income -$10.98M -$90.03M -$12.44M
YoY Change 78.11% 92.11% -379.55%
Depreciation, Depletion And Amortization $484.0K $4.132M $0.00
YoY Change 45811.11%
Cash From Operating Activities -$19.20M -$93.38M -$12.01M
YoY Change 772.33% 263.36% 1101.0%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $345.0K $0.00
YoY Change 3733.33%
Acquisitions
YoY Change
Other Investing Activities -$79.20M -$18.87M
YoY Change
Cash From Investing Activities -$80.03M -$23.43M $0.00
YoY Change 260277.78%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00 $73.32M
YoY Change -100.0% 8.33%
Debt Paid & Issued, Net $0.00 $1.044M
YoY Change
Cash From Financing Activities $60.43M $133.5M 0.000
YoY Change 16.73% 12.38% -100.0%
NET CHANGE
Cash From Operating Activities -$19.20M -$93.38M -12.01M
Cash From Investing Activities -$80.03M -$23.43M 0.000
Cash From Financing Activities $60.43M $133.5M 0.000
Net Change In Cash -$38.80M $16.73M -12.01M
YoY Change -178.26% -82.04%
FREE CASH FLOW
Cash From Operating Activities -$19.20M -$93.38M -$12.01M
Capital Expenditures $0.00 $345.0K $0.00
Free Cash Flow -$19.20M -$93.73M -$12.01M
YoY Change 264.57% 1101.0%

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15055000 USD
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12970000 USD
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4691000 USD
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294000 USD
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1060000 USD
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95000000 USD
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902000 USD
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1044000 USD
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5000000 USD
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6487000 USD
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3973000 USD
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34925000 USD
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5566000 USD
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20.00
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29146000 USD
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113593000 USD
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6971000 USD
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11.99
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14.07
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
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12.50
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
0 USD
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
2311000 USD
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
328117 shares
CY2019 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
1321451 shares
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
7119000 USD
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
7198000 USD
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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3257801 shares
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
7198000 USD
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
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3977401 shares
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
14.07
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Percentage Of Outstanding Stock Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardPercentageOfOutstandingStockMaximum
0.04
CY2019 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
9.98
CY2019 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
15.15
CY2019 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
18.63
CY2019Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
1880000 USD
CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P8Y3M11D
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P9Y3M4D
CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P8Y6M4D
CY2019 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P8Y6M4D
CY2019 us-gaap Short Term Lease Cost
ShortTermLeaseCost
85000 USD
CY2018Q3 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
3600000 shares
CY2019 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
273734 shares
CY2018 us-gaap Stock Issued During Period Value Conversion Of Convertible Securities
StockIssuedDuringPeriodValueConversionOfConvertibleSecurities
0 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
84384000 USD
CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
79457000 USD
CY2018Q1 us-gaap Stockholders Equity Note Stock Split Conversion Ratio1
StockholdersEquityNoteStockSplitConversionRatio1
1.6527
CY2017Q4 us-gaap Unrecognized Tax Benefits
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2109000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2435000 USD
CY2019Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2761000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
326000 USD
CY2019 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
326000 USD
CY2019 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
-15055000 USD
CY2019 us-gaap Variable Lease Cost
VariableLeaseCost
110000 USD
CY2018 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
24402368 shares
CY2019 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
28237816 shares
CY2019 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;font-weight:bold;">Risks and Uncertainties</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">In 2013, Evolus and Daewoong Pharmaceuticals Co. Ltd. (&#8220;Daewoong&#8221;) entered into the Daewoong Agreement, pursuant to which, the Company has the exclusive distribution license to Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"> from Daewoong for aesthetic indications in the United States, European Union, Great Britain, Canada, Australia, Russia, Commonwealth of Independent States, and South Africa, as well as co-exclusive distribution rights with Daewoong in Japan. Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">&#160;is manufactured by Daewoong in a facility in South Korea. The Company also has the option to negotiate first with Daewoong to secure a distribution license for any product that Daewoong directly or indirectly develops or commercializes that is classified as an injectable botulinum toxin (other than Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">) in a territory covered by the Daewoong Agreement. The Company relies on Daewoong, its exclusive and sole supplier, to manufacture Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">. Any termination or loss of significant rights, including exclusivity, under the Daewoong Agreement would materially and adversely affect the Company&#8217;s commercialization of Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">. The Daewoong Agreement, and Daewoong&#8217;s rights relating to Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">, are subject to litigation. See </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-weight:normal;">Note 7</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">, </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;font-weight:normal;">Commitments and Contingencies</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">&#160;for additional information regarding such litigation.</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The Company commercially launched Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">&#160;in the United States in May 2019 and in Canada through its distribution partner in October 2019 and, as such, has a limited history of sales. If any previously granted approval is retracted or the Company is denied approval or approval is delayed by any other regulators, it may have a material adverse impact on the Company&#8217;s business and its financial statements.</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The Company is subject to risks common to early stage companies in the pharmaceutical industry including, but not limited to, dependency on the clinical and commercial success of Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">&#160;and any future product candidates, ability to obtain and maintain regulatory approval of Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">&#160;and any future product candidates in the jurisdictions where approval is sought, the need for additional financing to achieve its goals, uncertainty of broad adoption of its approved products, if any, by physicians and patients, significant competition and untested manufacturing capabilities.</font></div></div><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;font-weight:bold;">Concentration of Credit Risk</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, short-term investments and accounts receivable. Substantially all of the Company&#8217;s cash is held by financial institutions that management believes are of high credit quality. Such deposits may, at times, exceed federally insured limits. To date, the Company has not experienced any losses associated with this credit risk and continues to believe that this exposure is not significant. The Company invests its excess cash, in line with its investment policy, primarily in money market funds and debt instruments of U.S. government agencies. </font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The Company&#8217;s accounts receivable is derived from customers located principally in the United States. Concentrations of credit risk with respect to trade receivables are limited due to the Company&#8217;s credit evaluation process. The Company does not typically require collateral from its customers. Credit losses historically have not been material. The Company continuously monitors customer payments and maintains an allowance for doubtful accounts based on its assessment of various factors including historical experience, age of the receivable balances, and other current economic conditions or other factors that may affect customers&#8217; ability to pay.</font></div></div>
CY2019 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:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;font-weight:bold;">Reclassification&#160;</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported net loss.</font></div></div>
CY2019 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Management is required to make certain estimates and assumptions in order to prepare financial statements in conformity with GAAP. Such estimates and assumptions affect the reported financial statements. The Company&#8217;s most significant estimates relate to net revenues, allowance for doubtful accounts, fair value measurements, goodwill and long-lived asset valuations and impairment assessments, inventory valuations, income tax valuations, stock-based compensation and royalty obligations, among others. Management bases estimates on historical experience and on assumptions that management believes are reasonable. The Company&#8217;s actual results could differ materially from those estimates.</font></div></div>

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