2017 Q1 Form 10-Q Financial Statement

#000162828017004995 Filed on May 05, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2016 Q1 2015 Q4
Revenue $46.02M $69.23M $94.01M
YoY Change -33.54% 86.22% 124.74%
Cost Of Revenue $14.69M $16.78M $21.37M
YoY Change -12.48% 155.8% 239.21%
Gross Profit $31.33M $52.45M $72.64M
YoY Change -40.27% 71.31% 104.45%
Gross Profit Margin 68.08% 75.76% 77.27%
Selling, General & Admin $29.71M $41.88M $40.32M
YoY Change -29.07% 42.81% 46.03%
% of Gross Profit 94.83% 79.85% 55.51%
Research & Development $12.75M $12.44M $10.87M
YoY Change 2.49% 47.88% 41.54%
% of Gross Profit 40.71% 23.72% 14.96%
Depreciation & Amortization $10.12M $8.626M $8.540M
YoY Change 17.33% 96.49% 94.09%
% of Gross Profit 32.31% 16.45% 11.76%
Operating Expenses $42.46M $54.33M $54.45M
YoY Change -21.84% 43.94% 54.34%
Operating Profit -$15.47M -$1.877M $18.19M
YoY Change 724.29% -73.66% 7176.0%
Interest Expense -$210.0K -$170.0K $60.00K
YoY Change 23.53% -107.8% -95.04%
% of Operating Profit 0.33%
Other Income/Expense, Net $7.000K -$167.0K $0.00
YoY Change -104.19% -92.33%
Pretax Income -$15.47M -$2.044M $18.26M
YoY Change 656.6% -58.68% 1150.68%
Income Tax $375.0K -$4.328M -$2.150M
% Of Pretax Income -11.77%
Net Earnings -$15.84M $2.284M $20.41M
YoY Change -793.52% -145.4% 1327.27%
Net Earnings / Revenue -34.42% 3.3% 21.71%
Basic Earnings Per Share -$0.33 $0.05
Diluted Earnings Per Share -$0.33 $0.05 $332.2K
COMMON SHARES
Basic Shares Outstanding 48.33M shares 44.66M shares 44.38M shares
Diluted Shares Outstanding 48.33M shares 48.68M shares

Balance Sheet

Concept 2017 Q1 2016 Q1 2015 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $188.0M $136.6M $139.7M
YoY Change 37.61% 13.55% 43.77%
Cash & Equivalents $149.4M $136.6M $116.5M
Short-Term Investments $38.60M $23.25M
Other Short-Term Assets $11.50M $29.20M $31.00M
YoY Change -60.62% 440.74% 313.33%
Inventory
Prepaid Expenses
Receivables $133.6M $159.3M $218.2M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $333.1M $325.0M $365.7M
YoY Change 2.47% 31.87% 53.67%
LONG-TERM ASSETS
Property, Plant & Equipment $33.21M $24.31M $25.40M
YoY Change 36.61% 72.88% 67.17%
Goodwill $65.71M $65.71M $65.71M
YoY Change 0.0% 303.35% 303.35%
Intangibles $5.219M $46.73M $50.78M
YoY Change -88.83% 257.48% 260.42%
Long-Term Investments
YoY Change
Other Assets $2.129M $10.45M $1.726M
YoY Change -79.63% 1641.83% 20.95%
Total Long-Term Assets $121.2M $161.9M $171.0M
YoY Change -25.15% 187.2% 192.34%
TOTAL ASSETS
Total Short-Term Assets $333.1M $325.0M $365.7M
Total Long-Term Assets $121.2M $161.9M $171.0M
Total Assets $454.3M $486.9M $536.7M
YoY Change -6.71% 60.79% 81.04%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $148.1M $174.6M $235.8M
YoY Change -15.18% 20.0% 64.09%
Accrued Expenses $10.80M $10.80M $12.20M
YoY Change 0.0% 31.71% 67.12%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change -100.0%
Total Short-Term Liabilities $162.0M $187.2M $250.2M
YoY Change -13.49% 19.71% 62.02%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $1.678M $2.047M $2.247M
YoY Change -18.03% 36.83% 76.65%
Total Long-Term Liabilities $1.678M $2.047M $2.247M
YoY Change -18.03% 36.83% 76.65%
TOTAL LIABILITIES
Total Short-Term Liabilities $162.0M $187.2M $250.2M
Total Long-Term Liabilities $1.678M $2.047M $2.247M
Total Liabilities $163.7M $191.2M $258.6M
YoY Change -14.36% 12.78% 54.2%
SHAREHOLDERS EQUITY
Retained Earnings -$114.8M -$78.01M -$80.29M
YoY Change 47.22% -9.02% -0.52%
Common Stock $0.00 $0.00 $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $290.5M $295.8M $278.1M
YoY Change
Total Liabilities & Shareholders Equity $454.3M $486.9M $536.7M
YoY Change -6.71% 60.79% 81.04%

Cashflow Statement

Concept 2017 Q1 2016 Q1 2015 Q4
OPERATING ACTIVITIES
Net Income -$15.84M $2.284M $20.41M
YoY Change -793.52% -145.4% 1327.27%
Depreciation, Depletion And Amortization $10.12M $8.626M $8.540M
YoY Change 17.33% 96.49% 94.09%
Cash From Operating Activities $2.881M $10.67M $55.67M
YoY Change -72.99% -52.45% 3876.43%
INVESTING ACTIVITIES
Capital Expenditures $3.084M $1.443M -$14.62M
YoY Change 113.72% -36.12% 239.21%
Acquisitions
YoY Change
Other Investing Activities $2.000M $6.400M -$9.620M
YoY Change -68.75% 412.0% 157.22%
Cash From Investing Activities -$3.367M $2.651M -$24.23M
YoY Change -227.01% -184.89% 201.37%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $368.0K $6.718M 4.140M
YoY Change -94.52% 68.84% -5275.0%
NET CHANGE
Cash From Operating Activities $2.881M $10.67M 55.67M
Cash From Investing Activities -$3.367M $2.651M -24.23M
Cash From Financing Activities $368.0K $6.718M 4.140M
Net Change In Cash -$56.00K $20.04M 35.58M
YoY Change -100.28% -13.97% -629.46%
FREE CASH FLOW
Cash From Operating Activities $2.881M $10.67M $55.67M
Capital Expenditures $3.084M $1.443M -$14.62M
Free Cash Flow -$203.0K $9.225M $70.29M
YoY Change -102.2% -54.28% 1131.0%

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CY2016Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
10668000 USD
CY2017Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
2881000 USD
CY2016Q1 us-gaap Net Income Loss
NetIncomeLoss
2284000 USD
CY2017Q1 us-gaap Net Income Loss
NetIncomeLoss
-15840000 USD
CY2016Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
2284000 USD
CY2017Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-15840000 USD
CY2016Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-167000 USD
CY2017Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
7000 USD
CY2016Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-1877000 USD
CY2017Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-15472000 USD
CY2017Q1 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
24977000 USD
CY2017Q1 us-gaap Operating Leases Future Minimum Payments Due Current
OperatingLeasesFutureMinimumPaymentsDueCurrent
5738000 USD
CY2017Q1 us-gaap Operating Leases Future Minimum Payments Due Future Minimum Sublease Rentals
OperatingLeasesFutureMinimumPaymentsDueFutureMinimumSubleaseRentals
867000 USD
CY2017Q1 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
1235000 USD
CY2017Q1 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
3325000 USD
CY2017Q1 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
5933000 USD
CY2017Q1 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
8061000 USD
CY2017Q1 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
685000 USD
CY2016Q1 us-gaap Operating Leases Rent Expense Sublease Rentals1
OperatingLeasesRentExpenseSubleaseRentals1
700000 USD
CY2017Q1 us-gaap Operating Leases Rent Expense Sublease Rentals1
OperatingLeasesRentExpenseSubleaseRentals1
1000000 USD
CY2016Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
2921000 USD
CY2017Q1 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
2129000 USD
CY2016Q1 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
27000 USD
CY2017Q1 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
97000 USD
CY2017Q1 us-gaap Other Comprehensive Income Foreign Currency Translation Gain Loss Arising During Period Tax
OtherComprehensiveIncomeForeignCurrencyTranslationGainLossArisingDuringPeriodTax
-93000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax
64000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax
-4000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
91000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
93000 USD
CY2016Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
0 USD
CY2017Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
0 USD
CY2016Q4 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
3534000 USD
CY2017Q1 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
3156000 USD
CY2016Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
1783000 USD
CY2017Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
1678000 USD
CY2017Q1 us-gaap Payments For Restructuring
PaymentsForRestructuring
1983000 USD
CY2016Q1 us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
0 USD
CY2016Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1443000 USD
CY2017Q1 us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
14948000 USD
CY2016Q1 us-gaap Other Operating Income
OtherOperatingIncome
0 USD
CY2017Q1 us-gaap Other Operating Income
OtherOperatingIncome
212000 USD
CY2017Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
3084000 USD
CY2016Q1 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
2306000 USD
CY2017Q1 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
2285000 USD
CY2016Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q1 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2016Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
9540000 USD
CY2017Q1 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
11516000 USD
CY2016Q1 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
6400000 USD
CY2017Q1 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
16950000 USD
CY2016Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
6718000 USD
CY2017Q1 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
368000 USD
CY2016Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
36246000 USD
CY2017Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
33208000 USD
CY2017Q1 us-gaap Purchase Obligation
PurchaseObligation
1000000 USD
CY2016Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
12443000 USD
CY2017Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
12753000 USD
CY2016Q1 us-gaap Restructuring Charges
RestructuringCharges
0 USD
CY2017Q1 us-gaap Restructuring Charges
RestructuringCharges
4338000 USD
CY2016Q4 us-gaap Restructuring Reserve
RestructuringReserve
801000 USD
CY2017Q1 us-gaap Restructuring Reserve
RestructuringReserve
2220000 USD
CY2017Q1 us-gaap Restructuring Reserve Settled Without Cash2
RestructuringReserveSettledWithoutCash2
936000 USD
CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-99001000 USD
CY2017Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-114841000 USD
CY2016Q1 us-gaap Revenues
Revenues
69232000 USD
CY2017Q1 us-gaap Revenues
Revenues
46015000 USD
CY2016Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
21278000 USD
CY2017Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
14628000 USD
CY2017Q1 us-gaap Severance Costs1
SeveranceCosts1
3600000 USD
CY2016Q1 us-gaap Share Based Compensation
ShareBasedCompensation
8391000 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
6239000 USD
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1
P4Y
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
4645881 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
2717000 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
10.38
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
400000 USD
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
195000 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
12.50
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
902000 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
3.11
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
704000 USD
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
3861000 shares
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
4474000 shares
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
11.16
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
10.19
CY2017Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
3.90
CY2017Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
642000 USD
CY2017Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
5.86
CY2017Q1 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
368000 USD
CY2017Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P5Y7M20D
CY2017Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P6Y9M34D
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
299513000 USD
CY2017Q1 us-gaap Stockholders Equity
StockholdersEquity
290539000 USD
CY2017Q1 us-gaap Trading Securities Unrealized Holding Gain
TradingSecuritiesUnrealizedHoldingGain
0 USD
CY2016Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
48676000 shares
CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
48332000 shares
CY2016Q1 us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
774000 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
0 shares
CY2016Q1 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
47137000 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
49446000 shares
CY2016Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
44663000 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
48332000 shares
CY2016Q1 us-gaap Weighted Average Number Of Shares Restricted Stock
WeightedAverageNumberOfSharesRestrictedStock
1700000 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Restricted Stock
WeightedAverageNumberOfSharesRestrictedStock
1114000 shares
CY2017Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:13px;text-indent:48px;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-top:6px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed financial statements and accompanying footnotes. Actual results could differ materially from these estimates.</font></div></div>

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