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140901
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in; text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1.</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">BUSINESS OPERATIONS</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">ImmuCell Corporation (the “Company”, “we”, “us”, “our”) is an animal health company whose purpose is to create scientifically-proven and practical products that improve animal health and productivity in the dairy and beef industries. The Company was originally incorporated in Maine in 1982 and reincorporated in Delaware in 1987, in conjunction with its initial public offering of common stock. We market products that provide immediate immunity to newborn dairy and beef cattle. We are developing product line extensions of our existing products and are in the late stages of developing a novel product that addresses mastitis, the most significant cause of economic loss to the dairy industry. These products help reduce the need to use traditional antibiotics in food producing animals. The Company is subject to certain risks associated with its stage of development including dependence on key individuals, competition from other larger companies, the successful sale of existing products and the development and acquisition of additional commercially viable products with appropriate regulatory approvals, where applicable. The $20,000,000 investment we are making in a Nisin production plant for <b>Mast Out<sup>®</sup></b> is being funded from available cash and bank debt, together with cash flows from ongoing operations.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 35.9pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2.</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 35.95pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(a)</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Basis of Presentation</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We have prepared the accompanying audited financial statements reflecting all adjustments that are, in our opinion, necessary in order to ensure that the financial statements are not misleading. We follow accounting standards set by the Financial Accounting Standards Board (FASB). The FASB sets generally accepted accounting principles (GAAP) that we follow to ensure we consistently report our financial condition, results of operations, earnings per share and cash flows. References to GAAP in these footnotes are to the FASB <i>Accounting Standards Codification</i>™ (Codification). Certain prior year accounts have been reclassified to conform with the 2016 financial statement presentation.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 35.95pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(b)</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Cash, Cash Equivalents, Short-Term Investments and Long-Term Investments</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">We consider all highly liquid investment instruments that mature within three months of their purchase dates to be cash equivalents. Cash equivalents are principally invested in securities backed by the U.S. government. Certain cash balances in excess of Federal Deposit Insurance Corporation (FDIC) limits of $250,000 per financial institution per depositor are maintained in money market accounts at financial institutions that are secured, in part, by the Securities Investor Protection Corporation. Amounts in excess of these FDIC limits per bank that are not invested in securities backed by the U.S. government aggregated $4,650,044 and $1,073,028 as of December 31, 2016 and 2015, respectively. We account for investments in marketable securities in accordance with Codification Topic 320, <i>Investments – Debt and Equity Securities</i>. Short-term investments are classified as held to maturity and are comprised principally of certificates of deposit that mature in more than three months from their purchase dates and not more than twelve months from the balance sheet date. Long-term investments are classified as held to maturity and are comprised principally of certificates of deposit that mature in more
than twelve months from
the balance sheet date. Short-term and long-term investments are held at different financial institutions that are insured by the FDIC, within the FDIC limits per financial institution. See Note 3.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 35.95pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(c)</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Inventory</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventory includes raw materials, work-in-process and finished goods and is recorded at the lower of cost, on the first-in, first-out method, or net realizable value (determined as the estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation). Work-in-process and finished goods inventories include materials, labor and manufacturing overhead. See Note 4.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(d)</b></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Accounts Receivable</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Accounts receivable are carried at the original invoice amount less an estimate made for doubtful collection and product returns. Management determines the allowance for doubtful accounts on a monthly basis by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded as income when received. Accounts receivable are considered to be past due if any portion of the receivable balance is outstanding for more than 30 days. Interest is charged on past due accounts receivable. See Note 5.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(e)</font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property, Plant and Equipment</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We depreciate property, plant and equipment on the straight-line method by charges to operations in amounts estimated to expense the cost of the assets from the date they are first put into service to the end of the estimated useful lives of the assets. The facility we are constructing to produce the active ingredient, Nisin, for <b>Mast Out<sup>®</sup></b> will be depreciated over its useful life beginning when that
facility is placed into service, which could be before
the Food and Drug Administration (FDA) approval of the product is achieved. This facility is not yet placed in service. We are evaluating the estimated useful lives of the assets associated with this facility. Repairs to fixed assets that benefit more than a current period are capitalized and depreciated over their useful lives. See Note 7.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(f)</font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Intangible Assets and Goodwill</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We amortize intangible assets on the straight-line method by charges to operations in amounts estimated to expense the cost of the assets from the date they are first put into service to the end of the estimated useful lives of the assets. We have recorded intangible assets related to customer relationships, non-compete agreements, and developed technology, each with defined useful lives. We have classified as goodwill the amounts paid in excess of fair value of the net assets (including tax attributes) acquired in purchase transactions.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We assess the impairment of intangible assets and goodwill that have indefinite lives on an annual basis (as of December 31<sup>st</sup>) and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. We assess goodwill for impairment annually, at the reporting unit level whenever events or circumstances indicate impairment may exist. In evaluating goodwill for impairment, we have the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more likely than not threshold is defined as having a likelihood of more than 50 percent. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would then perform step one of the two-step impairment test; otherwise, no further impairment test would be required. In contrast, we can opt to bypass the qualitative assessment for any reporting unit in any period and proceed directly to step one of the two-step impairment test. Doing so does not preclude us from performing the qualitative assessment in any subsequent period. Factors that could indicate that an impairment may exist include significant under-performance relative to plan or long-term projections, significant changes in business strategy and significant negative industry or economic trends. Although we believe intangible assets and goodwill are appropriately stated in the accompanying financial statements, changes in strategy or market conditions could significantly impact these judgements and require an adjustment to the recorded balance. No goodwill impairments were recorded during the year ended December 31, 2016. See Notes 2(h), 8 and 9 for additional disclosures.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(g)</font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Fair Value Measurements</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family:
'times new roman', times, serif; font-size: 10pt;">In determining fair value
measurements, we follow the provisions of Codification Topic 820, <i>Fair Value Measurements and Disclosures</i>. Codification Topic 820 defines fair value, establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. The topic provides a consistent definition of fair value which focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The topic also prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information and establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. At December 31, 2016 and 2015, the carrying amounts of cash and cash equivalents, accounts receivable, inventory, other assets, accounts payable and accrued liabilities approximate fair value because of their short-term nature. The amount outstanding under our bank debt facilities is measured at carrying value in our accompanying balance sheets. Our bank debt facilities are valued using Level 2 inputs. The estimated fair value of our bank debt facilities approximates their carrying value. The three-level hierarchy is as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level 2 - Pricing inputs are quoted prices for similar assets or liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level 3 - Pricing inputs are unobservable for the assets or liabilities, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgement, and considers factors specific to the investment.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Our held to maturity securities are comprised of investments in bank certificates of deposit. The value of these securities is disclosed in Note 3. We also hold money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value. The fair value of these investments is based on their closing published net asset value.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal;
widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family:
'times new roman', times, serif; font-size: 10pt;">We assess the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with our accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the years ended December 31, 2016 and 2015, there were no transfers between levels. As of December 31, 2016 and 2015, our Level 1 assets measured at fair value by quoted prices in active markets consisted of bank savings accounts and money market funds. As of December 31, 2016 and 2015, our bank certificates of deposit were classified as Level 2 and were measured by significant other observable inputs. As of December 31, 2016 and 2015, our interest rate swaps were classified as Level 2 and were measured by observable market data in combination with expected cash flows for each instrument. There were no assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2016 or 2015.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31, 2016</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 815px; text-align: left;">Cash and money market accounts </td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;">$</td><td style="width: 142px; text-align: right;">5,150,344</td><td style="width: 16px; text-align: left;"> </td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;"> </td><td style="width: 142px; text-align: right;">-</td><td style="width: 16px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 141px; text-align: right;">-</td><td style="width: 15px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">5,150,344</td><td style="width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Bank certificates of deposit</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">-</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;">$</td><td style="text-align: right;">5,474,013</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">-</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">5,474,013</td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;">Interest rate swaps</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(37,346</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(37,346</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; padding-left: 10pt;">Total</td><td
style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right;
border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,150,344</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,436,667</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">10,587,011</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31, 2015</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 815px; text-align: left;">Cash and money market accounts</td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;">$</td><td style="width: 142px; text-align: right;">1,573,328</td><td style="width: 16px; text-align: left;"> </td><td style="width: 16px; font-weight: bold;"> </td><td style="width: 16px; text-align: left; font-weight: bold;"> </td><td style="width: 142px; text-align: right; font-weight: bold;">-</td><td style="width: 16px; text-align: left; font-weight: bold;"> </td><td style="width: 15px; font-weight: bold;"> </td><td style="width: 15px; text-align: left; font-weight: bold;"> </td><td style="width: 141px; text-align: right; font-weight: bold;">-</td><td style="width: 15px; text-align: left; font-weight: bold;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">1,573,328</td><td style="width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Bank certificates of deposit</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">-</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;">$</td><td style="text-align: right;">4,960,222</td><td style="text-align: left;"> </td><td style="font-weight: bold;"> </td><td style="text-align: left; font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;">-</td><td style="text-align: left; font-weight: bold;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">4,960,222</td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;">Interest rate swaps</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(78,525</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left;
padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black;
border-bottom-width: 1.5pt; border-bottom-style: solid;">(78,525</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; padding-left: 10pt;">Total</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,573,328</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,881,697</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt; font-weight: bold;"> </td><td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt; font-weight: bold;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6,455,025</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(h)</font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Valuation of Long-Lived Assets</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We periodically evaluate our long-lived assets, consisting principally of fixed assets and amortizable intangible assets, for potential impairment. In accordance with the applicable accounting guidance for the treatment of long-lived assets, we review the carrying value of our long-lived assets or asset group that is held and used, including intangible assets subject to amortization, for impairment whenever events and circumstances indicate that the carrying value of the assets may not be recoverable. Under the held and used approach, the asset or asset group to be tested for impairment should represent the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. We evaluate our long-lived assets whenever events or circumstances suggest that the carrying amount of an asset or group of assets may not be recoverable from the estimated undiscounted future cash flows. No impairment was recognized during the years ended December 31, 2016 or 2015.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(i)</font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Concentration of Risk</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Concentration of credit risk with respect to accounts receivable is principally limited to certain customers to whom we make substantial sales. To reduce risk, we routinely assess the financial strength of our customers and, as a consequence, believe that our accounts receivable credit risk exposure is limited. We maintain an allowance for potential credit losses, but historically we have not experienced significant credit losses related to an individual customer or groups of customers in any particular industry or geographic area. Sales to significant customers that amounted to 10% or more of total product sales are detailed in the following
table:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 23pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times,
serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year Ended<br /></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;">Patterson Companies, Inc.<sup>(1)</sup></td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;"> </td><td style="width: 142px; text-align: right;">39</td><td style="width: 16px; text-align: left;">%</td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 141px; text-align: right;">42</td><td style="width: 15px; text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>AmerisourceBergen Corporation<sup>(2)</sup></td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">21</td><td style="text-align: left;">%</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">20</td><td style="text-align: left;">%</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 23pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Accounts receivable due from significant customers amounted to the percentages of total trade accounts receivable as detailed in the following table:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 23pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: calibri, sans-serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,<br />2016</b></font></p></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,<br />2015</b></font></p></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1191px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">AmerisourceBergen Corporation<sup>(2)</sup></font></td><td style="padding: 0px; width: 16px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">33</font></td><td style="padding: 0px; width: 16px;
text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td><td style="padding: 0px; width: 15px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman',
times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">27</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Patterson Companies, Inc.<sup>(1)</sup></font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">31</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">26</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">ANIMART LLC<sup>(3)</sup></font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">11</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 23pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.3in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(1)</sup></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During June 2015, Patterson Companies, Inc. (NASDAQ: PDCO) acquired Animal Health International, Inc.</font></td></tr></table><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.3in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(2)</sup></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During March 2015, AmerisourceBergen Corporation (NYSE: ABC) acquired MWI Animal Health.</font></td></tr></table><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.3in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(3)</sup></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Assumes that the acquisition of Animal Medic by ANIMART LLC (which closed during the third quarter of 2016) had occurred as of the beginning of the periods being reported.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing:
0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width:
0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">*Amount is less than 10%.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We believe that supplies and raw materials for the production of our products are available from more than one vendor or farm. Our policy is to maintain more than one source of supply for the components used in our products. However, there is a risk that we could have difficulty in efficiently acquiring essential supplies.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(j)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Interest Rate Swap Agreements</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">All derivatives are recognized on the balance sheet at their fair value. We entered into interest rate swap agreements in 2010 and 2015. On the dates the agreements were entered into, we designated the derivatives as hedges of the variability of cash flows to be paid related to our long-term debt. The agreements have been determined to be highly effective in hedging the variability of identified cash flows, so changes in the fair market value of the interest rate swap agreements are recorded as comprehensive income (loss), until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). We formally documented the relationship between the interest rate swap agreements and the related hedged items. We also formally assess, both at the interest rate swap agreements’ inception and on an ongoing basis, whether the agreements are highly effective in offsetting changes in cash flow of hedged items. See Note 11.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(k)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Revenue Recognition</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We sell products that provide immediate immunity to newborn dairy and beef cattle. We recognize revenue when four criteria are met. These include i) persuasive evidence that an arrangement exists, ii) delivery has occurred or services have been rendered, iii) the seller’s price is fixed and determinable and iv) collectability is reasonably assured. We recognize revenue at the time of shipment (including to distributors) for substantially all products, as title and risk of loss pass to the customer on delivery to the common carrier after concluding that collectability is reasonably assured. We do not bill for or collect sales tax because our sales are generally made to distributors and thus our sales to them are not subject to sales tax. We offer a
50% account credit to domestic distributors on expired <b>First Defense<sup>®</sup></b> product that is returned to us past its expiration date, which is generally two years past its date of manufacture. At the time of sale, we estimate returns and record a corresponding liability. We generally have experienced an immaterial amount of product returns.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px;
text-align: center; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(l)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Expense Recognition</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Advertising costs are expensed when incurred, which is generally during the month in which the advertisement is published. Advertising expenses amounted to $114,860 and $94,607 during the years ended December 31, 2016 and 2015, respectively. All product development expenses are expensed as incurred, as are all related patent costs. We capitalize costs to produce inventory during the production cycle, and these costs are charged to costs of goods sold when the inventory is sold to a customer.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(m)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Income Taxes</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We account for income taxes in accordance with Codification Topic 740, <i>Income Taxes</i>, which requires that we recognize a current tax liability or asset for current taxes payable or refundable and a deferred tax liability or asset for the estimated future tax effects of temporary differences and carryforwards to the extent they are realizable. We believe it is more likely than not that the deferred tax assets will be realized through future taxable income and future tax effects of temporary differences between book income and taxable income. Accordingly, we have not established a valuation allowance for the deferred tax assets. Codification Topic 740-10 clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position must meet before being recognized in the financial statements. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. In addition, we are subject to periodic audits and examinations by the Internal Revenue Service and other taxing authorities. Our tax returns for the years 2013 through 2016 are subject to audit. We have evaluated the positions taken on our filed tax returns. We have concluded that no uncertain tax positions exist as of December 31, 2016. Although we believe that our estimates are reasonable, actual results could differ from these estimates. See Note 14.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(n)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font
style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Stock-Based Compensation</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size:
10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We account for stock-based compensation in accordance with Codification Topic 718, <i>Compensation-Stock Compensation</i>, which generally requires us to recognize non-cash compensation expense for stock-based payments using the fair-value-based method. The fair value of each stock option grant has been estimated on the date of grant using the Black-Scholes option pricing model. Accordingly, we recorded compensation expense pertaining to stock-based compensation of $67,399 and $23,222 during the years ended December 31, 2016 and 2015, respectively, which resulted in a decrease to income before income taxes of less than $0.01 per share during each of the periods reported.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(o)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Net Income Per Common Share</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net income per common share has been computed in accordance with Codification Topic 260-10, <i>Earnings Per Share.</i> The basic net income per share has been computed by dividing net income by the weighted average number of common shares outstanding during the period. The diluted net income per share has been computed by dividing net income by the weighted average number of shares outstanding during the period plus all outstanding stock options with an exercise price that is less than the average market price of the common stock during the period less the number of shares that could have been repurchased at this average market price with the proceeds from the hypothetical stock option exercises. The weighted average and diluted number of shares outstanding consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Years Ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif;
vertical-align: bottom; background-color: #cceeff;"><td style="width: 1177.67px; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Weighted average number of shares outstanding</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times,
serif;">4,225,789</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">3,042,376</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Effect of dilutive stock options</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">110,440</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">123,359</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Diluted number of shares outstanding</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,336,229</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,165,735</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Outstanding stock options not included in the calculation because the effect would be anti-dilutive</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">34,250</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6,000</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(p)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Use of Estimates</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif;
font-size: 10pt;">The preparation of financial statements in conformity with 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 period. Although we regularly assess these estimates, actual amounts could differ from those estimates. Changes in estimates are recorded during the period in which they become known.
Significant estimates include our inventory, goodwill, accrued expenses and costs of goods sold accounts as well as amortization of our intangible assets.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(q)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>New Accounting Pronouncements</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, <i>Revenue from Contracts with Customers</i>, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 was initially to become effective for the Company on January 1, 2017. Early application was not permitted. In July 2015, the FASB approved a one-year deferral in the effective date to January 1, 2018, with the option of applying the standard on the original effective date. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We intend to utilize the modified retrospective method and have made a preliminary evaluation of the effect that ASU 2014-09 would have on our financial statements and related disclosures and do not expect ASU 2014-09 to have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In August 2014, the FASB issued ASU No. 2014-15, <i>“Presentation of Financial Statements-Going Concern”, </i>which provides guidance regarding management’s responsibility to assess whether substantial doubt exists regarding the ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements for each annual and interim reporting period, management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued. This ASU is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We implemented this guidance during 2016. The adoption of this guidance did not have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"></font> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In April 2015, the FASB issued ASU No. 2015-03, <i>Interest-Imputation of Interest</i>, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This update is effective for the annual reporting periods beginning after December 15, 2015. During the first quarter of 2016, we adopted ASU 2015-03 and reclassified $40,792 of debt issuance costs (net) from other assets to a reduction in our bank debt liability as of December 31, 2015. In August 2015, the FASB confirmed that ASU No. 2015-03 did not address the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. For line-of-credit arrangements, borrowers have the option of presenting debt issuance costs as an asset which is subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any related outstanding borrowings. ASU No. 2015-03 did not have a material impact on our
financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing:
normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In July 2015, the FASB issued ASU No. 2015-11, <i>Inventory</i>, which simplifies the existing guidance which requires entities to subsequently measure inventory at the lower of cost or market value. Under ASU No. 2015-11, an entity should measure inventory valued using a first-in, first-out or average cost method at the lower of cost or net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This update is effective for public business entities during fiscal years beginning after December 15, 2016 with early adoption permitted. We adopted ASU 2015-11 during the third quarter of 2016, and it did not have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In November 2015, the FASB issued ASU No. 2015-17, <i>Income Taxes</i>, which simplifies the existing guidance which requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Under ASU No. 2015-17, an entity should classify all deferred tax liabilities and assets as one noncurrent deferred tax liability or asset (net) within the statement of financial position. The amendments apply to all entities that present a classified statement of financial position and are effective for the public business entities for annual periods beginning after December 15, 2016, including interim periods therein. Earlier application was permitted. During the first quarter of 2016, we adopted ASU No. 2015-17 early and reclassified $19,588 of current deferred tax liabilities to long-term, which amount was netted against our long-term deferred tax asset, as of December 31, 2015. ASU No. 2015-17 did not have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In February 2016, the FASB issued ASU No. 2016-02, <i>Leases</i>, which requires lessees to put most leases on their balance sheet but recognize expenses on their income statements in a manner similar to today’s accounting. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods therein. Early adoption is permitted. Based on our current lease agreements, we are not subject to material lease obligations, and we do not expect ASU 2016-02 to have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In March 2016, the FASB issued ASU No. 2016-09, <i>Compensation-Stock Compensation</i>, which simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, recognition of stock compensation award forfeitures, classification of awards as either equity or liabilities, the calculation of diluted shares outstanding and classification on the statement of cash flows. The most significant change resulting from these amendments is recording all the tax effects related to share-based payments at settlement through the income statement. Under existing guidance, tax benefits in excess of compensation costs (“windfalls”) are recorded in equity. Similarly, tax deficiencies below compensation costs (“shortfalls”) are recorded in equity to the extent of previous windfalls, while shortfalls in excess of this are recorded to the income statement. Furthermore, the new guidance is expected to increase the dilutive effect of share-based payment awards as a result of no longer assuming that tax benefits are used to purchase our common stock under the treasury method. The amendments also provide an alternative to estimating stock award forfeitures and instead recording at the time of forfeiture. This update is effective for public business entities during fiscal years beginning after December 15, 2016 with early adoption permitted. We adopted ASU 2016-09 during 2016, and it did not have a material impact on our financial statements.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; text-align: left; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3.</font></td><td style="text-align: left; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">CASH, CASH EQUIVALENTS, SHORT-TERM INVESTMENTS AND LONG-TERM INVESTMENTS</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cash, cash equivalents, short-term investments and long-term investments (at amortized cost plus accrued interest) consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Increase</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2015</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(Decrease)</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1003px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font
style="font-family: 'times new roman', times,
serif; font-size: 10pt;">Cash and cash equivalents</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,150,344</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,573,328</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3,577,016</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Short-term investments</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,474,013</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,470,574</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,003,439</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Subtotal</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent:
0px; font-family: 'times new roman', times, serif;"><font style="font-family:
'times new roman', times, serif; font-size: 10pt;">10,624,357</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6,043,902</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,580,455</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Long-term investments</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">489,648</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(489,648</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 4pt 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Total</font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">10,624,357</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font
style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td
style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6,533,550</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,090,807</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">Held to maturity securities (certificates of deposit) are carried at amortized cost. The cost of securities sold is determined based on the specific identification method. Realized gains and losses, and declines in value judged to be other than temporary, are included in investment income. As of December 31, 2016 and 2015, the fair value of held to maturity securities consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left; font-family: 'times new roman', times, serif;">Amortized cost</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">5,450,000</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">4,951,000</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Accrued interest</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td
style="text-align: right; font-family: 'times new roman', times, serif;">24,013</td><td style="text-align: left; font-family: 'times new
roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">9,222</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Gross unrealized gains</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">2,073</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">25</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">Gross unrealized losses</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(59</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(6,277</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Estimated fair value</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,476,027</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,953,970</td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 35.95pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>4.</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>INVENTORY</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventory consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2015</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Increase</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1003px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Raw materials</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td
style="padding: 0px; width: 142px;
text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">318,443</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">284,331</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">34,112</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Work-in-process</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">968,810</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">452,024</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">516,786</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Finished goods</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">839,646</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">133,852</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times,
serif;"><font style="font-family: 'times new roman', times, serif;
font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">705,794</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Total</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,126,899</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">870,207</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,256,692</font></td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">ACCOUNTS RECEIVABLE</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 1in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Accounts receivable consisted of the following:</font></p><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 53pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">As of December 31,</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;" colspan="2">Increase</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">(Decrease)</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1003px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Trade accounts receivable, gross</td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">1,013,716</td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">736,195</td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">277,521</td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align:
bottom; background-color: white;"><td
style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Allowance for bad debt and product returns</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(21,326</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(18,092</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(3,234</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Trade accounts receivable, net</td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">992,390</td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">718,103</td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">274,287</td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>6.</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>PREPAID EXPENSES AND OTHER CURRENT ASSETS</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Prepaid expenses and other current assets consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(Decrease)</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2015</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Increase</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1003px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Prepaid expenses</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman',
times, serif;"><font
style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">126,523</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">183,217</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(<font style="font-family: 'times new roman', times, serif; font-size: 10pt;">56,694</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Other receivables</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">144,848</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">26,958</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">117,890</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Security deposits<sup>(1)</sup></font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">333,111</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt;
border-bottom-style: solid;"><font style="font-family: 'times
new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">37,301</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">295,810</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 4pt 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Total</font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">604,482</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">247,476</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">357,006</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.3in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"><sup>(1)</sup></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">This balance as of December 31, 2016 included an option payment of $20,500 towards land (which we did not exercise) that was subsequently applied to the purchase of a warehouse facility during the first quarter of 2017.</font></td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">7.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">PROPERTY, PLANT AND EQUIPMENT</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 44pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">Property, plant and equipment consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt 10pt; text-align: center; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Estimated Useful Lives</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(in years)</b></font></p></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></p></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Increase</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt 10pt; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2016</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font
style="font-family: 'times new
roman', times, serif; font-size: 10pt;">2015</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(Decrease)</b></font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; width: 801.67px; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Laboratory and manufacturing equipment</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 173px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5-10</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,562,938</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3,766,556</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,796,382</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 10pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Building and improvements</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">10-33</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,037,512</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,716,204</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font
style="font-family: 'times new roman', times, serif; font-size:
10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">321,308</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Office furniture and equipment</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5-10</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">653,462</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">568,188</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">85,274</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 10pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Construction in progress<sup>(1)</sup></font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3,694,509</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,084,924</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,609,585</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 1.5pt 10pt; text-indent: -10pt; font-family: 'times new roman', times,
serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Land</font></td><td
style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">347,114</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">333,486</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">13,628</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 20pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property, plant and equipment, gross</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">15,295,535</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">10,469,358</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,826,177</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding:
0px 0px 1.5pt 10pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times
new roman', times, serif; font-size: 10pt;">Accumulated depreciation</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(5,449,242</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(4,750,544</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(698,698</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 4pt 20pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property, plant and equipment, net</font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">9,846,293</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,718,814</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px;
padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family:
'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,127,479</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal;"> </font></p><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.3in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"><sup>(1)</sup></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">As of December 31, 2016, construction in progress consisted principally of initial costs incurred in connection with the building and equipping of our Nisin production plant for </font><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Mast Out<sup>®</sup><font style="font-weight: normal;">. As of December 31, 2015, construction in progress consisted principally of partial payments towards new manufacturing equipment related to expanding our production capacity for </font>First Defense<sup>®</sup><font style="font-weight: normal;">.</font></font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>8.</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>BUSINESS ACQUISITION</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On January 4, 2016, we acquired certain business assets and processes from DAY 1™ Technology, LLC of Minnesota. The acquired rights and know-how are primarily related to formulating our bovine antibodies into a gel solution for an oral delivery option to newborn calves via a syringe (or tube). This product format offers customers an alternative delivery option to the bolus (the standard delivery format of the bivalent <b>First Defense<sup>® </sup></b>product since first approval by the U.S. Department of Agriculture (USDA) and product launch in 1991) and could allow more market penetration. The formulation was developed for us and has been sold as a feed product without disease claims since 2012. This purchase also includes certain other related private-label products. The total purchase price was approximately $532,000. Approximately $368,000 of this amount was paid as of the closing date. A technology transfer payment of $97,000 was made during the third quarter of 2016. There are also royalty payments owed based on a percentage of sales made through December 31, 2018. There is no limit to the royalty amount. As of January 4, 2016, we estimated the aggregate royalties to be paid would be approximately $67,000, which was recorded in accounts payable and accrued expenses on the accompanying balance sheet. As of December 31, 2016, this amount was estimated to be approximately $30,000. We made payments of $8,200 for the year ended December 31, 2016. The estimated fair values of the assets purchased in this transaction included inventory of $113,000, machinery and equipment of $132,000, a developed technology intangible of $191,000 (which includes an immaterial amount of value associated with customer relationships and a non-compete agreement, and was valued using the relief from royalty method) and goodwill of $96,000. The intangible assets and goodwill are deductible for tax return purposes. The goodwill arising from the acquisition consists largely of the estimated value of anticipated growth opportunities arising from synergies and efficiencies. The measurement period for the transaction was closed as of June 30, 2016, and we continue to assess any impairment of these assets acquired in accordance with our policies. The impact of the acquisition on our pro forma prior year operations is not material. As of December 31, 2016, we vacated the rented facility in Minnesota that had been used to produce the gel solution format of our product and certain other related private-label products. This resulted in the termination of employment of four employees, as these production functions were consolidated into our Portland facility, which enables us to better utilize existing infrastructure and larger scale equipment to improve operating efficiencies.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; text-align: justify; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>9.</b></font></td><td style="text-align: justify; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>INTANGIBLE ASSETS</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The intangible assets described in Note 8 are being amortized to cost of goods sold over their useful lives, which are estimated to be 10 years. Intangible amortization expense was $19,104 during the year ended December 31, 2016. The net value of these intangibles was $171,936 as of December 31, 2016. A summary of intangible amortization expense estimated for the five years beginning January 1, 2017 and thereafter is as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><b>Period</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Amount</b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1379px; font-family: 'times new roman', times, serif;">Year ending December 31, 2017</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">19,104</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font-family: 'times new roman', times, serif;">Year ending December 31, 2018</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">19,104</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Year ending December 31, 2019</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">19,104</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font-family: 'times new roman', times, serif;">Year ending December 31, 2020</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">19,104</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Year ending December 31, 2021</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">19,104</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">After December 31, 2021</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">76,416</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new
roman', times, serif; vertical-align: bottom; background-color:
#cceeff;"><td style="padding-bottom: 4pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Total</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">171,936</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Intangible assets as of December 31, 2016 consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="12">As of December 31, 2016</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Gross Carrying Value</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Accumulated Amortization</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Net Book</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Value</b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left; font-family: 'times new roman', times, serif;">Developed technology</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">184,100</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">(18,410</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">165,690</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Customer relationships</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">1,300</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(130</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times,
serif;">1,170</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family:
'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">Non-compete agreements</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">5,640</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(564</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">5,076</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Total</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">191,040</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(19,104</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">171,936</td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; font-size-adjust: none; font-stretch: normal;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">10.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">ACCOUNTS PAYABLE AND ACCRUED EXPENSES</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Accounts payable and accrued expenses consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; font-stretch: normal;"> </p><br class="apple-interchange-newline" /><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="8"><b>As of December 31,</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Increase</b></font></p></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>2016</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>2015</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>(Decrease)</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left; font-family: 'times new roman', times, serif;">Accounts payable – capital</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">1,249,862</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">1,510</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">1,248,352</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Accounts payable – trade</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">257,397</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">199,105</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">58,292</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Accrued payroll</td><td style="font-family: 'times new roman', times,
serif;"> </td><td style="text-align: left; font-family:
'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">200,477</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">242,690</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(42,213</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Accrued clinical studies</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">68,428</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(68,428</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Accrued professional fees</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">82,500</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">56,450</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">26,050</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">Accrued other</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">101,527</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">93,982</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">7,545</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; padding-left: 10pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">Total</td><td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">$</td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">1,891,763</td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform:
none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1;
-webkit-text-stroke-width: 0px;"> </td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">$</td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">662,165</td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">$</td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">1,229,598</td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="padding: 0px; width: 0.5in; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>11</b></font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b></b></font><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; font-stretch: normal;">BANK DEBT</p><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b></b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the first quarter of 2016, we entered into bank debt agreements covering certain additional credit facilities with TD Bank N.A. aggregating up to approximately $4.5 million. As a result of loan amendments entered into with TD Bank N.A. on March 1, 2017, these credit facilities now aggregate up to approximately $6.5 million, subject to certain restrictions as defined in the agreements. The first instrument is comprised of a construction loan of up to $2.5 million and not to exceed 80% of the cost of equipment installed in the to-be-constructed commercial-scale Nisin production facility for <b>Mast Out<sup>®</sup></b>. Effective March 1, 2017, this loan amount was increased by $1.44 million to $3.94 million. As amended, interest only will be payable at a variable rate equal to the one-month LIBOR plus a margin of 2.25% through July 2018, at which time the loan converts to a seven-year term loan facility at the same variable interest rate with monthly principal and interest payments due based on a seven-year amortization schedule. The second instrument is comprised of a construction loan of up to $2.0 million and not to exceed 80% (75% prior to the March 1, 2017 amendment) of the appraised value of the to-be-constructed commercial-scale Nisin production facility in Portland, Maine. Effective March 1, 2017, this loan amount was increased by $560,000 to $2.56 million. As amended, interest only will be payable at a variable rate equal to the one-month LIBOR plus a margin of 2.25% through January 2018, at which time the loan converts to a nine-year term loan facility at the same variable interest rate with monthly principal and interest payments due based on a twenty-year amortization schedule with a balloon principal payment of approximately $1.654 million due in January 2027. These credit facilities are secured by substantially all of our assets and are subject to certain financial covenants. There were no amounts outstanding under these facilities as of December 31, 2016.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Additionally, we have in place certain credit facilities with TD Bank N.A. not to exceed 80% of the appraised value of our corporate headquarters and production and research facility in Portland, which are secured by substantially all of our assets and are subject to certain financial covenants. Proceeds from the $1.0 million mortgage note were received during the third quarter of 2010. Based on a 15-year amortization schedule, a balloon principal payment of $451,885 will be due during the third quarter of 2020. Proceeds from the $2.5 million mortgage note were received during the third quarter of 2015. Based on a 20-year amortization schedule, a balloon principal payment of approximately $1.55 million will be due during the third quarter of 2025. Principal payments (net of debt issuance costs) due under debt outstanding as of December 31, 2016 (which does not include the debt proceeds not yet drawn under the credit facilities entered into during the first quarter of 2016 and subsequently amended during the first quarter of 2017, as discussed above) are reflected in the following table by the year that payments are due:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: left; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">Period</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">$1,000,000 Mortgage Note</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td
style="padding-bottom: 1.5pt;
font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">$2,500,000 Mortgage Note</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Debt Issuance Costs</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 815px; text-align: justify; font-family: 'times new roman', times, serif;">Year ending December 31, 2017</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">61,056</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">82,308</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">(10,095</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">133,269</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: justify; font-family: 'times new roman', times, serif;">Year ending December 31, 2018</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">64,876</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">86,097</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(10,095</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">140,878</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: justify; font-family: 'times new roman', times, serif;">Year ending December 31, 2019</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">68,908</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">89,997</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(10,095</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">148,810</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: justify; font-family: 'times new roman', times, serif;">Year ending December 31, 2020</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">493,696</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new
roman', times, serif;">94,005</td><td style="text-align: left; font-family: 'times new roman', times,
serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(9,462</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">578,239</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: justify; font-family: 'times new roman', times, serif;">Year ending December 31, 2021</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">98,538</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(8,448</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">90,090</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: justify; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">After December 31, 2021</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,951,228</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(30,440</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,920,788</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt; padding-left: 20pt; font-family: 'times new roman', times, serif;">Total</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">688,536</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">2,402,173</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(78,635</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color:
black; border-bottom-width: 4pt; border-bottom-style: double;">3,012,074</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times,
serif;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We hedged our interest rate exposure on these mortgage notes with interest rate swap agreements that effectively converted floating interest rates based on the one-month LIBOR plus a margin of 3.25% and 2.25% to the fixed rates of 6.04% and 4.38%, respectively. As of December 31, 2016, the variable rates on these two mortgage notes were 3.93% and 2.99%, respectively. All derivatives are recognized on the balance sheet at their fair value. At the time of the closings and thereafter, the agreements were determined to be highly effective in hedging the variability of the identified cash flows and have been designated as cash flow hedges of the variability in the hedged interest payments. Changes in the fair value of the interest rate swap agreements are recorded in other comprehensive income (loss), net of taxes. The original notional amounts of the interest rate swap agreements of $1,000,000 and $2,500,000 amortize in accordance with the amortization of the mortgage notes. The notional amount of the interest rate swaps was $3,090,709 as of December 31, 2016. The fair values of the interest rate swaps have been determined using observable market-based inputs or unobservable inputs that are corroborated by market data. Accordingly, the interest rate swaps are classified as level 2 within the fair value hierarchy provided in Codification Topic 820, <i>Fair Value Measurements and Disclosures</i>.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"> </p></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="8"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year Ended<br />December 31,</b></font></p></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left; font-family: 'times new roman', times, serif;">Payments required by interest rate swaps</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">58,346</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">32,515</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Other comprehensive income (loss) net of taxes</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">26,354</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">(26,925</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing:
normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p
style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In connection with the credit facilities entered into during the third quarters of 2010 and 2015 and the first quarter of 2016, we incurred debt issue costs of $26,489, $34,125 and $46,734, respectively, which costs are being recorded as a component of other expenses over the terms of the credit facilities.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Proceeds from a $600,000 note bearing interest at 4.25% were received during the first quarter of 2011. This note was repaid during the third quarter of 2015.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The $500,000 line of credit with TD Bank N.A. was first entered into during the third quarter of 2010 and has been renewed approximately annually since then and is available as needed and has been extended through August 29, 2017. The line of credit, which is subject to certain financial covenants, was unused as of December 31, 2016 and 2015. Interest on any borrowings against the line of credit would be variable at the higher of 4.25% per annum or the one-month LIBOR plus 3.5% per annum.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">12.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">STOCKHOLDERS’ EQUITY</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On October 28, 2015, we filed a registration statement on Form S-3 with the SEC for the potential issuance of up to $10,000,000 in equity (subject to certain limitations). This registration statement became effective on November 10, 2015. Under this form of registration statement, we were limited to raising gross proceeds of no more than one-third of the market capitalization of our common stock (as determined by the high price within the preceding 60 days leading up to a sale of securities) held by non-affiliates (non-insiders) of the Company within a twelve-month period. This limit was approximately $5,958,000, based on the closing price of $8.08 per share as of January 6, 2016. On February 3, 2016, we sold 1,123,810 shares of common stock at a price to the public of $5.25 per share in an underwritten public offering, raising gross proceeds of approximately $5,900,000, resulting in net proceeds to the Company of approximately $5,313,000 after deducting underwriting discounts and offering expenses incurred in connection with the equity financing. On October 21, 2016, we closed on a private placement of 659,880 shares of common stock to nineteen institutional and accredited investors at $5.25 per share, raising gross proceeds of approximately $3,464,000 resulting in net proceeds to the Company of approximately $3,161,000 after deducting placement agent fees and other estimated expenses incurred in connection with the equity financing.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">At the June 15, 2016 Annual Meeting of Stockholders, our stockholders voted to approve an amendment to the Company’s Certificate of Incorporation to increase the number of shares of common stock authorized for issuance from 8,000,000 to 10,000,000.</font></p><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In June 2000, our stockholders approved the 2000 Stock Option and Incentive Plan (the “2000 Plan”) pursuant to the provisions of the Internal Revenue Code of 1986, under which employees and certain service providers may be granted options to purchase shares of the Company’s common stock at i) no less than fair market value on the date of grant in the case of incentive stock options and ii) no less than 85% of fair market value on the date of grant in the case of non-qualified stock options. Vesting requirements are determined by the Compensation and Stock Option Committee of the Board of Directors on a case by case basis. Originally, 250,000 shares of common stock were reserved for issuance under the 2000 Plan. The stockholders of the Company approved an increase in this number to 500,000 shares in June 2001. All options granted under the 2000 Plan expire no later than ten years from the date of grant. The 2000 Plan expired in February 2010, after which date no further options could be granted under the 2000 Plan. However, outstanding options under the 2000 Plan may be exercised in accordance with their terms.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In June 2010, our stockholders approved the 2010 Stock Option and Incentive Plan (the “2010 Plan”) pursuant to the provisions of the Internal Revenue Code of 1986, under which employees and certain service providers may be granted options to purchase shares of the Company’s common stock at i) no less than fair market value on the date of grant in the case of incentive stock options and ii) no less than 85% of fair market value on the
date of grant in
the case of non-qualified stock options. At that time, 300,000 shares of common stock were reserved for issuance under the 2010 Plan and subsequently no additional shares have been reserved for the 2010 Plan. Vesting requirements are determined by the Compensation and Stock Option Committee of the Board of Directors on a case by case basis. All options granted under the 2010 Plan expire no later than ten years from the date of grant.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Activity under the stock option plans described above was as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>2000 Plan</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>2010 Plan</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>Weighted <br />Average <br />Exercise <br />Price</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Aggregate</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Intrinsic</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Value<sup>(1)</sup></b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 815px; font-family: 'times new roman', times, serif;">Outstanding at December 31, 2014</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">157,500</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">95,500</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">3.42</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">364,000</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-left: 10pt; font-family: 'times new roman', times, serif;">Grants</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">16,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman',
times, serif;"> </td><td style="text-align: left; font-family: 'times
new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">7.40</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-left: 10pt; font-family: 'times new roman', times, serif;">Terminations</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(3,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">4.95</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Exercises</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(26,000</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(2,000</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">4.29</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Outstanding at December 31, 2015</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">131,500</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">106,500</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">3.57</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">945,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-left: 10pt; font-family: 'times new roman', times, serif;">Grants</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">46,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">6.98</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family:
'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align:
right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-left: 10pt; font-family: 'times new roman', times, serif;">Terminations</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(5,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(12,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">6.16</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Exercises</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(16,000</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">5.59</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Outstanding at December 31, 2016</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">126,500</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">124,500</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new
roman', times, serif;">3.89</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times,
serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">517,000</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Exercisable at December 31, 2016</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">126,500</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">26,500</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">2.52</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">524,000</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Reserved for future grants</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">155,500</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 53pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.3in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"><sup>(1)</sup></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">Intrinsic value is the difference between the fair market value as of the date indicated and as of the date of the option grant.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>Number of Shares</b></td><td style="padding-bottom: 1.5pt;
font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black;
border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>Weighted Average Fair Value at Grant Date</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1177.67px; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Non-vested stock options as of January 1, 2016</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">65,000</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">5.35</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Non-vested stock options as of December 31, 2016</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">98,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">6.03</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Stock options granted during the year ended December 31, 2016</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">46,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">6.98</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Stock options that vested during the year ended December 31, 2016</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">1,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">4.15</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Stock options that were forfeited during the year ended December 31, 2016</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">17,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">6.16</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">During the year ended December 31, 2016, one employee and one director exercised stock options covering the aggregate of 16,000 shares of which 6,000 were exercised for cash, resulting in total proceeds of $31,900, and 10,000 of these options were exercised by the surrender of 7,334 shares of common stock with a fair market value of $57,425 at the time of exercise and $75 in cash. During the year ended December 31, 2015, eleven employees exercised stock options covering the aggregate of 28,000 shares. These options were exercised for cash, resulting in total proceeds of $120,210. At December 31, 2016, 251,000 shares of common stock were reserved for future issuance under all outstanding stock options described above, and an additional 155,500 shares of common stock were reserved for the potential issuance of stock option grants in the future under the 2010
Plan.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new
roman', times, serif; font-size: 10pt; font-weight: normal;">  </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">The weighted average remaining life of the options outstanding under the 2000 Plan and the 2010 Plan as of December 31, 2016 was approximately 4 years and 4 months. The weighted average remaining life of the options exercisable under these plans as of December 31, 2016 was approximately 2 years and 4 months. The exercise prices of the options outstanding as of December 31, 2016 ranged from $1.70 to $8.21 per share. The 46,000 stock options granted during 2016 had exercise prices between $6.27 and $8.21 per share. The 16,000 stock options granted during 2015 had exercise prices between $6.05 and $7.54 per share. The aggregate intrinsic value of options exercised during 2016 and 2015 approximated $32,000 and $110,000, respectively. The weighted-average grant date fair values of options granted during 2016 and 2015 were $4.16 and $3.46 per share, respectively. As of December 31, 2016, total unrecognized stock-based compensation related to non-vested stock options aggregated $204,360, which will be recognized over a weighted average period of two years and eleven months. The fair value of each stock option grant has been estimated on the date of grant using the Black-Scholes option pricing model, for the purpose discussed in Note 2(n), with the following weighted-average assumptions for the years ended December 31, 2016 and 2015:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left; font-family: 'times new roman', times, serif;">Risk-free interest rate</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">1.2</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">%</td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">2.0</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">%</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Dividend yield</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">0</td><td style="text-align: left; font-family: 'times new roman', times, serif;">%</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">0</td><td style="text-align: left; font-family: 'times new roman', times, serif;">%</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Expected volatility</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">63</td><td style="text-align: left; font-family: 'times new roman', times, serif;">%</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">47</td><td style="text-align: left; font-family: 'times new roman', times, serif;">%</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Expected life</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times,
serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6.5 years</font></td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center;
font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6 years</font></td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The risk-free interest rate is based on U.S. Treasury yields for a maturity approximating the expected option term, while the other assumptions are derived from averages of our historical data.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">Common Stock Rights Plan</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In September 1995, our Board of Directors adopted a Common Stock Rights Plan (the “Rights Plan”) and declared a dividend of one common share purchase right (a “Right”) for each of the then outstanding shares of the common stock of the Company. Each Right entitles the registered holder to purchase from the Company one share of common stock at an initial purchase price of $70.00 per share, subject to adjustment. The description and terms of the Rights are set forth in a Rights Agreement between the Company and American Stock Transfer & Trust Co., as Rights </font>Agent.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Rights (as amended) become exercisable and transferable apart from the common stock upon the earlier of i) 10 days following a public announcement that a person or group (Acquiring Person) has, without the prior consent of the Continuing Directors (as such term is defined in the Rights Agreement), acquired beneficial ownership of 20% or more of the outstanding common stock or ii) 10 days following commencement of a tender offer or exchange offer the consummation of which would result in ownership by a person or group of 20% or more of the outstanding common stock (the earlier of such dates being called the Distribution Date).</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Upon the Distribution Date, the holder of each Right not owned by the Acquiring Person would be entitled to purchase common stock at a discount to the initial purchase price of $70.00 per share, effectively equal to one half of the market price of a share of common stock on the date the Acquiring Person becomes an Acquiring Person. If, after the Distribution Date, the Company should consolidate or merge with any other entity and the Company were not the surviving company, or, if the Company were the surviving company, all or part of the Company’s common stock were changed or exchanged into the securities of any other entity, or if more than 50% of the Company’s assets or earning power were sold, each Right would entitle its holder to purchase, at the Rights’ then-current purchase price, a number of shares of the acquiring company’s common stock having a market value at that time equal to twice the Right’s exercise price.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal
'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">At any time after a person or group becomes an Acquiring Person and prior to the
acquisition by such person or group of 50% or more of the outstanding common stock, the Board of Directors of the Company may exchange the Rights (other than Rights owned by such person or group which have become void), in whole or in part, at an exchange ratio of one share of common stock per Right (subject to adjustment). At any time prior to 14 days following the date that any person or group becomes an Acquiring Person (subject to extension by the Board of Directors), the Board of Directors of the Company may redeem the then outstanding Rights in whole, but not in part, at a price of $0.005 per Right, subject to adjustment.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On June 8, 2005, our Board of Directors voted to authorize an amendment of the Rights Agreement to extend the Final Expiration Date by an additional three years, to September 19, 2008. As of June 30, 2005, we entered into an amendment to the Rights Agreement with the Rights Agent reflecting such extension. On June 6, 2008 our Board of Directors voted to authorize an amendment of the Rights Agreement to extend the Final Expiration Date by an additional three years, to September 19, 2011 and to increase the ownership threshold for determining “Acquiring Person” status from 15% to 18%. As of June 30, 2008, we entered into an amendment to the Rights Agreement with the Rights Agent reflecting such extension and threshold increase. On August 5, 2011, our Board of Directors voted to authorize amendments of the Rights Agreement to extend the Final Expiration Date by an additional three years to September 19, 2014 and to increase the ownership threshold for determining “Acquiring Person” status from 18% to 20%. As of August 9, 2011, we entered into an amendment to the Rights Agreement with the Rights Agent reflecting such extension and threshold increase. On June 10, 2014, our Board of Directors voted to authorize an amendment to the Rights Agreement to extend the final expiration date by an additional three years to September 19, 2017. As of June 16, 2014, we entered into an amendment to the Rights Agreement with the Rights Agent reflecting such extension. No other changes have been made to the terms of the Rights or the Rights Agreement.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the second quarter of 2015, we amended our Common Stock Rights Plan by removing a provision that prevented a new group of directors elected following the emergence of an Acquiring Person (an owner of more than 20% of our stock) from controlling the Rights Plan by maintaining exclusive authority over the Rights Plan with pre-existing directors. We did this because such provisions have come to be viewed with disfavor by Delaware courts.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">13.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">OTHER EXPENSES, NET</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Other expenses, net, consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Year Ended<br />December 31,</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1191px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Interest expense</td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">161,697</td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">83,578</td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Interest income</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(54,662</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(19,169</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Other losses (gains)</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left;
text-indent: 0px; padding-top: 0px; padding-right: 0px;
padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">24,847</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(5,635</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Other expenses, net</td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">131,882</td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">58,774</td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"></td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">14.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">INCOME TAXES</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Our income tax expense aggregated $249,874 and $850,309 during the years ended December 31, 2016 and 2015, respectively. In 2015, we utilized $1,625,653 of net operating loss carryforwards to offset otherwise taxable income. As of December 31, 2015, we had federal net operating loss carryforwards of $125,797 (that expire in 2031, (if not utilized before then) of which approximately $98,000 is expected to be utilized against taxable income during 2016. As of December 31, 2016, we have federal general business tax credit carryforwards of approximately $292,000 that expire in 2027 through 2034 (if not utilized before then) and state tax credit carryforwards of approximately $152,000 that expire in 2023 through 2036 (if not utilized before then). The $965,000 licensing payment that we made during the fourth quarter of 2004 was treated as an intangible asset and is being amortized over 15 years, for tax return purposes only. Approximately $1,112,000 of our investment in a small-scale facility to produce the Drug Substance (our Active Pharmaceutical Ingredient, Nisin) for <b>Mast Out<sup>®</sup> </b>was expensed as incurred for our books. Included in this amount is approximately $820,000 that was capitalized and is being depreciated over statutory periods for tax return purposes only.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the estimated future tax effects of temporary differences between book and tax treatment of assets and liabilities and carryforwards to the extent they are realizable. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. While we consider future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance, in the event we were to determine that we would be able to realize our deferred tax assets in the future in excess of the net recorded amount, a reduction of the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax asset in the future, a reduction to the deferred tax asset would be charged to income in the period such determination was made.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net operating loss carryforwards, credits, and other tax attributes are subject to review and possible adjustment by the Internal Revenue Service. Section 382 of the Internal Revenue Code contains provisions that could place annual limitations on the future utilization of net operating loss carryforwards and credits in the event of a change in ownership of the Company, as defined.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company files income tax returns in the U.S. federal jurisdiction and several state jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years before 2013. We currently have no tax examinations in progress. We also have not paid additional taxes, interest or penalties as a result of tax examinations nor do we have any unrecognized tax benefits for any of the periods in the accompanying financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal;
word-spacing: 0px;
white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The income tax provision consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="7">Year Ended December 31,</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Federal</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="width: 1191px; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">State</td><td style="width: 16px; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">13,585</td><td style="width: 16px; text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3,150</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Current</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">13,585</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">3,150</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align:
bottom; background-color: #cceeff;"><td style="font-family: 'times new roman',
times, serif;">Federal</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">252,659</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">641,733</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">State</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(16,370</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">205,426</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">Deferred</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">236,289</font></td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">847,159</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Total</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">249,874</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">850,309</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The actual income tax expense differs from the expected tax computed by applying the U.S. federal corporate tax rate of 34% to income before income tax as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><font style="font-family: 'times new roman', serif; font-size: 10pt;"><b>Year Ended December 31,</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times,
serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px;
text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font: 10pt/normal 'times new roman', serif; font-stretch: normal;"><b>2016</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font: 10pt/normal 'times new roman', serif; font-stretch: normal;"><b>2015</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', serif; font-size: 10pt;"><b>$</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', serif; font-size: 10pt;"><b>%</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', serif; font-size: 10pt;"><b>$</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', serif; font-size: 10pt;"><b>%</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 815px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Computed expected tax expense/rate</td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">257,829</td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">34.00</td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">%</td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">701,607</td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">34.00</td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">%</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">State income taxes, net of federal expense</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">38,855</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">5.12</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px;
text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman',
times, serif;">44,754</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">2.17</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Share-based compensation</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">13,362</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">1.76</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(7,524</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(0.36</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Tax credits</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(70,967</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(9.36</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(54,719</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(2.65</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', serif; font-size: 10pt;">State income tax rate change, net of federal<sup>(1)</sup></font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">-</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">-</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">109,112</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px;
font-family: 'times new roman', times, serif;">5.29</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align:
bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;">Other</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">10,795</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1.43</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">57,079</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2.76</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Total income tax expense/rate</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">249,874</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">32.95</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">%</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">850,309</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">41.21</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">%</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.3in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(1)</sup></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">This impact is due to the actual state tax rate in 2015 being lower than the expected state tax rate used in computing prior deferred taxes.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif;
font-size: 10pt;"> </font><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px;
white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The significant components of our deferred tax asset consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; word-spacing: 0px; border-collapse: collapse; widows: 1; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font: bold 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-stretch: normal;"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 1.8pt; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-stretch: normal;" colspan="6"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-stretch: normal;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-stretch: normal;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2015</b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1191px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Product rights</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 16px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">68,197</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 15px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">91,344</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch:
normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property, plant and equipment</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size:
10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(307,976</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(26,717</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Federal and state tax credits</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">292,516</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">339,585</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Federal net operating loss carryforward</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">8,856</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">39,241</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">State tax credits carryover</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left;
text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size:
10pt;">100,528</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Interest rate swap</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">13,437</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">28,253</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Prepaid expenses and other</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(6,240</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(19,589</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">UNICAP</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style:
solid; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">31,685</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td
style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 4pt 10pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Deferred tax asset</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 4pt; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">201,003</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 4pt; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">452,117</font></td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">15.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">CONTINGENT LIABILITIES AND COMMITMENTS</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Our bylaws, as amended, in effect provide that the Company will indemnify its officers and directors to the maximum extent permitted by Delaware law. In addition, we make similar indemnity undertakings to each director through a separate indemnification agreement with that director. The maximum payment that we may be required to make under such provisions is theoretically unlimited and is impossible to determine. We maintain directors’ and officers’ liability insurance, which may provide reimbursement to the Company for payments made to, or on behalf of, officers and directors pursuant to the indemnification provisions. Our indemnification obligations were grandfathered under the provisions of Codification Topic 460<i>, Guarantees</i>. Accordingly, we have recorded no liability for such obligations as of December 31, 2016. Since our incorporation, we have had no occasion to make any indemnification payment to any of our officers or directors for any reason.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The development, manufacturing and marketing of animal health care products entails an inherent risk that liability claims will be asserted against us during the normal course of business. We are aware of no such claims against us as of the date of this filing. We feel that we have reasonable levels of liability insurance to support our operations.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We enter into agreements with third parties in the ordinary course of business under which we are obligated to indemnify such third parties from and against various risks and losses. The precise terms of such indemnities vary with the nature of the agreement. In many cases, we limit the maximum amount of our indemnification obligations, but in some cases those obligations may be theoretically unlimited. We have not incurred material expenses in discharging any of these indemnification obligations, and based on our analysis of the nature of the risks involved, we believe that the fair value of the liabilities potentially arising under these agreements is minimal. Accordingly, we have recorded no liabilities for such obligations as of December 31, 2016.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We are committed to purchasing certain key parts (syringes) and services (formulation, filling and packaging of Drug Product) pertaining to <b>Mast Out<sup>®</sup></b> exclusively from two contractors. If we do not commercialize the product by the end of 2019, we would be liable for a $100,000 termination fee under one of such agreements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the second quarter of 2009, we entered into an exclusive license with the Baylor College of Medicine covering the underlying rotavirus vaccine technology used to generate the specific antibodies for our product line extension that is under
development. This
perpetual license (if not terminated for cause) is subject to a milestone payment of $150,000 upon regulatory approval and a royalty equal to 4% of sales above current sales of our bivalent product plus a growth assumption.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the third quarter of 2016, we initiated construction of our Nisin production facility for <b>Mast Out</b><sup><sup>®</sup></sup>. The estimated total cost of the Nisin facility is $20,000,000. As of December 31, 2016, we had incurred approximately $3,280,000 of capital expenditures related to this project, of which $2,080,000 had been paid as of year-end. The majority of this investment is expected to be paid during the nine-month period ending September 30, 2017. As of December 31, 2016, we had committed $12,320,000 of the remaining $17,920,000 expected to be paid on this project. Approximately $8,865,000 of these capital expenditures is committed under a guaranteed maximum price contract with our construction management firm, net of payments made. This contract includes provisions that could reduce the amount of the commitment generally by the amount not expended or committed by the construction manager at the time of an unexpected and unlikely early termination. We expect to fund the remaining costs in excess of our current cash and investments with cash to be generated from operations during 2017 and borrowings under the credit facilities described in Note 11. Additionally, as of December 31, 2016, we had committed $617,000 to the production of inventory and $100,000 to other obligations.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">16.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">SEGMENT INFORMATION</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We principally operate in the business segment described in Note 1. Pursuant to Codification Topic 280, <i>Segment Reporting</i>, we operate in one reportable business segment, that being the development, acquisition, manufacture and sale of products that improve the health and productivity of cows for the dairy and beef industries. Almost all of our internally funded product development expenses are in support of such products. The significant accounting policies of this segment are described in Note 2. Our single operating segment is defined as the component of our business for which financial information is available and evaluated regularly by our chief operating decision-maker in deciding how to allocate resources and in assessing performance. Our chief operating decision-maker is our President and CEO.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Sales of the <b>First Defense<sup>®</sup></b> product line aggregated 93% of our total product sales during the years ended December 31, 2016 and 2015. Our primary customers for the majority of our product sales (85% and 83% for the years ended December 31, 2016, and 2015 respectively) are in the U.S. dairy and beef industries. Product sales to international customers, who are also in the dairy and beef industries, aggregated 13% and 14% of our total product sales for the years ended December 31, 2016 and 2015, respectively.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">17.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">RELATED PARTY TRANSACTIONS</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Dr. David S. Tomsche (Chair of our Board of Directors) is a controlling owner of Leedstone Inc. (formerly Stearns Veterinary Outlet, Inc.), a domestic distributor of ImmuCell products (<b>First Defense<sup>®</sup></b>, <b>Wipe Out<sup>®</sup> Dairy Wipes</b>, and <b>CMT</b>) and of J-t Enterprises of Melrose, Inc., an exporter. His affiliated companies purchased $551,020 and $573,165 of products from ImmuCell during the years ended December 31, 2016 and 2015, respectively, on terms consistent with those offered to other distributors of similar status. We made marketing-related payments of $5,286 and $3,222 to these affiliate companies during the years ended December 31, 2016 and 2015, respectively, that were expensed as incurred. Our accounts receivable (subject to standard and customary payment terms) due from these affiliated companies aggregated $3,221 and $36,528 as of December 31, 2016 and 2015, respectively.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">18.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">EMPLOYEE BENEFITS</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We have a 401(k) savings plan (the Plan) in which all employees completing one month of service with the Company are eligible to participate. Participants may contribute up to the maximum amount allowed by the Internal Revenue Service. Since August 2012, we have matched 100% of the first 3% of each employee’s salary that is contributed to the Plan and 50% of the next 2% of each employee’s salary that is contributed to the Plan. Under this matching plan, we paid $74,507 and $73,514 into the plan for the years ended December 31, 2016 and 2015, respectively.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">19.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">UNAUDITED QUARTERLY FINANCIAL DATA</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The following tables present the quarterly information for the years ended December 31, 2016 and 2015, respectively:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Three Months Ended</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>March 31</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>June 30</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>September 30</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman',
times, serif; font-weight:
bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Fiscal 2016:</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 815px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Product sales</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,986,359</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,375,662</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,968,122</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,213,818</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Gross margin</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left;
text-indent: 0px; font-family: 'times new roman', times, serif;"><font
style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,757,560</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,239,861</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,204,627</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,218,647</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Product development expenses</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">302,443</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">380,434</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">307,721</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">253,737</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net operating income</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times,
serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;
font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">698,964</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">21,465</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">50,467</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">119,309</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net income (loss)</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">452,448</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(9,155</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">34,870</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">30,285</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net income (loss) per common share:</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new
roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px;
text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;">Basic</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.12</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(<font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.00</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.01</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.01</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;">Diluted</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent:
0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align:
right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.11</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(<font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.00</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.01</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.01</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;">Fiscal 2015:</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td
style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td
style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Product sales</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3,101,491</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,960,363</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,472,428</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,694,407</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Gross margin</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,850,925</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,130,574</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman',
times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td
style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,611,902</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,657,502</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Product development expenses</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">330,665</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">271,759</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">301,746</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">331,139</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net operating income</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">820,052</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">213,983</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family:
'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times,
serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">626,850</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">461,437</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net income  </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">479,082</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">94,058</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">351,292</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">288,807</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net income per common share:</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td
style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new
roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;">Basic</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.16</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.03</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.12</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.09</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;">Diluted</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.15</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.03</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td
style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif;
font-size: 10pt;">0.11</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.09</font></td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">20.</font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">SUBSEQUENT EVENTS</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We have evaluated subsequent events through the time of filing on March 30, 2017, the date we have issued this Annual Report on Form 10-K. As of such date, except as described below, there were no material, reportable subsequent events.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the first quarter of 2017, we acquired a 4,114 square foot building that is adjacent to our Nisin production plant for additional warehousing and storage space. The purchase price was $465,500, and we financed this purchase, in part, with a mortgage loan in the amount of $340,000 bearing interest at a variable rate equal to the one-month LIBOR plus a margin of 2.25% with monthly principal and interest payments due for ten years based on a twenty-year amortization schedule.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the first quarter of 2017, we amended two loan agreements, as described in Note 11, increasing the total available loan amount from up to approximately $4.5 million to up to approximately $6.5 million.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the first quarter of 2017, we discontinued the production and sale of our topical wipes product line. In connection therewith, we wrote off approximately $38,000 worth of fixed assets and recognized $45,000 from the sale of certain other fixed assets and product rights, resulting in a net gain of approximately $7,000.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During the first quarter of 2017, our $500,000 line of credit was extended through August 29, 2017.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 35.95pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(a)</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Basis of Presentation</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We have prepared the accompanying audited financial statements reflecting all adjustments that are, in our opinion, necessary in order to ensure that the financial statements are not misleading. We follow accounting standards set by the Financial Accounting Standards Board (FASB). The FASB sets generally accepted accounting principles (GAAP) that we follow to ensure we consistently report our financial condition, results of operations, earnings per share and cash flows. References to GAAP in these footnotes are to the FASB <i>Accounting Standards Codification</i>™ (Codification). Certain prior year accounts have been reclassified to conform with the 2016 financial statement presentation.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 35.95pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(b)</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Cash, Cash Equivalents, Short-Term Investments and Long-Term Investments</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">We consider all highly liquid investment instruments that mature within three months of their purchase dates to be cash equivalents. Cash equivalents are principally invested in securities backed by the U.S. government. Certain cash balances in excess of Federal Deposit Insurance Corporation (FDIC) limits of $250,000 per financial institution per depositor are maintained in money market accounts at financial institutions that are secured, in part, by the Securities Investor Protection Corporation. Amounts in excess of these FDIC limits per bank that are not invested in securities backed by the U.S. government aggregated $4,650,044 and $1,073,028 as of December 31, 2016 and 2015, respectively. We account for investments in marketable securities in accordance with Codification Topic 320, <i>Investments – Debt and Equity Securities</i>. Short-term investments are classified as held to maturity and are comprised principally of certificates of deposit that mature in more than three months from their purchase dates and not more than twelve months from the balance sheet date. Long-term investments are classified as held to maturity and are comprised principally of certificates of deposit that mature in more than twelve months from the balance sheet date. Short-term and long-term investments are held at different financial institutions that are insured by the FDIC, within the FDIC limits per financial institution. See Note 3.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0px; margin-bottom: 0px; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 35.95pt; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(c)</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Inventory</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventory includes raw materials, work-in-process and finished goods and is recorded at the lower of cost, on the first-in, first-out method, or net realizable value (determined as the estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation). Work-in-process and finished goods inventories include materials, labor and manufacturing overhead. See Note 4.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(d)</b></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Accounts Receivable</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Accounts receivable are carried at the original invoice amount less an estimate made for doubtful collection and product returns. Management determines the allowance for doubtful accounts on a monthly basis by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded as income when received. Accounts receivable are considered to be past due if any portion of the receivable balance is outstanding for more than 30 days. Interest is charged on past due accounts receivable. See Note 5.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(e)</font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property, Plant and Equipment</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We depreciate property, plant and equipment on the straight-line method by charges to operations in amounts estimated to expense the cost of the assets from the date they are first put into service to the end of the estimated useful lives of the assets. The facility we are constructing to produce the active ingredient, Nisin, for <b>Mast Out<sup>®</sup></b> will be depreciated over its useful life beginning when that facility is placed into service, which could be before the Food and Drug Administration (FDA) approval of the product is achieved. This facility is not yet placed in service. We are evaluating the estimated useful lives of the assets associated with this facility. Repairs to fixed assets that benefit more than a current period are capitalized and depreciated over their useful lives. See Note 7.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(f)</font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Intangible Assets and Goodwill</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We amortize intangible assets on the straight-line method by charges to operations in amounts estimated to expense the cost of the assets from the date they are first put into service to the end of the estimated useful lives of the assets. We have recorded intangible assets related to customer relationships, non-compete agreements, and developed technology, each with defined useful lives. We have classified as goodwill the amounts paid in excess of fair value of the net assets (including tax attributes) acquired in purchase transactions.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We assess the impairment of intangible assets and goodwill that have indefinite lives on an annual basis (as of December 31<sup>st</sup>) and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. We assess goodwill for impairment annually, at the reporting unit level whenever events or circumstances indicate impairment may exist. In evaluating goodwill for impairment, we have the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more likely than not threshold is defined as having a likelihood of more than 50 percent. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would then perform step one of the two-step impairment test; otherwise, no further impairment test would be required. In contrast, we can opt to bypass the qualitative assessment for any reporting unit in any period and proceed directly to step one of the two-step impairment test. Doing so does not preclude us from performing the qualitative assessment in any subsequent period. Factors that could indicate that an impairment may exist include significant under-performance relative to plan or long-term projections, significant changes in business strategy and significant negative industry or economic trends. Although we believe intangible assets and goodwill are appropriately stated in the accompanying financial statements, changes in strategy or market conditions could significantly impact these judgements and require an adjustment to the recorded balance. No goodwill impairments were recorded during the year ended December 31, 2016. See Notes 2(h), 8 and 9 for additional disclosures.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; font-size-adjust: none; font-stretch: normal;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(g)</font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Fair Value Measurements</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In determining fair value measurements, we follow the provisions of Codification Topic 820, <i>Fair Value Measurements and Disclosures</i>. Codification Topic 820 defines fair value, establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. The topic provides a consistent definition of fair value which focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The topic also prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information and establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. At December 31, 2016 and 2015, the carrying amounts of cash and cash equivalents, accounts receivable, inventory, other assets, accounts payable and accrued liabilities approximate fair value because of their short-term nature. The amount outstanding under our bank debt facilities is measured at carrying value in our accompanying balance sheets. Our bank debt facilities are valued using Level 2 inputs. The estimated fair value of our bank debt facilities approximates their carrying value. The three-level hierarchy is as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level 2 - Pricing inputs are quoted prices for similar assets or liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level 3 - Pricing inputs are unobservable for the assets or liabilities, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgement, and considers factors specific to the investment.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Our held to maturity securities are comprised of investments in bank certificates of deposit. The value of these securities is disclosed in Note 3. We also hold money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value. The fair value of these investments is based on their closing published net asset value.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We assess the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with our accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the years ended December 31, 2016 and 2015, there were no transfers between levels. As of December 31, 2016 and 2015, our Level 1 assets measured at fair value by quoted prices in active markets consisted of bank savings accounts and money market funds. As of December 31, 2016 and 2015, our bank certificates of deposit were classified as Level 2 and were measured by significant other observable inputs. As of December 31, 2016 and 2015, our interest rate swaps were
classified as Level 2 and
were measured by observable market data in combination with expected cash flows for each instrument. There were no assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2016 or 2015.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-indent: 36pt; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31, 2016</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 815px; text-align: left;">Cash and money market accounts </td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;">$</td><td style="width: 142px; text-align: right;">5,150,344</td><td style="width: 16px; text-align: left;"> </td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;"> </td><td style="width: 142px; text-align: right;">-</td><td style="width: 16px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 141px; text-align: right;">-</td><td style="width: 15px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">5,150,344</td><td style="width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Bank certificates of deposit</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">-</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;">$</td><td style="text-align: right;">5,474,013</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">-</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">5,474,013</td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;">Interest rate swaps</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(37,346</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(37,346</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; padding-left: 10pt;">Total</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,150,344</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,436,667</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style:
double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style:
double;">10,587,011</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><br class="apple-interchange-newline" /><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31, 2015</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 815px; text-align: left;">Cash and money market accounts</td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;">$</td><td style="width: 142px; text-align: right;">1,573,328</td><td style="width: 16px; text-align: left;"> </td><td style="width: 16px; font-weight: bold;"> </td><td style="width: 16px; text-align: left; font-weight: bold;"> </td><td style="width: 142px; text-align: right; font-weight: bold;">-</td><td style="width: 16px; text-align: left; font-weight: bold;"> </td><td style="width: 15px; font-weight: bold;"> </td><td style="width: 15px; text-align: left; font-weight: bold;"> </td><td style="width: 141px; text-align: right; font-weight: bold;">-</td><td style="width: 15px; text-align: left; font-weight: bold;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">1,573,328</td><td style="width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Bank certificates of deposit</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">-</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;">$</td><td style="text-align: right;">4,960,222</td><td style="text-align: left;"> </td><td style="font-weight: bold;"> </td><td style="text-align: left; font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;">-</td><td style="text-align: left; font-weight: bold;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">4,960,222</td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;">Interest rate swaps</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(78,525</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(78,525</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; padding-left: 10pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">Total</td><td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">$</td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000;
text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1;
-webkit-text-stroke-width: 0px;">1,573,328</td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">$</td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">4,881,697</td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: bold 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: bold 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: bold 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">-</td><td style="font: bold 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: 13.33px/normal 'times new roman', times, serif; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; padding-bottom: 4pt; word-spacing: 0px; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;"> </td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: left; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">$</td><td style="font: 13.33px/normal 'times new roman', times, serif; text-align: right; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; white-space: normal; widows: 1; -webkit-text-stroke-width: 0px;">6,455,025</td></tr></table></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(h)</font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Valuation of Long-Lived Assets</font></td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We periodically evaluate our long-lived assets, consisting principally of fixed assets and amortizable intangible assets, for potential impairment. In accordance with the applicable accounting guidance for the treatment of long-lived assets, we review the carrying value of our long-lived assets or asset group that is held and used, including intangible assets subject to amortization, for impairment whenever events and circumstances indicate that the carrying value of the assets may not be recoverable. Under the held and used approach, the asset or asset group to be tested for impairment should represent the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. We evaluate our long-lived assets whenever events or circumstances suggest that the carrying amount of an asset or group of assets may not be recoverable from the estimated undiscounted future cash flows. No impairment was recognized during the years ended December 31, 2016 or 2015.</font></p></div>
<div><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.5in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(i)</font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Concentration of Risk</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Concentration of credit risk with respect to accounts receivable is principally limited to certain customers to whom we make substantial sales. To reduce risk, we routinely assess the financial strength of our customers and, as a consequence, believe that our accounts receivable credit risk exposure is limited. We maintain an allowance for potential credit losses, but historically we have not experienced significant credit losses related to an individual customer or groups of customers in any particular industry or geographic area. Sales to significant customers that amounted to 10% or more of total product sales are detailed in the following table:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 23pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year Ended<br /></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;">Patterson Companies, Inc.<sup>(1)</sup></td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;"> </td><td style="width: 142px; text-align: right;">39</td><td style="width: 16px; text-align: left;">%</td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 141px; text-align: right;">42</td><td style="width: 15px; text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>AmerisourceBergen Corporation<sup>(2)</sup></td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">21</td><td style="text-align: left;">%</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">20</td><td style="text-align: left;">%</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 23pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Accounts receivable due from significant customers amounted to the percentages of total trade accounts receivable as detailed in the following table:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 23pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: calibri, sans-serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size:
10pt;"> </font></td><td style="text-indent: 0px; padding-top: 0px; padding-right:
0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,<br />2016</b></font></p></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,<br />2015</b></font></p></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1191px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">AmerisourceBergen Corporation<sup>(2)</sup></font></td><td style="padding: 0px; width: 16px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">33</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td><td style="padding: 0px; width: 15px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">27</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Patterson Companies, Inc.<sup>(1)</sup></font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">31</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">26</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">ANIMART LLC<sup>(3)</sup></font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">11</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 23pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.3in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(1)</sup></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size:
10pt;">During June 2015, Patterson Companies, Inc. (NASDAQ: PDCO) acquired Animal Health International, Inc.</font></td></tr></table><table
style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.3in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(2)</sup></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During March 2015, AmerisourceBergen Corporation (NYSE: ABC) acquired MWI Animal Health.</font></td></tr></table><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.3in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(3)</sup></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Assumes that the acquisition of Animal Medic by ANIMART LLC (which closed during the third quarter of 2016) had occurred as of the beginning of the periods being reported.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;">*Amount is less than 10%.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We believe that supplies and raw materials for the production of our products are available from more than one vendor or farm. Our policy is to maintain more than one source of supply for the components used in our products. However, there is a risk that we could have difficulty in efficiently acquiring essential supplies.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(j)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Interest Rate Swap Agreements</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">All derivatives are recognized on the balance sheet at their fair value. We entered into interest rate swap agreements in 2010 and 2015. On the dates the agreements were entered into, we designated the derivatives as hedges of the variability of cash flows to be paid related to our long-term debt. The agreements have been determined to be highly effective in hedging the variability of identified cash flows, so changes in the fair market value of the interest rate swap agreements are recorded as comprehensive income (loss), until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). We formally documented the relationship between the interest rate swap agreements and the related hedged items. We also formally assess, both at the interest rate swap agreements’ inception and on an ongoing basis, whether the agreements are highly effective in offsetting changes in cash flow of hedged items. See Note 11.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(k)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Revenue Recognition</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We sell products that provide immediate immunity to newborn dairy and beef cattle. We recognize revenue when four criteria are met. These include i) persuasive evidence that an arrangement exists, ii) delivery has occurred or services have been rendered, iii) the seller’s price is fixed and determinable and iv) collectability is reasonably assured. We recognize revenue at the time of shipment (including to distributors) for substantially all products, as title and risk of loss pass to the customer on delivery to the common carrier after concluding that collectability is reasonably assured. We do not bill for or collect sales tax because our sales are generally made to distributors and thus our sales to them are not subject to sales tax. We offer a 50% account credit to domestic distributors on expired <b>First Defense<sup>®</sup></b> product that is returned to us past its expiration date, which is generally two years past its date of manufacture. At the time of sale, we estimate returns and record a corresponding liability. We generally have experienced an immaterial amount of product returns.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(l)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Expense Recognition</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Advertising costs are expensed when incurred, which is generally during the month in which the advertisement is published. Advertising expenses amounted to $114,860 and $94,607 during the years ended December 31, 2016 and 2015, respectively. All product development expenses are expensed as incurred, as are all related patent costs. We capitalize costs to produce inventory during the production cycle, and these costs are charged to costs of goods sold when the inventory is sold to a customer.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(m)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Income Taxes</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We account for income taxes in accordance with Codification Topic 740, <i>Income Taxes</i>, which requires that we recognize a current tax liability or asset for current taxes payable or refundable and a deferred tax liability or asset for the estimated future tax effects of temporary differences and carryforwards to the extent they are realizable. We believe it is more likely than not that the deferred tax assets will be realized through future taxable income and future tax effects of temporary differences between book income and taxable income. Accordingly, we have not established a valuation allowance for the deferred tax assets. Codification Topic 740-10 clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position must meet before being recognized in the financial statements. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. In addition, we are subject to periodic audits and examinations by the Internal Revenue Service and other taxing authorities. Our tax returns for the years 2013 through 2016 are subject to audit. We have evaluated the positions taken on our filed tax returns. We have concluded that no uncertain tax positions exist as of December 31, 2016. Although we believe that our estimates are reasonable, actual results could differ from these estimates. See Note 14.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(n)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Stock-Based Compensation</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We account for stock-based compensation in accordance with Codification Topic 718, <i>Compensation-Stock Compensation</i>, which generally requires us to recognize non-cash compensation expense for stock-based payments using the fair-value-based method. The fair value of each stock option grant has been estimated on the date of grant using the Black-Scholes option pricing model. Accordingly, we recorded compensation expense pertaining to stock-based compensation of $67,399 and $23,222 during the years ended December 31, 2016 and 2015, respectively, which resulted in a decrease to income before income taxes of less than $0.01 per share during each of the periods reported.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(o)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Net Income Per Common Share</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net income per common share has been computed in accordance with Codification Topic 260-10, <i>Earnings Per Share.</i> The basic net income per share has been computed by dividing net income by the weighted average number of common shares outstanding during the period. The diluted net income per share has been computed by dividing net income by the weighted average number of shares outstanding during the period plus all outstanding stock options with an exercise price that is less than the average market price of the common stock during the period less the number of shares that could have been repurchased at this average market price with the proceeds from the hypothetical stock option exercises. The weighted average and diluted number of shares outstanding consisted of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Years Ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1177.67px; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Weighted average number of shares outstanding</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">4,225,789</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">3,042,376</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Effect of dilutive stock options</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">110,440</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom:
1.5pt; font-family: 'times new roman', times,
serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">123,359</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Diluted number of shares outstanding</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,336,229</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,165,735</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Outstanding stock options not included in the calculation because the effect would be anti-dilutive</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">34,250</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6,000</td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(p)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Use of Estimates</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 35.95pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The preparation of financial statements in conformity with 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 period. Although we regularly assess these estimates, actual amounts could differ from those estimates. Changes in estimates are recorded during the period in which they become known. Significant estimates include our inventory, goodwill, accrued expenses and costs of goods sold accounts as well as amortization of our intangible assets.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.5in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(q)</b></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>New Accounting Pronouncements</b></font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, <i>Revenue from Contracts with Customers</i>, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 was initially to become effective for the Company on January 1, 2017. Early application was not permitted. In July 2015, the FASB approved a one-year deferral in the effective date to January 1, 2018, with the option of applying the standard on the original effective date. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. We intend to utilize the modified retrospective method and have made a preliminary evaluation of the effect that ASU 2014-09 would have on our financial statements and related disclosures and do not expect ASU 2014-09 to have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In August 2014, the FASB issued ASU No. 2014-15, <i>“Presentation of Financial Statements-Going Concern”, </i>which provides guidance regarding management’s responsibility to assess whether substantial doubt exists regarding the ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements for each annual and interim reporting period, management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued. This ASU is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We implemented this guidance during 2016. The adoption of this guidance did not have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In April 2015, the FASB issued ASU No. 2015-03, <i>Interest-Imputation of Interest</i>, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This update is effective for the annual reporting periods beginning after December 15, 2015. During the first quarter of 2016, we adopted ASU 2015-03 and reclassified $40,792 of debt issuance costs (net) from other assets to a reduction in our bank debt liability as of December 31, 2015. In August 2015, the FASB confirmed that ASU No. 2015-03 did not address the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. For line-of-credit arrangements, borrowers have the option of presenting debt issuance costs as an asset which is subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any related outstanding borrowings. ASU No. 2015-03 did not have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In July 2015, the FASB issued ASU No. 2015-11, <i>Inventory</i>, which simplifies the existing guidance which requires entities to subsequently measure inventory at the lower of cost or market value. Under ASU No. 2015-11, an entity should measure inventory valued using a first-in, first-out or average
cost method at
the lower of cost or net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This update is effective for public business entities during fiscal years beginning after December 15, 2016 with early adoption permitted. We adopted ASU 2015-11 during the third quarter of 2016, and it did not have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In November 2015, the FASB issued ASU No. 2015-17, <i>Income Taxes</i>, which simplifies the existing guidance which requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Under ASU No. 2015-17, an entity should classify all deferred tax liabilities and assets as one noncurrent deferred tax liability or asset (net) within the statement of financial position. The amendments apply to all entities that present a classified statement of financial position and are effective for the public business entities for annual periods beginning after December 15, 2016, including interim periods therein. Earlier application was permitted. During the first quarter of 2016, we adopted ASU No. 2015-17 early and reclassified $19,588 of current deferred tax liabilities to long-term, which amount was netted against our long-term deferred tax asset, as of December 31, 2015. ASU No. 2015-17 did not have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In February 2016, the FASB issued ASU No. 2016-02, <i>Leases</i>, which requires lessees to put most leases on their balance sheet but recognize expenses on their income statements in a manner similar to today’s accounting. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods therein. Early adoption is permitted. Based on our current lease agreements, we are not subject to material lease obligations, and we do not expect ASU 2016-02 to have a material impact on our financial statements.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 36pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In March 2016, the FASB issued ASU No. 2016-09, <i>Compensation-Stock Compensation</i>, which simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, recognition of stock compensation award forfeitures, classification of awards as either equity or liabilities, the calculation of diluted shares outstanding and classification on the statement of cash flows. The most significant change resulting from these amendments is recording all the tax effects related to share-based payments at settlement through the income statement. Under existing guidance, tax benefits in excess of compensation costs (“windfalls”) are recorded in equity. Similarly, tax deficiencies below compensation costs (“shortfalls”) are recorded in equity to the extent of previous windfalls, while shortfalls in excess of this are recorded to the income statement. Furthermore, the new guidance is expected to increase the dilutive effect of share-based payment awards as a result of no longer assuming that tax benefits are used to purchase our common stock under the treasury method. The amendments also provide an alternative to estimating stock award forfeitures and instead recording at the time of forfeiture. This update is effective for public business entities during fiscal years beginning after December 15, 2016 with early adoption permitted. We adopted ASU 2016-09 during 2016, and it did not have a material impact on our financial statements.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31, 2016</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 815px; text-align: left;">Cash and money market accounts </td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;">$</td><td style="width: 142px; text-align: right;">5,150,344</td><td style="width: 16px; text-align: left;"> </td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;"> </td><td style="width: 142px; text-align: right;">-</td><td style="width: 16px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 141px; text-align: right;">-</td><td style="width: 15px; text-align: left;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">5,150,344</td><td style="width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Bank certificates of deposit</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">-</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;">$</td><td style="text-align: right;">5,474,013</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">-</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">5,474,013</td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;">Interest rate swaps</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(37,346</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(37,346</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; padding-left: 10pt;">Total</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,150,344</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,436,667</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">10,587,011</td><td style="text-align: left; padding-bottom: 4pt;"> </td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none;
text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1;
font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31, 2015</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 815px; text-align: left;">Cash and money market accounts</td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;">$</td><td style="width: 142px; text-align: right;">1,573,328</td><td style="width: 16px; text-align: left;"> </td><td style="width: 16px; font-weight: bold;"> </td><td style="width: 16px; text-align: left; font-weight: bold;"> </td><td style="width: 142px; text-align: right; font-weight: bold;">-</td><td style="width: 16px; text-align: left; font-weight: bold;"> </td><td style="width: 15px; font-weight: bold;"> </td><td style="width: 15px; text-align: left; font-weight: bold;"> </td><td style="width: 141px; text-align: right; font-weight: bold;">-</td><td style="width: 15px; text-align: left; font-weight: bold;"> </td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;">$</td><td style="width: 141px; text-align: right;">1,573,328</td><td style="width: 15px; text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;">Bank certificates of deposit</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">-</td><td style="text-align: left;"> </td><td> </td><td style="text-align: left;">$</td><td style="text-align: right;">4,960,222</td><td style="text-align: left;"> </td><td style="font-weight: bold;"> </td><td style="text-align: left; font-weight: bold;"> </td><td style="text-align: right; font-weight: bold;">-</td><td style="text-align: left; font-weight: bold;"> </td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">4,960,222</td><td style="text-align: left;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;">Interest rate swaps</td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(78,525</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(78,525</td><td style="text-align: left; padding-bottom: 1.5pt;">)</td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; padding-left: 10pt;">Total</td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,573,328</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt;"> </td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,881,697</td><td style="text-align: left; padding-bottom: 4pt;"> </td><td style="padding-bottom: 4pt; font-weight: bold;"> </td><td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-weight: bold; border-bottom-color: black;
border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt; font-weight: bold;"> </td><td style="padding-bottom: 4pt;"> </td><td
style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6,455,025</td></tr></table></div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td></td><td style="padding-bottom: 1.5pt;"> </td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year Ended<br /></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-size-adjust: none; font-stretch: normal;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt;"> </td></tr><tr style="vertical-align: bottom;"><td> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-weight: bold;"> </td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;">Patterson Companies, Inc.<sup>(1)</sup></td><td style="width: 16px;"> </td><td style="width: 16px; text-align: left;"> </td><td style="width: 142px; text-align: right;">39</td><td style="width: 16px; text-align: left;">%</td><td style="width: 15px;"> </td><td style="width: 15px; text-align: left;"> </td><td style="width: 141px; text-align: right;">42</td><td style="width: 15px; text-align: left;">%</td></tr><tr style="vertical-align: bottom; background-color: white;"><td>AmerisourceBergen Corporation<sup>(2)</sup></td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">21</td><td style="text-align: left;">%</td><td> </td><td style="text-align: left;"> </td><td style="text-align: right;">20</td><td style="text-align: left;">%</td></tr></table>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: calibri, sans-serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,<br />2016</b></font></p></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,<br />2015</b></font></p></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1191px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">AmerisourceBergen Corporation<sup>(2)</sup></font></td><td style="padding: 0px; width: 16px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">33</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td><td style="padding: 0px; width: 15px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">27</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Patterson Companies, Inc.<sup>(1)</sup></font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">31</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">26</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">ANIMART LLC<sup>(3)</sup></font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">*</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">11</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">%</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 23pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none;
text-indent: 0px; letter-spacing: normal;
word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.3in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(1)</sup></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During June 2015, Patterson Companies, Inc. (NASDAQ: PDCO) acquired Animal Health International, Inc.</font></td></tr></table><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.3in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(2)</sup></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">During March 2015, AmerisourceBergen Corporation (NYSE: ABC) acquired MWI Animal Health.</font></td></tr></table><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: top;"><td style="width: 0.3in; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(3)</sup></font></td><td style="font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Assumes that the acquisition of Animal Medic by ANIMART LLC (which closed during the third quarter of 2016) had occurred as of the beginning of the periods being reported.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">*Amount is less than 10%.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Years Ended</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b>December 31,</b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1177.67px; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Weighted average number of shares outstanding</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">4,225,789</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">3,042,376</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: -10pt; padding-bottom: 1.5pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Effect of dilutive stock options</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">110,440</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">123,359</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Diluted number of shares outstanding</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,336,229</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,165,735</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: -10pt; padding-bottom: 4pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Outstanding stock options not included in the calculation because the effect would be anti-dilutive</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black;
border-bottom-width: 4pt; border-bottom-style:
double;">34,250</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">6,000</td></tr></table></div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Increase</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2015</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(Decrease)</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1003px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Cash and cash equivalents</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,150,344</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,573,328</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px;
text-align: left; text-indent: 0px;
font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3,577,016</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Short-term investments</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,474,013</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,470,574</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,003,439</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Subtotal</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">10,624,357</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6,043,902</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,580,455</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;
background-color: white;"><td style="padding: 0px 0px 1.5pt;
text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Long-term investments</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">489,648</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(489,648</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 4pt 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Total</font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">10,624,357</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6,533,550</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,090,807</font></td></tr></table>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left; font-family: 'times new roman', times, serif;">Amortized cost</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">5,450,000</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">4,951,000</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Accrued interest</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">24,013</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">9,222</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Gross unrealized gains</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">2,073</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">25</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">Gross unrealized losses</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(59</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(6,277</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Estimated fair value</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">5,476,027</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family:
'times new roman', times, serif;"> </td><td
style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">4,953,970</td></tr></table>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2015</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Increase</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1003px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Raw materials</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">318,443</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">284,331</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">34,112</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent:
0px; font-family: 'times new
roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Work-in-process</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">968,810</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">452,024</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">516,786</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Finished goods</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">839,646</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">133,852</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">705,794</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Total</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color:
black; border-bottom-width: 4pt; border-bottom-style:
double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,126,899</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">870,207</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,256,692</font></td></tr></table>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">As of December 31,</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;" colspan="2">Increase</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">(Decrease)</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1003px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Trade accounts receivable, gross</td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">1,013,716</td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">736,195</td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">277,521</td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Allowance for bad debt and product returns</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(21,326</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(18,092</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px;
padding-left: 0px; font-family: 'times new roman', times,
serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(3,234</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Trade accounts receivable, net</td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">992,390</td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">718,103</td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">274,287</td></tr></table>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(Decrease)</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2015</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Increase</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1003px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Prepaid expenses</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">126,523</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">183,217</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family:
'times new roman', times,
serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(<font style="font-family: 'times new roman', times, serif; font-size: 10pt;">56,694</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Other receivables</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">144,848</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">26,958</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">117,890</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Security deposits<sup>(1)</sup></font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">333,111</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">37,301</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">295,810</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 4pt 10pt;
text-indent: 0px; font-family: 'times new roman', times,
serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Total</font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">604,482</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">247,476</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">357,006</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.3in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"><sup>(1)</sup></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">This balance as of December 31, 2016 included an option payment of $20,500 towards land (which we did not exercise) that was subsequently applied to the purchase of a warehouse facility during the first quarter of 2017.</font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt 10pt; text-align: center; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Estimated Useful Lives</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(in years)</b></font></p></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></p></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Increase</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt 10pt; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2016</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2015</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>(Decrease)</b></font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; width: 801.67px; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Laboratory and manufacturing equipment</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 173px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5-10</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times,
serif;"><font style="font-family: 'times
new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,562,938</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3,766,556</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,796,382</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 10pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Building and improvements</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">10-33</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,037,512</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,716,204</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">321,308</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Office furniture and equipment</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5-10</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">653,462</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new
roman', times, serif;"><font style="font-family: 'times new roman', times,
serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">568,188</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">85,274</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 10pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Construction in progress<sup>(1)</sup></font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3,694,509</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,084,924</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,609,585</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 1.5pt 10pt; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Land</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">347,114</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif;
border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family:
'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">333,486</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">13,628</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 20pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property, plant and equipment, gross</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">15,295,535</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">10,469,358</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,826,177</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 1.5pt 10pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Accumulated depreciation</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(5,449,242</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left;
text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black;
border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(4,750,544</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(698,698</font></td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 4pt 20pt; text-align: left; text-indent: -10pt; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property, plant and equipment, net</font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">9,846,293</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5,718,814</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">4,127,479</font></td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal;"> </font></p><table style="font: bold 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.3in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"><sup>(1)</sup></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">As of December 31, 2016, construction in progress consisted principally of initial costs incurred in connection
with the building and equipping of our Nisin production plant for </font><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Mast
Out<sup>®</sup><font style="font-weight: normal;">. As of December 31, 2015, construction in progress consisted principally of partial payments towards new manufacturing equipment related to expanding our production capacity for </font>First Defense<sup>®</sup><font style="font-weight: normal;">.</font></font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><b>Period</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Amount</b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1379px; font-family: 'times new roman', times, serif;">Year ending December 31, 2017</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">19,104</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font-family: 'times new roman', times, serif;">Year ending December 31, 2018</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">19,104</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Year ending December 31, 2019</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">19,104</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font-family: 'times new roman', times, serif;">Year ending December 31, 2020</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">19,104</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Year ending December 31, 2021</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">19,104</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">After December 31, 2021</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">76,416</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Total</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">171,936</td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="12">As of December 31, 2016</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Gross Carrying Value</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Accumulated Amortization</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Net Book</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Value</b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left; font-family: 'times new roman', times, serif;">Developed technology</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">184,100</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">(18,410</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">165,690</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Customer relationships</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">1,300</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(130</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">1,170</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">Non-compete agreements</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">5,640</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(564</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">5,076</td><td
style="text-align: left; padding-bottom: 1.5pt; font-family:
'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Total</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">191,040</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(19,104</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">171,936</td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="8"><b>As of December 31,</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Increase</b></font></p></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>2016</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>2015</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"><b> </b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>(Decrease)</b></td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1003px; text-align: left; font-family: 'times new roman', times, serif;">Accounts payable – capital</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">1,249,862</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">1,510</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">1,248,352</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Accounts payable – trade</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">257,397</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">199,105</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">58,292</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Accrued payroll</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">200,477</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">242,690</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(42,213</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family:
'times new roman', times, serif;">Accrued clinical studies</td><td
style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">68,428</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(68,428</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Accrued professional fees</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">82,500</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">56,450</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">26,050</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">Accrued other</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">101,527</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">93,982</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">7,545</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Total</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,891,763</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">662,165</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">1,229,598</td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: left; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">Period</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">$1,000,000 Mortgage Note</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">$2,500,000 Mortgage Note</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Debt Issuance Costs</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">Total</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 815px; text-align: justify; font-family: 'times new roman', times, serif;">Year ending December 31, 2017</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">61,056</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">82,308</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">(10,095</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">133,269</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: justify; font-family: 'times new roman', times, serif;">Year ending December 31, 2018</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">64,876</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">86,097</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(10,095</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">140,878</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: justify; font-family: 'times new roman', times, serif;">Year ending December 31, 2019</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">68,908</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">89,997</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(10,095</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td
style="text-align: left; font-family: 'times new roman', times,
serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">148,810</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: justify; font-family: 'times new roman', times, serif;">Year ending December 31, 2020</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">493,696</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">94,005</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(9,462</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">578,239</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: justify; font-family: 'times new roman', times, serif;">Year ending December 31, 2021</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">98,538</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(8,448</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">90,090</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: justify; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">After December 31, 2021</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,951,228</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(30,440</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1,920,788</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt; padding-left: 20pt; font-family: 'times new roman', times, serif;">Total</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">688,536</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt;
border-bottom-style: double;">2,402,173</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times,
serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">(78,635</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">3,012,074</td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"> </p></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="8"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 0px; margin-bottom: 0px; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Year Ended<br />December 31,</b></font></p></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left; font-family: 'times new roman', times, serif;">Payments required by interest rate swaps</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">58,346</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">32,515</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Other comprehensive income (loss) net of taxes</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">26,354</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">(26,925</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>2000 Plan</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>2010 Plan</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>Weighted <br />Average <br />Exercise <br />Price</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Aggregate</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Intrinsic</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: center; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Value<sup>(1)</sup></b></font></p></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 815px; font-family: 'times new roman', times, serif;">Outstanding at December 31, 2014</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">157,500</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">95,500</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">3.42</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">364,000</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-left: 10pt; font-family: 'times new roman', times, serif;">Grants</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">16,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">7.40</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-left: 10pt; font-family: 'times new roman', times, serif;">Terminations</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(3,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td
style="font-family: 'times new roman', times, serif;"> </td><td style="text-align:
left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">4.95</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Exercises</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(26,000</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(2,000</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">4.29</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Outstanding at December 31, 2015</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">131,500</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">106,500</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">3.57</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">945,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-left: 10pt; font-family: 'times new roman', times, serif;">Grants</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">46,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">6.98</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-left: 10pt; font-family: 'times new roman', times, serif;">Terminations</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(5,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">(12,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;">)</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">6.16</td><td style="text-align: left; font-family: 'times new roman', times,
serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times,
serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Exercises</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">-</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(16,000</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">5.59</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Outstanding at December 31, 2016</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">126,500</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">124,500</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">3.89</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">517,000</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Exercisable at December 31, 2016</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">126,500</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black;
border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style:
double;">26,500</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">2.52</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">524,000</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Reserved for future grants</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">-</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">155,500</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td></tr></table><p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 53pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.3in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;"><sup>(1)</sup></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt; font-weight: normal;">Intrinsic value is the difference between the fair market value as of the date indicated and as of the date of the option grant.</font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>Number of Shares</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td><td style="text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><b>Weighted Average Fair Value at Grant Date</b></td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"><b> </b></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1177.67px; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Non-vested stock options as of January 1, 2016</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">65,000</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">5.35</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Non-vested stock options as of December 31, 2016</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">98,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">6.03</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Stock options granted during the year ended December 31, 2016</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">46,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">6.98</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Stock options that vested during the year ended December 31, 2016</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">1,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">4.15</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; text-indent: -10pt; padding-left: 10pt; font-family: 'times new roman', times, serif;">Stock options that were forfeited during the year ended December 31, 2016</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">17,000</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">6.16</td><td style="text-align: left; font-family: 'times new roman', times, serif;"></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left; font-family: 'times new roman', times, serif;">Risk-free interest rate</td><td style="width: 16px; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif;">1.2</td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif;">%</td><td style="width: 15px; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif;">2.0</td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif;">%</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Dividend yield</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">0</td><td style="text-align: left; font-family: 'times new roman', times, serif;">%</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">0</td><td style="text-align: left; font-family: 'times new roman', times, serif;">%</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Expected volatility</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">63</td><td style="text-align: left; font-family: 'times new roman', times, serif;">%</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">47</td><td style="text-align: left; font-family: 'times new roman', times, serif;">%</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="text-align: left; font-family: 'times new roman', times, serif;">Expected life</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6.5 years</font></td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">6 years</font></td></tr></table></div>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6">Year Ended<br />December 31,</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 1191px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Interest expense</td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">161,697</td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">83,578</td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Interest income</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(54,662</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(19,169</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Other losses (gains)</td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">24,847</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 1.5pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(5,635</td><td style="padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Other expenses, net</td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif;
border-bottom-color: black; border-bottom-width: 4pt;
border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">131,882</td><td style="padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px 0px 4pt; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">58,774</td></tr></table>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="7">Year Ended December 31,</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2016</td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td><td style="text-align: center; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2">2015</td><td style="text-align: center; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif; font-weight: bold;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Federal</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">-</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="width: 1191px; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">State</td><td style="width: 16px; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="width: 16px; text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 142px; text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">13,585</td><td style="width: 16px; text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="width: 15px; text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">$</td><td style="width: 141px; text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">3,150</td><td style="width: 15px; text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Current</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">13,585</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif;">3,150</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font-family: 'times new roman', times, serif;">Federal</td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">252,659</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif;">641,733</td><td style="text-align: left; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 1.5pt; font-family: 'times new roman',
times, serif;">State</td><td style="padding-bottom: 1.5pt; font-family:
'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">(16,370</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">)</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">205,426</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;">Deferred</td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">236,289</font></td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">847,159</td><td style="text-align: left; padding-bottom: 1.5pt; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;">Total</td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">249,874</td><td style="text-align: left; padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="padding-bottom: 4pt; font-family: 'times new roman', times, serif;"> </td><td style="text-align: left; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="text-align: right; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">850,309</td></tr></table>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><font style="font-family: 'times new roman', serif; font-size: 10pt;"><b>Year Ended December 31,</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font: 10pt/normal 'times new roman', serif; font-stretch: normal;"><b>2016</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font: 10pt/normal 'times new roman', serif; font-stretch: normal;"><b>2015</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', serif; font-size: 10pt;"><b>$</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', serif; font-size: 10pt;"><b>%</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', serif; font-size: 10pt;"><b>$</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', serif; font-size: 10pt;"><b>%</b></font></td><td style="padding: 0px; text-align: center; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 815px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Computed expected tax expense/rate</td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">257,829</td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">34.00</td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">%</td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">$</td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">701,607</td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">34.00</td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">%</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">State income taxes, net of federal expense</td><td style="padding: 0px; text-indent: 0px; font-family:
'times new roman', times, serif;"> </td><td
style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">38,855</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">5.12</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">44,754</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">2.17</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Share-based compensation</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">13,362</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">1.76</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(7,524</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(0.36</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Tax credits</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(70,967</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(9.36</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(54,719</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(2.65</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">)</td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', serif; font-size: 10pt;">State income tax rate change, net of federal<sup>(1)</sup></font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">-</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times,
serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times,
serif;">-</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">109,112</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">5.29</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;">Other</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">10,795</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">1.43</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">57,079</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;">2.76</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Total income tax expense/rate</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">249,874</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">32.95</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">%</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">$</td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">850,309</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;">41.21</td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">%</td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; widows: 1; font-stretch: normal; -webkit-text-stroke-width: 0px;"> </p><table style="font:
10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; widows: 1; font-size-adjust: none;
font-stretch: normal; -webkit-text-stroke-width: 0px;" border="0" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 0.3in;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><sup>(1)</sup></font></td><td><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">This impact is due to the actual state tax rate in 2015 being lower than the expected state tax rate used in computing prior deferred taxes.</font></td></tr></table></div>
<table style="width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman', times, serif; word-spacing: 0px; border-collapse: collapse; widows: 1; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font: bold 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><p style="font: 10pt/normal 'times new roman', times, serif; text-align: center; margin-top: 1.8pt; margin-bottom: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-size-adjust: none; font-stretch: normal;" colspan="6"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of December 31,</b></font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-size-adjust: none; font-stretch: normal;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2016</b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-size-adjust: none; font-stretch: normal;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>2015</b></font></td><td style="font: bold 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: center; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 1191px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Product rights</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 16px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">68,197</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 15px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">91,344</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property, plant and equipment</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font:
10pt/normal 'times new roman',
times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(307,976</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(26,717</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Federal and state tax credits</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">292,516</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">339,585</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Federal net operating loss carryforward</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">8,856</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">39,241</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">State tax credits carryover</font></td><td style="font: 10pt/normal 'times new roman',
times, serif; padding: 0px; text-indent: 0px; font-size-adjust:
none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">100,528</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Interest rate swap</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">13,437</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">28,253</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Prepaid expenses and other</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(6,240</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: right; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(19,589</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-indent: 0px; font-size-adjust: none; font-stretch:
normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">UNICAP</font></td><td
style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">31,685</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">-</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 1.5pt; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 4pt 10pt; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Deferred tax asset</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 4pt; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">201,003</font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 4pt; text-align: left; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; padding: 0px 0px 4pt; text-indent: 0px; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: left; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: right; text-indent: 0px; padding-top: 0px; padding-right: 0px; padding-left: 0px; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double; font-size-adjust: none; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">452,117</font></td></tr></table>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; widows: 1; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0"><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Three Months Ended</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>March 31</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>June 30</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>September 30</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td><td style="text-align: center; padding-top: 0px; padding-right: 0px; padding-left: 0px; font-family: 'times new roman', times, serif; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>December 31</b></font></td><td style="padding: 0px 0px 1.5pt; text-align: center; font-family: 'times new roman', times, serif; font-weight: bold;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Fiscal 2016:</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times,
serif;"><font style="font-family:
'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; width: 815px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Product sales</font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,986,359</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 142px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,375,662</font></td><td style="padding: 0px; width: 16px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,968,122</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; width: 141px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,213,818</font></td><td style="padding: 0px; width: 15px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Gross margin</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,757,560</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,239,861</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,204,627</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent:
0px; font-family: 'times new roman', times, serif;"><font
style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,218,647</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Product development expenses</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">302,443</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">380,434</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">307,721</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">253,737</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net operating income</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">698,964</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">21,465</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">50,467</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif;
font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family:
'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">119,309</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net income (loss)</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">452,448</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">(9,155</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">34,870</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">30,285</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net income (loss) per common share:</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman',
times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px;
text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;">Basic</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.12</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(<font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.00</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.01</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.01</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;">Diluted</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.11</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;">(<font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.00</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">)</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.01</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times,
serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times
new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.01</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;">Fiscal 2015:</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"> </td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;">Product sales</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new
roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">3,101,491</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times,
serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,960,363</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,472,428</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">2,694,407</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Gross margin</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,850,925</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,130,574</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,611,902</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">1,657,502</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Product development expenses</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td
style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">330,665</font></td><td style="padding: 0px; text-align: left; text-indent: 0px;
font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">271,759</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">301,746</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">331,139</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net operating income</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">820,052</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">213,983</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">626,850</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">461,437</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net income  </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times
new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">479,082</font></td><td style="padding: 0px;
text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">94,058</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">351,292</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">288,807</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Net income per common share:</font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;">Basic</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size:
10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.16</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font
style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.03</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.12</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.09</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font-family: 'times new roman', times, serif; vertical-align: bottom; background-color: white;"><td style="padding: 0px 0px 0px 10pt; text-indent: 0px; font-family: 'times new roman', times, serif;">Diluted</td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.15</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.03</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.11</font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="padding: 0px; text-align: left; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">$</font></td><td style="padding: 0px; text-align: right; text-indent: 0px; font-family: 'times new roman', times, serif;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">0.09</font></td></tr></table></div>
20000000
6455025
1573328
4881697
1573328
1573328
4960222
-78525
4960222
-78525
10587011
5150344
5436667
5150344
5150344
5474013
-37346
5474013
-37346
0.14
0.83
0.93
0.13
0.85
0.93
123359
110440
6000
34250
250000
1073028
4650044
Less than $0.01
Less than $0.01
We offer a 50% account credit to domestic distributors on expired First Defense® product that is returned to us past its expiration date, which is generally two years past its date of manufacture.
94607
114860
40792
19588
Sales to significant customers that amounted to 10% or more of total product sales.
6043902
10624357
6533550
10624357
1003439
4580455
-489648
4090807
4951000
5450000
9222
24013
25
2073
6277
59
4953970
5476027
284331
318443
452024
968810
133852
839646
34112
516786
705794
736195
1013716
18092
21326
718103
992390
277521
-3234
274287
183217
126523
26958
144848
-56694
117890
20500
3766556
5562938
4716204
5037512
568188
653462
333486
347114
10469358
15295535
4750544
5449242
4826177
1796382
321308
85274
13628
698698
4127479
P5Y
P10Y
P10Y
P33Y
P5Y
P10Y
532000
368000
97000
67000
30000
8200
113000
132000
191000
96000
19104
19104
19104
19104
19104
76416
171936
165690
5076
1170
191040
184100
5640
1300
-19104
-18410
-564
-130
19104
P10Y
1510
1249862
199105
257397
242690
200477
68428
56450
82500
93982
101527
662165
1891763
-1248352
58292
-42213
-68428
26050
7545
1229598
133269
82308
61056
-10095
140878
86097
64876
-10095
148810
89997
68908
-10095
578239
94005
493696
-9462
90090
98538
-8448
1920788
1951228
-30440
3012074
2402173
688536
-78635
32515
58346
The first instrument is comprised of a construction loan of up to $2.5 million and not to exceed 80% of the cost of equipment installed in the to-be-constructed commercial-scale Nisin production facility for Mast Out®. Effective March 1, 2017, this loan amount was increased by $1.44 million to $3.94 million. As amended, interest only will be payable at a variable rate equal to the one-month LIBOR plus a margin of 2.25% through July 2018, at which time the loan converts to a seven-year term loan facility at the same variable interest rate with monthly principal and interest payments due based on a seven-year amortization schedule.
The second instrument is comprised of a construction loan of up to $2.0 million and not to exceed 80% (75% prior to the March 1, 2017 amendment) of the appraised value of the to-be-constructed commercial-scale Nisin production facility in Portland, Maine. Effective March 1, 2017, this loan amount was increased by $560,000 to $2.56 million. As amended, interest only will be payable at a variable rate equal to the one-month LIBOR plus a margin of 2.25% through January 2018, at which time the loan converts to a nine-year term loan facility at the same variable interest rate with monthly principal and interest payments due based on a twenty-year amortization schedule with a balloon principal payment of approximately $1.654 million due in January 2027.
1000000
2500000
P15Y
P20Y
451885
1550000
Will be due during the third quarter of 2020.
Will be due during the third quarter of 2025.
0.0299
0.0604
0.0425
0.0438
0.0393
1000000
2500000
3090709
600000
4500000
500000
6500000
500000
2017-08-29
LIBOR plus a margin of 3.25% and 2.25
Interest on any borrowings against the line of credit would be variable at the higher of 4.25% per annum or the one-month LIBOR plus 3.5% per annum.
1440000
3940000
560000
157500
95500
131500
106500
126500
124500
16000
46000
16000
46000
3000
5000
12000
126500
26500
3.42
3.57
6.05
7.54
3.89
8.21
1.70
6.27
8.21
7.40
6.98
4.95
6.16
4.29
5.59
2.52
250000
500000
300000
155500
251000
65000
98000
46000
1000
17000
5.35
6.03
6.98
4.15
6.16
0.02
0.012
0.00
0.00
0.47
0.63
P6Y
P6Y6M
10000000
5958000
5900000
3464000
5313000
3161000
1123810
659880
5.25
8.08
5.25
<div>No less than 85% of fair market value on the date of grant in the case of non-qualified stock options.</div>
<div>No less than 85% of fair market value on the date of grant in the case of non-qualified stock options.</div>
P10Y
P10Y
P4Y4M
P4Y4M
11
1
110000
32000
3.46
4.16
P2Y4M
P2Y4M
P2Y11M
204360
1
At any time after a person or group becomes an Acquiring Person and prior to the acquisition by such person or group of 50% or more of the outstanding common stock, the Board of Directors of the Company may exchange the Rights (other than Rights owned by such person or group which have become void), in whole or in part, at an exchange ratio of one share of common stock per Right (subject to adjustment).
The aggregate of 16,000 shares of which 6,000 were exercised for cash, resulting in total proceeds of $31,900, and 10,000 of these options were exercised by the surrender of 7,334 shares of common stock with a fair market value of $57,425 at the time of exercise and $75 in cash.
70.00
The Rights (as amended) become exercisable and transferable apart from the common stock upon the earlier of i) 10 days following a public announcement that a person or group (Acquiring Person) has, without the prior consent of the Continuing Directors (as such term is defined in the Rights Agreement), acquired beneficial ownership of 20% or more of the outstanding common stock or ii) 10 days following commencement of a tender offer or exchange offer the consummation of which would result in ownership by a person or group of 20% or more of the outstanding common stock (the earlier of such dates being called the Distribution Date).
During the second quarter of 2015, we amended our Common Stock Rights Plan by removing a provision that prevented a new group of directors elected following the emergence of an Acquiring Person (an owner of more than 20% of our stock) from controlling the Rights Plan by maintaining exclusive authority over the Rights Plan with pre-existing directors.
The Company should consolidate or merge with any other entity and the Company were not the surviving company, or, if the Company were the surviving company, all or part of the Company's common stock were changed or exchanged into the securities of any other entity, or if more than 50% of the Company's assets or earning power were sold.
0.005
0.15
0.18
0.18
0.20
83578
161697
19169
54662
5635
-24847
3150
13585
3150
13585
641733
252659
205426
-16370
847159
236289
701607
257829
44754
38855
-7524
13362
54719
70967
57079
10795
0.34
0.34
0.0217
0.0512
-0.0036
0.0176
-0.0265
-0.0936
0.0276
0.0143
0.4121
0.3295
91344
68197
26717
307976
339585
292516
39241
8856
100528
28253
13437
-19589
-6240
31685
452117
201003
1625653
125797
98000
292000
We have federal general business tax credit carryforwards of approximately $292,000 that expire in 2027 through 2034 (if not utilized before then) and state tax credit carryforwards of approximately $152,000 that expire in 2023 through 2036 (if not utilized before then).
820000
1112000
152000
965000
P15Y
2031-12-31
0.34
100000
3280000
2080000
617000
100000
20000000
12320000
150000
8865000
17920000
0.04
573165
551020
36528
3221
3222
5286
All employees completing one month of service with the Company are eligible to participate.
August 2012, we have matched 100% of the first 3% of each employee's salary that is contributed to the Plan and 50% of the next 2% of each employee's salary that is contributed to the Plan.
73514
74507
4114
465500
340000
6500000
4500000
38000
<div> Bearing interest at a variable rate equal to the one-month LIBOR plus a margin of 2.25% with monthly principal and interest payments due for ten years based on a twenty-year amortization schedule.</div>
45000
7000
-25706
During June 2015, Patterson Companies, Inc. (NASDAQ: PDCO) acquired Animal Health International, Inc.
During March 2015, AmerisourceBergen Corporation (NYSE: ABC) acquired MWI Animal Health.
Assumes that the acquisition of Animal Medic by ANIMART LLC (which closed during the third quarter of 2016) had occurred as of the beginning of the periods being reported.
Amount is less than 10%.
This balance as of December 31, 2016 included an option payment of $20,500 towards land (which we did not exercise) that was subsequently applied to the purchase of a warehouse facility during the first quarter of 2017.
As of December 31, 2016, construction in progress consisted principally of initial costs incurred in connection with the building and equipping of our Nisin production plant for Mast Out®. As of December 31, 2015, construction in progress consisted principally of partial payments towards new manufacturing equipment related to expanding our production capacity for First Defense®.
Intrinsic value is the difference between the fair market value as of the date indicated and as of the date of the option grant.
This impact is due to the actual state tax rate in 2015 being lower than the expected state tax rate used in computing prior deferred taxes.