| Accounting policies | Note 2 - Accounting policies Basis of presentation and principle of consolidation The accompanying consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”),
and include the financial statements of the Company and all its majority-owned subsidiaries that require consolidation. Intercompany
transactions and balances have been eliminated in the consolidation. The following entities were consolidated as of December 31,
2015:
Place incorporated Ownership percentage
SGOCO Cayman Islands Parent Company
SGOCO International Hong Kong 100%
Beijing SGOCO Beijing, China 100%
SGO Delaware, USA 100%
SGOCO Shenzhen Shenzhen, China 100% The Company had a working capital deficiency and recorded a
loss in in the current year. These factors raise substantial doubts about the CompanyÂ’s ability to continue as a going concern. On May 9, 2016, the Company entered into a share purchase
agreement with certain investors whereby the Company agrees to sell to these investors 1,900,000 shares of the CompanyÂ’s
unregistered ordinary shares for an amount of $7 million. On May 11, 2016, the investors paid the first tranche of $350,000. The
Company shall issue 95,000 shares within 30 working days upon receipt of such payment. The investors shall pay the balance of
$6,650,000 on or before July 31, 2016, and the Company shall issue 1,805,000 shares within 30 working days upon receipt of such
payment. However, there can be no assurance that the Company will be successful in obtaining the financing. The
Company believes that with the financing and the successful transition of business to provision of products and projects utilizing
“green” energy technologies with the acquisition of Boca and potential acquisition of Sola Green (see Note 7), it can
continue as a going concern and return to profitability. The accompanying consolidated financial statements have been
prepared assuming the Company will continue to operate as a going concern, which contemplates the realization of assets and the
settlement of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments
to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of
liabilities that may result from the outcome of this uncertainty related to the CompanyÂ’s ability to continue as a going
concern. Use of estimates Preparing consolidated financial statements in conformity with
U.S. GAAP requires management to make estimates and assumptions affecting 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 reporting period. The more significant areas requiring the use of managementÂ’s estimates and assumptions relate
to the collectability of its receivables and the fair value and accounting treatment of certain financial instruments. Management
bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances.
Accordingly, actual results may differ significantly from these estimates. In addition, different assumptions or circumstances
could reasonably be expected to yield different results. Cash and cash equivalents For purposes of the cash flow statements, the Company considers
all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.
Cash includes cash on hand and demand deposits in accounts maintained with financial institutions or state owned banks within the
PRC, Hong Kong and the U.S. Accounts receivable and other receivables Receivables include trade accounts due from customers and other
receivables such as cash advances to employees, related parties and third parties and advances to suppliers. Management reviews
the composition of accounts receivable and analyzes historical bad debts, customer concentration, customer credit worthiness, current
economic trends and changes in customer payment patterns to determine if the allowance for doubtful accounts is adequate. An estimate
for doubtful accounts is made when collection of the full amount is no longer probable. Delinquent account balances are written-off
after management has determined that the likelihood of collection is not probable and known bad debts are written off against the
allowance for doubtful accounts when identified. As of December 31, 2015 and 2014, there was $1 and nil allowance for uncollectible
accounts receivable, respectively. Management believes that the remaining accounts receivable are collectible. Inventories Inventory is composed of finished goods. Inventory is valued
at the lower of cost or market value using the weighted average method. Management reviews inventories for obsolescence and compares
the cost of inventory with the market value at least once a year. An allowance is made for writing down the inventory to its market
value, if it is lower than cost. Plant and equipment Plant and equipment is stated at cost less accumulated depreciation
and accumulated impairment losses, if any. Expenditures for maintenance and repairs are charged to earnings as incurred. Major
additions are capitalized. When assets are retired or otherwise disposed of, the related cost and accumulated depreciation are
removed from the respective accounts, and any gain or loss is included in operations. Depreciation of plant and equipment is provided
using the straight-line method for substantially all assets with estimated lives as follows:
Estimated Useful Life
Leasehold improvements Over the lease term
Machinery equipment 5-10 years
Vehicles and office equipment 5 years Impairment of long-lived assets The Company evaluates long lived assets, including equipment,
for impairment at least once per year and whenever events or changes in circumstances indicate that the carrying value may not
be recoverable from its estimated future cash flows. Based on the existence of one or more indicators of impairment, the Company
measures any impairment of long-lived assets by comparing the asset's estimated fair value with its carrying value, based on cash
flow methodology. If the net book value of the asset exceeds the related undiscounted cash flows, the asset is considered impaired
and an impairment loss equal to an amount by which the carrying value exceeds the fair value of the asset is recognized. As of
December 31, 2015 and 2014, management believes there was no impairment of long-lived assets. Derivative liability Derivative
liabilities, which include public and private warrants, a put option and underwriter options, are recorded on the consolidated
balance sheet as a liability at their fair value. The Company accounts for derivative liabilities in accordance with an accounting
standard regarding “Instruments that are Indexed to an Entity’s Own Stock”. This accounting standard specifies
that a contract that would otherwise meet the definition of a derivative but is both (a) indexed to the CompanyÂ’s own stock
and (b) classified in shareholdersÂ’ equity in the statement of financial position would not be considered a derivative financial
instrument. It provides a new two-step model to be applied in determining whether a financial instrument or an embedded feature
is indexed to an issuerÂ’s own stock and thus able to qualify for the scope exception within the standards. Prior to the Acquisition, warrants issued were treated as equity.
As a result of the Acquisition, the derivative was no longer provided equity treatment because the strike price of the warrants
is denominated in U.S. Dollars, a currency other than the Company’s functional currency which is the Chinese Renminbi (“RMB”).
Therefore, warrants are not considered indexed to the CompanyÂ’s own stock, and as such, all future changes in the fair value
of these warrants will be recognized currently in earnings until such time as the warrants are exercised or expire. The Company
reclassified the fair value of these warrants, which have the dual-indexed feature, from equity to liability. The Company accounts for the put option agreement in accordance
with the accounting standards regarding certain financial instruments with characteristics of both liabilities and equity. The
put option agreement obligated the Company to purchase such shares. As the result, the Company treated the put option as a liability. Fair value of financial instruments The CompanyÂ’s financial instruments primarily consist
of cash and cash equivalents, accounts receivable, accounts payable, other receivables, other payables and accrued liabilities,
advances to suppliers, short-term loans, customer deposits and convertible notes. As of the balance sheet dates, the estimated fair value of cash
and cash equivalents, accounts receivable, accounts payable, other receivables, other payables and accrued liabilities, advances
to suppliers, short-term loans and customer deposits were not materially different from their carrying values as presented due
to the short maturities of these instruments and that the interest rates on the borrowings approximate those that would have been
available for loans for similar remaining maturity and risk profile at the respective reporting periods. The fair value measurement accounting standard defines fair
value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements
for fair value measures. The three levels are defined as follows:
• Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
• Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
• Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level
within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis:
Carrying Value at December 31, 2015 Fair Value Measurement at December 31, 2015
Level 1 Level 2 Level 3
Convertible notes measured at fair value $ 2,169 $ - $ - $ 2,169
Carrying Value at December 31, 2014 Fair Value Measurement at December 31, 2014
Level 1 Level 2 Level 3
Warrant derivative liability $ 2 $ - $ 2 $ - A summary of changes in financial liabilities for the year
ended December 31, 2015 was as follows:
Balance at January 1, 2015 $ 2
Change in fair value of warrant derivative liability (2 )
Issuance of convertible notes 1,149
Fair value loss on issuance of convertible notes 1,019
Interest expenses on convertible notes 56
Change in fair value of convertible notes 21
Conversion of convertible notes (76 )
Balance at December 31, 2015 2,169 Fair value of the convertible notes is
determined using the binomial model using the following assumptions at inception and on subsequent valuation dates:
Convertible notes holder
Black Forest Capital, LLC
JSJ Investment Inc
Crown Bridge Partners LLC
LG Capital Funding LLC
Adar Bays LLC
Service Trading Co LLC
VIS Vires Group Inc
Appraisal Date (Inception Date) 7/17/15 6/3/15 9/11/15 6/10/15 6/11/15 6/25/15
Risk-free Rate 0.77% 0.42% 0.85% 0.78% 0.79% 0.77%
Applicable Closing Stock Price $0.61 $0.70 $0.45 $0.79 $0.87 $0.66
Conversion Price $0.34 $0.28 $0.23 $0.39 $0.39 $0.40
Volatility 31.45% N/A 37.23% 30.18% 30.19% 31.58%
Dividend Yield 0.00%
Credit Spread 2.75% 2.59% 3.00% 2.85% 2.80% 2.76%
Liquidity Risk Premium 5.00%
Appraisal Date 12/31/15
Risk-free Rate 0.87% 2.16% 0.94% 0.79% 0.79% 0.61%
Applicable Closing Stock Price $0.39
Conversion Price $0.19 $0.19 $0.19 $0.21 $0.21 $0.22
Volatility 43.13% N/A 38.86% 47.18% 47.18% 44.59%
Dividend Yield 0.00%
Credit Spread 4.08% 4.39% 4.08% 4.08% 4.08% 3.66%
Liquidity Risk Premium 5.00% Comprehensive income U.S. GAAP generally requires that recognized revenue, expenses,
gains and losses be included in net income or loss. Although certain changes in assets and liabilities are reported as separate
components of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive
income or loss. The components of other comprehensive income or loss consist of foreign currency translation adjustments net of
realization of foreign currency translation gain relating to disposal of subsidiaries. Revenue recognition The CompanyÂ’s revenue recognition policies are consistent
with the accounting standards. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists,
the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectability
is reasonably assured. For products that are required to be examined by customers, sales revenue is recognized after the customer
examination is completed. Payments received before all of the relevant criteria for revenue recognition are met are recorded as
customer deposits. Generally, our outsourced manufacturers are obligated to provide at least one-year repair or replacement obligation.
Management did not estimate future warranty liabilities as historical warranty expenses were minimal. Sales revenue is recognized net of value-added taxes, sales
discounts and returns. There was $27, nil and nil sales returns during the years ended December 31, 2015, 2014 and 2013, respectively. Government grants The Company was entitled to receive grants from the PRC municipal
government under various local government programs. For the years ended December 31, 2015, 2014 and 2013, the Company received
grants of nil, $358 and $302, respectively, from the PRC municipal government. The grants that the Company received in 2014 and
2013 did not have a specific requirement of usage or other condition, and they were recorded as other income upon receipt. Income taxes The Company accounts for income taxes in accordance with the
accounting standard issued by the Financial Accounting Standard Board (“FASB”) for income taxes. Under the asset and
liability method as required by this accounting standard, deferred income taxes are recognized for the tax consequences of temporary
differences by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying
amounts and the tax bases of existing assets and liabilities. The charge for taxation is based on the results for the reporting
period as adjusted for items which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or
substantively enacted by the balance sheet date. The effect on deferred income taxes of a change in tax rates is recognized in
income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some
portion, or all of, a deferred tax asset will not be realized. Under the accounting standard regarding accounting for uncertainty
in income taxes, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position
would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount
of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more
likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax
are classified as income tax expense in the year incurred. During the years ended December 31, 2015, 2014 and 2013, the Company
incurred nil, $24 and $71 of interest related to income taxes. U.S. GAAP also provides guidance on de-recognition, classification,
interest and penalties, accounting in interim periods, disclosures and transition. According to the PRC Tax Administration and Collection Law,
the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its
withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined.
In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the
case of tax evasion. According to the Circular on the State Administration of Taxation
on Strengthening the Management of EIT Collection of Proceeds from Equity Transfers by Non-Resident Enterprises (Guoshuihan [2009]
No. 698) (“Circular 698”) and the State Administration of Taxation Notice [2015] No. 7, a non-PRC Tax Resident Enterprise
is subject to the PRC EIT on the taxable gain arising from a sale of transfer of any intermediate offshore company which directly
or indirectly holds an interest, including any assets, subsidiaries, or other forms of business operations, in the PRC, or otherwise
stipulated in an applicable tax treaty or arrangement. Circular 698 applies to all transactions conducted on or after January 1,
2008. Operating leases Leases where substantially all the rewards and risks of ownership
of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged
to the statements of income on a straight-line basis over the lease periods. Advertising costs The Company expenses the cost of advertising as incurred in
selling products. The Company had no advertising costs incurred for the years ended December 31, 2015, 2014 and 2013. Shipping and handling Shipping and handling cost incurred to ship finished products
to customers are included in selling expenses. Shipping and handling expenses for the years ended December 31, 2015, 2014 and 2013,
amounted to $20, $86 and $536, respectively. Research and development costs Research and development costs are expensed as incurred and
are included in general and administrative expenses. The costs of material and equipment that are acquired or constructed for research
and development activities and have alternative future uses are classified as plant and equipment and depreciated over their estimated
useful lives. Research and development costs for the years ended December 31, 2015, 2014 and 2013 amounted to $74, $56 and $175,
respectively. Earnings (loss) per share The Company reports earnings (loss) per share in accordance
with the provisions of FASBÂ’s related accounting standard. This standard requires presentation of basic and diluted earnings
(loss) per share and disclosure of the methodology used in computing such earnings per share. Basic earnings (loss) per share excludes
dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding
during the period. Diluted earnings (loss) per share takes into account the potential dilution that could occur if securities or
other contracts to issue common stock were exercised and converted into common stock. Dilutive shares consist of the ordinary shares
issuable upon the conversion of convertible notes (using the if-converted method) and ordinary shares issuable upon the exercise
of outstanding share options and warrants (using the treasury stock method). Under the treasury stock method, option and warrants
were assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby
were used to purchase common stock at the average market price during the period. Share-based compensation The Company accounts for equity instruments issued in exchange
for the receipt of goods or services from consultants in accordance with the accounting standards regarding accounting for stock-based
compensation and accounting for equity instruments that are issued to other than employees for acquiring or in conjunction with
selling goods or services. Costs are measured at the estimated fair market value of the consideration received or the estimated
fair value of the equity instruments issued, whichever is more reliably determinable. The value of equity instruments issued for
consideration other than employee services is determined on the earlier of a performance commitment or completion of performance
by the provider of goods or services as defined by these accounting standards. In the case of equity instruments issued to consultants,
the fair value of the equity instrument is recognized over the term of the consulting agreement if there is a term. The Company accounts for equity instruments issued in exchange
for the receipt of services from employees in the financial statements based on their fair values at the date of grant. The fair
value of awards is amortized over the requisite service period. Foreign currency translation The reporting currency of the Company is the U.S. Dollar. The
functional currency of the Company and its PRC subsidiaries is the RMB. The functional currency of its Hong Kong subsidiary SGOCO
International is the U.S. Dollar. Results of operations and cash flow are translated at average exchange rates during the period,
and assets and liabilities are translated at the unified exchange rate as quoted by the PeopleÂ’s Bank of China at the end
of the period. Capital accounts are translated at their historical exchange rates when the capital transaction occurred. Translation
adjustments resulting from this process are included in accumulated other comprehensive income. Transaction gains and losses that
arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included
in the results of operations as incurred. The balance sheet amounts with the exception of equity were
translated at RMB6.49 and RMB6.12 to $1.00 at December 31, 2015 and 2014, respectively. The equity accounts were stated at their
historical exchange rates. The average translation rates applied to the income and cash flow statement amounts for the years ended
December 31, 2015, 2014 and 2013 were RMB6.23, RMB6.14 and RMB6.20 to $1.00, respectively. Recent accounting pronouncements The Financial Accounting Standards Board ("FASB")
has issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes
the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific
guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange
for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting
period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial
application. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the
Effective Date. The amendment in this ASU defers the effective date of ASU No. 2014-09 for all entities for one year. Public business
entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual
reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier
application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods
with that reporting period. The Company is in the process of evaluating the impact of adoption of this guidance on the consolidated
financial statements. In June 2014, the FASB issued ASU 2014-12, "Compensation
- Stock Compensation (Topic 718)" which provides explicit guidance on the treatment of awards with performance targets that
could be achieved after the requisite service period. The amendments in ASU 2014-12 are effective for annual periods and interim
periods within those annual periods beginning after December 15, 2015. The Company does not expect that the adoption will have
a material impact on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of
Financial Statements – Going Concern. This standard requires management to evaluate for each annual and interim reporting
period whether it is probable that the reporting entity will not be able to meet its obligations as they become due within one
year after the date that the financial statements are issued. If the entity is in such a position, the standard provides for certain
disclosures depending on whether or not the entity will be able to successfully mitigate its going concern status. This guideline
is effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December
15, 2016. Early application is permitted. The Company does not expect that the adoption will have a material impact on its consolidated
financial statements. In February 2015, the FASB issued ASU 2015-02 "Consolidation
(Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform
to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim
periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period.
The Company is currently in the process of evaluating the impact of the adoption of ASU 2015-02 on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory, which
requires an entity to measure inventory within the scope at the lower of cost and net realizable value. Net realizable value is
the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and
transportation. The effective date for the standard is for fiscal years beginning after December 15, 2016. Early adoption is permitted.
The Company does not anticipate that this adoption will have a significant impact on its consolidated financial position, results
of operations, or cash flows. In September 2015, the FASB issued ASU No. 2015-16, Business
Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. To simplify the accounting for adjustments
made to provisional amounts recognized in a business combination, the amendments eliminate the requirement to retrospectively account
for those adjustments. For public business entities, the amendments are effective for fiscal years beginning after December 15,
2015, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective
for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017.
The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier
application permitted for financial statements that have not been issued. The Company does not anticipate that this adoption will
have a significant impact on its consolidated financial position, results of operations, or cash flows. In November 2015, the FASB issued ASU 2015-17, “Income
Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. To simplify the presentation of deferred income taxes,
the amendments in this update require that deferred income tax liabilities and assets be classified as noncurrent in a classified
statement of financial position. The amendments in ASU 2015-17 are effective for public business entities for financial statements
issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may
be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company does
not expect that the adoption will have a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial
Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. The
amendments in this update require all equity investments to be measured at fair value with changes in the fair value recognized
through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the
investee). The amendments in this update also require an entity to present separately in other comprehensive income the portion
of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity
has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The amendments
in ASU 2016-01 are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods
within those fiscal years. The Company does not expect that the adoption will have a material impact on its consolidated financial
statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic
842). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a
lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance
or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective
for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective
transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning
of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are in
the process of evaluating the impact of adoption of this ASU on the consolidated financial statements. On March 17, 2016, the FASB issued ASU
No. 2016-08, Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting Revenue Gross versus Net),
which provides guidance on assessing whether an entity is a principal or an agent in a revenue transaction and whether an entity
reports revenue on a gross or net basis. On April 14, 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers
- Identifying Performance Obligations and Licensing, which provides guidance on identifying performance obligations and accounting
for licenses of intellectual property. The effective date and transition requirements for ASU No. 2016-08 and ASU No. 2016-10 are
the same as the effective date and transition requirements of ASU No. 2014-09. The Company is evaluating the effect that ASU No.
2016-08 and ASU No. 2016-10 will have on the CompanyÂ’s consolidated financial statements and related disclosures. On March 15, 2016, the FASB issued ASU
No. 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement to apply the equity
method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. The
amendments in ASU 2016-07 are effective for public companies for fiscal years beginning after December 31, 2017 including interim
periods therein. Early adoption is permitted. The new standard should be applied prospectively for investments that qualify for
the equity method of accounting after the effective date. The Company does not expect that the adoption will have a material impact
on its consolidated financial statements. On March 30, 2016, the FASB issued ASU
No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which includes amendments to accounting for income taxes
at settlement, forfeitures, and net settlements to cover withholding taxes. The amendments in ASU 2016-09 are effective for public
companies for fiscal years beginning after December 31, 2016, and interim periods within those annual periods. Early adoption is
permitted but requires all elements of the amendments to be adopted at once rather than individually. The Company is evaluating
the effect that ASU No. 2016-09 will have on the Company |
