| The Company | Note
1 The
Company: Background PhotoMedex,
Inc. (and its subsidiaries) (the Company) is a Global Skin Health company providing integrated disease management
and aesthetic solutions to dermatologists, professional aestheticians and consumers. The Company provides proprietary products
and services that address skin diseases and conditions including acne, photo damage and unwanted hair. Our experience in the physician
market provides the platform to expand our skin health solutions to spa markets, as well as traditional retail, online and infomercial
outlets for home-use products. Through our subsidiary Radiancy, Inc., which was merged into PhotoMedex in 2011, weve added
a range of home-use devices under the no!no!® brand, for various indications including hair removal, acne treatment, skin
rejuvenation, and lower back pain. In addition, our professional product line increased its offerings for acne clearance, skin
tightening, psoriasis care and hair removal sold to physician clinics and spas. Liquidity
On
January 6, 2016, PhotoMedex, Inc. received an advance of $4 million, less a $40 financing fee (the January 2016 Advance),
from CC Funding, a division of Credit Cash NJ, LLC, (the "Lender"), pursuant to a Credit Card Receivables Advance Agreement (the
"Advance Agreement"), dated December 21, 2015. The Companys domestic subsidiaries, Radiancy, Inc.; PTECH;
and Lumiere, Inc., are also parties to the Advance Agreement (collectively with the Company, the Borrowers). Concurrent
with the funding of the loan agreement, the Company established a $500 cash reserve account in favor of the lender to be used
to make loan payments in the event that weekly remittances, net of sales return credits and other bank charges or offsets, are
insufficient to cover the weekly repayment amount due the lender. Subject
to the terms and conditions of the Advance Agreement, the Lender will make periodic advances to the Company (collectively with
the January 2016 Advance and the April 2016 Advance described below, the Advances). The proceeds can be used for general
corporate purposes. All
outstanding Advances will be repaid through the Companys existing and future credit card receivables and other rights to
payment arising out of our acceptance or other use of any credit or charge card (collectively, Credit Card Receivables)
generated by activities based in the United States. The Companys processor for those Credit Card Receivables (the Processor)
has been instructed to remit, via electronic funds transfer, to the Lender all of the Borrowers Credit Card Receivables
collected by the Processor (net of any discounts, fees and/or similar amounts legally owed to the Processor by the Borrowers and
any charge-backs, offsets and/or other amounts which the Processor is entitled to deduct from the proceeds) until the Lender gives
written notice that all Advances then outstanding and associated fees and expenses have been received by Lender. Each
Advance is secured by a security interest in favor of the Lender in certain defined Collateral, including but not limited to all
of the Borrowers Credit Card Receivables; inventory, merchandise and materials; equipment, machinery, furniture, furnishings
and fixtures; patents, trademarks and tradenames; the escrow fund associated with the XTRAC and VTRAC transaction and certain
other intangibles and payment rights including any tax refunds owed to the Company; and all other intangibles and payment rights
arising out of the provision of goods or services by the Borrowers. In
the event of a sale by the Company of certain collateralized assets, repayment of $1.5 million of the outstanding principal balance
is required to be accelerated or in the event of the sale of substantially all of the Companys assets, the remaining outstanding
principal balance is required to be repaid. On
April 29, 2016, the Company received an advance of $1 million, less a $10 financing fee (the April 2016 Advance),
from the Lender pursuant to the Advance Agreement. Additionally
the Company has restricted cash amounts of $724 held in escrow as of March 31, 2016 pending the one year anniversary of the sale
of the XTRAC and VTRAC business on June 22, 2015. Restricted cash as of March 31, 2016 also includes $193 which reflects amounts
collected by the Lender awaiting remittance to the Company which were received after March 31, 2016. Restricted cash also includes
$91 reflecting certain commitments connected to our leased office facilities in Israel. Acquisitions
and Dispositions (See also Note 2, Discontinued Operations) On
May 12, 2014, PhotoMedex completed the acquisition of 100% of the shares of LCA-Vision Inc. ("LCA-Vision" or "LCA"); the Company
sold 100% of the shares of LCA for $40 million in cash effective January 31, 2015. The results of operations of LCA-Vision have
been included into the Company's consolidated financial statements for the three months ended March 31, 2015 as a discontinued
operation. See Note 2, Discontinued Operations, in the Companys Form 10-K for the year ending December 31, 2015 for information
regarding these transactions as well as the $85 million senior secured credit facilities entered into with JP Morgan Chase as
part of the acquisition of LCA. On
March 31, 2016 we completed the sale to The Lotus Global Group, Inc. of all of the tangible and intangible assets of the Omnilux
product line for $220 ($110 was received as a refundable deposit during December 2015 in advance and $110 was received in April
2015), pursuant to: the Agreement for Sale of Assets dated March 31, 2016. Management does not believe that the sale of the Omnilux
product line represents a strategic shift for the company. As a result, the above transaction has not been reflected in the accompanying
consolidated financial statements as discontinued operations. The Company recorded a loss on the disposal of those assets in the
amount of $843 for the three months ended March 31, 2016. PENDING
TRANSACTION On
February 19, 2016, PhotoMedex, Inc., Radiancy, Inc., a wholly-owned subsidiary of the Company (Radiancy),
DS Healthcare Group, Inc. (DSKX) and PHMD Consumer Acquisition Corp., a wholly-owned subsidiary of DSKX
(Merger Sub A), entered into an Agreement and Plan of Merger and Reorganization (the Radiancy Merger Agreement)
pursuant to which Radiancy will merge with Merger Sub A, with Radiancy as the surviving corporation in such merger (the Radiancy
Merger). Concurrently, PHMD, PTECH, DSKX, and PHMD Professional Acquisition Corp., a wholly-owned subsidiary of DSKX
(Merger Sub B), entered into an Agreement and Plan of Merger and Reorganization (the P-Tech Merger Agreement
and together with the Radiancy Merger Agreement, the Merger Agreements) pursuant to which PTECH will merge with
Merger Sub B, with PTECH as the surviving corporation in such merger (the P-Tech Merger and together with the Radiancy
Merger, the Mergers). As a result of the Mergers, DSKX would become the holding company for Radiancy and PTECH.
The Mergers are expected to qualify as tax-free transfers of property to DSKX for federal income tax purposes. On
March 23, 2016, DSKX filed a Current Report on Form 8-K (the DSKX March 23 Form 8-K) with the SEC reporting its audit
committee, after discussion with its independent registered public accounting firm, concluded that the unaudited condensed consolidated
financial statements of DSKX for the two fiscal quarters ended June 30, 2015 and September 30, 2015 should no longer be relied
upon because of certain errors in such financial statements. To the knowledge of DSKXs audit committee, the facts underlying
its conclusion include that revenues recognized related to certain customers of DSKX did not meet revenue recognition criteria
in the two fiscal quarters ended June 30, 2015 and September 30, 2015. Additionally, certain equity transactions in the two fiscal
quarters ended June 30, 2015 and September 30, 2015 were not properly recorded in accordance with United States Generally Accepted
Accounting Principles and also were not properly disclosed. DSKX
reported in the DSKX March 23 Form 8-K that, on March 17, 2016, all members of DSKXs board of directors other than Mr. Khesin,
terminated the employment of Mr. Khesin, as its president and as an employee of DSKX, and also terminated Mr. Khesins employment
agreement, dated December 16, 2013. DSKX reported in the DSKX March 23 Form 8-K that all members of DSKXs board of directors
other than Mr. Khesin terminated both Mr. Khesins employment and employment agreement for cause. In addition, DSKX reported
in the DSKX March 23 Form 8-K that all members of DSKXs board of directors other than Mr. Khesin unanimously removed Mr.
Khesin as Chairman and a member of DSKXs board of directors, also for cause. DSKX reported in the DSKX March 23 Form 8-K
that DSKXs board terminated Mr. Khesin for cause from both his employment and board positions because DSKXs board
believes, based on the results of the investigation as of the date of the DSKX March 23 Form 8-K, that there is sufficient evidence
to conclude that Mr. Khesin violated his fiduciary duty to DSKX and its subsidiaries. The
Company was not advised of this investigation during its negotiations with DSKX or after signing the Merger Agreements until the
evening of March 21, 2016. The Company continues to monitor this situation in order to determine what impact, if any, it may have
upon the proposed transaction between the Company and DSKX. On April 12, 2016, the Company sent a Reservation of Rights letter
to DSKX. The Notice states that, based upon the disclosures set forth in DSKXs Current Report on Form 8-K filed on March
23, 2016 and subsequent press releases and filings by DSKX with the United States Securities and Exchange Commission (collectively,
the DSKX Public Disclosure), DSKX is in material breach of various representations, warranties, covenants and agreements
set forth in the Agreements; had failed to provide to the Company the information contained in the DSKX Public Disclosures during
the discussions relating to the negotiation and execution of the Agreements; and continues to be in material breach under the
Agreements. As a result, the conditions precedent to the closing of these transactions as set forth in the Agreements may not
be able to occur. The
Notice also declares that the Company reserves all its rights and remedies under the Agreements, including, without limitation,
the right to terminate the Agreements and collect a termination fee from DSKX of $3.0 million. The Notice further asserts that
the Company regards certain provisions of the Agreements to have been waived by DSKX and to no longer be in effect, including
the non-solicitation and no-shop provisions, negative covenants, and termination events, as applicable solely to the PHMD Group,
as well as the payment of any termination fee by PHMD to DSKX. Finally, the Notice provides that the Company has the right to
terminate the Agreements to pursue, consider and enter into any acquisition proposal or other transaction without the payment
of fees and expenses to DSKX. Depending
upon the results of DSKXs investigation and any ancillary actions, it may be necessary to terminate the proposed transaction
or to alter, amend or otherwise change the terms of that proposed transaction. There can be no guarantee that the transactions
contemplated by the Merger Agreements will be consummated, or consummated in the form originally planned, as a result of the subsequent
occurrences and as both the Company and DSKX must seek approval by its shareholders prior to consummating the transactions. See
Note 1, Pending Transactions in the Companys Form 10-K for the year ending December 31, 2015 for additional information. Basis
of Presentation Accounting
Principles The
accompanying condensed consolidated financial statements and related notes should be read in conjunction with our consolidated
financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015
(fiscal 2015). The unaudited condensed consolidated financial statements have been prepared in accordance with the
rules and regulations of the Securities and Exchange Commission (SEC) related to interim financial statements. As
permitted under those rules, certain information and footnote disclosures normally required or included in financial statements
prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been condensed
or omitted. The financial information contained herein is unaudited; however, management believes all adjustments have been made
that are considered necessary to present fairly the results of the Companys financial position and operating results for
the interim periods. All such adjustments are of a normal recurring nature. The
results for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the year ending
December 31, 2016 or for any other interim period or for any future period. Principles
of Consolidation The
consolidated financial statements include the accounts of the Company and the wholly- and majority-owned subsidiaries. All significant
intercompany balances and transactions have been eliminated in consolidation. Held
for Sale Classification and Discontinued Operations A
disposal group is reported as held for sale when management has approved or received approval to sell and is committed to a formal
plan, the disposal group is available for immediate sale, the business is being actively marketed, the sale is anticipated to
occur during the next 12 months and certain other specified criteria are met. A disposal group classified as held for sale is
recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying value of the business
exceeds its estimated fair value less cost to sell, a loss is recognized. However, when disposal group meets the held for sale
criteria, the Company first evaluates whether the carrying amounts of the assets not covered by ASC 360-10 included in the disposal
group (such as goodwill) are required to be adjusted in accordance with other applicable GAAP before measuring the disposal group
at fair value less cost to sell. Assets
and liabilities related to a disposal group classified as held for sale are segregated in the consolidated balance sheet in the
period in which the disposal group is classified as held for sale. Until
December 31, 2014, in accordance with previous US GAAP, operations of a disposal group were reported as discontinued operations
if the disposal group is classified as held for sale, the operations and cash flows of the business have been or will be eliminated
from the ongoing operations as a result of a disposal transaction and when the Company will not have any significant continuing
involvement in the operations of the disposal group after the disposal transaction. See below regarding change to the criteria
for reporting discontinued operations. Accordingly,
the disposal of LCA-Vision was presented as discontinued operations, commencing with the financial statements for the year ended
December 31, 2014. Commencing
January 1, 2015 (the effective date of the ASU 2014-08), only disposal of a component of an entity or a group of components of
an entity that represents a strategic shift that has or will have a major effect on an entity's operations and financial results
shall be reported as discontinued operations. The revised guidance did not change the criteria required to qualify for held for
sale presentation. The revised guidance includes several new disclosures and among others, required to reclassify the assets and
liabilities of discontinued operations to separate line items in the balance sheets for all periods presented (including comparatives).
Accordingly, following the sale of XTRAC and VTRAC business which were determined to represent a strategic shift that will have
a major effect on the Company, the assets and liabilities of the XTRAC and VTRAC as of December 31, 2014 were reclassified and
presented as assets and liabilities held for sale (without changing their classification as current or non-current). Also, the
results of the operations of LCA operating segment and the XTRAC and VTRAC business were presented as discontinued operations
in the consolidated statements of comprehensive loss (see also Note Discontinued operations The
results of discontinued operations are reported in discontinued operations in the consolidated statement of comprehensive loss
for current and prior periods commencing in the period in which the business meets the criteria of a discontinued operation, and
include any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell. Depreciation
is not recorded on assets of a business while it is classified as held for sale. Revenue
Recognition The
Company recognizes revenues from product sales when the following four criteria have been met: (i) the product has been delivered
and the Company has no significant remaining obligations; (ii) persuasive evidence of an arrangement exists; (iii) the price to
the buyer is fixed or determinable; and (iv) collection is reasonably assured. Revenues from product sales are recorded net of
provisions for estimated chargebacks, rebates, expected returns and cash discounts. The
Company ships most of its products FOB shipping point, although from time to time certain customers, for example governmental
customers, will be granted FOB destination terms. Among the factors the Company takes into account when determining the proper
time at which to recognize revenue are (i) when title to the goods transfers and (ii) when the risk of loss transfers. Shipments
to distributors or physicians that do not fully satisfy the collection criteria are recognized when invoiced amounts are fully
paid or fully assured and included in deferred revenues until that time. For
revenue arrangements with multiple deliverables within a single, contractually binding arrangement (usually sales of products
with separately priced extended warranty), each element of the contract is accounted for as a separate unit of accounting when
it provides the customer value on a stand-alone basis and there is objective evidence of the fair value of the related unit. With
respect to sales arrangements under which the buyer has a right to return the related product, revenue is recognized only if all
the following conditions are met: the price is fixed or determinable at the date of sale; the buyer has paid, or is obligated
to pay and the obligation is not contingent on resale of the product; the buyer's obligation would not be changed in the event
of theft or physical destruction or damage of the product; the buyer has economic substance; the Company does not have significant
obligations for future performance to directly bring about resale of the product by the buyer; and the amount of future returns
can be reasonably estimated. The
Company provides a provision for product returns based on the experience with historical sales returns, in accordance with ASC
Topic 605-15 with respect to sales of product when a right of return exists. Reported revenues are shown net of the returns provision.
Such allowance for sales returns is included in Other Accrued Liabilities Note 9 Deferred
revenue includes amounts received with respect to extended warranty maintenance, repairs and other billable services and amounts
not yet recognized as revenues. Revenues with respect to such activities are deferred and recognized on a straight-line basis
over the duration of the warranty period, the service period or when service is provided, as applicable to each service. Functional
Currency The
currency of the primary economic environment in which the operations of the Company, its U.S. subsidiaries and Radiancy Ltd.,
its subsidiary in Israel, are conducted is the US dollar ("$" or "dollars"). Thus, the functional currency of the Company and
its subsidiaries (other than the foreign subsidiaries mentioned below) is the dollar (which is also the reporting currency of
the Group). The operations of the other foreign subsidiaries are each conducted in the local currency of the subsidiary. These
currencies include: Great Britain Pounds (GBP) and Hong Kong Dollar (HKD). Substantially all of the Group's revenues are derived
in dollars or in other currencies linked to the dollar. Purchases of most materials and components are carried out in, or linked
to the dollar. Balances
denominated in, or linked to, foreign currencies are stated on the basis of the exchange rates prevailing at the balance sheet
date. For foreign currency transactions included in the statement of comprehensive income (loss), the exchange rates applicable
to the relevant transaction dates are used. Transaction gains or losses arising from changes in the exchange rates used in the
translation of such balances are carried to financing income or expenses. Assets
and liabilities of foreign subsidiaries, whose functional currency is their local currency, are translated from their respective
functional currency to U.S. dollars at the balance sheet date exchange rates. Income and expense items are translated at the average
rates of exchange prevailing during the year. Translation adjustments are reflected in the consolidated balance sheets as a component
of accumulated other comprehensive income (loss). Deferred taxes are not provided on translation adjustments as the earnings of
the subsidiaries are considered to be permanently reinvested . Fair
Value Measurements The
Company measures and discloses fair value in accordance with Financial Accounting Standards Board (FASB) Accounting
Standards Codification 820, Fair Value Measurements and Disclosures
Level 1 unadjusted
quoted prices are available in active markets for identical assets or liabilities that the Company has the ability to access
as of the measurement date.
Level 2 pricing
inputs are other than quoted prices in active markets that are directly observable for the asset or liability or indirectly
observable through corroboration with observable market data.
Level 3 pricing
inputs are unobservable for the non-financial asset or liability and only used when there is little, if any, market activity
for the non-financial asset or liability at the measurement date. The inputs into the determination of fair value require
significant management judgment or estimation. Fair value is determined using comparable market transactions and other valuation
methodologies, adjusted as appropriate for liquidity, credit, market and/or other risk factors This
hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when
determining fair value. The
fair value of cash and cash equivalents and restricted cash are based on its demand value, which is equal to its carrying value.
The estimated fair values of notes payable which are based on borrowing rates that are available to the Company for loans with
similar terms, collateral and maturity approximate the carrying values. Additionally, the carrying value of all other monetary
assets and liabilities is estimated to be equal to their fair value due to the short-term nature of these instruments. Derivative
financial instruments are measured at fair value, on a recurring basis. The fair value of derivatives generally reflects the estimated
amounts that the Group would receive or pay to terminate the contracts at the reporting dates, based on the prevailing currency
prices and the relevant interest rates. Such measurement is classified within Level 2. In
addition to items that are measured at fair value on a recurring basis, there are also assets and liabilities that are measured
at fair value on a nonrecurring basis. Assets and liabilities that are measured at fair value on a nonrecurring basis include
certain long-lived assets, including goodwill. As such, we have determined that each of these fair value measurements reside within
Level 3 of the fair value hierarchy. Derivatives The
Company applies the provisions of Accounting Standards Codification ("ASC") Topic 815, Derivatives and Hedging From
time to time the Company carries out transactions involving foreign exchange derivative financial instruments (mainly forward
exchange contracts) which are expected to be paid with respect to forecasted expenses of the Israeli subsidiary (Radiancy) denominated
in Israeli local currency (NIS) which is different than its functional currency. Such
derivatives were not designated as hedging instruments, and accordingly they were recognized in the balance sheet at their fair
value, with changes in the fair value carried to the Statement of Comprehensive Income (Loss) and included in interest and other
financing expenses, net. At
March 31, 2016, the balance of such derivative instruments amounted to approximately $0 in assets and approximately $0 were recognized
as financing income in the Statement of Comprehensive (Loss) Income during the quarter ended that date. The
nominal amounts of foreign currency derivatives as of March 31, 2016 consist of forward transactions for the exchange of $0 into
NIS as of March 31, 2016. Accrued
Warranty Costs The
Company offers a standard warranty on product sales generally for a one to two-year period. The Company provides for the estimated
cost of the future warranty claims on the date the product is sold. Total accrued warranty is included in Other Accrued
Liabilities
March
31,
2016 2015
(unaudited) (unaudited)
Accrual
at beginning of year $ 330 $ 529
Additions charged
to warranty expense 10 86
Expiring warranties (54 ) (13 )
Claims
satisfied (45 ) (97 )
Total 241 505
Less:
current portion (241 ) (505 )
Accrued
extended warranty $ 0 $ 0 For
extended warranty on the consumer products, see Revenue Recognition Net
Loss Per Share Basic
and diluted net loss per common share were calculated using the following weighted-average shares outstanding:
For
the Three Months Ended March 31,
2016 2015
Weighted-average number
of common and common equivalent shares outstanding:
Basic
number of common shares outstanding 20,777,321 19,794,210
Dilutive
effect of stock options and warrants - -
Diluted
number of common and common stock equivalent shares outstanding 20,777,321 19,794,210 Diluted
loss per share for the three months ended March 31, 2016, excluded the impact of common stock options and warrants, totaling 1,056,088
shares, as the effect of their inclusion would be anti-dilutive, due to the net loss for the period. Diluted earnings per share
for the three months ended March 31, 2015, excluded the impact of common stock options and warrants, totaling 3,563,503 shares,
as the effect of their inclusion would be anti-dilutive, due to the net loss for the period. Adoption
of New Accounting Standards Effective
January 1, 2016, the Company adopted Accounting Standard ASU No. 2015-16, " Business Combinations (Topic 805): Simplifying the
Accounting for Measurement-Period Adjustments. ASU
2015-16 became effective for public business entities for fiscal years beginning after December 15, 2015, including interim periods
within those fiscal years. The amendments is required 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
adoption of this ASU did not have a significant impact on the condensed consolidated financial statements. Recently
Issued Accounting Standards In
May 2014, The FASB issued Accounting Standard Update 2014-09 , Revenue from Contracts with Customers (Topic 606) ASU
2014-09 outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes
most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 also requires entities to disclose
sufficient information, both quantitative and qualitative, to enable users of financial statements to understand the nature, amount,
timing, and uncertainty of revenue and cash flows arising from contracts with customers. During
2016, the FASB issued several Accounting Standard Updates that focuses on certain implementation issues of the new revenue recognition
guidance including Narrow-Scope Improvements and Practical Expedients, Principal versus Agent Considerations and Identifying Performance
Obligations and Licensing. An
entity should apply the amendments in this ASU using one of the following two methods: 1. Retrospectively to each prior reporting
period presented with a possibility to elect certain practical expedients, or, 2. Retrospectively with the cumulative effect of
initially applying ASU 2014-09 recognized at the date of initial application. If an entity elects the latter transition method,
it also should provide certain additional disclosures. For
a public entity, the amendments in ASU 2014-09 (including the amendments introduced through recent ASU's) are effective for annual
reporting periods beginning after December 15, 2017, including interim periods within that reporting period (the first quarter
of fiscal year 2018 for the Company). Early application is not permitted. The Company is in the process of assessing the impact,
if any, of ASU 2014-09 on its consolidated financial statements. In
August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial StatementsGoing Concern (Subtopic
205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15
provide guidance on managements responsibility in evaluating whether there are conditions or events, considered in the aggregate,
that raise substantial doubt about the entitys ability to continue as a going concern within one year after the date that
the financial statements are issued (or within one year after the date that the financial statements are available to be issued
when applicable). ASU 2014-15 also provide guidance related to the required disclosures as a result of management evaluation. The
amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim
periods thereafter. Early application is permitted. In
July, 2015, The FASB issued Accounting Standards Update No. 2015-11 , Simplifying the Measurement of Inventory (Topic 330) In
September 2015, the FASB issued ASU No. 2015-16, " Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period
Adjustments. In
November 2015, the FASB has issued Accounting Standards Update (ASU) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification
of Deferred Taxes, which changes how deferred taxes are classified on organizations balance sheet. The ASU eliminates the
current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified
balance sheet. Instead, all deferred tax assets and liabilities will be required to be classified as noncurrent.The amendments
apply to all organizations that present a classified balance sheet. For public companies, the amendments are effective for financial
statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods (i.e.,
in the first quarter of 2017 for calendar year-end companies).Early adoption is permitted for all entities as of the beginning
of an interim or annual reporting period.The guidance may be applied either prospectively, for all deferred tax assets and liabilities,
or retrospectively (i.e., by reclassifying the comparative balance sheet). If applied prospectively, entities are required to
include a statement that prior periods were not retrospectively adjusted. If applied retrospectively, entities are also required
to include quantitative information about the effects of the change on prior periods. The Company does not believe this ASU will
have a significant impact on its consolidated financial statements. In
March 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-09, Compensation - Stock Compensation (Topic 718):
Improvements to Employee Share-Based Payment Accounting. The amendments are intended to improve the accounting for employee
share-based payments and affect all organizations that issue share-based payment awards to their employees. Several
aspects of the accounting for share-based payment award transacti |
