Taitron Components (TAIT) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document Information [Line Items]
Entity Registrant Name	TAITRON COMPONENTS INC
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	942,126
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		762,612
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,768,235

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 3,376,000	$ 3,692,000
Accounts receivable, less allowances of $45,000 and $47,000, respectively	708,000	291,000
Inventories, less reserves for obsolescence of $5,794,000, and $6,582,000, respectively	8,341,000	9,015,000
Prepaid expenses and other current assets	244,000	160,000
Total current assets	12,669,000	13,158,000
Property and equipment, net	4,159,000	4,203,000
Other assets (Note 4)	619,000	688,000
Total assets	17,447,000	18,049,000
Current Liabilities:
Accounts payable	511,000	1,039,000
Accrued liabilities	292,000	304,000
Current portion of long-term debt from related party (Note 5)	500,000	500,000
Total current liabilities	1,303,000	1,843,000
Long-term debt from related party (Note 5)	1,000,000	1,000,000
Total Liabilities	$ 2,303,000	$ 2,843,000
Commitments and contingencies (Notes 6 and 8)
Shareholders’ Equity:
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; None issued or outstanding	$ 0	$ 0
Additional paid-in capital	10,695,000	10,692,000
Accumulated other comprehensive income	135,000	159,000
Retained earnings	4,202,000	4,245,000
Total Shareholders’ Equity - Taitron Components Inc	15,038,000	15,102,000
Noncontrolling interest in subsidiary	106,000	104,000
Total Shareholders’ Equity	15,144,000	15,206,000
Total Liabilities and Shareholders’ Equity	17,447,000	18,049,000
Common Class A [Member]
Shareholders’ Equity:
Common Stock, value, issued	5,000	5,000
Common Class B [Member]
Shareholders’ Equity:
Common Stock, value, issued	$ 1,000	$ 1,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accounts receivable, allowances (in Dollars)	$ 45,000	$ 47,000
Inventories, reserves for obsolescence (in Dollars)	$ 5,794,000	$ 6,582,000
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Class A [Member]
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	4,768,235	4,777,144
Common stock, shares outstanding	4,768,235	4,777,144
Common Class B [Member]
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	762,612	762,612
Common stock, shares issued	762,612	762,612
Common stock, shares outstanding	762,612	762,612

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net sales	$ 1,670,000	$ 1,291,000
Cost of goods sold	1,101,000	955,000
Gross profit	569,000	336,000
Selling, general and administrative expenses	541,000	601,000
Operating income(loss)	28,000	(265,000)
Interest expense, net	(15,000)	(13,000)
Loss on investments	(74,000)	(87,000)
Other income, net	15,000	34,000
Loss before income taxes	(46,000)	(331,000)
Income tax provision	0	(1,000)
Net loss	(46,000)	(332,000)
Net loss attributable to noncontrolling interest in subsidiary	(3,000)	(3,000)
Net loss attributable to Taitron Components Inc.	$ (43,000)	$ (329,000)
Net loss per share: Basic & Diluted (in Dollars per share)	$ (0.01)	$ (0.06)
Weighted average common shares outstanding: Basic & Diluted (in Shares)	5,530,847	5,539,756
Net loss	$ (46,000)	$ (332,000)
Other comprehensive income (loss) :
Foreign currency translation adjustment	(24,000)	(7,000)
Comprehensive loss	(70,000)	(339,000)
Comprehensive loss attributable to noncontrolling interests	2,000	(2,000)
Comprehensive loss attributable to Taitron Components Inc.	$ (72,000)	$ (337,000)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities:
Net loss	$ (46,000)	$ (332,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	51,000	46,000
Provision for sales returns and doubtful accounts	68,000	5,000
Stock based compensation	(5,000)	7,000
Loss on investments	74,000	87,000
Changes in assets and liabilities:
Trade accounts receivable	(485,000)	(66,000)
Inventory	674,000	191,000
Prepaid expenses and other current assets	(84,000)	(49,000)
Trade accounts payable	(523,000)	60,000
Accrued liabilities	(17,000)	(2,000)
Other assets and liabilities	8,000	3,000
Total adjustments	(239,000)	282,000
Net cash used in operating activities	(285,000)	(50,000)
Investing activities:
Acquisition of property & equipment	(7,000)	0
Net cash used for investing activities	(7,000)	0
Impact of exchange rates on cash	(24,000)	(7,000)
Net decrease in cash and cash equivalents	(316,000)	(57,000)
Cash and cash equivalents, beginning of period	3,692,000	3,470,000
Cash and cash equivalents, end of period	3,376,000	3,413,000
Supplemental disclosures of cash flow information:
Cash paid for interest	14,000	13,000
Cash paid for income taxes, net	$ 1,000	$ 3,000

1 - ORGANIZATION

1 - ORGANIZATION	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1 – ORGANIZATION In 1989, we were formed and incorporated in California. We maintain a majority-owned subsidiary in Mexico (since 1998) and two subsidiaries in each of Taiwan (since 1998) and China (since 2005). Our Mexico location closed all operations in May 2013 (final closure is pending sale of our local 15,000 sqft office and warehouse facility) and our Taiwan and China locations are for supporting overseas customers, inventory sourcing, purchases and coordinating the manufacture of our products. Our China location also serves as the engineering center responsible for designing circuits, arranging pre-production scheduling and mass production runs with joint venture partners for our projects, making component datasheets and test specifications, preparing samples, monitoring quality of shipments and performing failure analysis reports.

2 - BASIS OF PRESENTATION

2 - BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block [Abstract]
Business Description and Basis of Presentation [Text Block]	2 – BASIS OF PRESENTATION The unaudited consolidated interim financial statements include the accounts of the Company and all wholly owned subsidiaries, including its 60% majority-owned subsidiary, Taitron Components Mexico, S.A. de C.V. All significant intercompany accounts and transactions have been eliminated in consolidation. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form 10-Q have been included. Operating results for the interim periods are not necessarily indicative of financial results for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates and assumptions included in the Company’s consolidated financial statements relate to the allowance for sales returns, doubtful accounts, inventory reserves, accrued liabilities and deferred income taxes.

3 - RECENT ACCOUNTING DEVELOPME

3 - RECENT ACCOUNTING DEVELOPMENTS	3 Months Ended
	Mar. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	3 – RECENT ACCOUNTING DEVELOPMENTS New Accounting Pronouncements Not Yet Adopted From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the “FASB”), which are adopted by the Company as of the specified date. Unless otherwise discussed, management believes the impact of recently issued standards, some of which are not yet effective, will not have a material impact on its consolidated financial statements upon adoption. In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting , which affects entities that issue share-based payment awards to their employees. The guidance is designed to identify areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This guidance is effective prospectively for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently assessing the impact of this guidance. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. This guidance results in the Company providing a more faithful representation of the rights and obligations arising from operating and capital leases by requiring lessees to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. This guidance is effective prospectively for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact of this guidance.

4 - OTHER ASSETS

4 - OTHER ASSETS	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block Supplement [Abstract]
Other Assets Disclosure [Text Block]	4 – OTHER ASSETS March 31, December 31, 2016 2015 (Unaudited) Investment in securities - Zowie Technology $ 100,000 $ 100,000 Investment in joint venture - Grand Shine Mgmt 497,000 571,000 Other 22,000 17,000 Other Assets $ 619,000 $ 688,000 Our $100,000 investment in securities as of March 31, 2016 relates to our ownership of 1,037,739 common shares of Zowie Technology Corporation (New Taipei City, Taiwan), a supplier of electronic component products. Our investment relates to approximately 9.2% of their total outstanding shares although we do not have significant influence or control. This investment is accounted for under the cost method basis of accounting. Our $497,000 investment in joint venture as of March 31, 2016, relates to our 49% ownership of Grand Shine Management Limited (Dong Guan, China), an electronic device contract manufacturer, and joint venture with its 51% owner, Teamforce Company Limited. This joint venture is not considered to be a “Variable Interest Entity”, and as such, is accounted for under the equity method basis of accounting. As of March 31, 2016 and December 31, 2015, we have recorded cumulative unrealized loss from the inception of our investment in Grand Shine Management of $679,000 and $605,000, respectively

5 - LONG-TERM DEBT FROM RELATED

5 - LONG-TERM DEBT FROM RELATED PARTY	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	5 – LONG-TERM DEBT FROM RELATED PARTY Secured credit facility - On April 21, 2008 we entered into a $3,000,000 credit facility, collateralized by real property, from K.S. Best International Co. Ltd., a company controlled by the brother of our Chief Executive Officer. Credit is available in $500,000 advances, each advance payable in monthly interest only installments, at the rate of Prime + 0.25% per annum. On March 23, 2015, we executed a third amendment to the secured credit facility agreement extending the due dates of the unpaid balances to periods from June 30, 2016 to June 30, 2018. As of March 31, 2016 and December 31, 2015, the aggregate outstanding balance on this credit facility was $1,500,000.

6 - RELATED PARTY TRANSACTIONS

6 - RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	6 – RELATED PARTY TRANSACTIONS We made payments of approximately $6,000 for both of the quarters ending March 31, 2016 and 2015, to K.S. Best International Co. Ltd., a company controlled by the brother of our Chief Executive Officer. These payments were for professional fees related to the operational management of our Taiwan office. In addition, we also made payments of approximately $13,000 for both of the quarters ended March 31, 2016 and 2015, for interest expense on our credit facility from K.S. Best International Co. Ltd. See Note 5. We have a $3,000,000 credit facility, collateralized by real property, from K.S. Best International Co. Ltd., a company controlled by the brother of our Chief Executive Officer. See Note 5 for additional details.

7 - SHARE BASED COMPENSATION

7 - SHARE BASED COMPENSATION	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	7 – SHARE BASED COMPENSATION Accounting for stock options issued to employees measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. Outstanding options to purchase Class A common stock (“the Options”) vest in three equal annual installments beginning one year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan. The option activity during the three months ended March 31, 2016 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Years Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2015 456,000 $ 1.20 4.3 $ 17,000 Grants - Forfeited - Outstanding at March 31, 2016 456,000 1.20 4.1 $ 13,200 Exercisable at March 31, 2016 320,333 $ 1.28 3.2 $ 2,400 At March 31, 2016 the range of individual outstanding weighted average exercise prices was $0.98 to $1.37.

8 - COMMITMENTS AND CONTINGENCI

8 - COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	8 – COMMITMENTS AND CONTINGENCIES Inventory Purchasing Outstanding commitments to purchase inventory from suppliers aggregated $1,200,000 as of March 31, 2016.

9 - SUBSEQUENT EVENTS

9 - SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	9 – SUBSEQUENT EVENTS On May 5, 2016, the Company’s Board of Directors authorized a dividend policy and declared an initial quarterly cash dividend in the amount of $0.025 per share of Class A and Class B issued and outstanding common stock. The dividend will be paid on May 31, 2016 to stockholders of record as of May 16, 2016. Under the dividend policy, the Company will target a cash dividend to the Company's stockholders in the amount of $0.10 per share per annum, payable in equal quarterly installments. Subsequent dividend declarations and the establishment of record and payment dates for such future dividend payments, if any, are subject to the Board of Directors' continuing determination that the dividend policy is in the best interests of the Company's stockholders. The dividend policy may be suspended or cancelled at the discretion of the Board of Directors at any time.

4 - OTHER ASSETS (Tables)

4 - OTHER ASSETS (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block Supplement [Abstract]
Schedule of Other Assets [Table Text Block]	March 31, December 31, 2016 2015 (Unaudited) Investment in securities - Zowie Technology $ 100,000 $ 100,000 Investment in joint venture - Grand Shine Mgmt 497,000 571,000 Other 22,000 17,000 Other Assets $ 619,000 $ 688,000

7 - SHARE BASED COMPENSATION (T

7 - SHARE BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	The option activity during the three months ended March 31, 2016 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Years Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2015 456,000 $ 1.20 4.3 $ 17,000 Grants - Forfeited - Outstanding at March 31, 2016 456,000 1.20 4.1 $ 13,200 Exercisable at March 31, 2016 320,333 $ 1.28 3.2 $ 2,400

2 - BASIS OF PRESENTATION (Deta

2 - BASIS OF PRESENTATION (Details)	3 Months Ended
	Mar. 31, 2016
Taitron Components Mexico [Member]
2 - BASIS OF PRESENTATION (Details) [Line Items]
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions	60.00%

4 - OTHER ASSETS (Details)

4 - OTHER ASSETS (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Grand Shine Management Limited [Member]
4 - OTHER ASSETS (Details) [Line Items]
Equity Method Investments	$ 497,000
Zowie Technology [Member]
4 - OTHER ASSETS (Details) [Line Items]
Equity Method Investments	$ 100,000	$ 100,000
Equity Method Investment, Ownership Percentage	9.20%
Zowie Technology [Member] | Common Stock [Member]
4 - OTHER ASSETS (Details) [Line Items]
Investment Owned, Balance, Shares (in Shares)	1,037,739
Grand Shine Management Limited [Member]
4 - OTHER ASSETS (Details) [Line Items]
Equity Method Investments	$ 497,000	571,000
Equity Method Investment, Ownership Percentage	49.00%
Unrealized Gain (Loss) on Investments	$ (679,000)	$ (605,000)
Grand Shine Management Limited [Member] | Teamforce Company Limited [Member]
4 - OTHER ASSETS (Details) [Line Items]
Equity Method Investment, Ownership Percentage	51.00%

4 - OTHER ASSETS (Details) -

4 - OTHER ASSETS (Details) - Schedule of Other Assets - USD ($)	Mar. 31, 2016	Dec. 31, 2015
4 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Other	$ 22,000	$ 17,000
Other Assets	619,000	688,000
Zowie Technology [Member]
4 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Investments	100,000	100,000
Grand Shine Management Limited [Member]
4 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Investments	$ 497,000	$ 571,000

5 - LONG-TERM DEBT FROM RELAT20

5 - LONG-TERM DEBT FROM RELATED PARTY (Details) - Immediate Family Member of Management or Principal Owner [Member] - Line of Credit [Member] - USD ($)	Mar. 25, 2015	Apr. 21, 2008	Mar. 31, 2016	Dec. 31, 2015
5 - LONG-TERM DEBT FROM RELATED PARTY (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 3,000,000	$ 3,000,000
Line of Credit Facility, Collateral		collateralized by real property, from K.S. Best International Co.
Line of Credit Facility, Description		Credit is available in $500,000 advances
Line of Credit Facility, Frequency of Payment and Payment Terms		each advance payable in monthly interest only installments
Long-term Line of Credit			$ 1,500,000	$ 1,500,000
Prime Rate [Member]
5 - LONG-TERM DEBT FROM RELATED PARTY (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate		0.25%
Minimum [Member]
5 - LONG-TERM DEBT FROM RELATED PARTY (Details) [Line Items]
Debt Instrument, Maturity Date	Jun. 30, 2016
Maximum [Member]
5 - LONG-TERM DEBT FROM RELATED PARTY (Details) [Line Items]
Debt Instrument, Maturity Date	Jun. 30, 2018

6 - RELATED PARTY TRANSACTIONS

6 - RELATED PARTY TRANSACTIONS (Details) - Immediate Family Member of Management or Principal Owner [Member] - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Apr. 21, 2008
6 - RELATED PARTY TRANSACTIONS (Details) [Line Items]
Related Party Transaction, Amounts of Transaction	$ 6,000	$ 6,000
Related Party Transaction, Description of Transaction	professional fees related to the operational management of our Taiwan office	professional fees related to the operational management of our Taiwan office
Line of Credit [Member]
6 - RELATED PARTY TRANSACTIONS (Details) [Line Items]
Interest Paid	$ 13,000	$ 13,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,000,000		$ 3,000,000

7 - SHARE BASED COMPENSATION (D

7 - SHARE BASED COMPENSATION (Details)	3 Months Ended
	Mar. 31, 2016$ / shares
7 - SHARE BASED COMPENSATION (Details) [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 0.98
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 1.37
2005 Stock Incentive Plan [Member]
7 - SHARE BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award	vest in three equal annual installments beginning one year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan.

7 - SHARE BASED COMPENSATION

7 - SHARE BASED COMPENSATION (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Schedule of Share-based Compensation, Stock Options, Activity [Abstract]
Outstanding at December 31, 2015		456,000
Outstanding at December 31, 2015 (in Dollars per share)		$ 1.20
Outstanding at December 31, 2015	4 years 36 days	4 years 109 days
Outstanding at December 31, 2015 (in Dollars)		$ 17,000
Grants	0
Forfeited	0
Outstanding at March 31, 2016	456,000
Outstanding at March 31, 2016 (in Dollars per share)	$ 1.20
Outstanding at March 31, 2016	4 years 36 days	4 years 109 days
Outstanding at March 31, 2016 (in Dollars)	$ 13,200
Exercisable at March 31, 2016	320,333
Exercisable at March 31, 2016 (in Dollars per share)	$ 1.28
Exercisable at March 31, 2016	3 years 73 days
Exercisable at March 31, 2016 (in Dollars)	$ 2,400

8 - COMMITMENTS AND CONTINGEN24

8 - COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase Commitment, Remaining Minimum Amount Committed	$ 1,200,000

9 - SUBSEQUENT EVENTS (Details)

9 - SUBSEQUENT EVENTS (Details) - Subsequent Event [Member]	May. 05, 2016$ / shares
9 - SUBSEQUENT EVENTS (Details) [Line Items]
Dividends Payable, Date Declared	May 5, 2016
Common Stock, Dividends, Per Share, Declared	$ 0.025
Dividends Payable, Date to be Paid	May 31, 2016
Dividends Payable, Date of Record	May 16, 2016
Dividends Payable, Nature	Under the dividend policy, the Company will target a cash dividend to the Company's stockholders in the amount of $0.10 per share per annum, payable in equal quarterly installments. Subsequent dividend declarations and the establishment of record and payment dates for such future dividend payments, if any, are subject to the Board of Directors' continuing determination that the dividend policy is in the best interests of the Company's stockholders. The dividend policy may be suspended or cancelled at the discretion of the Board of Directors at any time.