Exhibit

We have audited the accompanying financial statements of Pacific Instruments, Inc., which comprise the balance sheets as of January 31, 2016 and 2015, and the related statements of income, equity, and cash flows for the years then ended, and the related notes to the financial statements.

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Pacific Instruments, Inc. as of January 31, 2016 and 2015, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

PACIFIC INSTRUMENTS, INC. Balance Sheets

	January 31, 2016		January 31, 2015

Assets
Current assets:
Cash and cash equivalents	$	1,743,595	$	1,032,626
Accounts receivable	794,915		325,298
Inventories, net	1,464,537		1,206,939
Prepaid expenses and other current assets	165,920		274,701
Total current assets	4,168,967		2,839,564

Property and equipment, net	20,606		25,472
Other assets	233,479		220,638
Total assets	$	4,423,052	$	3,085,674

Liabilities and equity
Current liabilities:
Trade accounts payable	$	196,856	$	226,575
Other accrued expenses	527,381		546,307
Short-term debt (Note 4)	—		—
Notes payable	878,878		—
Total current liabilities	1,603,115		772,882

Other liabilities	309,770		245,623
Total liabilities	1,912,885		1,018,505

Commitments and contingencies (Note 7)	—		—

Equity:
Common stock	554,802		554,802
Retained earnings	1,955,365		1,512,367
Total equity	2,510,167		2,067,169
Total liabilities and equity	$	4,423,052	$	3,085,674



	Years ended
	January 31, 2016		January 31, 2015
Net revenues	$	10,726,419	$	6,996,951
Costs of sales	3,545,178		2,701,752
Gross profit	7,181,241		4,295,199

Selling, general, and administrative expenses	3,136,959		2,936,149
Operating income	4,044,282		1,359,050

Other income, net	—		382
Income before taxes	4,044,282		1,359,432

Income tax expense	1,538,654		657,364
Net income	$	2,505,628	$	702,068



	Years ended
	January 31, 2016			January 31, 2015
Operating activities
Net income	$	2,505,628		$	702,068
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,867			4,867
Income taxes	51,306			151,380
Net changes in operating assets and liabilities:
Accounts receivable	(469,617		)	128,534
Inventories	(257,598		)	(414,758		)
Prepaid expenses and other current assets	108,781			(94,733		)
Trade accounts payable	(29,719		)	(17,331		)
Other accrued expenses	(18,927		)	359,330
Net cash provided by operating activities	1,894,721			819,357

Financing activities
Line of credit draw	—			50,000
Repayment of line of credit	—			(50,000		)
Repurchase of stock	(1,183,752		)	—
Net cash used in financing activities	(1,183,752		)	—

Increase in cash and cash equivalents	710,969			819,357

Cash and cash equivalents at beginning of period	1,032,626			213,269
Cash and cash equivalents at end of period	$	1,743,595		$	1,032,626

Supplemental disclosures:
Cash paid for income taxes	$	1,357,984		$	611,600

Non-cash financing activities:
Repurchase of stock in exchange for notes payable	$	878,878		$	—



	Common Stock		Retained Earnings			Total Equity
Balance at February 1, 2014	$	554,802	$	810,299		$	1,365,101
Net income	—		702,068			702,068
Balance at January 31, 2015	$	554,802	$	1,512,367		$	2,067,169

Net income	—		2,505,628			2,505,628
Repurchase of stock	—		(2,062,630		)	(2,062,630		)
Balance at January 31, 2016	$	554,802	$	1,955,365		$	2,510,167

Pacific Instruments, Inc. (“Pacific” or the “Company”) is a C-Corporation incorporated in California with operations in Concord, California. The Company designs and manufactures transducer data acquisition products and systems with specialized knowledge of high-accuracy analog circuit design and implementation of end-user application requirements.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ significantly from those estimates.

The Company recognizes revenue on product sales during the period when the sales process is complete. This generally occurs when products are shipped to the customer in accordance with terms of an agreement of sale, title and risk of loss have been transferred, collectability is reasonably assured, and pricing is fixed or determinable. For sales where title and risk of loss pass at the point of delivery, the Company recognizes revenue upon delivery to the customer, assuming all other criteria for revenue recognition are met.

Estimated warranty costs are provided for at the time revenue is recognized. At January 31, 2016 and 2015, the accrual for future warranty obligations was $109,646 and $54,917, respectively. The Company's expense for warranty obligations was $187,361 and $72,208 for the years ended January 31, 2016 and January 31, 2015, respectively. The warranty periods for products sold do not exceed one year. The Company calculates its warranty expense provision based on past warranty experience and adjustments are made periodically to reflect actual warranty expenses.



	2016			2015
Balance at the beginning of the year	$	54,917		$	31,246
Accruals for warranties issued during the year	187,361			72,208
Settlements made during the year	(132,631		)	(48,537		)
Balance at the end of the year	$	109,647		$	54,917

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such a determination, the Company considers all available positive and negative evidence, including historic earnings, projected future income, and cost-effective tax-planning strategies. When the Company determines that its ability to realize its deferred tax assets is not more likely than not, the Company adjusts its deferred tax asset valuation allowance, which would increase income tax expense.

The Company records uncertain tax positions in accordance with Accounting Standards Codification ("ASC") Topic 740, Income Taxes, on the basis of a two-step process, whereby the Company first determines whether it is more likely than not that the tax

positions will be sustained based on the technical merits of the position and then measures those tax positions that meet the more-likely-than-not recognition threshold. The Company recognizes the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the tax authority.

The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying income statements. Accrued interest and penalties are included with the associated tax balance sheet account.

In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". The standard requires that deferred tax assets and liabilities be classified as non-current on the balance sheet rather than being separated into current and non-current. This ASU is effective for fiscal years and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company has early adopted this ASU during the fourth quarter of 2015 on a retrospective basis. Accordingly, the Company reclassified current deferred taxes to non-current on its January 31, 2016 balance sheet which increased non-current deferred tax assets by $217,769 recorded within other assets. The Company reclassified current deferred taxes to non-current on its January 31, 2015 balance sheet which increased non-current deferred tax assets by $204,837 recorded within other assets.

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The allowance is determined through an analysis of the aging of accounts receivable and assessments of risk that are based on historical trends and an evaluation of the impact of current and projected economic conditions. The Company evaluates the past-due status of its trade receivables based on contractual terms of sale. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

Inventories are stated at the lower of cost, determined by the first-in, first-out method, or market based on net realizable value. Inventories are adjusted for estimated excess and obsolescence and written down to net realizable value based upon estimates of future demand, technology developments, and market conditions.

Property and equipment is carried at cost and is depreciated principally by the straight-line method based upon the estimated useful lives of the assets. Upon retirement or disposal of assets, the cost of assets disposed of and the related accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in net earnings. Repairs and maintenance costs are expensed as incurred.

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.



January 31, 2016
Description	Useful Life	Cost		Accumulated Depreciation		Net book value

Buildings and improvements	10 - 39	$	81,999	$	61,393	$	20,606
Machinery and equipment	3 - 7	58,518		58,518		—
Software	3 - 5	56,092		56,092		—
Total		$	196,609	$	176,003	$	20,606



January 31, 2015
Description	Useful Life	Cost		Accumulated Depreciation		Net book value

Buildings and improvements	10 - 39	$	81,999	$	56,527	$	25,472
Machinery and equipment	3 - 7	58,518		58,518		—
Software	3 - 5	56,092		56,092		—
Total		$	196,609	$	171,137	$	25,472

The Company had a Line of Credit "LOC" arrangement in the amount of $600,000 that expired July 2015. As of January 31, 2015, there was no outstanding balance on the LOC. Interest payable on amounts borrowed is at the greater of (i) the floating rate equal to the Prime Rate plus 1.00%, and (ii) the floor rate of 5.00%. The interest rate at January 31, 2015 was 5.00%. The Company recorded interest expense of $0 and $31 for the years ended January 31, 2016 and 2015, respectively.



	Years ended January 31,
	2016			2015
Current:
Federal	$	1,209,021		$	499,184
State and local	342,475			143,906
	1,551,496			643,090
Deferred:
Federal	(12,973		)	(25,298		)
State and local	131			39,572
	(12,842		)	14,274
Income tax expense	$	1,538,654		$	657,364



	Years ended January 31,
	2016			2015
Tax at statutory rate	$	1,337,832		$	499,431
State income taxes, net of U.S. federal tax benefit	227,505			121,756
Change in unrecognized tax benefits, net	(31,192		)	32,304
Other	4,509			3,872
Income tax expense	$	1,538,654		$	657,363



	January 31,
	2016			2015
Balance at beginning of year	$	236,547		$	103,379
Addition based on tax positions related to current year	91,373			133,168
Reduction for lapses of statute of limitations	(31,020		)	—
Balance at end of year	$	296,900		$	236,547

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Related to the unrecognized tax benefits indicated above, the Company accrued interest of $12,870 and $9,075 as of January 31, 2016 and 2015, respectively. If recognized, the entire benefit would impact the effective tax rate. The Company anticipates that it is reasonably possible that it will reverse approximately $62,000 of unrecognized tax benefits within the next fiscal year due to the expiration of the statutes of limitations.

The Company files U.S. federal and various state tax returns. The statute of limitations for the jurisdictions in which the Company files ranges from three to four years. The Company is not currently subject to an income tax examination.

The Company has a defined contribution plan and makes contributions to match the employee contributions under various formulas on regular wages earned or paid salaries and overtime not including bonuses, commissions, or site work adjustments.

The Company leases its corporate office, warehouse and production facilities under an operating lease expiring December 31, 2016. The lease is with trusts controlled by two of the majority stockholders. Additionally, the Company guarantees the debt on the building totaling approximately $470,000 at January 31, 2016, which is held directly by those two stockholders. Such debt was fully paid in April 2016. Rent expense for the periods ended January 31, 2016 and 2015 was $189,600, respectively.

The Company's financial instruments that are exposed to concentration of credit risk consist primarily of cash and accounts receivable. The Company maintains its cash in bank deposit accounts with certain United States charted banks which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk in cash and cash equivalents.

Credit risk refers to the risk that a counterparty may default on its contractual obligations resulting in a financial loss. The Company deals with creditworthy counterparties to mitigate the risk of financial loss from defaults. The Company monitors the credit risk of customers through credit rating reviews and requires letters of credits as applicable. At January 31, 2016 and 2015 the Company had no significant concentrations of receivables or sales to customers.

Liquidity risk is the risk that the Company will be unable to fulfill its obligations on a timely basis or at a reasonable cost. The Company manages its liquidity risk by monitoring its operating requirements. The Company prepares cash forecasts to ensure it has sufficient funds to fulfill its obligations.

On December 31, 2015, 30,498 shares were purchased for an aggregate purchase price of $2,062,631 using $1,183,753 in cash and $878,878 in notes payable. The notes payable contain a provision for an additional payment upon the sale of the Company, prior to December 31, 2016, based on the purchase price, subject to customary post closing adjustments. The notes payable had an interest rate of 3.0% due December 31, 2016. The note was repaid in April 2016.

On March 30, 2016, Pacific entered into a stock purchase and sale agreement to sell all of the outstanding shares of the Company to Vishay Precision Group, Inc. On April 6, 2016, the Company completed the sale for an aggregate sale price of approximately $11.0 million, subject to customary post-closing adjustments.



	Page Number

Report of Independent Auditors	3

Financial Statements
Balance Sheets	4

Income Statements	5

Statements of Cash Flows	6

Statements of Equity	7

Notes to Financial Statements	8



	January 31,
	2016		2015
Raw materials	$	631,587	$	534,137
Work in process	715,904		537,335
Finished goods	$	117,046	$	135,467
Inventories, net	$	1,464,537	$	1,206,939



	January 31,
	2016		2015
Deferred tax assets:
Inventories	$	102,330	$	130,759
Tax credit carryforwards	—		2,200
Other accruals and reserves	115,439		71,878
Total deferred tax assets	$	217,769	$	204,837



	January 31,
	2016	2015
Common stock - no par value
Authorized	200,000	200,000
Issued and outstanding	102,374	132,812