13.	New Accounting Standards and Updates from the Securities Exchange Commission (“SEC”)

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU

2016

requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU

2016

is effective for fiscal years beginning after

December 15, 2018 (

including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company will adopt ASU

2016

in the

first

quarter of

2019.

A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity

may

choose to use either (

) its effective date or (

) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the

second

option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company will adopt the new standard on

January 1, 2019

and use the effective date of initial application. Consequently, financial information will

not

be updated and the disclosures required under the new standard will

not

be provided for dates and periods before

January 1, 2019.

The new standard provides a number of optional practical expedients in transition. The Company expects to elect the “package of expedients”, which permits the Company

not

to reassess under the new standard the Company’s prior conclusions about lease identification and initial direct costs. Although the Company is in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements, the Company expects the most significant change will be related to the recognition of right-of-use assets and lease liabilities on the Company's balance sheet for real estate operating leases.

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments - Credit Losses (Topic

326

The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. This ASU is effective for financial statements issued for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. The Company does

not

expect the adoption of ASU

2016

to have a material impact on its financial statements.

August 2018,

the SEC issued the final rule on Disclosures About Changes in Stockholders’ Equity For filings on Form

-Q, which extends to interim periods the annual requirement in SEC Regulation S-

Rule

04,2

to disclose (

) changes in stockholders’ equity and (

) the amount of dividends per share for each class of shares (as opposed to common stock only, as previously required). Pursuant to the final rule, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for “the current and comparative year-to-date [interim] periods, with subtotals for each interim period,” i.e., a reconciliation covering each period for which an income statement is presented. Rule

permits the disclosure of changes in stockholders’ equity (including dividend-per-share amounts) to be made either in a separate financial statement or in the notes to the financial statements. The final rule is effective for all filings made on or after

November 5, 2018.

The staff of the SEC has indicated it would

not

object if the filer’s

first

presentation of the changes in shareholders’ equity is included in its Form

-Q for the quarter that begins after the effective date of the amendments. Therefore, the Company expects to conform to this rule in its Form

-Q for the quarter ending

March 31, 2019.

The Company believes that the final rule will

not

have a material effect on its consolidated financial statements and disclosures.