13.

SELF-INSURANCE

In fiscal 2016 and the first quarter of fiscal 2017, t

he Company was self-insured for certain costs related to its employee health plan. Costs resulting from noninsured losses were charged to income when incurred. The Company purchased insurance which limited its exposure for individual claims to approximately $75 and had an aggregating specific deductible of $85 at September 30, 2016. The Company’s expense related to the plan was $1,531 for the year ended September 30, 2016. In order to better control health costs in fiscal 2017, the Company moved to a fully-insured health plan, minimizing the claim spikes we experienced in fiscal 2016. The Company’s total expense was $925 for fiscal 2017.