2.	New Accounting Standards

May 2014,

the

Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

No.

2014

Revenue Recognition, replacing guidance currently codified in Subtopic

605

Revenue Recognition-Overall with various SEC Staff Accounting Bulletins providing interpretive guidance. The guidance establishes a new

five

step principle-based framework in an effort to significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The standard will be effective for the Company in the

first

quarter of its fiscal year

2019,

but early adoption is permitted starting in the

first

quarter of fiscal year

2018.

The Company intends to adopt the new standard in the

first

quarter of fiscal year

2019

and expects to use the modified retrospective method. The Company has evaluated the impact of the future adoption of ASU

2014

on its consolidated financial statements and does

not

currently expect significant changes in the timing of revenue recognition compared to the existing methodology.

July 2015,

the FASB issued ASU

No.

2015

11:

Inventory. The guidance requires an entity

’s management to measure inventory within the scope of this ASU at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2016.

Early application is permitted. The ASU became effective for the Company on

July 1, 2017.

This update did

not

have a material impact on the Company’s consolidated financial statements upon adoption.

In N

ovember

2015,

the FASB issued an ASU

2015

to simplify the balance sheet classification of deferred taxes. This update requires all deferred tax assets and liabilities to be reported as non-current in the consolidated balance sheets. The ASU became effective for the Company on

July 1, 2017.

This update did

not

to have a material impact on the Company’s consolidated financial statements upon adoption.

February 2016,

the FASB issued ASU

2016

Leases (Subtopic

842

), which will require lessees to recog

nize assets and liabilities on the balance sheet for the rights and obligations created by most leases. The update is effective for annual and interim reporting periods beginning after

December 15, 2018.

Early adoption is permitted. The ASU will be effective for the Company in the

first

quarter of fiscal year

2020.

We are currently evaluating the impact of the guidance on the Company’s consolidated financial statements.

August 2016,

the FASB issued ASU

No.

2016

Statement of Cash Flows (Topic

230

): C

lassification of Certain Cash Receipts and Cash Payments. The update provides guidance on classification for cash receipts and payments related to

eight

specific issues. The update is effective for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of implementing this update on the consolidated financial statements.

Other accounting standards that have been issued or proposed by FASB

that do

not

require adoption until a future date are

not

expected to have a material impact on the consolidated financial statements upon adoption. The Company does

not

discuss recent pronouncements that are

not

anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.