5.	Recent Accounting Pronouncements

February 2016,

the FASB issued ASU

2016

02,

Leases

, which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as finance leases or operating leases under previous guidance. The update is effective for annual reporting periods beginning after

December 15, 2018,

including interim periods within those reporting periods, with early adoption permitted. The original guidance required application on a modified retrospective basis with the earliest period presented. In

August 2018,

the FASB issued ASU

2018

11,

Targeted Improvements to ASC

842,

which includes an option to

not

restate comparative periods in transition and elect to use the effective date of ASC

842,

Leases, as the date of initial application of transition. Based on the effective date, the Company adopted this ASU beginning on

January 1, 2019

and elected the transition option provided under ASU

2018

11.

This standard had a material effect on our consolidated balance sheet with the recognition of new right-of-use assets and lease liabilities for all operating leases, as these leases typically have a non-cancelable lease term of greater than

one

year. Upon adoption, both assets and liabilities on our consolidated balance sheet increased by approximately

3,455,000

The Company elected a package of transition practical expedients which include

not

reassessing whether any expired or existing contracts are or contain leases,

not

reassessing the lease classification of expired or existing leases, and

not

reassessing initial direct costs for existing leases. The Company also elected a practical expedient to

not

separate lease and non-lease components. The Company did

not

elect the practical expedient to use hindsight in determining the lease terms or assessing impairment of the Right-of-Use (“ROU”) assets. See Note

13.

Leases for more information.

June 2016,

the FASB issued ASU

2016

Financial Instruments - Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

. ASU

2016

requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. ASU

2016

is effective for public entities for the annual periods, including interim periods within those annual periods, beginning after

December 15, 2019.

This guidance is applicable to the Company’s fiscal year beginning

January 1, 2020.

Management is currently evaluating the requirements of this guidance and has

not

yet determined the impact on the adoption of the Company’s financial position or results from operations.

June 2018,

the FASB issued ASU

2018

07,

Compensation - Stock Compensation (Topic

718

), Improvements to Nonemployee Share-Based Payment Accounting

. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with accounting for employee share-based compensation. ASU

2018

is effective for annual periods beginning after

December 15, 2018

and interim periods within those annual periods, with early adoption permitted but

earlier than an entity’s adoption date of ASC Topic

606.

The new guidance is required to be applied retrospectively with the cumulative effect recognized at the date of initial application. The Company adopted the provisions of this ASU in the

first

quarter of

2019.

Adoption of the new standard did

not

have a material impact on our consolidated financial statements.

Management periodically reviews new accounting standards that are issued. Management has

not

identified any other new standards that it believes merit further discussion at this time.