10.

Recently Issued Accounting Standards

May 2014,

the FASB issued ASU

2014

09,

Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company on

April 1, 2018 (

beginning of fiscal

2019

). Early adoption is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has selected the modified retrospective approach for its transition method and applied the

five

-step model of the new standard to a selection of contracts within each of the revenue streams and has compared the results to our current accounting practices. The Company has evaluated the effect that ASU

2014

will have on its consolidated financial statements and related disclosures. The Company has substantially completed its evaluation of significant contracts and is currently assessing the impact of adopting the standards update on our consolidated financial statements. The Company will continue its evaluation of the standards update through the date of adoption.

February 2016,

the FASB issued Accounting Standards Update

No.

2016

02,

Leases

The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than

months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after

December 15, 2018 (

beginning fiscal

2020

for the Company), including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material.

January 2017,

the FASB issued Accounting Standards Update

No.

2017

("ASU

2017

01"

), which clarifies the definition of a business, with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU

2017

is effective for fiscal years beginning after

December 15, 2017

and interim periods within those fiscal years, and early adoption is permitted for transactions which occur before the issuance or effective date of the amendments, only when the transaction has

not

been reported in the financial statements that have been issued or made available for issuance. ASU

2017

is to be applied on a prospective basis. The Company does

not

expect the adoption of ASU

2017

to have a material impact on its consolidated financial statements.

There were

other recently issued accounting pronouncements that impacted the Company’s condensed consolidated financial statements. In addition, the Company did

not

adopt any new accounting pronouncements during the quarter ended

September 30, 2017.