Treasury Stock

In September 2013, as part of a settlement agreement with a former employee, the Company received 125,000 shares of common stock of the Company previously issued to him. These shares were accounted for as treasury shares with zero cost, and were retired in the second quarter of fiscal year 2014.

In August 2014 and April 2015, binding settlement agreements were reached with some of the shareholders in a lawsuit whereby the Company received 530,616, shares and 286,386 shares, respectively, of stock owned by the shareholders. Based on an independent appraisal, the value of these shares repurchased as treasury stock were $27,061 and $137,837, respectively. The Company cancelled 702,777 shares and 114,225 shares of treasury stock in the fourth quarter of fiscal year 2015 and the first quarter of fiscal year 2016, respectively.