0001171843-19-004123.txt : 20190624 0001171843-19-004123.hdr.sgml : 20190624 20190621185039 ACCESSION NUMBER: 0001171843-19-004123 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 52 CONFORMED PERIOD OF REPORT: 20180630 FILED AS OF DATE: 20190624 DATE AS OF CHANGE: 20190621 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TECHNICAL COMMUNICATIONS CORP CENTRAL INDEX KEY: 0000096699 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 042295040 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-34816 FILM NUMBER: 19912780 BUSINESS ADDRESS: STREET 1: 100 DOMINO DR CITY: CONCORD STATE: MA ZIP: 01742 BUSINESS PHONE: 9782875100 MAIL ADDRESS: STREET 1: 100 DOMINO DRIVE CITY: CONCORD STATE: MA ZIP: 01742-2892 10-Q/A 1 f10qa_051019.htm FORM 10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q/A

(Mark One)

 

    X      Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2018

 

             Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                                 to                               

 

Commission File Number: 001-34816

 

TECHNICAL COMMUNICATIONS CORPORATION

(Exact name of registrant as specified in its charter)

  

Massachusetts   04-2295040

(State or other jurisdiction of

incorporation or organization)

  (I.R.S. Employer Identification No.)
     
100 Domino Drive, Concord, MA   01742-2892
(Address of principal executive offices)   (Zip Code)

 

 Registrant’s telephone number, including area code: (978) 287-5100

 

                                N/A                               

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes    No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer Accelerated filer Emerging growth company
Non-accelerated filer ☒  Smaller reporting company ☒       

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    No  

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date. 1,850,403 shares of Common Stock, $0.10 par value, outstanding as of May 31, 2019.

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common TCCO NASDAQ Capital Market

 

 

 

 

 

EXPLANATORY NOTE

 

Technical Communications Corporation (the “Company”) is filing this Form 10-Q/A to amend its Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, originally filed with the Securities and Exchange Commission (the “SEC”) on August 14, 2018 (the “Original Filing”). This Form 10-Q/A is being filed to restate our unaudited consolidated financial statements for the three and nine month periods ended June 30, 2018 and July 1, 2017 and to make related revisions to certain other disclosures in the Original Filing; the financial statements included in the Original Filing should no longer be relied upon. The restatement of our financial statements in this Form 10-Q/A reflects the correction of certain errors primarily related to the Company’s recognition of revenue, which errors resulted from the Company’s misapplication of generally accepted accounting principles, as well as a correction to its inventory reserve. Further explanation regarding the restatement is set forth in Note 2 to the unaudited consolidated financial statements included in this Form 10-Q/A.

 

For the convenience of the reader, this Form 10-Q/A sets forth the information in the Original Filing in its entirety, as such information is modified and superseded where necessary to reflect the restatement and related revisions. The following sections in the Original Filing are revised in this Form 10-Q/A to reflect this restatement:

 

Part I - Item 1 – Financial Statements (Unaudited)

Part I - Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

Part I - Item 4 – Controls and Procedures

 

Except as provided above, this Form 10-Q/A does not reflect events occurring after the filing of the Original Filing and does not amend or otherwise update any information in the Original Filing. Accordingly, this Form 10-Q/A should be read in conjunction with our filings with the SEC subsequent to the date on which we filed the Original Filing with the SEC.

 

Our principal executive officer and principal financial officer have also provided new certifications as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 and applicable SEC rules. The certifications are included in this Form 10-Q/A as Exhibits 31.1, 31.2 and 32.1.

 

 

 

 

 

 

 

 

INDEX

 

    Page
     
PART I Financial Information  
     
Item 1. Financial Statements:  
     
Consolidated Balance Sheets as of June 30, 2018 (unaudited) and September 30, 2017 1
     
Consolidated Statements of Operations for the Three Months ended June 30, 2018 and July 1, 2017 (unaudited) 2
     
Consolidated Statements of Operations for the Nine Months ended June 30, 2018 and July 1, 2017 (unaudited) 3
     
Consolidated Statements of Cash Flows for the Nine Months ended June 30, 2018 and July 1, 2017 (unaudited) 4
     
  Notes to Unaudited Consolidated Financial Statements 5
     
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 26
     
Item 4. Controls and Procedures 26
     
PART II Other Information  
     
Item 1. Legal Proceedings 28
     
Item 1A. Risk Factors 28
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28
     
Item 3. Defaults Upon Senior Securities 28
     
Item 4. Mine Safety Disclosures 28
     
Item 5. Other Information  28
     
Item 6. Exhibits 29
     
  Signatures 30

 

 

 

 

 

 

 

TECHNICAL COMMUNICATIONS CORPORATION AND SUBSIDIARY

Consolidated Balance Sheets

 

   June 30, 2018  September 30, 2017
Assets  (Unaudited,
As restated,
see Note 2)
  (As restated,
see Note 2)
Current Assets:          
Cash and cash equivalents  $1,460,438   $1,283,673 
Restricted cash   -    12,930 
Marketable securities - held to maturity   -    360,253 
Accounts receivable - trade   597,907    730,177 
Inventories, net   1,499,121    1,358,344 
Other current assets   171,909    135,693 
Total current assets   3,729,375    3,881,070 
           
           
Equipment and leasehold improvements   4,578,501    4,534,839 
Less:  accumulated depreciation and amortization   (4,519,469)   (4,481,085)
Equipment and leasehold improvements, net   59,032    53,754 
           
Total Assets  $3,788,407   $3,934,824 
           
Liabilities and Stockholders’ Equity          
Current Liabilities:          
Accounts payable  $131,384   $109,224 
Deferred revenue   1,526,796    484,121 
Accrued liabilities:          
Accrued compensation and related expenses   213,348    215,984 
Customer deposits   53,091    53,886 
Other current liabilities   83,720    55,376 
           
Total current liabilities   2,008,339    918,591 
           
Commitments and contingencies          
           
Stockholders’ Equity:          
Common stock, par value $0.10 per share; 7,000,000 shares authorized; 1,849,025 shares issued and outstanding at June 30, 2018 and 1,839,877 shares issued and outstanding at September 30, 2017   184,903    183,988 
Additional paid-in capital   4,122,633    4,139,002 
Accumulated deficit   (2,527,468)   (1,306,757)
Total stockholders’ equity   1,780,068    3,016,233 
           
Total Liabilities and Stockholders’ Equity  $3,788,407   $3,934,824 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

1

 

 

TECHNICAL COMMUNICATIONS CORPORATION AND SUBSIDIARY

Consolidated Statements of Operations

(Unaudited)

 

   Three Months Ended
   June 30, 2018  July 1, 2017
   (As restated,
see Note 2)
  (As restated,
see Note 2)
Net revenue          
Engineering services  $758,670   $319,777 
Equipment sales   148,507    699,328 
Total net revenue   907,177    1,019,105 
Cost of revenue          
Engineering services   573,028    202,164 
Equipment sales   139,691    326,158 
Total cost of revenue   712,719    528,322 
           
Gross profit   194,458    490,783 
           
Operating expenses:          
Selling, general and administrative   522,097    478,654 
Product development   124,234    407,106 
Total operating expenses   646,331    885,760 
           
Operating loss   (451,873)   (394,977)
           
Other income:          
Interest income   2,118    1,806 
           
Net loss  $(449,755)  $(393,171)
           
Net loss per common share:          
Basic  $(0.24)  $(0.21)
Diluted  $(0.24)  $(0.21)
           
Weighted average shares:          
Basic   1,849,025    1,839,877 
Diluted   1,849,025    1,839,877 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

2

 

 

TECHNICAL COMMUNICATIONS CORPORATION AND SUBSIDIARY

Consolidated Statements of Operations

(Unaudited)

 

   Nine Months Ended
   June 30, 2018  July 1, 2017
   (As restated,
see Note 2)
  (As restated,
see Note 2)
Net revenue          
Engineering services  $2,218,375   $319,777 
Equipment sales   329,297    2,716,035 
Total net revenue   2,547,672    3,035,812 
Cost of revenue          
Engineering services   1,424,384    202,164 
Equipment sales   394,078    753,045 
Total cost of revenue   1,818,462    955,209 
           
Gross profit   729,210    2,080,603 
           
Operating expenses:          
Selling, general and administrative   1,513,052    1,669,293 
Product development   442,470    1,377,889 
Total operating expenses   1,955,522    3,047,182 
           
Operating loss   (1,226,312)   (966,579)
           
Other income:          
Interest income   5,601    6,470 
           
Net loss  $(1,220,711)  $(960,109)
           
Net loss per common share:          
Basic  $(0.66)  $(0.52)
Diluted  $(0.66)  $(0.52)
           
Weighted average shares:          
Basic   1,845,706    1,839,877 
Diluted   1,845,706    1,839,877 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

3

 

 

TECHNICAL COMMUNICATIONS CORPORATION AND SUBSIDIARY

Consolidated Statements of Cash Flows

(Unaudited)

 

   Nine Months Ended
   June 30, 2018  July 1, 2017
   (As restated,
see Note 2)
  (As restated,
see Note 2)
Operating Activities:          
           
Net loss  $(1,220,711)  $(960,109)
           
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   38,384    83,141 
Stock-based compensation   18,416    10,809 
Amortization of premium on held to maturity securities   10,253    20,412 
Payment of tax on exercised stock options   (33,870)   - 
           
Changes in certain operating assets and liabilities:          
Accounts receivable   132,270    (309,723)
Inventories   (140,777)   (127,540)
Other current assets   (36,216)   (18,799)
Customer deposits   (795)   (110,339)
Deferred revenue   1,042,675    48,681 
Accounts payable and other accrued liabilities   47,868    (82,603)
           
Net cash used in operating activities   (142,503)   (1,446,070)
           
Investing Activities:
          
Proceeds from sale of cost method investment   -    75,817 
Additions to equipment and leasehold improvements   (43,662)   (3,575)
Proceeds from maturities of marketable securities   350,000    300,000 
           
Net cash provided by investing activities   306,338    372,242 
           
Net increase (decrease) in cash, cash equivalents and restricted cash   163,835    (1,073,828)
           
Cash, cash equivalents and restricted cash at beginning of the period   1,296,603    2,616,628 
           
Cash, cash equivalents and restricted cash at end of the period  $1,460,438   $1,542,800 
           
Non-cash financing activities:          
           
Exercise of stock options – cashless  $915   $- 
           
Supplemental Disclosures:          
           
Income taxes paid  $-   $856 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

4

 

 

TECHNICAL COMMUNICATIONS CORPORATION AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

 

NOTE 1. Description of the Business and Basis of Presentation

 

Company Operations

 

Technical Communications Corporation (“TCC”) was incorporated in Massachusetts in 1961; its wholly-owned subsidiary, TCC Investment Corp., was organized in that jurisdiction in 1982. Technical Communications Corporation and TCC Investment Corp. are collectively referred to herein as the “Company”. The Company’s business consists of only one industry segment, which is the design, development, manufacture, distribution, marketing and sale of communications security devices, systems and services. The secure communications solutions provided by TCC protect vital information transmitted over a wide range of data, video, fax and voice networks. TCC’s products have been sold into a significant number of countries and are in service with governments, military agencies, telecommunications carriers, financial institutions and multinational corporations.

 

Interim Financial Statements

 

The accompanying unaudited consolidated financial statements of the Company include all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented and in order to make the financial statements not misleading. All such adjustments are of a normal recurring nature. Interim results are not necessarily indicative of the results to be expected for the fiscal year ended September 29, 2018.

 

The September 30, 2017 restated consolidated balance sheet was derived from the September 30, 2017 restated audited consolidated financial statement. Certain footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted as allowed by Securities and Exchange Commission (“SEC”) rules and regulations. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s restated audited consolidated financial statements and the notes thereto for the fiscal year ended September 30, 2017 Form 10-K filed June 21, 2019.

 

The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as the FASB. The FASB sets generally accepted accounting principles (“GAAP”) that the Company follows to ensure it consistently reports its financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards CodificationTM - sometimes referred to as the Codification or ASC.

 

Liquidity and Ability to Continue as a Going Concern

 

The Company has suffered recurring losses from operations and had an accumulated deficit of $2,527,000 at June 30, 2018. These factors raise substantial doubt about the Company's ability to continue as a going concern within one year from the issuance date of the unaudited consolidated financial statements included in this Quarterly Report. Such unaudited consolidated financial statements do not include any adjustments to reflect the uncertainty about the Company’s ability to continue as a going concern.

 

The Company anticipates that its principal sources of liquidity will only be sufficient to fund activities to January 2020. In order to have sufficient cash to fund operations beyond that point, the Company will need to secure new customer contracts, raise additional equity or debt capital or reduce expenses, including payroll and payroll-related expenses.

 

In order to have sufficient capital resources to fund operations, the Company has been working diligently to secure several large orders with new and existing customers. In addition, the Company is also pursuing raising capital through equity or debt arrangements. Although the Company believes its ability to secure such new business or raise new capital is likely, it cannot provide assurances it will be able to do so.

 

5

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

Should the Company be unsuccessful in these efforts, it would then be forced to implement headcount reductions, employee furloughs and/or reduced hours for certain employees or cease operations completely.

 

Reporting Period

 

The Company’s by-laws call for its fiscal year to end on the Saturday closest to the last day of September, unless otherwise decided by its Board of Directors.

 

Basis of Presentation

 

The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

 

The discussion and analysis of the financial condition and results of operations are based on the unaudited consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these unaudited consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods.

 

On an ongoing basis, management evaluates its estimates and judgments, including but not limited to those related to marketable securities, receivable reserves, inventory reserves, fair value of financial instruments, impairment of long-lived assets, revenue recognition, stock-based compensation and income taxes. Management bases its estimates on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from these estimates under different assumptions or conditions.

 

NOTE 2. Restatements

 

The Company has restated its consolidated financial statements as of and for the three and nine month periods ended June 30, 2018 and July 1, 2017. The restatements reflect adjustments to correct errors in the Company’s revenue recognition for a certain contract and in its calculation of its inventory reserve. The errors were identified during the Company’s normal closing process, in the course of the Company’s regularly scheduled audit for the year ended September 29, 2018 and during the course of a subsequent review by management. The errors resulted from the misinterpretation and misapplication of ASC Topic, 605 Revenue Recognition and a miscalculation in the Company’s inventory reserve. The effects of the restatements on the Company’s consolidated financial statements for the three and nine month periods ended June 30, 2018 and July 1, 2017 are described below.

 

   As of September 30, 2017
Balance Sheet               
Deferred revenue  $-   $484,121   $484,121 
Accumulated deficit   (822,636)   (484,121)   (1,306,757)

 

6

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

   For the Three Months Ended July 1, 2017
Statement of Operations               
Total net revenue  $1,067,786   $(48,681)  $1,019,105 
Gross profit   539,464    (48,681)   490,783 
Operating loss   (346,296)   (48,681)   (394,977)
Net loss   (344,490)   (48,681)   (393,171)
Net loss per common share               
Basic   (0.19)   (0.02)   (0.21)
Diluted   (0.19)   (0.02)   (0.21)

 

   For the Nine Months Ended July 1, 2017
Statement of Operations               
Total net revenue  $3,084,493   $(48,681)  $3,035,812 
Gross profit   2,129,284    (48,681)   2,080,603 
Operating loss   (917,898)   (48,681)   (966,579)
Net loss   (911,428)   (48,681)   (960,109)
Net loss per common share               
Basic   (0.50)   (0.02)   (0.52)
Diluted   (0.50)   (0.02)   (0.52)
                
Statement of cash flows               
Net loss  $(911,428)  $(48,681)  $(960,109)
Changes in current assets and current liabilities – Deferred revenue   -    48,681    48,681 

 

 

7

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

      Adjustments   
   As reported  Revenue
recognition
  Inventory
reserve
  As adjusted
             
   As of June 30, 2018
Balance Sheet                    
Inventory  $1,554,938   $   $(55,817)  $1,499,121 
Deferred revenue       1,526,796        1,526,796 
Accumulated deficit   (944,855)   (1,526,796)   (55,817)   (2,527,468)

 

   For the Three Months Ended June 30, 2018
Statement of Operations                    
Total net revenue  $1,544,142   $(636,965)  $   $907,177 
Total cost of revenue   666,758    (9,856)   55,817    712,719 
Gross profit   877,384    (627,109)   (55,817)   194,458 
Operating income (loss)   240,909    (636,965)   (55,817)   (451,873)
Net income (loss)   243,027    (636,965)   (55,817)   (449,755)
Net income (loss) per common share                   
Basic   0.13    (0.34)   (0.03)   (0.24)
Diluted   0.13    (0.34)   (0.03)   (0.24)
Weighted average shares - diluted   1,854,370    (5,345)        1,849,025 

 

   For the Nine Months Ended June 30, 2018
Statement of Operations                    
Total net revenue  $3,590,347   $(1,042,675)  $   $2,547,672 
Total cost of revenue   1,762,645        55,817    1,818,462 
Gross profit   1,800,202    (1,015,175)   (55,817)   729,210 
Operating loss   (127,820)   (1,042,675)   (55,817)   (1,226,312)
Net loss   (122,219)   (1,042,675)   (55,817)   (1,220,711)
Net loss per common share                    
Basic   (0.07)   (0.56)   (0.03)   (0.66)
Diluted   (0.07)   (0.56)   (0.03)   (0.66)
                     
Statement of cash flows                    
Net loss  $(122,219)  $(1,042,675)  $(55,817)  $(1,220,711)
Changes in current assets and current liabilities:                    
     Deferred revenue       1,042,675        1,042,675 
     Inventory reserve   (196,594)       55,817   (140,777)

 

 

NOTE 3. Summary of Significant Accounting Policies

 

The accounting policies that management believes are most critical to aid in fully understanding and evaluating the reported financial results include the following:

 

Revenue Recognition

 

The Company’s engineering services revenue is derived from performing funded research and development and technology development for commercial companies and government agencies primarily under fixed-price contracts. On fixed-price contracts that are expected to exceed one year in duration, revenue is recognized pursuant to the proportional performance method based upon the proportion of actual costs incurred to date to the total estimated costs for the contract. The Company receives periodic progress payments based on contract terms.

 

Equipment revenue is recognized when there is persuasive evidence of an arrangement, the fee is fixed or determinable, delivery of the product and passage of title to the customer has occurred and the Company has determined that collection of the fee is probable. Title to the product generally passes upon shipment of the product, as the products are shipped freight on board shipping point, except for certain foreign shipments for which title passes upon entry of the product into the first port in the buyer’s country. If the product requires installation to be performed by the Company, or other acceptance criteria exist, all revenue related to the product is deferred and recognized upon completion of the installation or satisfaction of the customer acceptance criteria. The Company provides for a warranty reserve at the time the product revenue is recognized.

 

8

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

As of June 30, 2018, billings in excess of revenues of $1,483,000 were recorded as deferred revenue in relation to contracts based on proportional performance. Deferred revenue represents the cumulative difference between the amounts billed and revenue recognized for services performed.

 

All payments to TCC for work performed on contracts with agencies of the U.S. government are subject to audit and adjustment by the Defense Contract Audit Agency, the U.S. Government Accountability Office and other agencies. Adjustments are recognized in the period made. There have been no government audits in recent years and the Company believes the result of such audits, should they occur, would not have a material adverse effect on its financial position or results of operations. If the current estimates of total contract revenue and contract costs for a product development contract indicate a loss, a provision for the entire loss on the contract is recorded. Any losses incurred in performing funded research and development projects are recognized as funded research and development expenses.

 

Costs incurred in connection with funded research and development are included in cost of revenue. Product development costs are charged to billable engineering services, bid and proposal efforts or business development activities, as appropriate. Product development costs charged to billable projects are recorded as cost of revenue; engineering costs charged to bid and proposal efforts are recorded as selling expenses; and product development costs charged to business development activities are recorded as marketing expenses. Product development costs consist primarily of costs associated with personnel, outside contractor and engineering services, supplies and materials. Cost of product revenue includes material, labor and overhead.

 

Revenue for the nine month period ended June 30, 2018 consisted of $2,219,000 from engineering services and $329,000 from equipment revenue, compared to revenue of $320,000 from engineering services and $2,716,000 from equipment revenue for the nine month period ended July 1, 2017.

 

Inventories

 

The Company values its inventory at the lower of cost (based on the first-in, first-out method) to purchase and/or manufacture and net realizable value (based on the estimated selling prices, less reasonably predictable costs of completion, disposal, and transportation) of the inventory. The Company periodically reviews inventory quantities on hand and records a provision for excess and/or obsolete inventory based primarily on the estimated forecast of product demand, as well as historical usage. The Company evaluates the carrying value of inventory on a quarterly basis to determine whether the carrying value is in excess of net realizable value. To the extent that net realizable value is less than the associated carrying values, inventory carrying values are written down. In addition, the Company makes judgments as to future demand requirements and compares those with the current or committed inventory levels. Reserves are established for inventory levels that exceed expected future demand. It is possible that additional reserves above those already established may be required in the future if market conditions for the Company’s products should deteriorate.

 

Accounts Receivable

 

Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on a specific analysis of accounts in the receivable portfolio and historical write-off experience. While management believes no allowance is currently needed, if the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required, which would reduce net income. In addition, if the Company becomes aware of a customer’s inability to meet its financial obligations, a specific write-off is recorded in that amount.

 

9

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

Accounting for Income Taxes

 

The preparation of the Company’s unaudited consolidated financial statements requires it to estimate income taxes in each of the jurisdictions in which the Company operates, including those outside the United States, which may subject the Company to certain risks that ordinarily would not be expected in the United States. The income tax accounting process involves estimating our actual current exposure together with assessing temporary differences resulting from differing treatments of items, such as inventory obsolescence and stock-based compensation, for tax and accounting purposes. These differences result in the recognition of deferred tax assets and liabilities. The Company must then record a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized.

 

Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. At June 30, 2018 and September 30, 2017, the Company recorded a full valuation allowance against its net deferred tax assets of approximately $3.7 million and $4.9 million, respectively, due to uncertainties related to the Company’s ability to realize these assets. The valuation allowance is based on estimates of taxable income by jurisdiction and the period over which deferred tax assets will be recoverable. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, it may need to adjust its valuation allowance, which could materially impact the Company’s financial position and results of operations.

 

The Company follows appropriate guidance for the recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-not in order for those tax positions to be recognized in the financial statements.

 

Due to the nature of the Company’s current operations in foreign countries (selling products into these countries with the assistance of local representatives), the Company has not been subject to any foreign taxes in recent years, and it is not anticipated that it will be subject to foreign taxes in the near future.

 

Fair Value Measurements

 

In determining fair value measurements, the Company follows the established framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. The topic provides a consistent definition of fair value that focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The topic also prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information and establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. At June 30, 2018 and September 30, 2017, the carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, marketable securities and accounts payable approximate fair value because of their short-term nature.

 

The three-level hierarchy is as follows:

 

  Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date.
  Level 2 - Pricing inputs are quoted prices for similar assets or liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data.
  Level 3 - Pricing inputs are unobservable for the assets or liabilities, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

 

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.

 

10

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

The Company’s held to maturity securities are comprised of investments in municipal bonds. These securities represent ownership in individual bonds issued by municipalities within the United States. The value of these securities is disclosed in Note 8. The Company’s available for sale securities consist of mutual funds held in money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value.

 

The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the nine month period ended June 30, 2018 and the year ended September 30, 2017, there were no transfers between levels.

 

The following table sets forth by level, within the fair value hierarchy, the assets measured at fair value on a recurring basis as of June 30, 2018 and September 30, 2017, in accordance with the fair value hierarchy as defined above. As of June 30, 2018 and September 30, 2017, the Company did not hold any assets classified as Level 2 or Level 3.

 

June 30, 2018   
 
 
Total
  Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
       
Mutual funds:          
Money market funds  $1,015,102   $1,015,102 
Total mutual funds   1,015,102    1,015,102 
           
Total assets  $1,015,102   $1,015,102 
           
September 30, 2017          
           
Mutual funds:          
Money market funds  $851,195   $851,195 
Total mutual funds   851,195    851,195 
           
Total assets  $851,195   $851,195 

 

There were no assets or liabilities measured at fair value on a nonrecurring basis at June 30, 2018 or September 30, 2017.

 

Stock-Based Compensation

 

Stock-based compensation cost is measured at the grant date based on the calculated fair value of the award. The expense is recognized over the participant’s requisite service period, generally the vesting period of the award. The related excess tax benefit received upon the exercise of stock options, if any, is reflected in the Company’s statement of cash flows as a financing activity. There were no excess tax benefits recorded during either of the nine month periods ended June 30, 2018 and July 1, 2017.

 

The Company uses the Black-Scholes option pricing model as the method for determining the estimated fair value of its stock awards. The Black-Scholes method of valuation requires several assumptions: (1) the expected term of the stock award, (2) the expected future stock price volatility over the expected term, (3) a risk-free interest rate and (4) the expected dividend rate.

 

11

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

The expected term represents the expected period of time the Company believes the options will be outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock, and the risk free interest rate is based on the U.S. Treasury Note rate. The Company utilizes a forfeiture rate based on an analysis of its actual experience. The forfeiture rate is not material to the calculation of share-based compensation. There were 14,500 and 14,000 options granted during the nine month periods ended June 30, 2018 and July 1, 2017, respectively.

 

The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the three and nine month periods ended June 30, 2018 and July 1, 2017:

 

   June 30, 2018  July 1, 2017
   3 months  9 months  3 months  9 months
             
Selling, general and administrative expenses  $7,596   $17,352   $3,896   $9,998 
Product development expenses   356    1,064    272    811 
Total share-based compensation expense before taxes  $7,952   $18,416   $4,168   $10,809 

  

As of June 30, 2018, there was $111,591 of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of June 30, 2018, the weighted average period over which the compensation expense is expected to be recognized is 4.05 years.

 

The Technical Communications Corporation 2005 Non-Statutory Stock Option Plan and 2010 Equity Incentive Plan were outstanding at June 30, 2018. There are an aggregate of 600,000 shares authorized for issuance under these plans, of which options to purchase 228,837 shares were outstanding at June 30, 2018. Vesting periods are at the discretion of the Board of Directors and typically range between zero and five years. Options under these plans are granted with an exercise price equal to fair market value at time of grant and have a term of ten years from the date of grant.

 

As of June 30, 2018, there were 230,563 shares available for grant under the 2010 Equity Incentive Plan. The 2005 Non-Statutory Stock Option Plan has expired and options are no longer available for grant under such plan.

 

12

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

The following table summarizes stock option activity during the first nine months of fiscal 2018:

 

   Options Outstanding
   Number of Shares     Weighted Average
   Unvested  Vested  Total  Weighted Average
Exercise Price
  Contractual Life
(years)
                
Outstanding, September 30, 2017   34,200    212,081    246,281   $8.36    3.95 
                          
Grants   -    -    -           
Vested   -    -    -           
Exercises   -    -    -           
Cancellations/forfeitures   -    -    -           
                          
Outstanding, December 30, 2017   34,200    212,081    246,281   $8.35    3.72 
                          
Grants   14,500    -    14,500    7.25      
Vested   (5,600)   5,600    -    2.70      
Exercises   -    (24,100)   (24,100)   6.12      
Cancellations/forfeitures   -    (7,844)   (7,844)   9.68      
                          
Outstanding, March 31, 2018   43,100    185,737    228,837   $8.48    4.17 
                          
Grants   -    -    -           
Vested   (3,100)   3,100    -    4.25      
Exercises   -    -    -           
Cancellations/forfeitures   -    -    -           
                          
Outstanding, June 30, 2018   40,000    188,837    228,837   $8.48    3.92 

 

 

13

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

Information related to the stock options vested and expected to vest as of June 30, 2018 is as follows:

 

Range of
Exercise Prices
  Number of
Shares
  Weighted-
Average
Remaining
Contractual
Life (years)
  Weighted
Average
Exercise Price
  Exercisable
Number of
Shares
  Exercisable
Weighted-
Average
Exercise Price
                
$2.01 - $3.00   27,300    8.13   $2.70    7,700   $2.75 
$4.01 - $5.00   36,100    4.05    4.53    30,000    4.62 
$5.01 - $10.00   51,000    5.31    7.80    36,700    8.02 
$10.01 - $15.00   114,437    2.26    11.40    114,437    11.40 
    228,837    3.92   $8.48    188,837   $9.31 

 

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of June 30, 2018 and July 1, 2017 was $15,270 and $0, respectively. Nonvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions.

 

New Accounting Pronouncements

 

ASU 2014-09, Revenue from Contracts with Customers, amended by ASU 2015-14 (Topic 606), ASU 2016-10, ASU 2016-11 and ASU 2016-12

 

In May 2014, the FASB and the International Accounting Standards Board issued guidance on the principles for recognizing revenue and developing a common revenue standard for U.S. GAAP and International Financial Reporting Standards that would: (1) remove inconsistencies and weaknesses in revenue requirements, (2) provide a more robust framework for addressing revenue issues, (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (4) provide more useful information to users of financial statements through improved disclosure requirements, and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. This guidance is effective prospectively for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The impact of this guidance will not have a material effect on the Company’s consolidated financial statements. This guidance will become effective for the Company as of the beginning of the 2019 fiscal year.

 

The qualitative assessments of the standard provided below are estimates of the expected effects of the adoption of ASC 606. This represents the Company’s best estimate of the effects of adopting ASC 606 at the time of the preparation of this Quarterly Report on Form 10-Q. The actual impact of ASC 606 is subject to change from these estimates and such change may be significant, pending the completion of our assessment in the first quarter of fiscal 2019.

 

Engineering Services Revenue The Company expects that the deliverables under the current guidance will be consistent with performance obligations identified under ASC 606. The adoption of ASC 606 will not result in a change to the timing of revenue recognition for this type of revenue as the standard requires revenues to be estimated and recognized upon transfer of the promised goods and services. As such, the Company does not expect the adoption of ASC 606 to result in a material impact to revenue recognition.

 

Equipment Revenue The deliverables under the previous guidance is consistent with performance obligations identified under ASC 606. Under ASC 606, the Company continued to allocate the transaction price between the elements and performance obligations within the contract. Revenue recognition for the performance obligations accounted for under ASC 606 was consistent with current guidance given the transfer of control of the promised goods or services follows the same pattern. As such, the adoption of ASC 606 will not result in a material impact on revenue recognition.

 

14

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory

 

In July 2015, the FASB issued guidance with respect to inventory measurement. This ASU requires inventory to be measured at the lower of cost and net realizable value. The provisions of this ASU became effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendment is required to be applied prospectively, and early adoption is permitted. This guidance was adopted by the Company in the first quarter of its 2018 fiscal year; the adoption of this standard did not have a material impact on the financial statements.

 

ASU No. 2016-02, Leases

 

In February 2016, the FASB issued guidance with respect to leases. This ASU requires entities to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the potential impact this standard will have on the financial statements and related disclosure. The Company currently has one operating lease on its facility in Concord, MA. The Company expects to adopt this standard during its fiscal year 2020.

 

ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting

 

In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. This guidance was adopted by the Company in the first quarter of its 2018 fiscal year; the adoption of this standard did not have a material impact on the financial statements.

 

ASU No. 2016-18, Restricted Cash Presentation on Statement of Cash Flows

 

In November 2016, the FASB issued guidance in regards to additional disclosure surrounding restricted cash activity. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company has elected to early adopt effective October 1, 2017. Accordingly, restricted cash has been grouped with cash and cash equivalents on the statements of cash flows and results for the nine month period ended July 1, 2017 have been retrospectively reclassified.

 

Other recent accounting pronouncements were issued by the FASB (including its Emerging Issues Task Force) and the SEC during the first nine months of our 2018 fiscal year but such pronouncements are not believed by management to have a material impact on the Company’s present or future financial statements.

 

15

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

NOTE 4. Inventories

 

Inventories consisted of the following:

 

   June 30,
2018
(As restated,
see Note 2)
  September 30,
2017
(As restated,
see Note 2)
       
Finished goods  $29,499   $20,759 
Work in process   639,050    383,216 
Raw materials   830,572    954,369 
   $1,499,121   $1,358,344 

 

NOTE 5. Income Taxes

 

The Company has not recorded an income tax benefit on its net loss for the three and nine month periods ended June 30, 2018 and July 1, 2017 due to its uncertain realizability. During previous fiscal years, the Company recorded a valuation allowance for the full amount of its net deferred tax assets since it could not predict the realization of these assets.

 

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law by the President of the United States. The Tax Act includes a number of changes, including the lowering of the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. The Company has determined and completed the accounting for certain income tax effects of the Tax Act to the current reporting period. Because the Company records a valuation allowance for its entire deferred income tax asset, there was no impact on the reported amounts in the unaudited consolidated financial statements included in this Quarterly Report as a result of the Tax Act.

 

NOTE 6. Loss Per Share

 

Outstanding potentially dilutive stock options, which were not included in the net loss per share amounts as their effect would have been anti-dilutive, were as follows: 201,037 shares at June 30, 2018 and 251,714 shares at July 1, 2017.

 

NOTE 7. Major Customers and Export Revenue

 

During the three month period ended June 30, 2018, the Company had one customer that represented 91% of net revenue as compared to the three month period ended July 1, 2017, during which the Company had two customers that represented 97% (66% and 31%, respectively) of net revenue. During the nine month period ended June 30, 2018, the Company had one customer that represented 87% of net revenue as compared to the nine month period ended July 1, 2017, during which the Company had two customers that represented 91% (81% and 10%, respectively) of net revenue.

 

A breakdown of foreign and domestic net revenue for the three and nine month periods ended June 30, 2018 and July 1, 2017 is as follows:

 

    June 30, 2018   July 1, 2017
    3 months   9 months   3 months   9 months
Domestic   $ 832,441     $ 2,343,878     $ 1,008,380     $ 2,792,102  
Foreign     74,736       203,794       10,725       243,710  
Total net revenue   $ 907,177     $ 2,547,672     $ 1,019,105     $ 3,035,812  

 

16

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

The Company sold products into two foreign countries during the three month period ended June 30, 2018 and one foreign country during the three month period ended July 1, 2017. The Company sold products into four foreign countries during the nine month period ended June 30, 2018 and five foreign countries during the nine month period ended July 1, 2017. A sale is attributed to a foreign country based on the location of the contracting party. Domestic revenue may include the sale of products shipped through domestic resellers or manufacturers to international destinations. The table below summarizes the Company’s foreign revenues by country as a percentage of total foreign revenue.

 

   June 30, 2018  July 1, 2017
   3 months  9 months  3 months  9 months
             
Saudi Arabia   73%   44%   -    42%
Philippines   27%   44%   -    4%
Bahrain   -    -    100%   4%
Jordan   -    6%   -    43%
Other   -    6%   -    7%

 

A summary of foreign revenue, as a percentage of total foreign revenue by geographic area, is as follows:

 

   June 30, 2018  July 1, 2017
   3 months  9 months  3 months  9 months
             
Mid-East and Africa   73%   56%   100%   89%
Far East   27%   44%   -    11%

 

NOTE 8. Cash Equivalents and Marketable Securities

 

The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. Cash equivalents are invested in money market mutual funds held in a brokerage account. All marketable securities must be classified as one of the following: held to maturity, available for sale, or trading. The Company classifies its marketable securities as either available for sale or held to maturity.

 

Available for sale securities are carried at fair value, with unrealized holding gains and losses reported in stockholders’ equity as a separate component of accumulated other comprehensive income (loss). Held to maturity securities are carried at amortized cost. The cost of securities sold is determined based on the specific identification method. Realized gains and losses, and declines in value judged to be other than temporary, are included in investment income.

 

As of June 30, 2018, cash equivalents consisted of the following:

 

      Gross Unrealized  Estimated
   Cost  Gains  Losses  Fair Value
                     
Money market mutual funds  $1,015,102   $-   $-   $1,015,102 

 

As of September 30, 2017, cash equivalents consisted of the following:

      Gross Unrealized  Estimated
   Cost  Gains  Losses  Fair Value
                     
Money market mutual funds  $851,195   $-   $-   $851,195 

 

 

17

 

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)

 

As of September 30, 2017, held to maturity securities consisted of the following:

 

   Cost  Accrued
Interest
  Amortization
Bond Premium
  Amortized
Cost
  Unrealized
Gains
  Estimated
Fair Value
                               
Municipal bonds  $412,366   $6,986   $59,099   $360,253   $216   $360,469 

 

The Company did not have any held to maturity securities at June 30, 2018.

 

NOTE 9. Cost Method Investment

 

On October 30, 2014, the Company made an investment of $275,000 to purchase 11,000 shares of common stock of PulsedLight, Inc., an early stage start-up company located in Bend, Oregon. The investment represented a 10.8% ownership stake in the company at the time of purchase and was accounted for utilizing the cost method of accounting. On January 12, 2016, the Company entered into an agreement to sell its shares in PulsedLight. The net proceeds to the Company after closing costs and certain liabilities amounted to $737,283, of which the Company received $661,466 at closing and of which $75,817 was deposited in an escrow account in accordance with the terms of the sale that required 10% of the proceeds to be held in escrow for one year. The escrow balance was received by the Company in January 2017.

 

 

 

 

 

 

18

 

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

 

Forward-Looking Statements

 

Certain statements contained herein or as may otherwise be incorporated by reference herein that are not purely historical constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to statements regarding anticipated operating results, future earnings, and the Company’s ability to achieve growth and profitability. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including but not limited to the effect of foreign political unrest; domestic and foreign government policies and economic conditions; future changes in export laws or regulations; changes in technology; the ability to hire, retain and motivate technical, management and sales personnel; the risks associated with the technical feasibility and market acceptance of new products; changes in telecommunications protocols; the effects of changing costs, exchange rates and interest rates; and the Company's ability to secure adequate capital resources. Such risks, uncertainties and other factors could cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a more detailed discussion of the risks facing the Company, see the Company’s Annual Reports on Form 10-K as filed with the SEC.

 

Overview

 

The Company designs, manufactures, markets and sells communications security equipment that utilizes various methods of encryption to protect the information being transmitted. Encryption is a technique for rendering information unintelligible, which information can then be reconstituted if the recipient possesses the right decryption “key”. The Company manufactures several standard secure communications products and also provides custom-designed, special-purpose secure communications products for both domestic and international customers. The Company’s products consist primarily of voice, data and facsimile encryptors. Revenue is generated principally from the sale of these products, which have traditionally been to foreign governments either through direct sale, pursuant to a U.S. government contract, or made as a sub-contractor to domestic corporations under contract with the U.S. government. We also sell these products to commercial entities and U.S. government agencies. We generate additional revenues from contract engineering services performed for certain government agencies, both domestic and foreign, and commercial entities.

 

Critical Accounting Policies and Significant Judgments and Estimates

 

There have been no material changes in the Company’s critical accounting policies or critical accounting estimates since September 30, 2017, nor have we adopted any accounting policy that has or will have a material impact on our consolidated financial statements.  For further discussion of our accounting policies see Note 1, Summary of Significant Accounting Policies and Significant Judgments and Estimates in the Notes to Unaudited Consolidated Financial Statements in this Quarterly Report on Form 10-Q/A and the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017 (restated) as filed with the SEC.

 

Results of Operations

 

Three Months ended June 30, 2018 compared to Three Months ended July 1, 2017

 

Total Net Revenue

 

Total net revenue for the quarter ended June 30, 2018 was $907,000, compared to $1,019,000 for the quarter ended July 1, 2017, a decrease of 11%. Net revenue for the third quarter of fiscal 2018 consisted of $832,000, or 92%, from domestic sources and $75,000, or 8%, from international customers as compared to the same period in fiscal 2017, during which net revenue consisted of $1,008,000, or 99%, from domestic sources and $11,000, or 1%, from international customers.

 

19

 

 

Foreign sales consisted of shipments to two countries during the quarter ended June 30, 2018 and one country during the quarter ended July 1, 2017. A sale is attributed to a foreign country based on the location of the contracting party. Domestic revenue may include the sale of products shipped through domestic resellers or manufacturers to international destinations. The table below summarizes our principal foreign sales by country during the third quarter of fiscal 2018 and 2017:

 

   2018  2017
Saudi Arabia  $55,000   $- 
Philippines   20,000    - 
Bahrain   -    11,000 
   $75,000   $11,000 

 

For the three months ended June 30, 2018, revenue was derived primarily from sales of our engineering services amounting to $759,000. The Company also sold its internet protocol encryptor to a customer in Saudi Arabia amounting to $55,000 during the period.

 

For the three months ended July 1, 2017, product \ revenue was derived primarily from shipments of our narrowband radio encryptors to a domestic customer for deployment into Afghanistan amounting to $669,000. The Company also recorded revenue under an engineering services contract amounting to $251,000 during the period.

 

Gross Profit

 

Gross profit for the third quarter of fiscal 2018 was $194,000, compared to gross profit of $491,000 for the same period of fiscal 2017, a decrease of 60%. Gross profit expressed as a percentage of revenue was 21% for the third quarter of fiscal 2018 compared to 48% for the same period in fiscal 2017, which was due to the lower margin engineering services revenue in fiscal 2018.

 

Operating Costs and Expenses

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses for the third quarter of fiscal 2018 were $522,000, compared to $479,000 for the same quarter in fiscal 2017. This increase of $43,000, or 9%, was attributable to an increase in general and administrative expenses of $36,000 and an increase in selling and marketing expenses of $7,000 during the three months ended June 30, 2018.

 

The increase in general and administrative expenses for the three months ended June 30, 2018 was primarily attributable to increases in professional service fees and other public company costs of $19,000, a write-off of collateral of $12,000 and an increase in personnel-related costs of $5,000.

 

The increase in selling and marketing expenses for the three months ended June 30, 2018 was primarily attributable to increases in outside sales commissions of $11,000, bid and proposal costs of $26,000 and outside consulting costs of $14,000. These increases were offset by a decrease in product evaluation costs of $39,000 during the period.

 

Product Development Costs

 

Product development costs for the quarter ended June 30, 2018 were $124,000, compared to $407,000 for the quarter ended July 1, 2017. This decrease of $283,000, or 69%, was primarily attributable to an increase in billable engineering services contracts during the third quarter of fiscal 2018 that resulted in decreased product development costs of $338,000 and reduced personnel related costs by $43,000. These decreased costs were partially offset by an increase in engineering project costs of $97,000 during the period.

 

Product development costs are charged to billable engineering services, bid and proposal efforts or business development activities, as appropriate. Product development costs charged to billable projects are recorded as cost of revenue; engineering costs charged to bid and proposal efforts are recorded as selling expenses; and product development costs charged to business development activities are recorded as marketing expenses.

 

20

 

 

The Company actively sells its engineering services in support of funded research and development. The receipt of these orders is sporadic, although such programs can span over several months. In addition to these programs, the Company also invests in research and development to enhance its existing products or to develop new products, as it deems appropriate. There was approximately $759,000 of billable engineering services revenue generated during the third quarter of fiscal 2018 and $320,000 in the third quarter of fiscal 2017.

 

Net Income/Loss

 

The Company generated a net loss of $450,000 for the third quarter of fiscal 2018, compared to a net loss of $393,000 for the same period of fiscal 2017. This increase in net loss is primarily attributable to a 60% decrease in gross profit, partially offset by a 27% decrease in operating expenses during the third quarter of fiscal 2018.

 

Nine Months ended June 30, 2018 compared to Nine Months ended July 1, 2017

 

Total Net Revenue

 

Total net revenue for the nine months ended June 30, 2018 was $2,548,000, compared to $3,036,000 for the nine months ended July 1, 2017, a decrease of 16%. Net revenue for the first nine months of fiscal 2018 consisted of $2,344,000, or 92%, from domestic sources and $204,000, or 8%, from international customers as compared to the same period in fiscal 2017, during which net revenue consisted of $2,793,000, or 92%, from domestic sources and $243,000, or 8%, from international customers.

 

Foreign sales consisted of shipments to four countries during the nine month period ended June 30, 2018 and five countries during the same period in fiscal 2017. A sale is attributed to a foreign country based on the location of the contracting party. Domestic revenue may include the sale of products shipped through domestic resellers or manufacturers to international destinations. The table below summarizes our principal foreign sales by country during the first nine months of fiscal 2018 and 2017:

 

   2018  2017
       
Philippines  $90,000   $10,000 
Saudi Arabia   89,000    101,000 
Jordan   13,000    106,000 
Other   12,000    26,000 
   $204,000   $243,000 

 

For the nine months ended June 30, 2018, revenue was derived primarily from sales of our engineering services amounting to $2,218,000 and shipments of our narrowband radio encryptors to a customer in the Far East amounting to $90,000 and to a domestic customer for deployment into Afghanistan amounting to $57,000. We also sold our internet protocol encryptor to a customer in Saudi Arabia amounting to $89,000 during the period.

 

For the nine months ended July 1, 2017, product revenue was derived primarily from shipments of our narrowband radio encryptors to a domestic customer for deployment into Afghanistan amounting to $2,450,000. Additional revenue was generated from sales of our engineering services amounting to $251,000. The Company made shipments of our secure telephone and fax encryptor to an international customer in Jordan amounting to $106,000. We also sold our internet protocol encryptor to a customer in Saudi Arabia amounting to $95,000 during the period.

 

Gross Profit

 

Gross profit for the first nine months of fiscal 2018 was $729,000, compared to gross profit of $2,081,000 for the same period of fiscal 2017, a decrease of 65%. Gross profit expressed as a percentage of total net revenue was 29% for the first nine months of fiscal 2018 compared to 69% for the same period in fiscal 2017, which was due to the lower margin engineering services revenue in fiscal 2018. During fiscal 2017 the concentration of revenue related to equipment revenue which historically will yield higher margins.

 

21

 

 

Operating Costs and Expenses

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses for the first nine months of fiscal 2018 were $1,513,000, compared to $1,669,000 for the same period in fiscal 2017. This decrease of $156,000, or 9%, was attributable to a decrease in selling and marketing expenses of $231,000, which was partially offset by an increase in general and administrative expenses of $75,000 during the nine months ended June 30, 2018.

 

The decrease in selling and marketing expenses for the nine months ended June 30, 2018 was primarily attributable to decreases in product demonstration costs of $136,000, product evaluation costs of $99,000 and bid and proposal costs of $17,000. These decreases were partially offset by an increase in personnel-related costs of $14,000.

 

The increase in general and administrative expenses for the nine months ended June 30, 2018 was primarily attributable to increases in audit fees and other public company costs of $94,000. These increases were partially offset by a decrease in personnel-related costs of $25,000 during the period.

 

Product Development Costs

 

Product development costs for the nine months ended June 30, 2018 were $442,000, compared to $1,378,000 for the nine months ended July 1, 2017. This decrease of $935,000, or 68%, was attributable to an increase in billable engineering services contracts during the first nine months of fiscal 2018 that resulted in decreased product development costs of $994,000 and reduced personnel related costs of $128,000. These decreased costs were partially offset by an increase in engineering project costs of $191,000 during the period.

 

Product development costs are charged to billable engineering services, bid and proposal efforts or business development activities, as appropriate. Product development costs charged to billable projects are recorded as cost of sales; engineering costs charged to bid and proposal efforts are recorded as selling expenses; and product development costs charged to business development activities are recorded as marketing expenses.

 

The Company actively sells its engineering services in support of funded research and development. The receipt of these orders is sporadic, although such programs can span over several months. In addition to these programs, the Company also invests in research and development to enhance its existing products or to develop new products, as it deems appropriate. There was approximately $2,218,000 of billable engineering services revenue generated during the first nine months of fiscal 2018 and $320,000 in the first nine months of fiscal 2017.

 

Net Loss

 

The Company incurred a net loss of $1,221,000 for the first nine months of fiscal 2018, compared to a net loss of $960,000 for the same period of fiscal 2017. This increase in net loss is primarily attributable to a 65% decrease in gross profit and partially offset by a 36% decrease in operating expenses during the first nine months of fiscal 2018.

 

The effects of inflation and changing costs have not had a significant impact on revenue or earnings in recent years. As of June 30, 2018, none of the Company’s monetary assets or liabilities was subject to foreign exchange risks. The Company usually includes an inflation factor in its pricing when negotiating multi-year contracts with customers.

 

22

 

 

Liquidity and Capital Resources (dollar amounts have been rounded to nearest thousandths)

 

Our cash and cash equivalents at June 30, 2018 totaled $1,460,000 and we continue to have no debt.

 

Liquidity and Ability to Continue as a Going Concern

 

The Company has suffered recurring losses from operations and had an accumulated deficit of $2,527,000 at June 30, 2018. These factors raise substantial doubt about the Company's ability to continue as a going concern within one year from the issuance date of the unaudited consolidated financial statements included in this Quarterly Report. The unaudited consolidated financial statements included herein do not include any adjustments to reflect the substantial doubt about the Company’s ability to continue as a going concern.

 

We anticipate that our principal sources of liquidity will only be sufficient to fund our activities to January 2020. In order to have sufficient cash to fund our operations beyond that point, we will need to secure new customer contracts, raise additional equity or debt capital, and reduce expenses, including payroll and payroll-related expenses.

 

In order to have sufficient capital resources to fund operations, the Company has been working diligently to secure several large orders with new and existing customers. In addition, we are pursuing raising capital through equity or debt arrangements. Although we believe our ability to secure such new business and raise new capital is likely, we cannot provide assurances we will be able to do so.

 

Should we be unsuccessful in these efforts, we would then be forced to implement headcount reductions, employee furloughs and/or reduced hours for certain employees or cease operations completely.

 

Sources and Uses of Cash

 

The following table presents our abbreviated cash flows for the nine month periods ended (unaudited):

 

   June 30,
2018
  July 1,
2017
       
Net loss  $(1,221,000)  $(960,000)
Changes not affecting cash   33,000    114,000 
Changes in assets and liabilities   1,045,000    (600,000)
           
Cash used in operating activities   (143,000)   (1,446,000)
Cash provided by investing activities   306,000    372,000 
           
Net change in cash, cash equivalents and restricted cash   163,000    (1,074,000)
Cash, cash equivalents and restricted cash - beginning of period   1,297,000    2,617,000 
           
Cash, cash equivalents and restricted cash - end of period  $1,460,000   $1,543,000 

 

Operating Activities

 

The Company used approximately $1,304,000 less cash for operating activities in the first nine months of fiscal 2018 compared to the same period in fiscal 2017. This decrease was primarily attributable to a decrease in accounts receivable of $442,000 and an increase in deferred revenue of $994,000 for the nine month period ended June 30, 2018.

 

Investing Activities

 

Cash provided by investing activities during the first nine months of fiscal 2018 decreased by approximately $66,000 compared to the same period in fiscal 2017. This change is primarily attributable to a decrease in proceeds from the sale of cost method investment of $76,000 and an increase in additions to equipment and leasehold improvements of $40,000, partially offset by the difference in the maturity of short-term investments in marketable securities of $50,000 during the first nine months of 2018 compared to the same period in fiscal 2017.

 

23

 

 

Company Facilities

 

On July 1, 2014, the Company entered into a lease for its current facilities. This lease is located at 100 Domino Drive, Concord, MA. The Company has been a tenant in this space since 1983. This is the Company’s only facility and houses all manufacturing, research and development, and corporate operations. The initial term of the lease is for five years through June 30, 2019 at an annual rate of $171,000. In addition, the lease contains options to extend the lease for two and one half years through September 30, 2021 and another two and one half years through June 30, 2024 at an annual rate of $171,000. Rent expense for each of the nine month periods ended June 30, 2018 and July 1, 2017 was $128,000.

 

Backlog

 

Backlog at June 30, 2018 and September 30, 2017 amounted to $2,750,000 and $2,675,000, respectively. The orders in backlog at June 30, 2018 are expected to ship and/or services are expected to be performed over the next nine months depending on customer requirements and product availability.

 

Performance guarantees

 

Certain foreign customers require the Company to guarantee bid bonds and performance of products sold. These guarantees typically take the form of standby letters of credit. Guarantees are generally required in amounts of 5% to 10% of the purchase price and last in duration from three months to one year. At June 30, 2018, the Company had no outstanding letters of credit. At September 30, 2017, the Company had two outstanding letters of credit in the amounts of $12,000 and $1,000. These collateralized bank accounts represented cash which had restrictions on its use.

 

Research and development

 

Research and development efforts are undertaken by the Company primarily on its own initiative. In order to compete successfully, the Company must improve existing products and develop new products, as well as attract and retain qualified personnel. No assurances can be given that the Company will be able to hire and train such technical, management and sales personnel or successfully improve and develop its products.

 

During the nine months ended June 30, 2018 and July 1, 2017, the Company spent $442,000 and $1,378,000, respectively, on internal product development. The Company also spent $1,382,000 on billable development efforts during the first nine months of fiscal 2018 and $152,000 during the same period of fiscal 2017. The Company’s total product development costs during the first nine months of fiscal 2018 were 14% higher than the same period in fiscal 2017 but in line with its planned commitment to research and development, and reflected the costs of custom development, product capability enhancements and production readiness. It is expected that development expenses for fiscal 2018 will be approximately 20% higher compared to fiscal 2017 levels.

 

It is anticipated that cash from operations will fund our near-term research and development and marketing activities to January 2020. We also believe that, in the long term, based on current billable activities, cash from operations will be sufficient to meet the product development goals of the Company, although we can give no assurances. Any increase in development activities - either billable or new product related - will require additional resources, which we may not be able to fund through cash from operations. In circumstances where resources will be insufficient, the Company will look to other sources of financing, including debt and/or equity investments; however, we can provide no guarantees that we will be successful in securing such additional financing.

 

Other than those stated above, there are no plans for significant internal product development or material commitments for capital expenditures during the remainder of fiscal 2018.

 

24

 

 

New Accounting Pronouncements

 

ASU 2014-09, Revenue from Contracts with Customers, amended by ASU 2015-14 (Topic 606), ASU 2016-10, ASU 2016-11 and ASU 2016-12

 

In May 2014, the FASB and the International Accounting Standards Board issued guidance on the principles for recognizing revenue and developing a common revenue standard for U.S. GAAP and International Financial Reporting Standards that would: (1) remove inconsistencies and weaknesses in revenue requirements, (2) provide a more robust framework for addressing revenue issues, (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (4) provide more useful information to users of financial statements through improved disclosure requirements, and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. This guidance is effective prospectively for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The impact of this guidance was determined to be immaterial on the Company’s consolidated financial statements. This guidance will become effective for the Company as of the beginning of our 2019 fiscal year.

 

The qualitative assessments of the standard provided below are estimates of the expected effects of the adoption of ASC 606. This represents our best estimate of the effects of adopting ASC 606 at the time of the preparation of this Quarterly Report on Form 10-Q. The actual impact of ASC 606 is subject to change from these estimates and such change may be significant, pending the completion of our assessment in the first quarter of fiscal 2019.

 

Engineering Services Revenue We expect that the deliverables under the current guidance will be consistent with performance obligations identified under ASC 606. The adoption of ASC 606 will not result in a change to the timing of revenue recognition for this type of revenue as the standard requires revenues to be estimated and recognized upon transfer of the promised goods and services. As such, we do not expect the adoption of ASC 606 will result in a material impact to revenue recognition.

 

Equipment Revenue The deliverables under the previous guidance is consistent with performance obligations identified under ASC 606. Under ASC 606, we continued to allocate the transaction price between the elements and performance obligations within the contract. Revenue recognition for the performance obligations accounted for under ASC 606 was consistent with current guidance given the transfer of control of the promised goods or services follows the same pattern. As such, the adoption of ASC 606 did not result in a material impact on revenue recognition.

 

ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory

 

In July 2015, the FASB issued guidance with respect to inventory measurement. This ASU requires inventory to be measured at the lower of cost and net realizable value. The provisions of this ASU became effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendment is required to be applied prospectively, and early adoption is permitted. This guidance was adopted by the Company in the first quarter of its 2018 fiscal year; the adoption of this standard did not have a material impact on our financial statements.

 

ASU No. 2016-02, Leases

 

In February 2016, the FASB issued guidance with respect to leases. This ASU requires entities to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. We are currently evaluating the potential impact this standard will have on our financial statements and related disclosure. The Company currently has one operating lease on its facility in Concord, MA. The Company expects to adopt this standard during its fiscal year 2020.

 

25

 

 

ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting,

 

In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. This guidance was adopted by the Company in the first quarter of its 2018 fiscal year; the adoption of this standard did not have a material impact on our financial statements.

 

ASU No. 2016-18, Restricted Cash Presentation on Statement of Cash Flows,

 

In November 2016, the FASB issued guidance in regards to additional disclosure surrounding restricted cash activity. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Accordingly, restricted cash has been grouped with cash and cash equivalents on the statements of cash flows and results for the nine month period ended July 1, 2017 have been retrospectively reclassified.

 

Other recent accounting pronouncements were issued by the FASB (including its Emerging Issues Task Force) and the SEC during the first nine months of our 2018 fiscal year but such pronouncements are not believed by management to have a material impact on the Company’s present or future financial statements.

 

Off-Balance Sheet Arrangements

 

The Company does not have any off-balance sheet arrangements.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable.

 

Item 4. Controls and Procedures (Restated)

 

Evaluation of disclosure controls and procedures. In connection with the original filing of the Form 10-Q for the fiscal quarter ended June 30, 2018, the Company’s chief executive officer and chief financial officer reviewed and evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by such quarterly report. At such time, management concluded that the Company’s disclosure controls and procedures, as designed and implemented, were not effective.

 

Management previously concluded that the Company’s internal control over financial reporting was not effective, as disclosed in its Annual Report on Form 10-K for the fiscal year ended September 30, 2017, in conjunction with the auditor’s findings, because management had identified a continuing control deficiency that it determined constituted a material weakness. Specifically, management determined that the Company lacked sufficient accounting staff and capabilities and as a result the Company failed to maintain adequate segregation of duties within its critical financial reporting applications, the related modules and financial reporting processes. The insufficient staff size also resulted in the lack of an adequately trained accounting staff and management and an inability to perform an independent review of financial reporting.

 

In addition, management identified a material weakness in internal control over significant non-routine transactions at June 30, 2018. Specifically, management determined that there was lack of operating effectiveness of internal controls over significant non-routine transactions related to the Company’s inadequate evaluation of the underlying effective rate implications related to the Tax Cuts and Jobs Act passed in December 2017, which management determined constituted a material weakness. As a result, management determined that the Company’s disclosure controls and procedures were not effective at June 30, 2018.

 

26

 

 

Finally, in connection with its assessment for the Company’s Annual Report on Form 10-K for the fiscal year ended September 29, 2018 and the restatement described in Note 2, management identified a material weakness in internal control over financial reporting, among other things, related to the misapplication of generally accepted accounting principles associated with revenue recognition and the preparation of the consolidated financial statements, specifically the classification and disclosure of financial information, which management believes resulted from a lack of adequate expertise within the Company’s accounting department. As a result, management determined that the Company’s disclosure controls and procedures were not effective at September 29, 2018.

 

Based on management’s reassessment in connection with the filing of this Form 10-Q/A, management determined that the material weaknesses described above were also material weaknesses as of and for the quarter ended June 30, 2018 and therefore has concluded that our disclosure controls and procedures were not effective as of June 30, 2018. For a more comprehensive discussion of the Company’s internal control over financial reporting and the material weaknesses noted above, as well as the remedial efforts to be undertaken by TCC to addresses such material weaknesses, see Item 9A, Disclosure Controls and Procedures, in our Annual Report on Form 10-K for the year ended September 29, 2018 as filed with the SEC.

 

Changes in internal control over financial reporting. There were no changes in the Company’s internal control over financial reporting that occurred during the quarter ended June 30, 2018 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 

 

 

 

 

27

 

 

PART II. Other Information

 

Item 1. Legal Proceedings

 

There were no legal proceedings pending against or involving the Company or its subsidiary during the period covered by this quarterly report.

 

Item 1A. Risk Factors

 

Not applicable.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

Not applicable.

 

Item 3. Defaults Upon Senior Securities

 

Not applicable.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

Not applicable.

 

 

 

28

 

 

Item 6. Exhibits

 

  31.1 Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

  31.2 Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

  32.1 Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

  101.INS XBRL Report Instance Document

 

  101.SCH XBRL Taxonomy Extension Schema Document

 

  101.CAL XBRL Taxonomy Calculation Linkbase Document

 

  101.LAB XBRL Taxonomy Label Linkbase Document

 

  101.PRE XBRL Presentation Linkbase Document

 

  101.DEF XBRL Taxonomy Extension Definition Linkbase Document

 

 

 

 

 

29

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

  TECHNICAL COMMUNICATIONS CORPORATION
  (Registrant)

 

 

  June 21, 2019   By:   /s/ Carl H. Guild, Jr.  
  Date     Carl H. Guild, Jr.,
President and Chief Executive Officer
 
           
  June 21, 2019   By:   /s/ Michael P. Malone  
  Date     Michael P. Malone,
Chief Financial Officer
 

 

 

 

 

 

 

30

 

EX-31.1 2 exh_311.htm EXHIBIT 31.1

 Exhibit 31.1

 

CERTIFICATION

 

 

I, Carl H. Guild, Jr., certify that:

 

(1)I have reviewed this quarterly report on Form 10-Q of Technical Communications Corporation;

 

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

(4)The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

(5)The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

/s/ Carl H. Guild, Jr.    

Carl H. Guild, Jr.

President and Chief Executive Officer

Date: June 21, 2019

 

 

 

 

EX-31.2 3 exh_312.htm EXHIBIT 31.2

Exhibit 31.2

 

CERTIFICATION

 

I, Michael P. Malone, certify that:

 

(1)I have reviewed this quarterly report on Form 10-Q of Technical Communications Corporation;

 

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

(4)The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

(5)The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

/s/ Michael P. Malone    

Michael P. Malone

Chief Financial Officer

Date: June 21, 2019

 

 

 

 

EX-32.1 4 exh_321.htm EXHIBIT 32.1

Exhibit 32.1

 

 

CERTIFICATION PURSUANT TO

18 U.S.C. § 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

 

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned President and Chief Executive Officer and Chief Financial Officer of Technical Communications Corporation (the “Company”) certifies that, to his knowledge:

 

1)the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

2)the information contained in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

  /s/ Carl H. Guild, Jr.   /s/ Michael P. Malone  
  Carl H. Guild, Jr.   Michael P. Malone  
  President and Chief Executive Officer   Chief Financial Officer  
         
  Date: June 21, 2019   Date: June 21, 2019  

 

 

 

 

 

EX-101.INS 5 tcco-20180630.xml XBRL INSTANCE FILE Technical Communications Corporation (the &#x201c;Company&#x201d;) is filing this Form 10-Q/A to amend its Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, originally filed with the Securities and Exchange Commission (the &#x201c;SEC&#x201d;) on August 14, 2018 (the &#x201c;Original Filing&#x201d;). This Form 10-Q/A is being filed to restate our unaudited consolidated financial statements for the three and nine month periods ended June 30, 2018 and July 1, 2017 and to make related revisions to certain other disclosures in the Original Filing; the financial statements included in the Original Filing should no longer be relied upon. The restatement of our financial statements in this Form 10-Q/A reflects the correction of certain errors primarily related to the Company&#x2019;s recognition of revenue, which errors resulted from the Company&#x2019;s misapplication of generally accepted accounting principles, as well as a correction to its inventory reserve. Further explanation regarding the restatement is set forth in Note 2 to the unaudited consolidated financial statements included in this Form 10-Q/A. For the convenience of the reader, this Form 10-Q/A sets forth the information in the Original Filing in its entirety, as such information is modified and superseded where necessary to reflect the restatement and related revisions. The following sections in the Original Filing are revised in this Form 10-Q/A to reflect this restatement: Part I - Item 1 &#x2013; Financial Statements (Unaudited) Part I - Item 2 &#x2013; Management's Discussion and Analysis of Financial Condition and Results of Operations Part I - Item 4 &#x2013; Controls and Procedures Except as provided above, this Form 10-Q/A does not reflect events occurring after the filing of the Original Filing and does not amend or otherwise update any information in the Original Filing. Accordingly, this Form 10-Q/A should be read in conjunction with our filings with the SEC subsequent to the date on which we filed the Original Filing with the SEC. Our principal executive officer and principal financial officer have also provided new certifications as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 and applicable SEC rules. The certifications are included in this Form 10-Q/A as Exhibits 31.1, 31.2 and 32.1. true --09-29 Q3 2018 2018-06-30 10-Q/A 0000096699 1850403 Yes false Non-accelerated Filer TECHNICAL COMMUNICATIONS CORP true false tcco 33870 10253 20412 915 6986 59099 4 5 1 2 1 2 0.73 0.44 0.42 0.27 0.44 0.04 1 0.04 0.06 0.43 0.06 0.07 0.73 0.56 1 0.89 0.27 0.44 0.11 0.1 7844 24100 2.70 4.25 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.</div> Restatements</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">The Company has restated its consolidated financial statements as of and for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017. </div>The restatements reflect adjustments to correct errors in the Company&#x2019;s revenue recognition for a certain contract and in its calculation of its inventory reserve. The errors were identified during the Company&#x2019;s normal closing process, in the course of the Company&#x2019;s regularly scheduled audit for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 29, 2018 </div>and during the course of a subsequent review by management. The errors resulted from the misinterpretation and misapplication of ASC Topic, <div style="display: inline; font-style: italic;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605</div> Revenue Recognition and a miscalculation in the Company&#x2019;s inventory reserve</div>. The effects of the restatements on the Company&#x2019;s consolidated financial statements for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017 </div>are described below.</div> <div style=" margin: 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="11" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">As of September 30, 2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-style: italic; text-align: left; white-space: nowrap">Balance Sheet</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; width: 61%; white-space: nowrap">Deferred revenue</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">484,121</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">484,121</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; white-space: nowrap">Accumulated deficit</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(822,636</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">)</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(484,121</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">)</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,306,757</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">)</td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.25in"></div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.25in">&nbsp;</div> <!-- Field: Page; Sequence: 9; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; text-decoration: underline;"></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="11" style="font-size: 10pt; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt">For the Three Months Ended July 1, 2017</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-style: italic; text-align: left"><div style="display: inline; font-size: 10pt">Statement of Operations</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; width: 61%"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-size: 10pt">Total net revenue</div></div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,067,786</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,019,105</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Gross profit</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">539,464</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">490,783</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Operating loss</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(346,296</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(394,977</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Net loss</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(344,490</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(393,171</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Net loss per common share</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Basic</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.19</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.02</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.21</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Diluted</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.19</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.02</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.21</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="11" style="font-size: 10pt; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt">For the Nine Months Ended July 1, 2017</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-style: italic; text-align: left"><div style="display: inline; font-size: 10pt">Statement of Operations</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; width: 61%"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-size: 10pt">Total net revenue</div></div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3,084,493</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3,035,812</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Gross profit</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2,129,284</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2,080,603</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Operating loss</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(917,898</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(966,579</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Net loss</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(911,428</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(960,109</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Net loss per common share</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Basic</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.50</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.02</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.52</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Diluted</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.50</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.02</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.52</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-style: italic; padding-left: 0.25in"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-style: italic; text-align: left"><div style="display: inline; font-size: 10pt">Statement of cash flows</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Net loss</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(</div><div style="display: inline; font-size: 10pt">911,428</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(</div><div style="display: inline; font-size: 10pt">960,109</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Changes in current assets and current liabilities &#x2013; Deferred revenue</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.25in">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.25in"></div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.25in"></div><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; text-decoration: underline;"></div></div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.25in">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Adjustments</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">As reported</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Revenue <br /> recognition</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Inventory <br /> reserve</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">As adjusted</td> </tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">As of June 30, 2018</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic; text-align: left">Balance Sheet</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%">Inventory</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,554,938</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,499,121</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred revenue</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,526,796</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,526,796</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accumulated deficit</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(944,855</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,526,796</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,527,468</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.25in"></div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.25in">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">For the Three Months Ended June 30, 2018</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic">Statement of Operations</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; text-align: left">Total net revenue</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,544,142</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(636,965</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">907,177</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total cost of revenue</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">666,758</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(9,856</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">55,817</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">712,719</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">877,384</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(627,109</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">194,458</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating income (loss)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">240,909</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(636,965</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(451,873</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net income (loss)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">243,027</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(636,965</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(449,755</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net income (loss) per common share</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Basic</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.13</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.34</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.03</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.24</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Diluted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.13</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.34</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.03</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.24</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average shares - diluted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,854,370</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(5,345</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,849,025</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> </table> </div> <div style=" margin: 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">For the Nine Months Ended June 30, 2018</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic">Statement of Operations</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; text-align: left">Total net revenue</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,590,347</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,042,675</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,547,672</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total cost of revenue</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,762,645</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">55,817</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,818,462</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,800,202</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,015,175</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">729,210</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating loss</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(127,820</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,042,675</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,226,312</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(122,219</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,042,675</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,220,711</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net loss per common share</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Basic</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.07</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.56</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.03</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.66</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Diluted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.07</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.56</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.03</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.66</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic; text-align: left">Statement of cash flows</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(122,219</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,042,675</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,220,711</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Changes in current assets and current liabilities:</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,042,675</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,042,675</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory reserve</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(196,594</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">55,817</div></td> <td style="white-space: nowrap; text-align: left"></td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(140,777</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> </table> </div></div> 131384 109224 597907 730177 4519469 4481085 4122633 4139002 7596 17352 3896 9998 356 1064 272 811 7952 18416 4168 10809 201037 251714 3788407 3934824 3729375 3881070 0 0 0 0 0 0 1015102 1015102 851195 851195 1015102 851195 1015102 851195 1460438 1283673 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.</div> Cash Equivalents and Marketable Securities</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company considers all highly liquid instruments with an original maturity of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months or less to be cash equivalents. Cash equivalents are invested in money market mutual funds held in a brokerage account<div style="display: inline; font-style: italic;">.</div> All marketable securities must be classified as <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of the following: held to maturity, available for sale, or trading. The Company classifies its marketable securities as either available for sale or held to maturity.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Available for sale securities are carried at fair value, with unrealized holding gains and losses reported in stockholders&#x2019; equity as a separate component of accumulated other comprehensive income (loss). Held to maturity securities are carried at amortized cost. The cost of securities sold is determined based on the specific identification method. Realized gains and losses, and declines in value judged to be other than temporary, are included in investment income.</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>cash equivalents consisted of the following:</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Gross Unrealized</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Estimated</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Gains</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Losses</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Money market mutual funds</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,015,102</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,015,102</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>cash equivalents consisted of the following:</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">Gross Unrealized</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">Estimated</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Cost</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Gains</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Losses</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Fair Value</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; white-space: nowrap">Money market mutual funds</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">851,195</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">851,195</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"></div><div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>held to maturity securities consisted of the following:</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cost</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Accrued<br /> Interest</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Amortization<br /> Bond Premium</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Amortized<br /> Cost</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Unrealized<br /> Gains</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Estimated<br /> Fair Value</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 22%; font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">Municipal bonds</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">412,366</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">6,986</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">59,099</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">360,253</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">216</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">360,469</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0">The Company did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have any held to maturity securities at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018.</div></div></div> 1015102 1015102 1015102 1015102 851195 851195 851195 851195 1296603 2616628 1460438 1542800 163835 -1073828 0.10 0.10 7000000 7000000 1849025 1839877 1849025 1839877 184903 183988 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">New Accounting Pronouncements </div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-style: italic;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Revenue from Contracts with Customers, amended by ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14</div> (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div>), ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> and ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the FASB and the International Accounting Standards Board issued guidance on the principles for recognizing revenue and developing a common revenue standard for U.S. GAAP and International Financial Reporting Standards that would: (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) remove inconsistencies and weaknesses in revenue requirements, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) provide a more robust framework for addressing revenue issues, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) provide more useful information to users of financial statements through improved disclosure requirements, and (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. This guidance is effective prospectively for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>including interim periods within that reporting period. The impact of this guidance will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material effect on the Company&#x2019;s consolidated financial statements. This guidance will become effective for the Company as of the beginning of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019</div> fiscal year.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The qualitative assessments of the standard provided below are estimates of the expected effects of the adoption of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606.</div> This represents the Company&#x2019;s best estimate of the effects of adopting ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> at the time of the preparation of this Quarterly Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-Q. The actual impact of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> is subject to change from these estimates and such change <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be significant, pending the completion of our assessment in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of fiscal <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; text-decoration: underline;">Engineering Services Revenue</div> The Company expects that the deliverables under the current guidance will be consistent with performance obligations identified under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606.</div> The adoption of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> result in a change to the timing of revenue recognition for this type of revenue as the standard requires revenues to be estimated and recognized upon transfer of the promised goods and services. As such, the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect the adoption of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> to result in a material impact to revenue recognition.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; text-decoration: underline;">Equipment Revenue</div> The deliverables under the previous guidance is consistent with performance obligations identified under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606.</div> Under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606,</div> the Company continued to allocate the transaction price between the elements and performance obligations within the contract. Revenue recognition for the performance obligations accounted for under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> was consistent with current guidance given the transfer of control of the promised goods or services follows the same pattern. As such, the adoption of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> result in a material impact on revenue recognition.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 17; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-style: italic;"></div></div> <div style=" font-size: 10pt; text-indent: -0.35pt; margin: 0pt 0"><div style="display: inline; background-color: white"><div style="display: inline; font-style: italic;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,</div> Inventory (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">330</div>):&nbsp;Simplifying the Measurement of Inventory</div></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"><div style="display: inline; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2015, </div>the FASB issued guidance with respect to inventory measurement. This ASU requires inventory to be measured at the lower of cost and net realizable value. The provisions of this ASU became effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016, </div>including interim periods within those fiscal years. The amendment is required to be applied prospectively, and early adoption is permitted. This guidance was adopted by the Company in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> fiscal year; the adoption of this standard did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material impact on the financial statements.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"><div style="display: inline; background-color: white"><div style="display: inline; font-style: italic;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> Leases</div></div></div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.35pt"><div style="display: inline; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2016, </div>the FASB issued guidance with respect to leases. This ASU requires entities </div>to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after&nbsp;<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018, </div>including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the potential impact this standard will have on the financial statements and related disclosure. The Company currently has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> operating lease on its facility in Concord, MA. The Company expects to adopt this standard during its fiscal year <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2020.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.35pt"><div style="display: inline; font-style: italic;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Improvements to Employee Share-Based Payment Accounting</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.35pt">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new guidance is effective for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016, </div>including interim periods within those fiscal years. <div style="display: inline; background-color: white">This guidance was adopted by the Company in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> fiscal year; the adoption of this standard did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material impact on the financial statements.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.35pt">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-style: italic;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,</div> Restricted Cash Presentation on Statement of Cash Flows</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2016, </div>the FASB issued guidance in regards to additional disclosure surrounding restricted cash activity. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>including interim periods within those fiscal years. The Company has elected to early adopt effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 1, 2017</div><div style="display: inline; color: #333333">.</div> Accordingly, restricted cash has been grouped with cash and cash equivalents on the statements of cash flows and results for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017 </div>have been retrospectively reclassified.</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"><div style="display: inline; background-color: white">Other recent accounting pronouncements were issued by the FASB (including its Emerging Issues Task Force) and the SEC during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months of our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> fiscal year but such pronouncements are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> believed by management to have a material impact on the Company&#x2019;s present or future financial statements.</div></div></div></div></div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.</div> Major Customers and Export Revenue</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> customer that represented <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">91%</div> of net revenue as compared to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017, </div>during which the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> customers that represented <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">97%</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">66%</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31%,</div> respectively) of net revenue. During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> customer that represented <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">87%</div> of net revenue as compared to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017, </div>during which the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> customers that represented <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">91%</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">81%</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%,</div> respectively) of net revenue.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">A breakdown of foreign and domestic net revenue for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017 </div>is as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 27pt">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 27pt"></div> <div> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="7" style="white-space: nowrap; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">June 30, 2018</div></div></td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="7" style="white-space: nowrap; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">July 1, 2017</div></div></td> </tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">3 months</div></div></td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">9 months</div></div></td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">3 months</div></div></td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">9 months</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap; width: 48%"><div style="display: inline; font-size: 10pt">Domestic</div></td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">832,441</div></div></td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2,343,878</div></div></td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,008,380</div></div></td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2,792,102</div></div></td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap"><div style="display: inline; font-size: 10pt">Foreign</div></td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">74,736</div></div></td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">203,794</div></div></td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">10,725</div></div></td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">243,710</div></div></td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap"><div style="display: inline; font-size: 10pt">Total net revenue</div></td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">907,177</div></div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2,547,672</div></div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,019,105</div></div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3,035,812</div></div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 27pt"></div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 27pt"><div style="display: inline; font-style: italic;">&nbsp;</div></div> <!-- Field: Page; Sequence: 19; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company sold products into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> foreign countries during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> foreign country during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017. </div>The Company sold products into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> foreign countries during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> foreign countries during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017. </div>A sale is attributed to a foreign country based on the location of the contracting party. Domestic revenue <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>include the sale of products shipped through domestic resellers or manufacturers to international destinations. The table below summarizes the Company&#x2019;s foreign revenues by country as a percentage of total foreign revenue.</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">June 30, 2018</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">July 1, 2017</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">9 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">9 months</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt; text-align: left; white-space: nowrap">Saudi Arabia</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">73</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">42</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap">Philippines</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">27</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap">Bahrain</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap">Jordan</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">43</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap">Other</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0">A summary of foreign revenue, as a percentage of total foreign revenue by geographic area, is as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">June 30, 2018</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">July 1, 2017</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">9 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">9 months</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt; text-align: left">Mid-East and Africa</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">73</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">%</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">56</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">%</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">%</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">89</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Far East</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">27</div></td> <td style="font-size: 10pt; text-align: left">%</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44</div></td> <td style="font-size: 10pt; text-align: left">%</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div></td> <td style="font-size: 10pt; text-align: left">%</td> </tr> </table> </div></div> 0.91 0.97 0.66 0.31 0.87 0.91 0.81 0.1 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.</div> Cost Method Investment</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 30, 2014, </div>the Company made an investment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$275,000</div> to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,000</div> shares of common stock of PulsedLight, Inc., an early stage start-up company located in Bend, Oregon. The investment represented a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.8%</div> ownership stake in the company at the time of purchase and was accounted for utilizing the cost method of accounting. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 12, 2016, </div>the Company entered into an agreement to sell its shares in PulsedLight. The net proceeds to the Company after closing costs and certain liabilities amounted to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$737,283,</div> of which the Company received <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$661,466</div> at closing and of which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$75,817</div> was deposited in an escrow account in accordance with the terms of the sale that required <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of the proceeds to be held in escrow for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year. The escrow balance was received by the Company in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017.</div></div></div> 275000 666758 -9856 55817 712719 1762645 55817 1818462 573028 202164 139691 326158 528322 1424384 202164 394078 753045 955209 53091 53886 1526796 484121 484121 1526796 3700000 4900000 38384 83141 -0.19 -0.02 -0.21 -0.50 -0.02 -0.52 0.13 -0.34 -0.03 -0.24 -0.07 -0.56 -0.03 -0.66 -0.19 -0.02 -0.21 -0.50 -0.02 -0.52 0.13 -0.34 -0.03 -0.24 -0.07 -0.56 -0.03 -0.66 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.</div> Loss Per Share</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Outstanding potentially dilutive stock options, which were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> included in the net loss per share amounts as their effect would have been anti-dilutive, were as follows: <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201,037</div> shares at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">251,714</div> shares at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017.</div></div></div> 213348 215984 P4Y18D 111591 0 0 75817 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt"><div style="display: inline; text-decoration: underline;">June 30, 2018</div></div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;<br />&nbsp;<br />&nbsp;<br /><div style="display: inline; font-weight: bold;">Total</div></div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Quoted Prices in<br /> Active Markets for<br /> Identical Assets<br /> (Level 1)</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt">Mutual funds:</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">Money market funds</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Total mutual funds</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 20pt"><div style="display: inline; font-size: 10pt">Total assets</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-decoration: underline"><div style="display: inline; font-size: 10pt">September 30, 2017</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt">Mutual funds:</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">Money market funds</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Total mutual funds</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; text-indent: 20pt"><div style="display: inline; font-size: 10pt">Total assets</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Fair Value Measurements</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">In determining fair value measurements, the Company follows the established framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. The topic provides a consistent definition of fair value that focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The topic also prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information and establishes a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, marketable securities and accounts payable approximate fair value because of their short-term nature.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-level hierarchy is as follows:</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <table cellspacing="0" cellpadding="0" style="; border-collapse: collapse; font-size: 10pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 5%">&nbsp;</td> <td style="width: 6%; white-space: nowrap"><div style="display: inline; font-size: 10pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div></div></td> <td style="width: 1%; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">-</div></td> <td style="width: 88%"><div style="display: inline; font-size: 10pt">Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date.</div></td> </tr> <tr style="vertical-align: top"> <td>&nbsp;</td> <td style="white-space: nowrap"><div style="display: inline; font-size: 10pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div></div></td> <td style="text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">-</div></td> <td><div style="display: inline; font-size: 10pt">Pricing inputs are quoted prices for similar assets or liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data.</div></td> </tr> <tr style="vertical-align: top"> <td>&nbsp;</td> <td style="white-space: nowrap"><div style="display: inline; font-size: 10pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></div></td> <td style="text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">-</div></td> <td><div style="display: inline; font-size: 10pt">Pricing inputs are unobservable for the assets or liabilities, that is, inputs that reflect the reporting entity&#x2019;s own assumptions about the assumptions market participants would use in pricing the asset or liability.</div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">In certain cases, the inputs used to measure fair value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>fall into different levels of the fair value hierarchy. In such cases, an asset&#x2019;s or liability&#x2019;s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.&nbsp; The Company&#x2019;s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 13; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company&#x2019;s held to maturity securities are comprised of investments in municipal bonds. These securities represent ownership in individual bonds issued by municipalities within the United States. The value of these securities is disclosed in Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.</div> The Company&#x2019;s available for sale securities consist of mutual funds held in money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company&#x2019;s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>there were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> transfers between levels.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The following table sets forth by level, within the fair value hierarchy, the assets measured at fair value on a recurring basis as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>in accordance with the fair value hierarchy as defined above. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> hold any assets classified as Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> or Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt"><div style="display: inline; text-decoration: underline;">June 30, 2018</div></div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;<br />&nbsp;<br />&nbsp;<br /><div style="display: inline; font-weight: bold;">Total</div></div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Quoted Prices in<br /> Active Markets for<br /> Identical Assets<br /> (Level 1)</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt">Mutual funds:</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">Money market funds</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Total mutual funds</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 20pt"><div style="display: inline; font-size: 10pt">Total assets</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-decoration: underline"><div style="display: inline; font-size: 10pt">September 30, 2017</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt">Mutual funds:</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">Money market funds</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Total mutual funds</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; text-indent: 20pt"><div style="display: inline; font-size: 10pt">Total assets</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">There were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assets or liabilities measured at fair value on a nonrecurring basis at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017.</div></div></div></div></div></div></div> 539464 -48681 490783 2129284 -48681 2080603 877384 -627109 -55817 194458 1800202 -1015175 -55817 729210 490783 0 412366 216 360253 360253 360469 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cost</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Accrued<br /> Interest</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Amortization<br /> Bond Premium</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Amortized<br /> Cost</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Unrealized<br /> Gains</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Estimated<br /> Fair Value</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 22%; font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">Municipal bonds</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">412,366</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">6,986</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">59,099</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">360,253</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">216</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">360,469</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.</div> Income Taxes</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recorded an income tax benefit on its net loss for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017 </div>due to its uncertain realizability. During previous fiscal years, the Company recorded a valuation allowance for the full amount of its net deferred tax assets since it could <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> predict the realization of these assets.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 22, 2017, </div>the Tax Cuts and Jobs Act (the &#x201c;Tax Act&#x201d;) was signed into law by the President of the United States. The Tax Act includes a number of changes, including the lowering of the U.S. corporate tax rate from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35%</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">21%,</div> effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018. </div>The Company has determined and completed the accounting for certain income tax effects of the Tax Act to the current reporting period. Because the Company records a valuation allowance for its entire deferred income tax asset, there was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> impact on the reported amounts in the unaudited consolidated financial statements included in this Quarterly Report as a result of the Tax Act.</div></div> 0 0 0 0 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Accounting for Income Taxes</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of the Company&#x2019;s unaudited consolidated financial statements requires it to estimate income taxes in each of the jurisdictions in which the Company operates, including those outside the United States, which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>subject the Company to certain risks that ordinarily would <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be expected in the United States. The income tax accounting process involves estimating our actual current exposure together with assessing temporary differences resulting from differing treatments of items, such as inventory obsolescence and stock-based compensation, for tax and accounting purposes. These differences result in the recognition of deferred tax assets and liabilities. The Company must then record a valuation allowance to reduce its deferred tax assets to the amount that is more likely than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to be realized.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company recorded a full valuation allowance against its net deferred tax assets of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.7</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.9</div> million, respectively, due to uncertainties related to the Company&#x2019;s ability to realize these assets. The valuation allowance is based on estimates of taxable income by jurisdiction and the period over which deferred tax assets will be recoverable. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, it <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>need to adjust its valuation allowance, which could materially impact the Company&#x2019;s financial position and results of operations.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company follows appropriate guidance for the recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> in order for those tax positions to be recognized in the financial statements.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the nature of the Company&#x2019;s current operations in foreign countries (selling products into these countries with the assistance of local representatives), the Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been subject to any foreign taxes in recent years, and it is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> anticipated that it will be subject to foreign taxes in the near future.</div></div></div></div></div></div> 856 47868 -82603 -132270 309723 -795 -110339 48681 48681 1042675 1042675 196594 -55817 140777 127540 36216 18799 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.</div> Inventories</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0">Inventories consisted of the following:</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">June 30, <br />2018 <br />(As restated, <br />see Note 2)</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">September 30, <br />2017 <br />(As restated, <br />see Note 2)</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left; white-space: nowrap">Finished goods</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,499</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,759</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; white-space: nowrap">Work in process</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">639,050</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">383,216</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; white-space: nowrap">Raw materials</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">830,572</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">954,369</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,499,121</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,358,344</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> </table> </div></div> 29499 20759 1499121 1358344 1554938 -55817 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;">Inventories</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company values its inventory at the lower of cost (based on the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-in, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-out method) to purchase and/or manufacture and net realizable value (based on the estimated selling prices, less reasonably predictable costs of completion, disposal, and transportation) of the inventory. The Company periodically reviews inventory quantities on hand and records a provision for excess and/or obsolete inventory based primarily on the estimated forecast of product demand, as well as historical usage. The Company evaluates the carrying value of inventory on a quarterly basis to determine whether the carrying value is in excess of net realizable value. To the extent that net realizable value is less than the associated carrying values, inventory carrying values are written down. In addition, the Company makes judgments as to future demand requirements and compares those with the current or committed inventory levels. Reserves are established for inventory levels that exceed expected future demand. It is possible that additional reserves above those already established <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required in the future if market conditions for the Company&#x2019;s products should deteriorate.</div></div></div></div></div></div> 830572 954369 639050 383216 2118 1806 5601 6470 11000 0.108 3788407 3934824 2008339 918591 0 0 306338 372242 -142503 -1446070 -344490 -48681 -393171 -911428 -48681 -960109 243027 -636965 -55817 -449755 -122219 -1042675 -55817 -1220711 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Stock-Based Compensation</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">&nbsp;</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Stock-based compensation cost is measured at the grant date based on the calculated fair value of the award. The expense is recognized over the participant&#x2019;s requisite service period, generally the vesting period of the award. The related excess tax benefit received upon the exercise of stock options, if any, is reflected in the Company&#x2019;s statement of cash flows as a financing activity. There were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> excess tax benefits recorded during either of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company uses the Black-Scholes option pricing model as the method for determining the estimated fair value of its stock awards. The Black-Scholes method of valuation requires several assumptions: (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) the expected term of the stock award, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) the expected future stock price volatility over the expected term, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>) a risk-free interest rate and (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) the expected dividend rate.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 14; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The expected term represents the expected period of time the Company believes the options will be outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company&#x2019;s common stock, and the risk free interest rate is based on the U.S. Treasury Note rate. The Company utilizes a forfeiture rate based on an analysis of its actual experience. The forfeiture rate is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> material to the calculation of share-based compensation. There were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,500</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,000</div> options granted during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017, </div>respectively.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The following table summarizes stock-based compensation costs included in the Company&#x2019;s consolidated statements of operations for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017:</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">June 30, 2018</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">July 1, 2017</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">9 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">9 months</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt; text-align: left; white-space: nowrap">Selling, general and administrative expenses</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,596</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,352</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,896</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,998</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; white-space: nowrap">Product development expenses</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">356</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,064</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">272</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">811</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; white-space: nowrap">Total share-based compensation expense before taxes</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,952</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,416</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,168</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,809</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>there was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$111,591</div> of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>the weighted average period over which the compensation expense is expected to be recognized is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.05</div> years.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Technical Communications Corporation <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2005</div> Non-Statutory Stock Option Plan and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2010</div> Equity Incentive Plan were outstanding at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018. </div>There are an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">600,000</div> shares authorized for issuance under these plans, of which options to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">228,837</div> shares were outstanding at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018. </div>Vesting periods are at the discretion of the Board of Directors and typically range between <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years. Options under these plans are granted with an exercise price equal to fair market value at time of grant and have a term of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div> years from the date of grant.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>there were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230,563</div> shares available for grant under the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2010</div> Equity Incentive Plan. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2005</div> Non-Statutory Stock Option Plan has expired and options are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> longer available for grant under such plan.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 15; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The following table summarizes stock option activity during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months of fiscal <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018:</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="19" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Options&nbsp;Outstanding</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Number of Shares</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">Weighted Average</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Unvested</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Total</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Weighted Average<br /> Exercise Price</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Contractual Life <br /> (years)</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, September 30, 2017</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">34,200</div></div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">212,081</div></div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">246,281</div></div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.36</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3.95</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Grants</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Exercises</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cancellations/forfeitures</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, December 30, 2017</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">34,200</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">212,081</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">246,281</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.35</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3.72</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Grants</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">14,500</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">14,500</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">7.25</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(5,600</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">5,600</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2.70</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Exercises</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(24,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(24,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">6.12</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cancellations/forfeitures</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(7,844</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(7,844</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">9.68</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, March 31, 2018</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">43,100</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">185,737</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">228,837</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.48</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">4.17</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Grants</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(3,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">4.25</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Exercises</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cancellations/forfeitures</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, June 30, 2018</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">40,000</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">188,837</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">228,837</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.48</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3.92</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <!-- Field: Page; Sequence: 16; Value: 1 --> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Information related to the stock options vested and expected to vest as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>is as follows:</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Range of<br /> Exercise Prices</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Number of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Weighted-<br /> Average<br /> Remaining<br /> Contractual<br /> Life (years)</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Weighted<br /> Average<br /> Exercise Price</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Exercisable<br /> Number of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Exercisable<br /> Weighted-<br /> Average<br /> Exercise Price</td> </tr> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; white-space: nowrap">$2.01</td> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.00</div></td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">27,300</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.13</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.70</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,700</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.75</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; white-space: nowrap">$4.01</td> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.00</div></td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36,100</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.05</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.53</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,000</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.62</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; white-space: nowrap">$5.01</td> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.00</div></td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">51,000</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.31</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.80</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36,700</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.02</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt; width: 5%; white-space: nowrap">$10.01</td> <td style="font-size: 10pt; text-align: center; padding-bottom: 1pt; width: 5%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; width: 25%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15.00</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">114,437</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.26</div></td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.40</div></td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">114,437</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.40</div></td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td colspan="3" style="font-size: 10pt; text-align: center; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">228,837</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.92</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.48</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">188,837</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.31</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The aggregate intrinsic value of the Company&#x2019;s &#x201c;in-the-money&#x201d; outstanding and exercisable options as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017 </div>was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15,270</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0,</div> respectively. Nonvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions.</div></div></div></div></div></div> 646331 885760 1955522 3047182 -346296 -48681 -394977 -917898 -48681 -966579 240909 -636965 -55817 -451873 -127820 -1042675 -55817 -1226312 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div> Summary of Significant Accounting Policies</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accounting policies that management believes are most critical to aid in fully understanding and evaluating the reported financial results include the following:</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;">Revenue Recognition</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#x2019;s engineering services revenue is derived from performing funded research and development and technology development for commercial companies and government agencies primarily under fixed-price contracts. On fixed-price contracts that are expected to exceed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year in duration, revenue is recognized pursuant to the proportional performance method based upon the proportion of actual costs incurred to date to the total estimated costs for the contract. The Company receives periodic progress payments based on contract terms.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Equipment revenue is recognized when there is persuasive evidence of an arrangement, the fee is fixed or determinable, delivery of the product and passage of title to the customer has occurred and the Company has determined that collection of the fee is probable. Title to the product generally passes upon shipment of the product, as the products are shipped freight on board shipping point, except for certain foreign shipments for which title passes upon entry of the product into the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> port in the buyer&#x2019;s country. If the product requires installation to be performed by the Company, or other acceptance criteria exist, all revenue related to the product is deferred and recognized upon completion of the installation or satisfaction of the customer acceptance criteria. The Company provides for a warranty reserve at the time the product revenue is recognized.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 11; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>billings in excess of revenues of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,483,000</div> were recorded as deferred revenue in relation to contracts based on proportional performance. Deferred revenue represents the cumulative difference between the amounts billed and revenue recognized for services performed.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">All payments to TCC for work performed on contracts with agencies of the U.S. government are subject to audit and adjustment by the Defense Contract Audit Agency, the U.S. Government Accountability Office and other agencies. Adjustments are recognized in the period made. There have been <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> government audits in recent years and the Company believes the result of such audits, should they occur, would <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material adverse effect on its financial position or results of operations. If the current estimates of total contract revenue and contract costs for a product development contract indicate a loss, a provision for the entire loss on the contract is recorded. Any losses incurred in performing funded research and development projects are recognized as funded research and development expenses.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Costs incurred in connection with funded research and development are included in cost of revenue. Product development costs are charged to billable engineering services, bid and proposal efforts or business development activities, as appropriate. Product development costs charged to billable projects are recorded as cost of revenue; engineering costs charged to bid and proposal efforts are recorded as selling expenses; and product development costs charged to business development activities are recorded as marketing expenses. Product development costs consist primarily of costs associated with personnel, outside contractor and engineering services, supplies and materials. Cost of product revenue includes material, labor and overhead.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Revenue for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>consisted of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,219,000</div> from engineering services and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$329,000</div> from equipment revenue, compared to revenue of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$320,000</div> from engineering services and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,716,000</div> from equipment revenue for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;">Inventories</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company values its inventory at the lower of cost (based on the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-in, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-out method) to purchase and/or manufacture and net realizable value (based on the estimated selling prices, less reasonably predictable costs of completion, disposal, and transportation) of the inventory. The Company periodically reviews inventory quantities on hand and records a provision for excess and/or obsolete inventory based primarily on the estimated forecast of product demand, as well as historical usage. The Company evaluates the carrying value of inventory on a quarterly basis to determine whether the carrying value is in excess of net realizable value. To the extent that net realizable value is less than the associated carrying values, inventory carrying values are written down. In addition, the Company makes judgments as to future demand requirements and compares those with the current or committed inventory levels. Reserves are established for inventory levels that exceed expected future demand. It is possible that additional reserves above those already established <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required in the future if market conditions for the Company&#x2019;s products should deteriorate.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;">Accounts Receivable</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts receivable are reduced by an allowance for amounts that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on a specific analysis of accounts in the receivable portfolio and historical write-off experience. While management believes <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> allowance is currently needed, if the financial condition of the Company&#x2019;s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required, which would reduce net income. <div style="display: inline; background-color: white">In addition, if the Company becomes aware of a customer&#x2019;s inability to meet its financial obligations, a specific write-off is recorded in that amount.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <!-- Field: Page; Sequence: 12; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Accounting for Income Taxes</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of the Company&#x2019;s unaudited consolidated financial statements requires it to estimate income taxes in each of the jurisdictions in which the Company operates, including those outside the United States, which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>subject the Company to certain risks that ordinarily would <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be expected in the United States. The income tax accounting process involves estimating our actual current exposure together with assessing temporary differences resulting from differing treatments of items, such as inventory obsolescence and stock-based compensation, for tax and accounting purposes. These differences result in the recognition of deferred tax assets and liabilities. The Company must then record a valuation allowance to reduce its deferred tax assets to the amount that is more likely than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to be realized.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company recorded a full valuation allowance against its net deferred tax assets of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.7</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.9</div> million, respectively, due to uncertainties related to the Company&#x2019;s ability to realize these assets. The valuation allowance is based on estimates of taxable income by jurisdiction and the period over which deferred tax assets will be recoverable. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, it <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>need to adjust its valuation allowance, which could materially impact the Company&#x2019;s financial position and results of operations.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company follows appropriate guidance for the recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> in order for those tax positions to be recognized in the financial statements.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the nature of the Company&#x2019;s current operations in foreign countries (selling products into these countries with the assistance of local representatives), the Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been subject to any foreign taxes in recent years, and it is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> anticipated that it will be subject to foreign taxes in the near future.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Fair Value Measurements</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">In determining fair value measurements, the Company follows the established framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. The topic provides a consistent definition of fair value that focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The topic also prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information and establishes a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, marketable securities and accounts payable approximate fair value because of their short-term nature.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-level hierarchy is as follows:</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <table cellspacing="0" cellpadding="0" style="; border-collapse: collapse; font-size: 10pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 5%">&nbsp;</td> <td style="width: 6%; white-space: nowrap"><div style="display: inline; font-size: 10pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div></div></td> <td style="width: 1%; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">-</div></td> <td style="width: 88%"><div style="display: inline; font-size: 10pt">Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date.</div></td> </tr> <tr style="vertical-align: top"> <td>&nbsp;</td> <td style="white-space: nowrap"><div style="display: inline; font-size: 10pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div></div></td> <td style="text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">-</div></td> <td><div style="display: inline; font-size: 10pt">Pricing inputs are quoted prices for similar assets or liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data.</div></td> </tr> <tr style="vertical-align: top"> <td>&nbsp;</td> <td style="white-space: nowrap"><div style="display: inline; font-size: 10pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></div></td> <td style="text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">-</div></td> <td><div style="display: inline; font-size: 10pt">Pricing inputs are unobservable for the assets or liabilities, that is, inputs that reflect the reporting entity&#x2019;s own assumptions about the assumptions market participants would use in pricing the asset or liability.</div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">In certain cases, the inputs used to measure fair value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>fall into different levels of the fair value hierarchy. In such cases, an asset&#x2019;s or liability&#x2019;s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.&nbsp; The Company&#x2019;s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 13; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company&#x2019;s held to maturity securities are comprised of investments in municipal bonds. These securities represent ownership in individual bonds issued by municipalities within the United States. The value of these securities is disclosed in Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.</div> The Company&#x2019;s available for sale securities consist of mutual funds held in money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company&#x2019;s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>there were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> transfers between levels.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The following table sets forth by level, within the fair value hierarchy, the assets measured at fair value on a recurring basis as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>in accordance with the fair value hierarchy as defined above. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> hold any assets classified as Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> or Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt"><div style="display: inline; text-decoration: underline;">June 30, 2018</div></div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;<br />&nbsp;<br />&nbsp;<br /><div style="display: inline; font-weight: bold;">Total</div></div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Quoted Prices in<br /> Active Markets for<br /> Identical Assets<br /> (Level 1)</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt">Mutual funds:</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">Money market funds</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Total mutual funds</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 20pt"><div style="display: inline; font-size: 10pt">Total assets</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,015,102</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: justify"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-decoration: underline"><div style="display: inline; font-size: 10pt">September 30, 2017</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left"><div style="display: inline; font-size: 10pt">Mutual funds:</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">Money market funds</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Total mutual funds</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; text-indent: 20pt"><div style="display: inline; font-size: 10pt">Total assets</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">851,195</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">There were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assets or liabilities measured at fair value on a nonrecurring basis at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Stock-Based Compensation</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">&nbsp;</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Stock-based compensation cost is measured at the grant date based on the calculated fair value of the award. The expense is recognized over the participant&#x2019;s requisite service period, generally the vesting period of the award. The related excess tax benefit received upon the exercise of stock options, if any, is reflected in the Company&#x2019;s statement of cash flows as a financing activity. There were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> excess tax benefits recorded during either of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company uses the Black-Scholes option pricing model as the method for determining the estimated fair value of its stock awards. The Black-Scholes method of valuation requires several assumptions: (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) the expected term of the stock award, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) the expected future stock price volatility over the expected term, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>) a risk-free interest rate and (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) the expected dividend rate.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 14; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The expected term represents the expected period of time the Company believes the options will be outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company&#x2019;s common stock, and the risk free interest rate is based on the U.S. Treasury Note rate. The Company utilizes a forfeiture rate based on an analysis of its actual experience. The forfeiture rate is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> material to the calculation of share-based compensation. There were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,500</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,000</div> options granted during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017, </div>respectively.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The following table summarizes stock-based compensation costs included in the Company&#x2019;s consolidated statements of operations for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month periods ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017:</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">June 30, 2018</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">July 1, 2017</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">9 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">9 months</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt; text-align: left; white-space: nowrap">Selling, general and administrative expenses</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,596</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,352</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,896</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,998</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; white-space: nowrap">Product development expenses</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">356</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,064</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">272</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">811</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; white-space: nowrap">Total share-based compensation expense before taxes</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,952</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,416</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,168</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,809</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>there was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$111,591</div> of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>the weighted average period over which the compensation expense is expected to be recognized is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.05</div> years.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Technical Communications Corporation <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2005</div> Non-Statutory Stock Option Plan and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2010</div> Equity Incentive Plan were outstanding at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018. </div>There are an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">600,000</div> shares authorized for issuance under these plans, of which options to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">228,837</div> shares were outstanding at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018. </div>Vesting periods are at the discretion of the Board of Directors and typically range between <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years. Options under these plans are granted with an exercise price equal to fair market value at time of grant and have a term of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div> years from the date of grant.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>there were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230,563</div> shares available for grant under the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2010</div> Equity Incentive Plan. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2005</div> Non-Statutory Stock Option Plan has expired and options are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> longer available for grant under such plan.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 15; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The following table summarizes stock option activity during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months of fiscal <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018:</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="19" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Options&nbsp;Outstanding</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Number of Shares</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">Weighted Average</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Unvested</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Total</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Weighted Average<br /> Exercise Price</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Contractual Life <br /> (years)</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, September 30, 2017</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">34,200</div></div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">212,081</div></div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">246,281</div></div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.36</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3.95</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Grants</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Exercises</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cancellations/forfeitures</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, December 30, 2017</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">34,200</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">212,081</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">246,281</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.35</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3.72</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Grants</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">14,500</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">14,500</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">7.25</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(5,600</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">5,600</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2.70</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Exercises</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(24,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(24,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">6.12</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cancellations/forfeitures</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(7,844</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(7,844</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">9.68</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, March 31, 2018</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">43,100</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">185,737</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">228,837</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.48</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">4.17</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Grants</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(3,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">4.25</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Exercises</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cancellations/forfeitures</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, June 30, 2018</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">40,000</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">188,837</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">228,837</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.48</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3.92</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <!-- Field: Page; Sequence: 16; Value: 1 --> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Information related to the stock options vested and expected to vest as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>is as follows:</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Range of<br /> Exercise Prices</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Number of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Weighted-<br /> Average<br /> Remaining<br /> Contractual<br /> Life (years)</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Weighted<br /> Average<br /> Exercise Price</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Exercisable<br /> Number of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Exercisable<br /> Weighted-<br /> Average<br /> Exercise Price</td> </tr> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; white-space: nowrap">$2.01</td> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.00</div></td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">27,300</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.13</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.70</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,700</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.75</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; white-space: nowrap">$4.01</td> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.00</div></td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36,100</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.05</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.53</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,000</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.62</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; white-space: nowrap">$5.01</td> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.00</div></td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">51,000</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.31</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.80</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36,700</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.02</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt; width: 5%; white-space: nowrap">$10.01</td> <td style="font-size: 10pt; text-align: center; padding-bottom: 1pt; width: 5%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; width: 25%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15.00</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">114,437</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.26</div></td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.40</div></td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">114,437</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.40</div></td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td colspan="3" style="font-size: 10pt; text-align: center; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">228,837</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.92</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.48</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">188,837</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.31</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The aggregate intrinsic value of the Company&#x2019;s &#x201c;in-the-money&#x201d; outstanding and exercisable options as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017 </div>was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15,270</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0,</div> respectively. Nonvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">New Accounting Pronouncements </div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-style: italic;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Revenue from Contracts with Customers, amended by ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14</div> (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div>), ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> and ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the FASB and the International Accounting Standards Board issued guidance on the principles for recognizing revenue and developing a common revenue standard for U.S. GAAP and International Financial Reporting Standards that would: (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) remove inconsistencies and weaknesses in revenue requirements, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) provide a more robust framework for addressing revenue issues, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) provide more useful information to users of financial statements through improved disclosure requirements, and (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. This guidance is effective prospectively for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>including interim periods within that reporting period. The impact of this guidance will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material effect on the Company&#x2019;s consolidated financial statements. This guidance will become effective for the Company as of the beginning of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019</div> fiscal year.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The qualitative assessments of the standard provided below are estimates of the expected effects of the adoption of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606.</div> This represents the Company&#x2019;s best estimate of the effects of adopting ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> at the time of the preparation of this Quarterly Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-Q. The actual impact of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> is subject to change from these estimates and such change <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be significant, pending the completion of our assessment in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of fiscal <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; text-decoration: underline;">Engineering Services Revenue</div> The Company expects that the deliverables under the current guidance will be consistent with performance obligations identified under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606.</div> The adoption of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> result in a change to the timing of revenue recognition for this type of revenue as the standard requires revenues to be estimated and recognized upon transfer of the promised goods and services. As such, the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect the adoption of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> to result in a material impact to revenue recognition.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; text-decoration: underline;">Equipment Revenue</div> The deliverables under the previous guidance is consistent with performance obligations identified under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606.</div> Under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606,</div> the Company continued to allocate the transaction price between the elements and performance obligations within the contract. Revenue recognition for the performance obligations accounted for under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> was consistent with current guidance given the transfer of control of the promised goods or services follows the same pattern. As such, the adoption of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> result in a material impact on revenue recognition.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 17; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-style: italic;"></div></div> <div style=" font-size: 10pt; text-indent: -0.35pt; margin: 0pt 0"><div style="display: inline; background-color: white"><div style="display: inline; font-style: italic;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,</div> Inventory (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">330</div>):&nbsp;Simplifying the Measurement of Inventory</div></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"><div style="display: inline; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2015, </div>the FASB issued guidance with respect to inventory measurement. This ASU requires inventory to be measured at the lower of cost and net realizable value. The provisions of this ASU became effective for fiscal years beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016, </div>including interim periods within those fiscal years. The amendment is required to be applied prospectively, and early adoption is permitted. This guidance was adopted by the Company in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> fiscal year; the adoption of this standard did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material impact on the financial statements.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"><div style="display: inline; background-color: white"><div style="display: inline; font-style: italic;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> Leases</div></div></div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.35pt"><div style="display: inline; background-color: white">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2016, </div>the FASB issued guidance with respect to leases. This ASU requires entities </div>to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after&nbsp;<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018, </div>including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the potential impact this standard will have on the financial statements and related disclosure. The Company currently has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> operating lease on its facility in Concord, MA. The Company expects to adopt this standard during its fiscal year <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2020.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.35pt"><div style="display: inline; font-style: italic;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Improvements to Employee Share-Based Payment Accounting</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.35pt">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new guidance is effective for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016, </div>including interim periods within those fiscal years. <div style="display: inline; background-color: white">This guidance was adopted by the Company in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> fiscal year; the adoption of this standard did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material impact on the financial statements.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.35pt">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-style: italic;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,</div> Restricted Cash Presentation on Statement of Cash Flows</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2016, </div>the FASB issued guidance in regards to additional disclosure surrounding restricted cash activity. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017, </div>including interim periods within those fiscal years. The Company has elected to early adopt effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 1, 2017</div><div style="display: inline; color: #333333">.</div> Accordingly, restricted cash has been grouped with cash and cash equivalents on the statements of cash flows and results for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017 </div>have been retrospectively reclassified.</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"><div style="display: inline; background-color: white">Other recent accounting pronouncements were issued by the FASB (including its Emerging Issues Task Force) and the SEC during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months of our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018</div> fiscal year but such pronouncements are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> believed by management to have a material impact on the Company&#x2019;s present or future financial statements.</div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div> Description of the Business and Basis of Presentation</div></div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">Company Operations</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Technical Communications Corporation (&#x201c;TCC&#x201d;) was incorporated in Massachusetts in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1961;</div> its wholly-owned subsidiary, TCC Investment Corp., was organized in that jurisdiction in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1982.</div> Technical Communications Corporation and TCC Investment Corp. are collectively referred to herein as the &#x201c;Company&#x201d;. The Company&#x2019;s business consists of only <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> industry segment, which is the design, development, manufacture, distribution, marketing and sale of communications security devices, systems and services. The secure communications solutions provided by TCC protect vital information transmitted over a wide range of data, video, fax and voice networks. TCC&#x2019;s products have been sold into a significant number of countries and are in service with governments, military agencies, telecommunications carriers, financial institutions and multinational corporations.</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">Interim Financial Statements</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The accompanying unaudited consolidated financial statements of the Company include all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented and in order to make the financial statements <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> misleading. All such adjustments are of a normal recurring nature. Interim results are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of the results to be expected for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 29, 2018.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 </div>restated consolidated balance sheet was derived from the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 </div>restated audited consolidated financial statement. Certain footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted as allowed by Securities and Exchange Commission (&#x201c;SEC&#x201d;) rules and regulations. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company&#x2019;s restated audited consolidated financial statements and the notes thereto for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 </div>Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K filed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 21, 2019.</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"> The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as the FASB. The FASB sets generally accepted accounting principles (&#x201c;GAAP&#x201d;) that the Company follows to ensure it consistently reports its financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the <div style="display: inline; font-style: italic;">FASB Accounting Standards Codification</div><div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">TM </div>- sometimes referred to as the Codification or ASC.</div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.35pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"><div style="display: inline; text-decoration: underline;">Liquidity and Ability to Continue as a Going Concern</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company has suffered recurring losses from operations and had an accumulated deficit of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,527,000</div> at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018. </div>These factors raise substantial doubt about the Company's ability to continue as a going concern within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year from the issuance date of the unaudited consolidated financial statements included in this Quarterly Report. Such unaudited consolidated financial statements do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> include any adjustments to reflect the uncertainty about the Company&#x2019;s ability to continue as a going concern.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><div style="display: inline; background-color: white">The Company anticipates that its principal sources of liquidity will only be sufficient to fund activities to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2020. </div>In order to have sufficient cash to fund operations beyond </div>that point<div style="display: inline; background-color: white">, the Company will need to secure new customer contracts, raise additional equity or debt capital or reduce expenses, including payroll and payroll-related expenses. </div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><div style="display: inline; background-color: white">In order to have sufficient capital resources to fund operations, the Company has been working diligently to secure several large orders with new and existing customers. In addition, the Company is also pursuing raising capital through equity or debt arrangements. Although the Company believes its ability to secure such new business or raise new capital is likely, it cannot provide assurances it will be able to do so. </div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; background-color: white"></div> <!-- Field: Page; Sequence: 8; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; background-color: white">Should the Company be unsuccessful in these efforts, it would then be forced to implement headcount reductions, employee furloughs and/or reduced hours for certain employees or cease operations completely.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">Reporting Period</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company&#x2019;s by-laws call for its fiscal year to end on the Saturday closest to the last day of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September, </div>unless otherwise decided by its Board of Directors.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; text-decoration: underline;">Basis of Presentation</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The discussion and analysis of the financial condition and results of operations are based on the unaudited consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these unaudited consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On an ongoing basis, management evaluates its estimates and judgments, including but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> limited to those related to marketable securities, receivable reserves, inventory reserves, fair value of financial instruments, impairment of long-lived assets, revenue recognition, stock-based compensation and income taxes. Management bases its estimates on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>differ from these estimates under different assumptions or conditions.</div></div> 171909 135693 83720 55376 43662 3575 737283 350000 300000 75817 4578501 4534839 59032 53754 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;">Accounts Receivable</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts receivable are reduced by an allowance for amounts that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on a specific analysis of accounts in the receivable portfolio and historical write-off experience. While management believes <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> allowance is currently needed, if the financial condition of the Company&#x2019;s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required, which would reduce net income. <div style="display: inline; background-color: white">In addition, if the Company becomes aware of a customer&#x2019;s inability to meet its financial obligations, a specific write-off is recorded in that amount.</div></div></div></div></div></div></div> 124234 407106 442470 1377889 12930 -2527468 -1306757 -822636 -484121 -944855 -1526796 -55817 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="7" style="white-space: nowrap; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">June 30, 2018</div></div></td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="7" style="white-space: nowrap; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">July 1, 2017</div></div></td> </tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; text-align: center">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">3 months</div></div></td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">9 months</div></div></td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">3 months</div></div></td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-weight: bold;">9 months</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap; width: 48%"><div style="display: inline; font-size: 10pt">Domestic</div></td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">832,441</div></div></td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2,343,878</div></div></td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,008,380</div></div></td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> <td style="white-space: nowrap; width: 1%"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2,792,102</div></div></td> <td style="white-space: nowrap; width: 1%">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap"><div style="display: inline; font-size: 10pt">Foreign</div></td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">74,736</div></div></td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">203,794</div></div></td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">10,725</div></div></td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">243,710</div></div></td> <td style="white-space: nowrap; border-bottom: black 1pt solid">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap"><div style="display: inline; font-size: 10pt">Total net revenue</div></td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">907,177</div></div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2,547,672</div></div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,019,105</div></div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double"><div style="display: inline; font-size: 10pt">$</div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3,035,812</div></div></td> <td style="white-space: nowrap; border-bottom: black 2.25pt double">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><div style="display: inline; font-weight: bold;">Revenue Recognition</div></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#x2019;s engineering services revenue is derived from performing funded research and development and technology development for commercial companies and government agencies primarily under fixed-price contracts. On fixed-price contracts that are expected to exceed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year in duration, revenue is recognized pursuant to the proportional performance method based upon the proportion of actual costs incurred to date to the total estimated costs for the contract. The Company receives periodic progress payments based on contract terms.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Equipment revenue is recognized when there is persuasive evidence of an arrangement, the fee is fixed or determinable, delivery of the product and passage of title to the customer has occurred and the Company has determined that collection of the fee is probable. Title to the product generally passes upon shipment of the product, as the products are shipped freight on board shipping point, except for certain foreign shipments for which title passes upon entry of the product into the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> port in the buyer&#x2019;s country. If the product requires installation to be performed by the Company, or other acceptance criteria exist, all revenue related to the product is deferred and recognized upon completion of the installation or satisfaction of the customer acceptance criteria. The Company provides for a warranty reserve at the time the product revenue is recognized.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <!-- Field: Page; Sequence: 11; Value: 1 --> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018, </div>billings in excess of revenues of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,483,000</div> were recorded as deferred revenue in relation to contracts based on proportional performance. Deferred revenue represents the cumulative difference between the amounts billed and revenue recognized for services performed.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">All payments to TCC for work performed on contracts with agencies of the U.S. government are subject to audit and adjustment by the Defense Contract Audit Agency, the U.S. Government Accountability Office and other agencies. Adjustments are recognized in the period made. There have been <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> government audits in recent years and the Company believes the result of such audits, should they occur, would <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material adverse effect on its financial position or results of operations. If the current estimates of total contract revenue and contract costs for a product development contract indicate a loss, a provision for the entire loss on the contract is recorded. Any losses incurred in performing funded research and development projects are recognized as funded research and development expenses.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Costs incurred in connection with funded research and development are included in cost of revenue. Product development costs are charged to billable engineering services, bid and proposal efforts or business development activities, as appropriate. Product development costs charged to billable projects are recorded as cost of revenue; engineering costs charged to bid and proposal efforts are recorded as selling expenses; and product development costs charged to business development activities are recorded as marketing expenses. Product development costs consist primarily of costs associated with personnel, outside contractor and engineering services, supplies and materials. Cost of product revenue includes material, labor and overhead.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Revenue for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>consisted of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,219,000</div> from engineering services and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$329,000</div> from equipment revenue, compared to revenue of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$320,000</div> from engineering services and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,716,000</div> from equipment revenue for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> month period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2017.</div></div></div></div></div></div></div> 2218375 329297 319777 2716035 1067786 -48681 1019105 3084493 -48681 3035812 1544142 -636965 907177 3590347 -1042675 2547672 832441 2343878 1008380 2792102 74736 203794 10725 243710 758670 319777 148507 699328 661466 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Gross Unrealized</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Estimated</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Gains</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Losses</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Money market mutual funds</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,015,102</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,015,102</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">Gross Unrealized</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">Estimated</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Cost</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Gains</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Losses</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Fair Value</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; white-space: nowrap">Money market mutual funds</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">851,195</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">851,195</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">June 30, 2018</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">July 1, 2017</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">9 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">9 months</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt; text-align: left; white-space: nowrap">Selling, general and administrative expenses</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,596</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,352</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,896</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,998</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; white-space: nowrap">Product development expenses</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">356</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,064</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">272</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">811</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt; white-space: nowrap">Total share-based compensation expense before taxes</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,952</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,416</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,168</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,809</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="11" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">As of September 30, 2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-style: italic; text-align: left; white-space: nowrap">Balance Sheet</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; width: 61%; white-space: nowrap">Deferred revenue</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">484,121</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">484,121</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; white-space: nowrap">Accumulated deficit</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(822,636</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">)</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(484,121</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">)</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,306,757</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">)</td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="11" style="font-size: 10pt; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt">For the Three Months Ended July 1, 2017</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-style: italic; text-align: left"><div style="display: inline; font-size: 10pt">Statement of Operations</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; width: 61%"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-size: 10pt">Total net revenue</div></div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,067,786</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">1,019,105</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Gross profit</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">539,464</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">490,783</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Operating loss</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(346,296</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(394,977</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Net loss</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(344,490</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(393,171</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Net loss per common share</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Basic</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.19</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.02</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.21</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Diluted</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.19</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.02</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.21</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="11" style="font-size: 10pt; border-bottom: Black 1pt solid; text-align: center"><div style="display: inline; font-size: 10pt">For the Nine Months Ended July 1, 2017</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-style: italic; text-align: left"><div style="display: inline; font-size: 10pt">Statement of Operations</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; width: 61%"><div style="display: inline; font-size: 10pt"><div style="display: inline; font-size: 10pt">Total net revenue</div></div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3,084,493</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="width: 1%; font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3,035,812</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Gross profit</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2,129,284</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2,080,603</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Operating loss</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(917,898</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(966,579</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Net loss</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(911,428</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(960,109</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Net loss per common share</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Basic</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.50</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.02</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.52</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt"><div style="display: inline; font-size: 10pt">Diluted</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.50</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.02</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(0.52</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-style: italic; padding-left: 0.25in"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-style: italic; text-align: left"><div style="display: inline; font-size: 10pt">Statement of cash flows</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: right"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Net loss</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(</div><div style="display: inline; font-size: 10pt">911,428</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">$</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(</div><div style="display: inline; font-size: 10pt">960,109</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">)</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">Changes in current assets and current liabilities &#x2013; Deferred revenue</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">48,681</div></div></td> <td style="font-size: 10pt; text-align: left"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Adjustments</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">As reported</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Revenue <br /> recognition</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">Inventory <br /> reserve</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">As adjusted</td> </tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">As of June 30, 2018</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic; text-align: left">Balance Sheet</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%">Inventory</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,554,938</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,499,121</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred revenue</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,526,796</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,526,796</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accumulated deficit</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(944,855</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,526,796</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,527,468</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">For the Three Months Ended June 30, 2018</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic">Statement of Operations</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; text-align: left">Total net revenue</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,544,142</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(636,965</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">907,177</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total cost of revenue</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">666,758</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(9,856</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">55,817</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">712,719</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">877,384</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(627,109</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">194,458</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating income (loss)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">240,909</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(636,965</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(451,873</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net income (loss)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">243,027</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(636,965</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(449,755</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net income (loss) per common share</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Basic</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.13</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.34</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.03</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.24</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Diluted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.13</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.34</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.03</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.24</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average shares - diluted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,854,370</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(5,345</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,849,025</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid">For the Nine Months Ended June 30, 2018</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic">Statement of Operations</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; text-align: left">Total net revenue</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,590,347</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,042,675</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,547,672</div></td> <td style="white-space: nowrap; width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total cost of revenue</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,762,645</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">55,817</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,818,462</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Gross profit</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,800,202</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,015,175</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">729,210</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating loss</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(127,820</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,042,675</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,226,312</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(122,219</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,042,675</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,220,711</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net loss per common share</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Basic</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.07</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.56</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.03</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.66</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Diluted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.07</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.56</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.03</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.66</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-style: italic; text-align: left">Statement of cash flows</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net loss</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(122,219</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,042,675</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(55,817</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,220,711</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Changes in current assets and current liabilities:</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,042,675</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,042,675</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory reserve</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(196,594</div></td> <td style="white-space: nowrap; text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&#x2013;</div></td> <td style="white-space: nowrap; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">55,817</div></td> <td style="white-space: nowrap; text-align: left"></td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(140,777</div></td> <td style="white-space: nowrap; text-align: left">)</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">June 30, <br />2018 <br />(As restated, <br />see Note 2)</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">September 30, <br />2017 <br />(As restated, <br />see Note 2)</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: right; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left; white-space: nowrap">Finished goods</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,499</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20,759</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; white-space: nowrap">Work in process</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">639,050</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">383,216</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; white-space: nowrap">Raw materials</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">830,572</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">954,369</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,499,121</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,358,344</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">June 30, 2018</td> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap">July 1, 2017</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">9 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">9 months</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt; text-align: left; white-space: nowrap">Saudi Arabia</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">73</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">42</div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap">Philippines</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">27</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap">Bahrain</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap">Jordan</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">43</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap">Other</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">%</td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">June 30, 2018</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">July 1, 2017</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">9 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">3 months</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">9 months</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt; text-align: left">Mid-East and Africa</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">73</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">%</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">56</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">%</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">%</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">89</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Far East</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">27</div></td> <td style="font-size: 10pt; text-align: left">%</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44</div></td> <td style="font-size: 10pt; text-align: left">%</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div></td> <td style="font-size: 10pt; text-align: left">%</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="19" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Options&nbsp;Outstanding</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Number of Shares</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">Weighted Average</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Unvested</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Total</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Weighted Average<br /> Exercise Price</div></td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><div style="display: inline; font-size: 10pt">Contractual Life <br /> (years)</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%; font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, September 30, 2017</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">34,200</div></div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">212,081</div></div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">246,281</div></div></td> <td style="width: 1%; border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="width: 10%; padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.36</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 1%; padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="width: 10%; padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3.95</div></div></td> <td style="width: 1%; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Grants</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Exercises</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cancellations/forfeitures</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, December 30, 2017</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">34,200</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">212,081</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">246,281</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.35</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3.72</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Grants</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">14,500</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">14,500</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">7.25</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(5,600</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">5,600</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">2.70</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Exercises</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(24,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(24,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">6.12</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cancellations/forfeitures</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(7,844</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(7,844</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">9.68</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, March 31, 2018</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">43,100</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">185,737</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">228,837</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.48</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">4.17</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Grants</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Vested</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">(3,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">)</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3,100</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">4.25</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Exercises</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Cancellations/forfeitures</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">-</div></div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">&nbsp;</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">Outstanding, June 30, 2018</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">40,000</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">188,837</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">228,837</div></div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">$</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">8.48</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-size: 10pt">3.92</div></div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-size: 10pt">&nbsp;</div></td> </tr> </table></div> 522097 478654 1513052 1669293 18416 10809 P0Y P5Y 600000 230563 7844 9.68 14500 14000 14500 15270 0 228837 246281 246281 228837 8.36 8.35 8.48 8.48 7700 30000 36700 114437 188837 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Range of<br /> Exercise Prices</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Number of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Weighted-<br /> Average<br /> Remaining<br /> Contractual<br /> Life (years)</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Weighted<br /> Average<br /> Exercise Price</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Exercisable<br /> Number of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Exercisable<br /> Weighted-<br /> Average<br /> Exercise Price</td> </tr> <tr style="vertical-align: bottom"> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td colspan="3" style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> <td style="white-space: nowrap">&nbsp;</td> <td colspan="3" style="white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; white-space: nowrap">$2.01</td> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.00</div></td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">27,300</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.13</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.70</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,700</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.75</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; white-space: nowrap">$4.01</td> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.00</div></td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36,100</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.05</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.53</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,000</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.62</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; white-space: nowrap">$5.01</td> <td style="font-size: 10pt; text-align: center; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">- </div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.00</div></td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">51,000</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.31</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.80</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36,700</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.02</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt; width: 5%; white-space: nowrap">$10.01</td> <td style="font-size: 10pt; text-align: center; padding-bottom: 1pt; width: 5%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt; width: 25%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15.00</div></td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">114,437</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.26</div></td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.40</div></td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">114,437</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; text-align: right; width: 10%; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.40</div></td> <td style="font-size: 10pt; text-align: left; width: 1%; white-space: nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td colspan="3" style="font-size: 10pt; text-align: center; padding-bottom: 2.5pt; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></div></td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">228,837</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.92</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left; white-space: nowrap">$</td> <td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.48</div></td> <td style="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right; white-space: nowrap"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">188,837</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 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us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment Less: accumulated depreciation and amortization us-gaap_PropertyPlantAndEquipmentNet Equipment and leasehold improvements, net Equipment and leasehold improvements us-gaap_ProceedsFromIssuanceOrSaleOfEquity Proceeds from Issuance or Sale of Equity, Total Investing Activities: BAHRAIN Held to maturity, cost Debt Securities, Held-to-maturity, Total Net loss per common share: Earnings Per Share [Text Block] Two Customer [Member] Represents the information pertaining to the second major customer. Accounts payable and other accrued liabilities us-gaap_IncomeTaxExpenseBenefit Income Tax Expense (Benefit), Total Equity Components [Axis] Equity Component [Domain] us-gaap_OperatingExpenses Total operating expenses Held to maturity, amortized cost Cash and cash equivalents Held to maturity, unrealized losses Deferred revenue Deferred Revenue, Total Share-based compensation expense before taxes tcco_NumberOfCountriesInWhichProductsAreSold Number of Countries in Which Products are Sold Number of countries in which products are sold. 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Includes, but is not limited to, unvested options for which requisite service period has not been rendered but that are expected to vest based on achievement of performance condition, if forfeitures are recognized when they occur. Investment Type [Axis] tcco_SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercised Exercises, vested (in shares) Number of fully vested and expected to vest options exercised that may be converted into shares under option plan. Includes, but is not limited to, unvested options for which requisite service period has not been rendered but that are expected to vest based on achievement of performance condition, if forfeitures are recognized when they occur. Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] Range Three [Member] Information pertaining to the third price range. SAUDI ARABIA Range Two [Member] Information pertaining to the second price range. Range One [Member] Information pertaining to the first price range. Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] Range Four [Member] Information pertaining to the fourth price range. Foreign [Member] Information pertaining to foreign geographical area. us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised Exercises (in shares) us-gaap_TableTextBlock Notes Tables Domestic [Member] Information pertaining to domestic geographical area. One Customer [Member] Information pertaining to one customer. tcco_NumberOfMajorCustomers Number of Major Customers Represents the number of major customers accounting for 10% or more of the specified concentration risk benchmark, which includes, but not limited to, sales revenue, accounts receivable, etc. Foreign revenue by country Percentage of revenue from foreign countries. Schedule of Available-for-sale Securities Reconciliation [Table Text Block] Other Foreign Countries [Member] Information pertaining to other foreign countries. Foreign revenue by geographical area Percentage of revenue from geographical area as a percentage of foreign revenue. Far East [Member] Information pertaining to the far east. Mid-East and Africa [Member] Information pertaining to Mid-East and Africa. Cost and Equity Method Investments Disclosure [Text Block] Held to maturity, amortization bond premium Accumulated amortization of premium on held to maturity securities. 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Document And Entity Information - shares
9 Months Ended
Jun. 30, 2018
May 31, 2019
Document Information [Line Items]    
Entity Registrant Name TECHNICAL COMMUNICATIONS CORP  
Entity Central Index Key 0000096699  
Trading Symbol tcco  
Current Fiscal Year End Date --09-29  
Entity Filer Category Non-accelerated Filer  
Entity Current Reporting Status Yes  
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Common Stock, Shares Outstanding (in shares)   1,850,403
Document Type 10-Q/A  
Document Period End Date Jun. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q3  
Amendment Flag true  
Amendment Description Technical Communications Corporation (the “Company”) is filing this Form 10-Q/A to amend its Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, originally filed with the Securities and Exchange Commission (the “SEC”) on August 14, 2018 (the “Original Filing”). This Form 10-Q/A is being filed to restate our unaudited consolidated financial statements for the three and nine month periods ended June 30, 2018 and July 1, 2017 and to make related revisions to certain other disclosures in the Original Filing; the financial statements included in the Original Filing should no longer be relied upon. The restatement of our financial statements in this Form 10-Q/A reflects the correction of certain errors primarily related to the Company’s recognition of revenue, which errors resulted from the Company’s misapplication of generally accepted accounting principles, as well as a correction to its inventory reserve. Further explanation regarding the restatement is set forth in Note 2 to the unaudited consolidated financial statements included in this Form 10-Q/A. For the convenience of the reader, this Form 10-Q/A sets forth the information in the Original Filing in its entirety, as such information is modified and superseded where necessary to reflect the restatement and related revisions. The following sections in the Original Filing are revised in this Form 10-Q/A to reflect this restatement: Part I - Item 1 – Financial Statements (Unaudited) Part I - Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations Part I - Item 4 – Controls and Procedures Except as provided above, this Form 10-Q/A does not reflect events occurring after the filing of the Original Filing and does not amend or otherwise update any information in the Original Filing. Accordingly, this Form 10-Q/A should be read in conjunction with our filings with the SEC subsequent to the date on which we filed the Original Filing with the SEC. Our principal executive officer and principal financial officer have also provided new certifications as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 and applicable SEC rules. The certifications are included in this Form 10-Q/A as Exhibits 31.1, 31.2 and 32.1.  
Entity Shell Company false  
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Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
Jun. 30, 2018
Sep. 30, 2017
Current Assets:    
Cash and cash equivalents $ 1,460,438 $ 1,283,673
Restricted cash 12,930
Marketable securities - held to maturity 360,253
Accounts receivable - trade 597,907 730,177
Inventories, net 1,499,121 1,358,344
Other current assets 171,909 135,693
Total current assets 3,729,375 3,881,070
Equipment and leasehold improvements 4,578,501 4,534,839
Less: accumulated depreciation and amortization (4,519,469) (4,481,085)
Equipment and leasehold improvements, net 59,032 53,754
Total Assets 3,788,407 3,934,824
Current Liabilities:    
Accounts payable 131,384 109,224
Deferred revenue 1,526,796 484,121
Accrued liabilities:    
Accrued compensation and related expenses 213,348 215,984
Customer deposits 53,091 53,886
Other current liabilities 83,720 55,376
Total current liabilities 2,008,339 918,591
Commitments and contingencies
Stockholders’ Equity:    
Common stock, par value $0.10 per share; 7,000,000 shares authorized; 1,849,025 shares issued and outstanding at June 30, 2018 and 1,839,877 shares issued and outstanding at September 30, 2017 184,903 183,988
Additional paid-in capital 4,122,633 4,139,002
Accumulated deficit (2,527,468) (1,306,757)
Total stockholders’ equity 1,780,068 3,016,233
Total Liabilities and Stockholders’ Equity $ 3,788,407 $ 3,934,824
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Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
Jun. 30, 2018
Sep. 30, 2017
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, authorized (in shares) 7,000,000 7,000,000
Common stock, issued (in shares) 1,849,025 1,839,877
Common stock, outstanding (in shares) 1,849,025 1,839,877
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Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Net revenue $ 907,177 $ 1,019,105 $ 2,547,672 $ 3,035,812
Total cost of revenue 712,719 528,322 1,818,462 955,209
Gross profit 194,458 490,783 729,210 2,080,603
Operating expenses:        
Selling, general and administrative 522,097 478,654 1,513,052 1,669,293
Product development 124,234 407,106 442,470 1,377,889
Total operating expenses 646,331 885,760 1,955,522 3,047,182
Operating loss (451,873) (394,977) (1,226,312) (966,579)
Other income:        
Interest income 2,118 1,806 5,601 6,470
Net loss $ (449,755) $ (393,171) $ (1,220,711) $ (960,109)
Net loss per common share:        
Basic (in dollars per share) $ (0.24) $ (0.21) $ (0.66) $ (0.52)
Diluted (in dollars per share) $ (0.24) $ (0.21) $ (0.66) $ (0.52)
Weighted average shares:        
Weighted average shares - diluted (in shares) 1,849,025 1,839,877 1,845,706 1,839,877
Diluted (in shares) 1,849,025 1,839,877 1,845,706 1,839,877
Net revenue $ 907,177 $ 1,019,105 $ 2,547,672 $ 3,035,812
Total cost of revenue 712,719 528,322 1,818,462 955,209
Gross profit 194,458 490,783 729,210 2,080,603
Engineering Services [Member]        
Net revenue 758,670 319,777 2,218,375 319,777
Total cost of revenue 573,028 202,164 1,424,384 202,164
Weighted average shares:        
Net revenue 758,670 319,777 2,218,375 319,777
Total cost of revenue 573,028 202,164 1,424,384 202,164
Equipment Sales [Member]        
Net revenue 148,507 699,328 329,297 2,716,035
Total cost of revenue 139,691 326,158 394,078 753,045
Weighted average shares:        
Net revenue 148,507 699,328 329,297 2,716,035
Total cost of revenue $ 139,691 $ 326,158 $ 394,078 $ 753,045
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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Operating Activities:    
Net loss $ (1,220,711) $ (960,109)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 38,384 83,141
Stock-based compensation 18,416 10,809
Amortization of premium on held to maturity securities 10,253 20,412
Payment of tax on exercised stock options (33,870)
Changes in certain operating assets and liabilities:    
Accounts receivable 132,270 (309,723)
Inventory reserve (140,777) (127,540)
Other current assets (36,216) (18,799)
Customer deposits (795) (110,339)
Deferred revenue 1,042,675 48,681
Accounts payable and other accrued liabilities 47,868 (82,603)
Net cash used in operating activities (142,503) (1,446,070)
Investing Activities:    
Proceeds from sale of cost method investment 75,817
Additions to equipment and leasehold improvements (43,662) (3,575)
Proceeds from maturities of marketable securities 350,000 300,000
Net cash provided by investing activities 306,338 372,242
Net increase (decrease) in cash, cash equivalents and restricted cash 163,835 (1,073,828)
Cash, cash equivalents and restricted cash at beginning of the period 1,296,603 2,616,628
Cash, cash equivalents and restricted cash at end of the period 1,460,438 1,542,800
Non-cash financing activities:    
Exercise of stock options – cashless 915
Supplemental Disclosures:    
Income taxes paid $ 856
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Note 1 - Description of the Business and Basis of Presentation
9 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
NOTE
1.
Description of the Business and Basis of Presentation
 
Company Operations
 
Technical Communications Corporation (“TCC”) was incorporated in Massachusetts in
1961;
its wholly-owned subsidiary, TCC Investment Corp., was organized in that jurisdiction in
1982.
Technical Communications Corporation and TCC Investment Corp. are collectively referred to herein as the “Company”. The Company’s business consists of only
one
industry segment, which is the design, development, manufacture, distribution, marketing and sale of communications security devices, systems and services. The secure communications solutions provided by TCC protect vital information transmitted over a wide range of data, video, fax and voice networks. TCC’s products have been sold into a significant number of countries and are in service with governments, military agencies, telecommunications carriers, financial institutions and multinational corporations.
 
Interim Financial Statements
 
The accompanying unaudited consolidated financial statements of the Company include all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented and in order to make the financial statements
not
misleading. All such adjustments are of a normal recurring nature. Interim results are
not
necessarily indicative of the results to be expected for the fiscal year ended
September 29, 2018.
 
The
September 30, 2017
restated consolidated balance sheet was derived from the
September 30, 2017
restated audited consolidated financial statement. Certain footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted as allowed by Securities and Exchange Commission (“SEC”) rules and regulations. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s restated audited consolidated financial statements and the notes thereto for the fiscal year ended
September 30, 2017
Form
10
-K filed
June 21, 2019.
 
The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as the FASB. The FASB sets generally accepted accounting principles (“GAAP”) that the Company follows to ensure it consistently reports its financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the
FASB Accounting Standards Codification
TM
- sometimes referred to as the Codification or ASC.
 
Liquidity and Ability to Continue as a Going Concern
 
The Company has suffered recurring losses from operations and had an accumulated deficit of
$2,527,000
at
June 30, 2018.
These factors raise substantial doubt about the Company's ability to continue as a going concern within
one
year from the issuance date of the unaudited consolidated financial statements included in this Quarterly Report. Such unaudited consolidated financial statements do
not
include any adjustments to reflect the uncertainty about the Company’s ability to continue as a going concern.
 
The Company anticipates that its principal sources of liquidity will only be sufficient to fund activities to
January 2020.
In order to have sufficient cash to fund operations beyond
that point
, the Company will need to secure new customer contracts, raise additional equity or debt capital or reduce expenses, including payroll and payroll-related expenses.
 
In order to have sufficient capital resources to fund operations, the Company has been working diligently to secure several large orders with new and existing customers. In addition, the Company is also pursuing raising capital through equity or debt arrangements. Although the Company believes its ability to secure such new business or raise new capital is likely, it cannot provide assurances it will be able to do so.
 
Should the Company be unsuccessful in these efforts, it would then be forced to implement headcount reductions, employee furloughs and/or reduced hours for certain employees or cease operations completely.
 
Reporting Period
 
The Company’s by-laws call for its fiscal year to end on the Saturday closest to the last day of
September,
unless otherwise decided by its Board of Directors.
 
Basis of Presentation
 
The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
 
The discussion and analysis of the financial condition and results of operations are based on the unaudited consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these unaudited consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods.
 
On an ongoing basis, management evaluates its estimates and judgments, including but
not
limited to those related to marketable securities, receivable reserves, inventory reserves, fair value of financial instruments, impairment of long-lived assets, revenue recognition, stock-based compensation and income taxes. Management bases its estimates on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are
not
readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results
may
differ from these estimates under different assumptions or conditions.
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Note 2 - Restatements
9 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Accounting Changes and Error Corrections [Text Block]
NOTE
2.
Restatements
 
The Company has restated its consolidated financial statements as of and for the
three
and
nine
month periods ended
June 30, 2018
and
July 1, 2017.
The restatements reflect adjustments to correct errors in the Company’s revenue recognition for a certain contract and in its calculation of its inventory reserve. The errors were identified during the Company’s normal closing process, in the course of the Company’s regularly scheduled audit for the year ended
September 29, 2018
and during the course of a subsequent review by management. The errors resulted from the misinterpretation and misapplication of ASC Topic,
605
Revenue Recognition and a miscalculation in the Company’s inventory reserve
. The effects of the restatements on the Company’s consolidated financial statements for the
three
and
nine
month periods ended
June 30, 2018
and
July 1, 2017
are described below.
 
    As of September 30, 2017
Balance Sheet                        
Deferred revenue   $
-
    $
484,121
    $
484,121
 
Accumulated deficit    
(822,636
)    
(484,121
)    
(1,306,757
)
 
 
 
 
For the Three Months Ended July 1, 2017
Statement of Operations
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
 
$
1,067,786
 
 
$
(48,681
)
 
$
1,019,105
 
Gross profit
 
 
539,464
 
 
 
(48,681
)
 
 
490,783
 
Operating loss
 
 
(346,296
)
 
 
(48,681
)
 
 
(394,977
)
Net loss
 
 
(344,490
)
 
 
(48,681
)
 
 
(393,171
)
Net loss per common share
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
(0.19
)
 
 
(0.02
)
 
 
(0.21
)
Diluted
 
 
(0.19
)
 
 
(0.02
)
 
 
(0.21
)
 
 
 
For the Nine Months Ended July 1, 2017
Statement of Operations
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
 
$
3,084,493
 
 
$
(48,681
)
 
$
3,035,812
 
Gross profit
 
 
2,129,284
 
 
 
(48,681
)
 
 
2,080,603
 
Operating loss
 
 
(917,898
)
 
 
(48,681
)
 
 
(966,579
)
Net loss
 
 
(911,428
)
 
 
(48,681
)
 
 
(960,109
)
Net loss per common share
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
(0.50
)
 
 
(0.02
)
 
 
(0.52
)
Diluted
 
 
(0.50
)
 
 
(0.02
)
 
 
(0.52
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of cash flows
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
$
(
911,428
)
 
$
(48,681
)
 
$
(
960,109
)
Changes in current assets and current liabilities – Deferred revenue
 
 
-
 
 
 
48,681
 
 
 
48,681
 
 
 
        Adjustments    
    As reported   Revenue
recognition
  Inventory
reserve
  As adjusted
                 
    As of June 30, 2018
Balance Sheet                                
Inventory   $
1,554,938
    $
    $
(55,817
)   $
1,499,121
 
Deferred revenue    
     
1,526,796
     
     
1,526,796
 
Accumulated deficit    
(944,855
)    
(1,526,796
)    
(55,817
)    
(2,527,468
)
 
    For the Three Months Ended June 30, 2018
Statement of Operations                                
Total net revenue   $
1,544,142
    $
(636,965
)   $
    $
907,177
 
Total cost of revenue    
666,758
     
(9,856
)    
55,817
     
712,719
 
Gross profit    
877,384
     
(627,109
)    
(55,817
)    
194,458
 
Operating income (loss)    
240,909
     
(636,965
)    
(55,817
)    
(451,873
)
Net income (loss)    
243,027
     
(636,965
)    
(55,817
)    
(449,755
)
Net income (loss) per common share    
 
     
 
     
 
     
 
Basic    
0.13
     
(0.34
)    
(0.03
)    
(0.24
)
Diluted    
0.13
     
(0.34
)    
(0.03
)    
(0.24
)
Weighted average shares - diluted    
1,854,370
     
(5,345
)    
 
     
1,849,025
 
 
    For the Nine Months Ended June 30, 2018
Statement of Operations                                
Total net revenue   $
3,590,347
    $
(1,042,675
)   $
    $
2,547,672
 
Total cost of revenue    
1,762,645
     
     
55,817
     
1,818,462
 
Gross profit    
1,800,202
     
(1,015,175
)    
(55,817
)    
729,210
 
Operating loss    
(127,820
)    
(1,042,675
)    
(55,817
)    
(1,226,312
)
Net loss    
(122,219
)    
(1,042,675
)    
(55,817
)    
(1,220,711
)
Net loss per common share                                
Basic    
(0.07
)    
(0.56
)    
(0.03
)    
(0.66
)
Diluted    
(0.07
)    
(0.56
)    
(0.03
)    
(0.66
)
                                 
Statement of cash flows                                
Net loss   $
(122,219
)   $
(1,042,675
)   $
(55,817
)   $
(1,220,711
)
Changes in current assets and current liabilities:                                
     Deferred revenue    
     
1,042,675
     
     
1,042,675
 
     Inventory reserve    
(196,594
)    
     
55,817
   
(140,777
)
XML 18 R8.htm IDEA: XBRL DOCUMENT v3.19.2
Note 3 - Summary of Significant Accounting Policies
9 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]
NOTE
3.
Summary of Significant Accounting Policies
 
The accounting policies that management believes are most critical to aid in fully understanding and evaluating the reported financial results include the following:
 
Revenue Recognition
 
The Company’s engineering services revenue is derived from performing funded research and development and technology development for commercial companies and government agencies primarily under fixed-price contracts. On fixed-price contracts that are expected to exceed
one
year in duration, revenue is recognized pursuant to the proportional performance method based upon the proportion of actual costs incurred to date to the total estimated costs for the contract. The Company receives periodic progress payments based on contract terms.
 
Equipment revenue is recognized when there is persuasive evidence of an arrangement, the fee is fixed or determinable, delivery of the product and passage of title to the customer has occurred and the Company has determined that collection of the fee is probable. Title to the product generally passes upon shipment of the product, as the products are shipped freight on board shipping point, except for certain foreign shipments for which title passes upon entry of the product into the
first
port in the buyer’s country. If the product requires installation to be performed by the Company, or other acceptance criteria exist, all revenue related to the product is deferred and recognized upon completion of the installation or satisfaction of the customer acceptance criteria. The Company provides for a warranty reserve at the time the product revenue is recognized.
 
As of
June 30, 2018,
billings in excess of revenues of
$1,483,000
were recorded as deferred revenue in relation to contracts based on proportional performance. Deferred revenue represents the cumulative difference between the amounts billed and revenue recognized for services performed.
 
All payments to TCC for work performed on contracts with agencies of the U.S. government are subject to audit and adjustment by the Defense Contract Audit Agency, the U.S. Government Accountability Office and other agencies. Adjustments are recognized in the period made. There have been
no
government audits in recent years and the Company believes the result of such audits, should they occur, would
not
have a material adverse effect on its financial position or results of operations. If the current estimates of total contract revenue and contract costs for a product development contract indicate a loss, a provision for the entire loss on the contract is recorded. Any losses incurred in performing funded research and development projects are recognized as funded research and development expenses.
 
Costs incurred in connection with funded research and development are included in cost of revenue. Product development costs are charged to billable engineering services, bid and proposal efforts or business development activities, as appropriate. Product development costs charged to billable projects are recorded as cost of revenue; engineering costs charged to bid and proposal efforts are recorded as selling expenses; and product development costs charged to business development activities are recorded as marketing expenses. Product development costs consist primarily of costs associated with personnel, outside contractor and engineering services, supplies and materials. Cost of product revenue includes material, labor and overhead.
 
Revenue for the
nine
month period ended
June 30, 2018
consisted of
$2,219,000
from engineering services and
$329,000
from equipment revenue, compared to revenue of
$320,000
from engineering services and
$2,716,000
from equipment revenue for the
nine
month period ended
July 1, 2017.
 
Inventories
 
The Company values its inventory at the lower of cost (based on the
first
-in,
first
-out method) to purchase and/or manufacture and net realizable value (based on the estimated selling prices, less reasonably predictable costs of completion, disposal, and transportation) of the inventory. The Company periodically reviews inventory quantities on hand and records a provision for excess and/or obsolete inventory based primarily on the estimated forecast of product demand, as well as historical usage. The Company evaluates the carrying value of inventory on a quarterly basis to determine whether the carrying value is in excess of net realizable value. To the extent that net realizable value is less than the associated carrying values, inventory carrying values are written down. In addition, the Company makes judgments as to future demand requirements and compares those with the current or committed inventory levels. Reserves are established for inventory levels that exceed expected future demand. It is possible that additional reserves above those already established
may
be required in the future if market conditions for the Company’s products should deteriorate.
 
Accounts Receivable
 
Accounts receivable are reduced by an allowance for amounts that
may
become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on a specific analysis of accounts in the receivable portfolio and historical write-off experience. While management believes
no
allowance is currently needed, if the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances
may
be required, which would reduce net income.
In addition, if the Company becomes aware of a customer’s inability to meet its financial obligations, a specific write-off is recorded in that amount.
 
Accounting for Income Taxes
 
The preparation of the Company’s unaudited consolidated financial statements requires it to estimate income taxes in each of the jurisdictions in which the Company operates, including those outside the United States, which
may
subject the Company to certain risks that ordinarily would
not
be expected in the United States. The income tax accounting process involves estimating our actual current exposure together with assessing temporary differences resulting from differing treatments of items, such as inventory obsolescence and stock-based compensation, for tax and accounting purposes. These differences result in the recognition of deferred tax assets and liabilities. The Company must then record a valuation allowance to reduce its deferred tax assets to the amount that is more likely than
not
to be realized.
 
Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. At
June 30, 2018
and
September 30, 2017,
the Company recorded a full valuation allowance against its net deferred tax assets of approximately
$3.7
million and
$4.9
million, respectively, due to uncertainties related to the Company’s ability to realize these assets. The valuation allowance is based on estimates of taxable income by jurisdiction and the period over which deferred tax assets will be recoverable. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, it
may
need to adjust its valuation allowance, which could materially impact the Company’s financial position and results of operations.
 
The Company follows appropriate guidance for the recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-
not
in order for those tax positions to be recognized in the financial statements.
 
Due to the nature of the Company’s current operations in foreign countries (selling products into these countries with the assistance of local representatives), the Company has
not
been subject to any foreign taxes in recent years, and it is
not
anticipated that it will be subject to foreign taxes in the near future.
 
Fair Value Measurements
 
In determining fair value measurements, the Company follows the established framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. The topic provides a consistent definition of fair value that focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The topic also prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information and establishes a
three
-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. At
June 30, 2018
and
September 30, 2017,
the carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, marketable securities and accounts payable approximate fair value because of their short-term nature.
 
The
three
-level hierarchy is as follows:
 
 
Level
1
-
Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date.
 
Level
2
-
Pricing inputs are quoted prices for similar assets or liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data.
 
Level
3
-
Pricing inputs are unobservable for the assets or liabilities, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.
 
In certain cases, the inputs used to measure fair value
may
fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.
 
The Company’s held to maturity securities are comprised of investments in municipal bonds. These securities represent ownership in individual bonds issued by municipalities within the United States. The value of these securities is disclosed in Note
8.
The Company’s available for sale securities consist of mutual funds held in money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value.
 
The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the
nine
month period ended
June 30, 2018
and the year ended
September 30, 2017,
there were
no
transfers between levels.
 
The following table sets forth by level, within the fair value hierarchy, the assets measured at fair value on a recurring basis as of
June 30, 2018
and
September 30, 2017,
in accordance with the fair value hierarchy as defined above. As of
June 30, 2018
and
September 30, 2017,
the Company did
not
hold any assets classified as Level
2
or Level
3.
 
June 30, 2018
 
 
 
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
 
 
 
 
Mutual funds:
 
 
 
 
 
 
 
 
Money market funds
 
$
1,015,102
 
 
$
1,015,102
 
Total mutual funds
 
 
1,015,102
 
 
 
1,015,102
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
1,015,102
 
 
$
1,015,102
 
 
 
 
 
 
 
 
 
 
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mutual funds:
 
 
 
 
 
 
 
 
Money market funds
 
$
851,195
 
 
$
851,195
 
Total mutual funds
 
 
851,195
 
 
 
851,195
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
851,195
 
 
$
851,195
 
 
There were
no
assets or liabilities measured at fair value on a nonrecurring basis at
June 30, 2018
or
September 30, 2017.
 
Stock-Based Compensation
 
Stock-based compensation cost is measured at the grant date based on the calculated fair value of the award. The expense is recognized over the participant’s requisite service period, generally the vesting period of the award. The related excess tax benefit received upon the exercise of stock options, if any, is reflected in the Company’s statement of cash flows as a financing activity. There were
no
excess tax benefits recorded during either of the
nine
month periods ended
June 30, 2018
and
July 1, 2017.
 
The Company uses the Black-Scholes option pricing model as the method for determining the estimated fair value of its stock awards. The Black-Scholes method of valuation requires several assumptions: (
1
) the expected term of the stock award, (
2
) the expected future stock price volatility over the expected term, (
3
) a risk-free interest rate and (
4
) the expected dividend rate.
 
The expected term represents the expected period of time the Company believes the options will be outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock, and the risk free interest rate is based on the U.S. Treasury Note rate. The Company utilizes a forfeiture rate based on an analysis of its actual experience. The forfeiture rate is
not
material to the calculation of share-based compensation. There were
14,500
and
14,000
options granted during the
nine
month periods ended
June 30, 2018
and
July 1, 2017,
respectively.
 
The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the
three
and
nine
month periods ended
June 30, 2018
and
July 1, 2017:
 
    June 30, 2018   July 1, 2017
    3 months   9 months   3 months   9 months
                 
Selling, general and administrative expenses   $
7,596
    $
17,352
    $
3,896
    $
9,998
 
Product development expenses    
356
     
1,064
     
272
     
811
 
Total share-based compensation expense before taxes   $
7,952
    $
18,416
    $
4,168
    $
10,809
 
  
As of
June 30, 2018,
there was
$111,591
of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of
June 30, 2018,
the weighted average period over which the compensation expense is expected to be recognized is
4.05
years.
 
The Technical Communications Corporation
2005
Non-Statutory Stock Option Plan and
2010
Equity Incentive Plan were outstanding at
June 30, 2018.
There are an aggregate of
600,000
shares authorized for issuance under these plans, of which options to purchase
228,837
shares were outstanding at
June 30, 2018.
Vesting periods are at the discretion of the Board of Directors and typically range between
zero
and
five
years. Options under these plans are granted with an exercise price equal to fair market value at time of grant and have a term of
ten
years from the date of grant.
 
As of
June 30, 2018,
there were
230,563
shares available for grant under the
2010
Equity Incentive Plan. The
2005
Non-Statutory Stock Option Plan has expired and options are
no
longer available for grant under such plan.
 
The following table summarizes stock option activity during the
first
nine
months of fiscal
2018:
 
 
 
Options Outstanding
 
 
Number of Shares
 
 
 
Weighted Average
 
 
Unvested
 
Vested
 
Total
 
Weighted Average
Exercise Price
 
Contractual Life
(years)
 
 
 
 
 
 
 
 
 
 
 
Outstanding, September 30, 2017
 
 
34,200
 
 
 
212,081
 
 
 
246,281
 
 
$
8.36
 
 
 
3.95
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grants
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Vested
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Exercises
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Cancellations/forfeitures
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, December 30, 2017
 
 
34,200
 
 
 
212,081
 
 
 
246,281
 
 
$
8.35
 
 
 
3.72
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grants
 
 
14,500
 
 
 
-
 
 
 
14,500
 
 
 
7.25
 
 
 
 
 
Vested
 
 
(5,600
)
 
 
5,600
 
 
 
-
 
 
 
2.70
 
 
 
 
 
Exercises
 
 
-
 
 
 
(24,100
)
 
 
(24,100
)
 
 
6.12
 
 
 
 
 
Cancellations/forfeitures
 
 
-
 
 
 
(7,844
)
 
 
(7,844
)
 
 
9.68
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, March 31, 2018
 
 
43,100
 
 
 
185,737
 
 
 
228,837
 
 
$
8.48
 
 
 
4.17
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grants
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Vested
 
 
(3,100
)
 
 
3,100
 
 
 
-
 
 
 
4.25
 
 
 
 
 
Exercises
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Cancellations/forfeitures
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, June 30, 2018
 
 
40,000
 
 
 
188,837
 
 
 
228,837
 
 
$
8.48
 
 
 
3.92
 
 
 
Information related to the stock options vested and expected to vest as of
June 30, 2018
is as follows:
 
Range of
Exercise Prices
  Number of
Shares
  Weighted-
Average
Remaining
Contractual
Life (years)
  Weighted
Average
Exercise Price
  Exercisable
Number of
Shares
  Exercisable
Weighted-
Average
Exercise Price
                     
$2.01
-
$3.00
   
27,300
     
8.13
    $
2.70
     
7,700
    $
2.75
 
$4.01
-
$5.00
   
36,100
     
4.05
     
4.53
     
30,000
     
4.62
 
$5.01
-
$10.00
   
51,000
     
5.31
     
7.80
     
36,700
     
8.02
 
$10.01
-
$15.00
   
114,437
     
2.26
     
11.40
     
114,437
     
11.40
 
 
   
228,837
     
3.92
    $
8.48
     
188,837
    $
9.31
 
 
The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of
June 30, 2018
and
July 1, 2017
was
$15,270
and
$0,
respectively. Nonvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions.
 
New Accounting Pronouncements
 
ASU
2014
-
09,
Revenue from Contracts with Customers, amended by ASU
2015
-
14
(Topic
606
), ASU
2016
-
10,
ASU
2016
-
11
and ASU
2016
-
12
 
In
May 2014,
the FASB and the International Accounting Standards Board issued guidance on the principles for recognizing revenue and developing a common revenue standard for U.S. GAAP and International Financial Reporting Standards that would: (
1
) remove inconsistencies and weaknesses in revenue requirements, (
2
) provide a more robust framework for addressing revenue issues, (
3
) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (
4
) provide more useful information to users of financial statements through improved disclosure requirements, and (
5
) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. This guidance is effective prospectively for annual reporting periods beginning after
December 15, 2017,
including interim periods within that reporting period. The impact of this guidance will
not
have a material effect on the Company’s consolidated financial statements. This guidance will become effective for the Company as of the beginning of the
2019
fiscal year.
 
The qualitative assessments of the standard provided below are estimates of the expected effects of the adoption of ASC
606.
This represents the Company’s best estimate of the effects of adopting ASC
606
at the time of the preparation of this Quarterly Report on Form
10
-Q. The actual impact of ASC
606
is subject to change from these estimates and such change
may
be significant, pending the completion of our assessment in the
first
quarter of fiscal
2019.
 
Engineering Services Revenue
The Company expects that the deliverables under the current guidance will be consistent with performance obligations identified under ASC
606.
The adoption of ASC
606
will
not
result in a change to the timing of revenue recognition for this type of revenue as the standard requires revenues to be estimated and recognized upon transfer of the promised goods and services. As such, the Company does
not
expect the adoption of ASC
606
to result in a material impact to revenue recognition.
 
Equipment Revenue
The deliverables under the previous guidance is consistent with performance obligations identified under ASC
606.
Under ASC
606,
the Company continued to allocate the transaction price between the elements and performance obligations within the contract. Revenue recognition for the performance obligations accounted for under ASC
606
was consistent with current guidance given the transfer of control of the promised goods or services follows the same pattern. As such, the adoption of ASC
606
will
not
result in a material impact on revenue recognition.
 
ASU
No.
2015
-
11,
Inventory (Topic
330
): Simplifying the Measurement of Inventory
 
In
July 2015,
the FASB issued guidance with respect to inventory measurement. This ASU requires inventory to be measured at the lower of cost and net realizable value. The provisions of this ASU became effective for fiscal years beginning after
December 15, 2016,
including interim periods within those fiscal years. The amendment is required to be applied prospectively, and early adoption is permitted. This guidance was adopted by the Company in the
first
quarter of its
2018
fiscal year; the adoption of this standard did
not
have a material impact on the financial statements.
 
ASU
No.
2016
-
02,
Leases
 
In
February 2016,
the FASB issued guidance with respect to leases. This ASU requires entities
to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after 
December 15, 2018,
including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the potential impact this standard will have on the financial statements and related disclosure. The Company currently has
one
operating lease on its facility in Concord, MA. The Company expects to adopt this standard during its fiscal year
2020.
 
ASU
No.
2016
-
09,
Improvements to Employee Share-Based Payment Accounting
 
In
March 2016,
the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new guidance is effective for annual periods beginning after
December 15, 2016,
including interim periods within those fiscal years.
This guidance was adopted by the Company in the
first
quarter of its
2018
fiscal year; the adoption of this standard did
not
have a material impact on the financial statements.
 
ASU
No.
2016
-
18,
Restricted Cash Presentation on Statement of Cash Flows
 
In
November 2016,
the FASB issued guidance in regards to additional disclosure surrounding restricted cash activity. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for annual periods beginning after
December 15, 2017,
including interim periods within those fiscal years. The Company has elected to early adopt effective
October 1, 2017
.
Accordingly, restricted cash has been grouped with cash and cash equivalents on the statements of cash flows and results for the
nine
month period ended
July 1, 2017
have been retrospectively reclassified.
 
Other recent accounting pronouncements were issued by the FASB (including its Emerging Issues Task Force) and the SEC during the
first
nine
months of our
2018
fiscal year but such pronouncements are
not
believed by management to have a material impact on the Company’s present or future financial statements.
XML 19 R9.htm IDEA: XBRL DOCUMENT v3.19.2
Note 4 - Inventories
9 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Inventory Disclosure [Text Block]
NOTE
4.
Inventories
 
Inventories consisted of the following:
 
    June 30,
2018
(As restated,
see Note 2)
  September 30,
2017
(As restated,
see Note 2)
         
Finished goods   $
29,499
    $
20,759
 
Work in process    
639,050
     
383,216
 
Raw materials    
830,572
     
954,369
 
    $
1,499,121
    $
1,358,344
 
XML 20 R10.htm IDEA: XBRL DOCUMENT v3.19.2
Note 5 - Income Taxes
9 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
NOTE
5.
Income Taxes
 
The Company has
not
recorded an income tax benefit on its net loss for the
three
and
nine
month periods ended
June 30, 2018
and
July 1, 2017
due to its uncertain realizability. During previous fiscal years, the Company recorded a valuation allowance for the full amount of its net deferred tax assets since it could
not
predict the realization of these assets.
 
On
December 22, 2017,
the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law by the President of the United States. The Tax Act includes a number of changes, including the lowering of the U.S. corporate tax rate from
35%
to
21%,
effective
January 1, 2018.
The Company has determined and completed the accounting for certain income tax effects of the Tax Act to the current reporting period. Because the Company records a valuation allowance for its entire deferred income tax asset, there was
no
impact on the reported amounts in the unaudited consolidated financial statements included in this Quarterly Report as a result of the Tax Act.
XML 21 R11.htm IDEA: XBRL DOCUMENT v3.19.2
Note 6 - Loss Per Share
9 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Earnings Per Share [Text Block]
NOTE
6.
Loss Per Share
 
Outstanding potentially dilutive stock options, which were
not
included in the net loss per share amounts as their effect would have been anti-dilutive, were as follows:
201,037
shares at
June 30, 2018
and
251,714
shares at
July 1, 2017.
XML 22 R12.htm IDEA: XBRL DOCUMENT v3.19.2
Note 7 - Major Customers and Export Revenue
9 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE
7.
Major Customers and Export Revenue
 
During the
three
month period ended
June 30, 2018,
the Company had
one
customer that represented
91%
of net revenue as compared to the
three
month period ended
July 1, 2017,
during which the Company had
two
customers that represented
97%
(
66%
and
31%,
respectively) of net revenue. During the
nine
month period ended
June 30, 2018,
the Company had
one
customer that represented
87%
of net revenue as compared to the
nine
month period ended
July 1, 2017,
during which the Company had
two
customers that represented
91%
(
81%
and
10%,
respectively) of net revenue.
 
A breakdown of foreign and domestic net revenue for the
three
and
nine
month periods ended
June 30, 2018
and
July 1, 2017
is as follows:
 
   
June 30, 2018
 
July 1, 2017
   
3 months
 
9 months
 
3 months
 
9 months
Domestic
 
$
832,441
   
$
2,343,878
   
$
1,008,380
   
$
2,792,102
 
Foreign
   
74,736
     
203,794
     
10,725
     
243,710
 
Total net revenue
 
$
907,177
   
$
2,547,672
   
$
1,019,105
   
$
3,035,812
 
 
The Company sold products into
two
foreign countries during the
three
month period ended
June 30, 2018
and
one
foreign country during the
three
month period ended
July 1, 2017.
The Company sold products into
four
foreign countries during the
nine
month period ended
June 30, 2018
and
five
foreign countries during the
nine
month period ended
July 1, 2017.
A sale is attributed to a foreign country based on the location of the contracting party. Domestic revenue
may
include the sale of products shipped through domestic resellers or manufacturers to international destinations. The table below summarizes the Company’s foreign revenues by country as a percentage of total foreign revenue.
 
    June 30, 2018   July 1, 2017
    3 months   9 months   3 months   9 months
                 
Saudi Arabia    
73
%    
44
%    
-
     
42
%
Philippines    
27
%    
44
%    
-
     
4
%
Bahrain    
-
     
-
     
100
%    
4
%
Jordan    
-
     
6
%    
-
     
43
%
Other    
-
     
6
%    
-
     
7
%
 
A summary of foreign revenue, as a percentage of total foreign revenue by geographic area, is as follows:
 
    June 30, 2018   July 1, 2017
    3 months   9 months   3 months   9 months
                 
Mid-East and Africa    
73
%    
56
%    
100
%    
89
%
Far East    
27
%    
44
%    
-
     
11
%
XML 23 R13.htm IDEA: XBRL DOCUMENT v3.19.2
Note 8 - Cash Equivalents and Marketable Securities
9 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Cash and Cash Equivalents Disclosure [Text Block]
NOTE
8.
Cash Equivalents and Marketable Securities
 
The Company considers all highly liquid instruments with an original maturity of
three
months or less to be cash equivalents. Cash equivalents are invested in money market mutual funds held in a brokerage account
.
All marketable securities must be classified as
one
of the following: held to maturity, available for sale, or trading. The Company classifies its marketable securities as either available for sale or held to maturity.
 
Available for sale securities are carried at fair value, with unrealized holding gains and losses reported in stockholders’ equity as a separate component of accumulated other comprehensive income (loss). Held to maturity securities are carried at amortized cost. The cost of securities sold is determined based on the specific identification method. Realized gains and losses, and declines in value judged to be other than temporary, are included in investment income.
 
As of
June 30, 2018,
cash equivalents consisted of the following:
 
        Gross Unrealized   Estimated
    Cost   Gains   Losses   Fair Value
                                 
Money market mutual funds   $
1,015,102
    $
-
    $
-
    $
1,015,102
 
 
As of
September 30, 2017,
cash equivalents consisted of the following:
        Gross Unrealized   Estimated
    Cost   Gains   Losses   Fair Value
                                 
Money market mutual funds   $
851,195
    $
-
    $
-
    $
851,195
 
 
As of
September 30, 2017,
held to maturity securities consisted of the following:
 
 
 
Cost
 
Accrued
Interest
 
Amortization
Bond Premium
 
Amortized
Cost
 
Unrealized
Gains
 
Estimated
Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal bonds
 
$
412,366
 
 
$
6,986
 
 
$
59,099
 
 
$
360,253
 
 
$
216
 
 
$
360,469
 
 
The Company did
not
have any held to maturity securities at
June 30, 2018.
XML 24 R14.htm IDEA: XBRL DOCUMENT v3.19.2
Note 9 - Cost Method Investment
9 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Cost and Equity Method Investments Disclosure [Text Block]
NOTE
9.
Cost Method Investment
 
On
October 30, 2014,
the Company made an investment of
$275,000
to purchase
11,000
shares of common stock of PulsedLight, Inc., an early stage start-up company located in Bend, Oregon. The investment represented a
10.8%
ownership stake in the company at the time of purchase and was accounted for utilizing the cost method of accounting. On
January 12, 2016,
the Company entered into an agreement to sell its shares in PulsedLight. The net proceeds to the Company after closing costs and certain liabilities amounted to
$737,283,
of which the Company received
$661,466
at closing and of which
$75,817
was deposited in an escrow account in accordance with the terms of the sale that required
10%
of the proceeds to be held in escrow for
one
year. The escrow balance was received by the Company in
January 2017.
XML 25 R15.htm IDEA: XBRL DOCUMENT v3.19.2
Significant Accounting Policies (Policies)
9 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Revenue [Policy Text Block]
Revenue Recognition
 
The Company’s engineering services revenue is derived from performing funded research and development and technology development for commercial companies and government agencies primarily under fixed-price contracts. On fixed-price contracts that are expected to exceed
one
year in duration, revenue is recognized pursuant to the proportional performance method based upon the proportion of actual costs incurred to date to the total estimated costs for the contract. The Company receives periodic progress payments based on contract terms.
 
Equipment revenue is recognized when there is persuasive evidence of an arrangement, the fee is fixed or determinable, delivery of the product and passage of title to the customer has occurred and the Company has determined that collection of the fee is probable. Title to the product generally passes upon shipment of the product, as the products are shipped freight on board shipping point, except for certain foreign shipments for which title passes upon entry of the product into the
first
port in the buyer’s country. If the product requires installation to be performed by the Company, or other acceptance criteria exist, all revenue related to the product is deferred and recognized upon completion of the installation or satisfaction of the customer acceptance criteria. The Company provides for a warranty reserve at the time the product revenue is recognized.
 
As of
June 30, 2018,
billings in excess of revenues of
$1,483,000
were recorded as deferred revenue in relation to contracts based on proportional performance. Deferred revenue represents the cumulative difference between the amounts billed and revenue recognized for services performed.
 
All payments to TCC for work performed on contracts with agencies of the U.S. government are subject to audit and adjustment by the Defense Contract Audit Agency, the U.S. Government Accountability Office and other agencies. Adjustments are recognized in the period made. There have been
no
government audits in recent years and the Company believes the result of such audits, should they occur, would
not
have a material adverse effect on its financial position or results of operations. If the current estimates of total contract revenue and contract costs for a product development contract indicate a loss, a provision for the entire loss on the contract is recorded. Any losses incurred in performing funded research and development projects are recognized as funded research and development expenses.
 
Costs incurred in connection with funded research and development are included in cost of revenue. Product development costs are charged to billable engineering services, bid and proposal efforts or business development activities, as appropriate. Product development costs charged to billable projects are recorded as cost of revenue; engineering costs charged to bid and proposal efforts are recorded as selling expenses; and product development costs charged to business development activities are recorded as marketing expenses. Product development costs consist primarily of costs associated with personnel, outside contractor and engineering services, supplies and materials. Cost of product revenue includes material, labor and overhead.
 
Revenue for the
nine
month period ended
June 30, 2018
consisted of
$2,219,000
from engineering services and
$329,000
from equipment revenue, compared to revenue of
$320,000
from engineering services and
$2,716,000
from equipment revenue for the
nine
month period ended
July 1, 2017.
Inventory, Policy [Policy Text Block]
Inventories
 
The Company values its inventory at the lower of cost (based on the
first
-in,
first
-out method) to purchase and/or manufacture and net realizable value (based on the estimated selling prices, less reasonably predictable costs of completion, disposal, and transportation) of the inventory. The Company periodically reviews inventory quantities on hand and records a provision for excess and/or obsolete inventory based primarily on the estimated forecast of product demand, as well as historical usage. The Company evaluates the carrying value of inventory on a quarterly basis to determine whether the carrying value is in excess of net realizable value. To the extent that net realizable value is less than the associated carrying values, inventory carrying values are written down. In addition, the Company makes judgments as to future demand requirements and compares those with the current or committed inventory levels. Reserves are established for inventory levels that exceed expected future demand. It is possible that additional reserves above those already established
may
be required in the future if market conditions for the Company’s products should deteriorate.
Receivable [Policy Text Block]
Accounts Receivable
 
Accounts receivable are reduced by an allowance for amounts that
may
become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on a specific analysis of accounts in the receivable portfolio and historical write-off experience. While management believes
no
allowance is currently needed, if the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances
may
be required, which would reduce net income.
In addition, if the Company becomes aware of a customer’s inability to meet its financial obligations, a specific write-off is recorded in that amount.
Income Tax, Policy [Policy Text Block]
Accounting for Income Taxes
 
The preparation of the Company’s unaudited consolidated financial statements requires it to estimate income taxes in each of the jurisdictions in which the Company operates, including those outside the United States, which
may
subject the Company to certain risks that ordinarily would
not
be expected in the United States. The income tax accounting process involves estimating our actual current exposure together with assessing temporary differences resulting from differing treatments of items, such as inventory obsolescence and stock-based compensation, for tax and accounting purposes. These differences result in the recognition of deferred tax assets and liabilities. The Company must then record a valuation allowance to reduce its deferred tax assets to the amount that is more likely than
not
to be realized.
 
Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. At
June 30, 2018
and
September 30, 2017,
the Company recorded a full valuation allowance against its net deferred tax assets of approximately
$3.7
million and
$4.9
million, respectively, due to uncertainties related to the Company’s ability to realize these assets. The valuation allowance is based on estimates of taxable income by jurisdiction and the period over which deferred tax assets will be recoverable. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, it
may
need to adjust its valuation allowance, which could materially impact the Company’s financial position and results of operations.
 
The Company follows appropriate guidance for the recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Uncertain tax positions must meet a recognition threshold of more-likely-than-
not
in order for those tax positions to be recognized in the financial statements.
 
Due to the nature of the Company’s current operations in foreign countries (selling products into these countries with the assistance of local representatives), the Company has
not
been subject to any foreign taxes in recent years, and it is
not
anticipated that it will be subject to foreign taxes in the near future.
Fair Value of Financial Instruments, Policy [Policy Text Block]
Fair Value Measurements
 
In determining fair value measurements, the Company follows the established framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. The topic provides a consistent definition of fair value that focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The topic also prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information and establishes a
three
-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. At
June 30, 2018
and
September 30, 2017,
the carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, marketable securities and accounts payable approximate fair value because of their short-term nature.
 
The
three
-level hierarchy is as follows:
 
 
Level
1
-
Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date.
 
Level
2
-
Pricing inputs are quoted prices for similar assets or liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data.
 
Level
3
-
Pricing inputs are unobservable for the assets or liabilities, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.
 
In certain cases, the inputs used to measure fair value
may
fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.
 
The Company’s held to maturity securities are comprised of investments in municipal bonds. These securities represent ownership in individual bonds issued by municipalities within the United States. The value of these securities is disclosed in Note
8.
The Company’s available for sale securities consist of mutual funds held in money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value.
 
The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the
nine
month period ended
June 30, 2018
and the year ended
September 30, 2017,
there were
no
transfers between levels.
 
The following table sets forth by level, within the fair value hierarchy, the assets measured at fair value on a recurring basis as of
June 30, 2018
and
September 30, 2017,
in accordance with the fair value hierarchy as defined above. As of
June 30, 2018
and
September 30, 2017,
the Company did
not
hold any assets classified as Level
2
or Level
3.
 
June 30, 2018
 
 
 
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
 
 
 
 
Mutual funds:
 
 
 
 
 
 
 
 
Money market funds
 
$
1,015,102
 
 
$
1,015,102
 
Total mutual funds
 
 
1,015,102
 
 
 
1,015,102
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
1,015,102
 
 
$
1,015,102
 
 
 
 
 
 
 
 
 
 
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mutual funds:
 
 
 
 
 
 
 
 
Money market funds
 
$
851,195
 
 
$
851,195
 
Total mutual funds
 
 
851,195
 
 
 
851,195
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
851,195
 
 
$
851,195
 
 
There were
no
assets or liabilities measured at fair value on a nonrecurring basis at
June 30, 2018
or
September 30, 2017.
Compensation Related Costs, Policy [Policy Text Block]
New Accounting Pronouncements
 
ASU
2014
-
09,
Revenue from Contracts with Customers, amended by ASU
2015
-
14
(Topic
606
), ASU
2016
-
10,
ASU
2016
-
11
and ASU
2016
-
12
 
In
May 2014,
the FASB and the International Accounting Standards Board issued guidance on the principles for recognizing revenue and developing a common revenue standard for U.S. GAAP and International Financial Reporting Standards that would: (
1
) remove inconsistencies and weaknesses in revenue requirements, (
2
) provide a more robust framework for addressing revenue issues, (
3
) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (
4
) provide more useful information to users of financial statements through improved disclosure requirements, and (
5
) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. This guidance is effective prospectively for annual reporting periods beginning after
December 15, 2017,
including interim periods within that reporting period. The impact of this guidance will
not
have a material effect on the Company’s consolidated financial statements. This guidance will become effective for the Company as of the beginning of the
2019
fiscal year.
 
The qualitative assessments of the standard provided below are estimates of the expected effects of the adoption of ASC
606.
This represents the Company’s best estimate of the effects of adopting ASC
606
at the time of the preparation of this Quarterly Report on Form
10
-Q. The actual impact of ASC
606
is subject to change from these estimates and such change
may
be significant, pending the completion of our assessment in the
first
quarter of fiscal
2019.
 
Engineering Services Revenue
The Company expects that the deliverables under the current guidance will be consistent with performance obligations identified under ASC
606.
The adoption of ASC
606
will
not
result in a change to the timing of revenue recognition for this type of revenue as the standard requires revenues to be estimated and recognized upon transfer of the promised goods and services. As such, the Company does
not
expect the adoption of ASC
606
to result in a material impact to revenue recognition.
 
Equipment Revenue
The deliverables under the previous guidance is consistent with performance obligations identified under ASC
606.
Under ASC
606,
the Company continued to allocate the transaction price between the elements and performance obligations within the contract. Revenue recognition for the performance obligations accounted for under ASC
606
was consistent with current guidance given the transfer of control of the promised goods or services follows the same pattern. As such, the adoption of ASC
606
will
not
result in a material impact on revenue recognition.
 
ASU
No.
2015
-
11,
Inventory (Topic
330
): Simplifying the Measurement of Inventory
 
In
July 2015,
the FASB issued guidance with respect to inventory measurement. This ASU requires inventory to be measured at the lower of cost and net realizable value. The provisions of this ASU became effective for fiscal years beginning after
December 15, 2016,
including interim periods within those fiscal years. The amendment is required to be applied prospectively, and early adoption is permitted. This guidance was adopted by the Company in the
first
quarter of its
2018
fiscal year; the adoption of this standard did
not
have a material impact on the financial statements.
 
ASU
No.
2016
-
02,
Leases
 
In
February 2016,
the FASB issued guidance with respect to leases. This ASU requires entities
to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after 
December 15, 2018,
including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the potential impact this standard will have on the financial statements and related disclosure. The Company currently has
one
operating lease on its facility in Concord, MA. The Company expects to adopt this standard during its fiscal year
2020.
 
ASU
No.
2016
-
09,
Improvements to Employee Share-Based Payment Accounting
 
In
March 2016,
the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The new guidance is effective for annual periods beginning after
December 15, 2016,
including interim periods within those fiscal years.
This guidance was adopted by the Company in the
first
quarter of its
2018
fiscal year; the adoption of this standard did
not
have a material impact on the financial statements.
 
ASU
No.
2016
-
18,
Restricted Cash Presentation on Statement of Cash Flows
 
In
November 2016,
the FASB issued guidance in regards to additional disclosure surrounding restricted cash activity. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for annual periods beginning after
December 15, 2017,
including interim periods within those fiscal years. The Company has elected to early adopt effective
October 1, 2017
.
Accordingly, restricted cash has been grouped with cash and cash equivalents on the statements of cash flows and results for the
nine
month period ended
July 1, 2017
have been retrospectively reclassified.
 
Other recent accounting pronouncements were issued by the FASB (including its Emerging Issues Task Force) and the SEC during the
first
nine
months of our
2018
fiscal year but such pronouncements are
not
believed by management to have a material impact on the Company’s present or future financial statements.
New Accounting Pronouncements, Policy [Policy Text Block]
Stock-Based Compensation
 
Stock-based compensation cost is measured at the grant date based on the calculated fair value of the award. The expense is recognized over the participant’s requisite service period, generally the vesting period of the award. The related excess tax benefit received upon the exercise of stock options, if any, is reflected in the Company’s statement of cash flows as a financing activity. There were
no
excess tax benefits recorded during either of the
nine
month periods ended
June 30, 2018
and
July 1, 2017.
 
The Company uses the Black-Scholes option pricing model as the method for determining the estimated fair value of its stock awards. The Black-Scholes method of valuation requires several assumptions: (
1
) the expected term of the stock award, (
2
) the expected future stock price volatility over the expected term, (
3
) a risk-free interest rate and (
4
) the expected dividend rate.
 
The expected term represents the expected period of time the Company believes the options will be outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock, and the risk free interest rate is based on the U.S. Treasury Note rate. The Company utilizes a forfeiture rate based on an analysis of its actual experience. The forfeiture rate is
not
material to the calculation of share-based compensation. There were
14,500
and
14,000
options granted during the
nine
month periods ended
June 30, 2018
and
July 1, 2017,
respectively.
 
The following table summarizes stock-based compensation costs included in the Company’s consolidated statements of operations for the
three
and
nine
month periods ended
June 30, 2018
and
July 1, 2017:
 
    June 30, 2018   July 1, 2017
    3 months   9 months   3 months   9 months
                 
Selling, general and administrative expenses   $
7,596
    $
17,352
    $
3,896
    $
9,998
 
Product development expenses    
356
     
1,064
     
272
     
811
 
Total share-based compensation expense before taxes   $
7,952
    $
18,416
    $
4,168
    $
10,809
 
  
As of
June 30, 2018,
there was
$111,591
of unrecognized compensation expense related to options outstanding. The unrecognized compensation expense will be recognized over the remaining requisite service period. As of
June 30, 2018,
the weighted average period over which the compensation expense is expected to be recognized is
4.05
years.
 
The Technical Communications Corporation
2005
Non-Statutory Stock Option Plan and
2010
Equity Incentive Plan were outstanding at
June 30, 2018.
There are an aggregate of
600,000
shares authorized for issuance under these plans, of which options to purchase
228,837
shares were outstanding at
June 30, 2018.
Vesting periods are at the discretion of the Board of Directors and typically range between
zero
and
five
years. Options under these plans are granted with an exercise price equal to fair market value at time of grant and have a term of
ten
years from the date of grant.
 
As of
June 30, 2018,
there were
230,563
shares available for grant under the
2010
Equity Incentive Plan. The
2005
Non-Statutory Stock Option Plan has expired and options are
no
longer available for grant under such plan.
 
The following table summarizes stock option activity during the
first
nine
months of fiscal
2018:
 
 
 
Options Outstanding
 
 
Number of Shares
 
 
 
Weighted Average
 
 
Unvested
 
Vested
 
Total
 
Weighted Average
Exercise Price
 
Contractual Life
(years)
 
 
 
 
 
 
 
 
 
 
 
Outstanding, September 30, 2017
 
 
34,200
 
 
 
212,081
 
 
 
246,281
 
 
$
8.36
 
 
 
3.95
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grants
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Vested
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Exercises
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Cancellations/forfeitures
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, December 30, 2017
 
 
34,200
 
 
 
212,081
 
 
 
246,281
 
 
$
8.35
 
 
 
3.72
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grants
 
 
14,500
 
 
 
-
 
 
 
14,500
 
 
 
7.25
 
 
 
 
 
Vested
 
 
(5,600
)
 
 
5,600
 
 
 
-
 
 
 
2.70
 
 
 
 
 
Exercises
 
 
-
 
 
 
(24,100
)
 
 
(24,100
)
 
 
6.12
 
 
 
 
 
Cancellations/forfeitures
 
 
-
 
 
 
(7,844
)
 
 
(7,844
)
 
 
9.68
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, March 31, 2018
 
 
43,100
 
 
 
185,737
 
 
 
228,837
 
 
$
8.48
 
 
 
4.17
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grants
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Vested
 
 
(3,100
)
 
 
3,100
 
 
 
-
 
 
 
4.25
 
 
 
 
 
Exercises
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Cancellations/forfeitures
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, June 30, 2018
 
 
40,000
 
 
 
188,837
 
 
 
228,837
 
 
$
8.48
 
 
 
3.92
 
 
 
Information related to the stock options vested and expected to vest as of
June 30, 2018
is as follows:
 
Range of
Exercise Prices
  Number of
Shares
  Weighted-
Average
Remaining
Contractual
Life (years)
  Weighted
Average
Exercise Price
  Exercisable
Number of
Shares
  Exercisable
Weighted-
Average
Exercise Price
                     
$2.01
-
$3.00
   
27,300
     
8.13
    $
2.70
     
7,700
    $
2.75
 
$4.01
-
$5.00
   
36,100
     
4.05
     
4.53
     
30,000
     
4.62
 
$5.01
-
$10.00
   
51,000
     
5.31
     
7.80
     
36,700
     
8.02
 
$10.01
-
$15.00
   
114,437
     
2.26
     
11.40
     
114,437
     
11.40
 
 
   
228,837
     
3.92
    $
8.48
     
188,837
    $
9.31
 
 
The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of
June 30, 2018
and
July 1, 2017
was
$15,270
and
$0,
respectively. Nonvested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions.
XML 26 R16.htm IDEA: XBRL DOCUMENT v3.19.2
Note 2 - Restatements (Tables)
9 Months Ended
Jun. 30, 2018
Notes Tables  
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]
    As of September 30, 2017
Balance Sheet                        
Deferred revenue   $
-
    $
484,121
    $
484,121
 
Accumulated deficit    
(822,636
)    
(484,121
)    
(1,306,757
)
 
 
For the Three Months Ended July 1, 2017
Statement of Operations
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
 
$
1,067,786
 
 
$
(48,681
)
 
$
1,019,105
 
Gross profit
 
 
539,464
 
 
 
(48,681
)
 
 
490,783
 
Operating loss
 
 
(346,296
)
 
 
(48,681
)
 
 
(394,977
)
Net loss
 
 
(344,490
)
 
 
(48,681
)
 
 
(393,171
)
Net loss per common share
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
(0.19
)
 
 
(0.02
)
 
 
(0.21
)
Diluted
 
 
(0.19
)
 
 
(0.02
)
 
 
(0.21
)
 
 
For the Nine Months Ended July 1, 2017
Statement of Operations
 
 
 
 
 
 
 
 
 
 
 
 
Total net revenue
 
$
3,084,493
 
 
$
(48,681
)
 
$
3,035,812
 
Gross profit
 
 
2,129,284
 
 
 
(48,681
)
 
 
2,080,603
 
Operating loss
 
 
(917,898
)
 
 
(48,681
)
 
 
(966,579
)
Net loss
 
 
(911,428
)
 
 
(48,681
)
 
 
(960,109
)
Net loss per common share
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
(0.50
)
 
 
(0.02
)
 
 
(0.52
)
Diluted
 
 
(0.50
)
 
 
(0.02
)
 
 
(0.52
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of cash flows
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
$
(
911,428
)
 
$
(48,681
)
 
$
(
960,109
)
Changes in current assets and current liabilities – Deferred revenue
 
 
-
 
 
 
48,681
 
 
 
48,681
 
        Adjustments    
    As reported   Revenue
recognition
  Inventory
reserve
  As adjusted
                 
    As of June 30, 2018
Balance Sheet                                
Inventory   $
1,554,938
    $
    $
(55,817
)   $
1,499,121
 
Deferred revenue    
     
1,526,796
     
     
1,526,796
 
Accumulated deficit    
(944,855
)    
(1,526,796
)    
(55,817
)    
(2,527,468
)
    For the Three Months Ended June 30, 2018
Statement of Operations                                
Total net revenue   $
1,544,142
    $
(636,965
)   $
    $
907,177
 
Total cost of revenue    
666,758
     
(9,856
)    
55,817
     
712,719
 
Gross profit    
877,384
     
(627,109
)    
(55,817
)    
194,458
 
Operating income (loss)    
240,909
     
(636,965
)    
(55,817
)    
(451,873
)
Net income (loss)    
243,027
     
(636,965
)    
(55,817
)    
(449,755
)
Net income (loss) per common share    
 
     
 
     
 
     
 
Basic    
0.13
     
(0.34
)    
(0.03
)    
(0.24
)
Diluted    
0.13
     
(0.34
)    
(0.03
)    
(0.24
)
Weighted average shares - diluted    
1,854,370
     
(5,345
)    
 
     
1,849,025
 
    For the Nine Months Ended June 30, 2018
Statement of Operations                                
Total net revenue   $
3,590,347
    $
(1,042,675
)   $
    $
2,547,672
 
Total cost of revenue    
1,762,645
     
     
55,817
     
1,818,462
 
Gross profit    
1,800,202
     
(1,015,175
)    
(55,817
)    
729,210
 
Operating loss    
(127,820
)    
(1,042,675
)    
(55,817
)    
(1,226,312
)
Net loss    
(122,219
)    
(1,042,675
)    
(55,817
)    
(1,220,711
)
Net loss per common share                                
Basic    
(0.07
)    
(0.56
)    
(0.03
)    
(0.66
)
Diluted    
(0.07
)    
(0.56
)    
(0.03
)    
(0.66
)
                                 
Statement of cash flows                                
Net loss   $
(122,219
)   $
(1,042,675
)   $
(55,817
)   $
(1,220,711
)
Changes in current assets and current liabilities:                                
     Deferred revenue    
     
1,042,675
     
     
1,042,675
 
     Inventory reserve    
(196,594
)    
     
55,817
   
(140,777
)
XML 27 R17.htm IDEA: XBRL DOCUMENT v3.19.2
Note 3 - Summary of Significant Accounting Policies (Tables)
9 Months Ended
Jun. 30, 2018
Notes Tables  
Fair Value, Assets Measured on Recurring Basis [Table Text Block]
June 30, 2018
 
 
 
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
 
 
 
 
Mutual funds:
 
 
 
 
 
 
 
 
Money market funds
 
$
1,015,102
 
 
$
1,015,102
 
Total mutual funds
 
 
1,015,102
 
 
 
1,015,102
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
1,015,102
 
 
$
1,015,102
 
 
 
 
 
 
 
 
 
 
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mutual funds:
 
 
 
 
 
 
 
 
Money market funds
 
$
851,195
 
 
$
851,195
 
Total mutual funds
 
 
851,195
 
 
 
851,195
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
851,195
 
 
$
851,195
 
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]
    June 30, 2018   July 1, 2017
    3 months   9 months   3 months   9 months
                 
Selling, general and administrative expenses   $
7,596
    $
17,352
    $
3,896
    $
9,998
 
Product development expenses    
356
     
1,064
     
272
     
811
 
Total share-based compensation expense before taxes   $
7,952
    $
18,416
    $
4,168
    $
10,809
 
Share-based Payment Arrangement, Option, Activity [Table Text Block]
 
 
Options Outstanding
 
 
Number of Shares
 
 
 
Weighted Average
 
 
Unvested
 
Vested
 
Total
 
Weighted Average
Exercise Price
 
Contractual Life
(years)
 
 
 
 
 
 
 
 
 
 
 
Outstanding, September 30, 2017
 
 
34,200
 
 
 
212,081
 
 
 
246,281
 
 
$
8.36
 
 
 
3.95
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grants
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Vested
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Exercises
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Cancellations/forfeitures
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, December 30, 2017
 
 
34,200
 
 
 
212,081
 
 
 
246,281
 
 
$
8.35
 
 
 
3.72
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grants
 
 
14,500
 
 
 
-
 
 
 
14,500
 
 
 
7.25
 
 
 
 
 
Vested
 
 
(5,600
)
 
 
5,600
 
 
 
-
 
 
 
2.70
 
 
 
 
 
Exercises
 
 
-
 
 
 
(24,100
)
 
 
(24,100
)
 
 
6.12
 
 
 
 
 
Cancellations/forfeitures
 
 
-
 
 
 
(7,844
)
 
 
(7,844
)
 
 
9.68
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, March 31, 2018
 
 
43,100
 
 
 
185,737
 
 
 
228,837
 
 
$
8.48
 
 
 
4.17
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grants
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Vested
 
 
(3,100
)
 
 
3,100
 
 
 
-
 
 
 
4.25
 
 
 
 
 
Exercises
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
Cancellations/forfeitures
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, June 30, 2018
 
 
40,000
 
 
 
188,837
 
 
 
228,837
 
 
$
8.48
 
 
 
3.92
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]
Range of
Exercise Prices
  Number of
Shares
  Weighted-
Average
Remaining
Contractual
Life (years)
  Weighted
Average
Exercise Price
  Exercisable
Number of
Shares
  Exercisable
Weighted-
Average
Exercise Price
                     
$2.01
-
$3.00
   
27,300
     
8.13
    $
2.70
     
7,700
    $
2.75
 
$4.01
-
$5.00
   
36,100
     
4.05
     
4.53
     
30,000
     
4.62
 
$5.01
-
$10.00
   
51,000
     
5.31
     
7.80
     
36,700
     
8.02
 
$10.01
-
$15.00
   
114,437
     
2.26
     
11.40
     
114,437
     
11.40
 
 
   
228,837
     
3.92
    $
8.48
     
188,837
    $
9.31
 
XML 28 R18.htm IDEA: XBRL DOCUMENT v3.19.2
Note 4 - Inventories (Tables)
9 Months Ended
Jun. 30, 2018
Notes Tables  
Schedule of Inventory, Current [Table Text Block]
    June 30,
2018
(As restated,
see Note 2)
  September 30,
2017
(As restated,
see Note 2)
         
Finished goods   $
29,499
    $
20,759
 
Work in process    
639,050
     
383,216
 
Raw materials    
830,572
     
954,369
 
    $
1,499,121
    $
1,358,344
 
XML 29 R19.htm IDEA: XBRL DOCUMENT v3.19.2
Note 7 - Major Customers and Export Revenue (Tables)
9 Months Ended
Jun. 30, 2018
Notes Tables  
Revenue from External Customers by Geographic Areas [Table Text Block]
   
June 30, 2018
 
July 1, 2017
   
3 months
 
9 months
 
3 months
 
9 months
Domestic
 
$
832,441
   
$
2,343,878
   
$
1,008,380
   
$
2,792,102
 
Foreign
   
74,736
     
203,794
     
10,725
     
243,710
 
Total net revenue
 
$
907,177
   
$
2,547,672
   
$
1,019,105
   
$
3,035,812
 
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]
    June 30, 2018   July 1, 2017
    3 months   9 months   3 months   9 months
                 
Saudi Arabia    
73
%    
44
%    
-
     
42
%
Philippines    
27
%    
44
%    
-
     
4
%
Bahrain    
-
     
-
     
100
%    
4
%
Jordan    
-
     
6
%    
-
     
43
%
Other    
-
     
6
%    
-
     
7
%
    June 30, 2018   July 1, 2017
    3 months   9 months   3 months   9 months
                 
Mid-East and Africa    
73
%    
56
%    
100
%    
89
%
Far East    
27
%    
44
%    
-
     
11
%
XML 30 R20.htm IDEA: XBRL DOCUMENT v3.19.2
Note 8 - Cash Equivalents and Marketable Securities (Tables)
9 Months Ended
Jun. 30, 2018
Notes Tables  
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]
        Gross Unrealized   Estimated
    Cost   Gains   Losses   Fair Value
                                 
Money market mutual funds   $
1,015,102
    $
-
    $
-
    $
1,015,102
 
        Gross Unrealized   Estimated
    Cost   Gains   Losses   Fair Value
                                 
Money market mutual funds   $
851,195
    $
-
    $
-
    $
851,195
 
Debt Securities, Held-to-maturity [Table Text Block]
 
 
Cost
 
Accrued
Interest
 
Amortization
Bond Premium
 
Amortized
Cost
 
Unrealized
Gains
 
Estimated
Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal bonds
 
$
412,366
 
 
$
6,986
 
 
$
59,099
 
 
$
360,253
 
 
$
216
 
 
$
360,469
 
XML 31 R21.htm IDEA: XBRL DOCUMENT v3.19.2
Note 1 - Description of the Business and Basis of Presentation (Details Textual) - USD ($)
Jun. 30, 2018
Sep. 30, 2017
Retained Earnings (Accumulated Deficit), Ending Balance $ (2,527,468) $ (1,306,757)
XML 32 R22.htm IDEA: XBRL DOCUMENT v3.19.2
Note 2 - Restatements - Adjustment of Financial Statements (Details) - USD ($)
3 Months Ended 9 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Sep. 30, 2017
Deferred revenue $ 1,526,796   $ 1,526,796   $ 484,121
Accumulated deficit (2,527,468)   (2,527,468)   (1,306,757)
Revenues, Total 907,177 $ 1,019,105 2,547,672 $ 3,035,812  
Gross profit 194,458 490,783 729,210 2,080,603  
Operating income (loss) (451,873) (394,977) (1,226,312) (966,579)  
Net loss $ (449,755) $ (393,171) $ (1,220,711) $ (960,109)  
Basic (in dollars per share) $ (0.24) $ (0.21) $ (0.66) $ (0.52)  
Diluted (in dollars per share) $ (0.24) $ (0.21) $ (0.66) $ (0.52)  
Changes in current assets and current liabilities – Deferred revenue     $ 1,042,675 $ 48,681  
Inventory $ 1,499,121   1,499,121   1,358,344
Accumulated deficit 2,527,468   2,527,468   1,306,757
Total cost of revenue 712,719 $ 528,322 1,818,462 955,209  
Operating income (loss) $ (451,873) $ (394,977) $ (1,226,312) $ (966,579)  
Weighted average shares - diluted (in shares) 1,849,025 1,839,877 1,845,706 1,839,877  
Total cost of revenue $ 712,719 $ 528,322 $ 1,818,462 $ 955,209  
Deferred revenue     1,042,675 48,681  
Inventory reserve     (140,777) (127,540)  
Previously Reported [Member]          
Deferred revenue    
Accumulated deficit (944,855)   (944,855)   (822,636)
Revenues, Total 1,544,142 1,067,786 3,590,347 3,084,493  
Gross profit 877,384 539,464 1,800,202 2,129,284  
Operating income (loss) 240,909 (346,296) (127,820) (917,898)  
Net loss $ 243,027 $ (344,490) $ (122,219) $ (911,428)  
Basic (in dollars per share) $ 0.13 $ (0.19) $ (0.07) $ (0.50)  
Diluted (in dollars per share) $ 0.13 $ (0.19) $ (0.07) $ (0.50)  
Changes in current assets and current liabilities – Deferred revenue      
Inventory $ 1,554,938   1,554,938    
Accumulated deficit 944,855   944,855   822,636
Total cost of revenue 666,758   1,762,645    
Operating income (loss) $ 240,909 $ (346,296) (127,820) (917,898)  
Weighted average shares - diluted (in shares) 1,854,370        
Total cost of revenue $ 666,758   1,762,645    
Deferred revenue      
Inventory reserve     (196,594)    
Restatement Adjustment [Member] | Error in the Application of Revenue Recognition Policy [Member]          
Deferred revenue 1,526,796   1,526,796   484,121
Accumulated deficit (1,526,796)   (1,526,796)   (484,121)
Revenues, Total (636,965) (48,681) (1,042,675) (48,681)  
Gross profit (627,109) (48,681) (1,015,175) (48,681)  
Operating income (loss) (636,965) (48,681) (1,042,675) (48,681)  
Net loss $ (636,965) $ (48,681) $ (1,042,675) $ (48,681)  
Basic (in dollars per share) $ (0.34) $ (0.02) $ (0.56) $ (0.02)  
Diluted (in dollars per share) $ (0.34) $ (0.02) $ (0.56) $ (0.02)  
Changes in current assets and current liabilities – Deferred revenue     $ 1,042,675 $ 48,681  
Inventory      
Accumulated deficit 1,526,796   1,526,796   $ 484,121
Total cost of revenue (9,856)      
Operating income (loss) $ (636,965) $ (48,681) (1,042,675) (48,681)  
Weighted average shares - diluted (in shares) (5,345)        
Total cost of revenue $ (9,856)      
Deferred revenue     1,042,675 $ 48,681  
Inventory reserve        
Restatement Adjustment [Member] | Error in the Calculation of Inventory Reserves [Member]          
Deferred revenue      
Accumulated deficit (55,817)   (55,817)    
Revenues, Total      
Gross profit (55,817)   (55,817)    
Operating income (loss) (55,817)   (55,817)    
Net loss $ (55,817)   $ (55,817)    
Basic (in dollars per share) $ (0.03)   $ (0.03)    
Diluted (in dollars per share) $ (0.03)   $ (0.03)    
Changes in current assets and current liabilities – Deferred revenue        
Inventory $ (55,817)   (55,817)    
Accumulated deficit 55,817   55,817    
Total cost of revenue 55,817   55,817    
Operating income (loss) $ (55,817)   (55,817)    
Weighted average shares - diluted (in shares)        
Total cost of revenue $ 55,817   55,817    
Deferred revenue        
Inventory reserve     $ 55,817    
As Adjusted Before Second Error Correction [Member]          
Gross profit   $ 490,783      
XML 33 R23.htm IDEA: XBRL DOCUMENT v3.19.2
Note 3 - Summary of Significant Accounting Policies (Details Textual) - USD ($)
3 Months Ended 9 Months Ended
Jun. 30, 2018
Mar. 31, 2018
Dec. 30, 2017
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Sep. 30, 2017
Deferred Revenue, Total $ 1,526,796       $ 1,526,796   $ 484,121
Revenues, Total 907,177     $ 1,019,105 2,547,672 $ 3,035,812  
Deferred Tax Assets, Valuation Allowance, Total 3,700,000       3,700,000   $ 4,900,000
Share-based Payment Arrangement, Expense, Tax Benefit         $ 0 $ 0  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross   14,500   14,500 14,000  
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount $ 111,591       $ 111,591    
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition         4 years 18 days    
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized 600,000       600,000    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance 228,837 228,837 246,281   228,837   246,281
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period         10 years    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value $ 15,270     0 $ 15,270 $ 0  
Equity Incentive Plan 2010 [Member]              
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant 230,563       230,563    
Minimum [Member]              
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period         0 years    
Maximum [Member]              
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period         5 years    
Fair Value, Nonrecurring [Member]              
Assets, Fair Value Disclosure $ 0       $ 0   $ 0
Financial and Nonfinancial Liabilities, Fair Value Disclosure 0       0   0
Fair Value, Inputs, Level 2 [Member]              
Assets, Fair Value Disclosure 0       0   0
Fair Value, Inputs, Level 3 [Member]              
Assets, Fair Value Disclosure 0       0   $ 0
Engineering Services [Member]              
Revenues, Total 758,670     319,777 2,218,375 319,777  
Equipment Sales [Member]              
Revenues, Total $ 148,507     $ 699,328 $ 329,297 $ 2,716,035  
XML 34 R24.htm IDEA: XBRL DOCUMENT v3.19.2
Note 3 - Summary of Significant Accounting Policies - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($)
Jun. 30, 2018
Sep. 30, 2017
Cash Equivalents $ 1,015,102 $ 851,195
Total assets 1,015,102 851,195
Fair Value, Inputs, Level 1 [Member]    
Cash Equivalents 1,015,102 851,195
Total assets 1,015,102 851,195
Money Market Funds [Member]    
Cash Equivalents 1,015,102 851,195
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]    
Cash Equivalents $ 1,015,102 $ 851,195
XML 35 R25.htm IDEA: XBRL DOCUMENT v3.19.2
Note 3 - Summary of Significant Accounting Policies - Stock-based Compensation Costs (Details) - USD ($)
3 Months Ended 9 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Share-based compensation expense before taxes $ 7,952 $ 4,168 $ 18,416 $ 10,809
Selling, General and Administrative Expenses [Member]        
Share-based compensation expense before taxes 7,596 3,896 17,352 9,998
Product Development Expenses [Member]        
Share-based compensation expense before taxes $ 356 $ 272 $ 1,064 $ 811
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.19.2
Note 3 - Summary of Significant Accounting Policies - Stock Option Activity (Details) - $ / shares
3 Months Ended 9 Months Ended
Jun. 30, 2018
Mar. 31, 2018
Dec. 30, 2017
Dec. 30, 2016
Jun. 30, 2018
Jul. 01, 2017
Outstanding, unvested (in shares) 43,100 34,200 34,200   34,200  
Outstanding, vested (in shares) 185,737 212,081 212,081   212,081  
Outstanding (in shares) 228,837 246,281 246,281   246,281  
Outstanding, weighted average exercise price (in dollars per share) $ 8.48 $ 8.35 $ 8.36   $ 8.36  
Outstanding, weighted average contractual life (Year) 3 years 335 days 4 years 62 days 3 years 262 days 3 years 346 days    
Grants, unvested (in shares)   14,500   14,500 14,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross   14,500   14,500 14,000
Grants, weighted average exercise price (in dollars per share)   $ 7.25      
Cancellations/forfeitures (in shares)   (7,844)      
Grants, vested (in shares)          
Vested, unvested (in shares) (3,100) (5,600)        
Vested, vested (in shares) 3,100 5,600        
Vested, weighted average exercise price (in dollars per share) $ 4.25 $ 2.70        
Exercises, vested (in shares)   (24,100)        
Exercises (in shares)   (24,100)        
Exercises, weighted average exercise price (in dollars per share)   $ 6.12        
Cancellations/forfeitures, vested (in shares)   (7,844)        
Cancellations/forfeitures, weighted average exercise price (in dollars per share)   $ 9.68        
Outstanding, unvested (in shares) 40,000 43,100 34,200   40,000  
Outstanding, vested (in shares) 188,837 185,737 212,081   188,837  
Outstanding (in shares) 228,837 228,837 246,281   228,837  
Outstanding, weighted average exercise price (in dollars per share) $ 8.48 $ 8.48 $ 8.35   $ 8.48  
XML 37 R27.htm IDEA: XBRL DOCUMENT v3.19.2
Note 3 - Summary of Significant Accounting Policies - Stock Options Vested and Expected to Vest (Details)
9 Months Ended
Jun. 30, 2018
$ / shares
shares
Number of shares (in shares) | shares 228,837
Weighted-average remaining contractual life (Year) 3 years 335 days
Weighted average exercise price (in dollars per share) $ 8.48
Exercisable number of shares (in shares) | shares 188,837
Exercisable weighted- average exercise price (in dollars per share) $ 9.31
Range One [Member]  
Range of exercise prices, lower (in dollars per share) 2.01
Range of exercise prices, upper (in dollars per share) $ 3
Number of shares (in shares) | shares 27,300
Weighted-average remaining contractual life (Year) 8 years 47 days
Weighted average exercise price (in dollars per share) $ 2.70
Exercisable number of shares (in shares) | shares 7,700
Exercisable weighted- average exercise price (in dollars per share) $ 2.75
Range Two [Member]  
Range of exercise prices, lower (in dollars per share) 4.01
Range of exercise prices, upper (in dollars per share) $ 5
Number of shares (in shares) | shares 36,100
Weighted-average remaining contractual life (Year) 4 years 18 days
Weighted average exercise price (in dollars per share) $ 4.53
Exercisable number of shares (in shares) | shares 30,000
Exercisable weighted- average exercise price (in dollars per share) $ 4.62
Range Three [Member]  
Range of exercise prices, lower (in dollars per share) 5.01
Range of exercise prices, upper (in dollars per share) $ 10
Number of shares (in shares) | shares 51,000
Weighted-average remaining contractual life (Year) 5 years 113 days
Weighted average exercise price (in dollars per share) $ 7.80
Exercisable number of shares (in shares) | shares 36,700
Exercisable weighted- average exercise price (in dollars per share) $ 8.02
Range Four [Member]  
Range of exercise prices, lower (in dollars per share) 10.01
Range of exercise prices, upper (in dollars per share) $ 15
Number of shares (in shares) | shares 114,437
Weighted-average remaining contractual life (Year) 2 years 94 days
Weighted average exercise price (in dollars per share) $ 11.40
Exercisable number of shares (in shares) | shares 114,437
Exercisable weighted- average exercise price (in dollars per share) $ 11.40
XML 38 R28.htm IDEA: XBRL DOCUMENT v3.19.2
Note 4 - Inventories - Schedule of Inventory (Details) - USD ($)
Jun. 30, 2018
Sep. 30, 2017
Finished goods $ 29,499 $ 20,759
Work in process 639,050 383,216
Raw materials 830,572 954,369
$ 1,499,121 $ 1,358,344
XML 39 R29.htm IDEA: XBRL DOCUMENT v3.19.2
Note 5 - Income Taxes (Details Textual) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Income Tax Expense (Benefit), Total $ 0 $ 0 $ 0 $ 0
XML 40 R30.htm IDEA: XBRL DOCUMENT v3.19.2
Note 6 - Loss Per Share (Details Textual) - shares
9 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Share-based Payment Arrangement, Option [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 201,037 251,714
XML 41 R31.htm IDEA: XBRL DOCUMENT v3.19.2
Note 7 - Major Customers and Export Revenue (Details Textual)
3 Months Ended 9 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Number of Countries in Which Products are Sold     4 5
Customer Concentration Risk [Member] | Revenue Benchmark [Member]        
Number of Major Customers 1 2 1 2
Concentration Risk, Percentage   97.00%   91.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | One Customer [Member]        
Concentration Risk, Percentage 91.00% 66.00% 87.00% 81.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customer [Member]        
Concentration Risk, Percentage   31.00%   10.00%
XML 42 R32.htm IDEA: XBRL DOCUMENT v3.19.2
Note 7 - Major Customers and Export Sales - Foreign and Domestic Net Sales (Details) - USD ($)
3 Months Ended 9 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
Revenues, Total $ 907,177 $ 1,019,105 $ 2,547,672 $ 3,035,812
Domestic [Member]        
Revenues, Total 832,441 1,008,380 2,343,878 2,792,102
Foreign [Member]        
Revenues, Total $ 74,736 $ 10,725 $ 203,794 $ 243,710
XML 43 R33.htm IDEA: XBRL DOCUMENT v3.19.2
Note 7 - Major Customers and Export Sales - Foreign Revenue (Details)
3 Months Ended 9 Months Ended
Jun. 30, 2018
Jul. 01, 2017
Jun. 30, 2018
Jul. 01, 2017
SAUDI ARABIA        
Foreign revenue by country 73.00% 44.00% 42.00%
Mid-East and Africa [Member]        
Foreign revenue by geographical area 73.00% 100.00% 56.00% 89.00%
PHILIPPINES        
Foreign revenue by country 27.00% 44.00% 4.00%
Far East [Member]        
Foreign revenue by geographical area 27.00% 44.00% 11.00%
BAHRAIN        
Foreign revenue by country 100.00% 4.00%
JORDAN        
Foreign revenue by country 6.00% 43.00%
Other Foreign Countries [Member]        
Foreign revenue by country 6.00% 7.00%
XML 44 R34.htm IDEA: XBRL DOCUMENT v3.19.2
Note 8 - Cash Equivalents and Marketable Securities (Details Textual)
$ in Thousands
Jun. 30, 2018
USD ($)
Debt Securities, Held-to-maturity, Total $ 0
XML 45 R35.htm IDEA: XBRL DOCUMENT v3.19.2
Note 8 - Cash Equivalents and Marketable Securities - Available for Sale Securities (Details) - Money Market Funds [Member] - USD ($)
Jun. 30, 2018
Sep. 30, 2017
Available for sale, cost $ 1,015,102 $ 851,195
Available for sale, gains
Available for sale, losses
Available for sale, estimated fair value $ 1,015,102 $ 851,195
XML 46 R36.htm IDEA: XBRL DOCUMENT v3.19.2
Note 8 - Cash Equivalents and Marketable Securities - Held to Maturity Securities (Details) - USD ($)
Jun. 30, 2018
Sep. 30, 2017
Held to maturity, cost $ 0  
Municipal Bonds [Member]    
Held to maturity, cost   $ 412,366
Held to maturity, accrued interest   6,986
Held to maturity, amortization bond premium   59,099
Held to maturity, amortized cost   360,253
Held to maturity, unrealized losses   216
Held to maturity, estimated fair value   $ 360,469
XML 47 R37.htm IDEA: XBRL DOCUMENT v3.19.2
Note 9 - Cost Method Investment (Details Textual) - USD ($)
Jan. 12, 2016
Oct. 30, 2014
Cost Method Investments   $ 275,000
Investment Owned, Balance, Shares   11,000
Investment Owned, Percent of Net Assets   10.80%
Proceeds from Issuance or Sale of Equity, Total $ 737,283  
Sale of Stock, Consideration Received on Transaction 661,466  
Escrow Deposit $ 75,817  
Securities Consideration Held in Escrow, Percentage 10.00%  
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