In the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) - ASU - requires inventory that is recorded using the -in, -out method to be measured at the lower of cost or net realizable value. We adopted ASU - prospectively in the quarter of the current fiscal year, and the adoption has had a significant impact on our financial statements.

     In the FASB issued ASU - , which simplifies the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company’s payments for tax withholdings should be classified. We adopted ASU - prospectively in the quarter of the fiscal year ending The adoption did have a significant impact on our financial statements.


     In the FASB issued ASU  - which supersedes the revenue recognition requirements in Accounting Standards Codification  . ASU - is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance permits methods of adoption: retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. In the FASB issued ASU  - , which deferred the effective date of ASU - by year. As a result, ASU - is effective for fiscal years beginning after and interim periods within those fiscal years, which will be fiscal for us. We plan to adopt the guidance retrospectively with any effect of initially applying the guidance recognized at the date of initial application. Based on an evaluation, we do expect there to be a material impact on our financial statements, because we do expect to change the manner or timing of recognizing revenue. We have evaluated each of our revenue sources, product sales and contract research and development. We recognize revenue on product sales to customers and distributors when we satisfy our performance obligations as the products are shipped. We recognize contract research and development revenue from firm-fixed-price contracts either pro-rata as work progresses or as performance obligations are met. We recognize contract research and development revenue from cost-plus-fixed-fee contracts pro-rata as work progresses. We are still in the process of identifying performance obligations for contracts that are currently recognized using the milestone method of revenue recognition under Accounting Standards Codification  and the related potential allocation of pricing and timing of revenue recognition for such performance obligation(s). We are still in process of evaluating the impact of the guidance on our internal control over financial reporting. The guidance will also require additional disclosures and we are currently evaluating the impact of these new disclosure requirements. 

     Information regarding all other applicable recently issued accounting standards, on which our position have changed since our latest annual financial statements, are contained in the financial statements included in our Annual Report on Form -K for the year ended