Basis of Presentation

 

The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and Securities and Exchange Commission regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net income, working capital or equity previously reported. In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the months ended are not necessarily indicative of the results to be expected for the entire fiscal year.

 

These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form - K for the fiscal year ended

New Accounting Pronouncements

 

In the Financial Accounting Standards Board (“FASB”) issued ASU - Financial Instruments - Overall (Subtopic - Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU - will be effective for us in the quarter of our fiscal year and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements.

 

In FASB issued ASU - Leases (Topic which requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC “Leases.” These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements.

In FASB issued ASU - Statement of Cash Flows (Topic Classification of Certain Cash Receipts and Cash Payments. ASU No. - clarifies and provides specific guidance on cash flow classification issues that are not currently addressed by current GAAP and thereby reduce the current diversity in practice. ASU No. - is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after with early application permitted. This guidance is applicable to the Company's fiscal year beginning The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements.

 

In the FASB issued ASU - Financial Instruments - Credit Losses (Topic Measurement of Credit Losses on Financial Instruments. ASU - significantly changes the impairment model for most financial assets and certain other instruments. ASU - will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU - is effective for the Company's fiscal year beginning and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU - will have on the Company's condensed consolidated financial statements.

 

In the FASB issued ASU No. - Compensation — Stock Compensation, (Topic Improvements to Employee Share - Based Payment Accounting, which is intended to simplify aspects of the accounting for share - based payment transactions. The ASU simplifies the accounting of stock compensation, including income tax implications, the balance sheet classification of awards as either equity or liabilities, and the cash flow classification of employee share based payment transactions. ASU No. - is effective for public business entities for annual and interim periods beginning after with early application permitted. This guidance is applicable to the Company's fiscal year beginning Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement must be applied prospectively. Amendments related to the presentation of excess tax benefits on the statement of cash flows be applied either prospectively or retrospectively based on the Company’s election. Amendments related to the statement of cash flows presentation of employee taxes paid when an employer withholds shares must be applied retrospectively. The Company is in the process of assessing the impact of the adoption of ASU No. - on its consolidated financial statements.

 

In the FASB issued ASU No. - Revenue from Contracts with Customers (Topic This guidance, as amended by subsequent ASUs on the topic, supersedes current guidance on revenue recognition in Topic Revenue Recognition. This guidance will be effective for annual reporting periods beginning after including interim reporting periods. Early application of the guidance is permitted for annual reporting periods beginning after This guidance is applicable to the Company's fiscal year beginning The Company is currently evaluating this guidance to determine the potential impact on its consolidated financial statements.