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<p style="border-bottom:Double 2.25pt;padding-bottom:1pt;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:4pt;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Mark One)</p>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:bold;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</p></td></tr></table></div>
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">For the quarterly period ended <font style="font-weight:normal;">&#160;</font>June&#160;30, 2018</p>
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<p style="margin-top:6pt;margin-bottom:0pt;font-weight:bold;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</p></td></tr></table></div>
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">For the transition period from ____________ to ____________</p>
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Commission File Number: 001-38238</p>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:24pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Restoration Robotics,<font style="letter-spacing:-0.05pt;"> </font>Inc.</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">(Exact Name of Registrant as Specified in its Charter)</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&nbsp;</p>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:7pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(I.R.S. Employer<br />Identification No.)</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">128 Baytech Drive</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">San Jose, CA</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">95134</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:7pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Address of principal executive offices)</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:7pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Zip Code)</p></td>
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<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Registrant&#8217;s telephone number, including area code: (408) 883-6888</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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. &#160;&#160;&#160;&#160;Yes&#160;&#160;&#160;<font style="font-family:'Times New Roman';"><font style="font-size:9pt;font-family:'Times New Roman'">&#9746;</font></font>&#160;&#160;&#160;&#160;No&#160;&#160;<font style="font-size:10pt;font-family:'Times New Roman';"><font style="font-size:10pt;font-family:'Times New Roman'">&#9744;</font></font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.54%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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 (&#167; 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).&#160;&#160;&#160;&#160;Yes&#160;&#160;<font style="font-family:'Times New Roman';"><font style="font-size:9pt;font-family:'Times New Roman'">&#9746;</font></font>&#160;&#160;&#160;&#160;No&#160;&#160;<font style="font-size:10pt;font-family:'Times New Roman';"><font style="font-size:10pt;font-family:'Times New Roman'">&#9744;</font></font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.54%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of &#8220;large accelerated filer,&#8221; &#8220;accelerated filer,&#8221; &#8220;smaller reporting company,&#8221; and &#8220;emerging growth company&#8221; in Rule 12b-2 of the Exchange Act.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accelerated&#160;filer</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Non-accelerated filer</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';"><font style="font-size:9pt;font-family:'Times New Roman'">&#9746;</font><font style="font-family:Times New Roman;">&#160;&#160;(Do not check if a smaller reporting company)</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Smaller&#160;reporting&#160;company</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&nbsp;</p></td>
<td valign="top"  style="width:0.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&nbsp;</p></td>
<td valign="top"  style="width:2.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:2pt;">&nbsp;</p></td>
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<td valign="top"  style="width:19.3%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Emerging growth company</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';"><font style="font-size:9pt;font-family:'Times New Roman'">&#9746;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&nbsp;</p></td>
<td valign="top"  style="width:0.6%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:9pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:4.54%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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.&#160;<font style="font-family:'Times New Roman';"><font style="font-size:9pt;font-family:'Times New Roman'">&#9744;</font></font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:4.54%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&#160;&#160;&#160;&#160;Yes&#160;&#160;<font style="font-size:10pt;font-family:'Times New Roman';"><font style="font-size:10pt;font-family:'Times New Roman'">&#9744;</font></font>&#160;&#160;&#160;&#160;No&#160;&#160;<font style="font-family:'Times New Roman';"><font style="font-size:9pt;font-family:'Times New Roman'">&#9746;</font></font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As of July 23, 2018, the registrant had 29,167,612 shares of common stock, $0.0001 par value per share, outstanding.</p>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Page</p></td>
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<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Part I.</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#PART_I"><font style="text-decoration:underline;">Financial Information</font></a></p></td>
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<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 1.</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_1_CONDENSED_CONSOLIDATED_FINANCIAL_"><font style="text-decoration:underline;">Condensed Consolidated Financial Statements (unaudited)</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#CONDENSED_CONSOLIDATED_BALANCE_SHEETS"><font style="text-decoration:underline;">Condensed Consolidated Balance Sheets</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#CONSOLIDATED_STATEMENTS_OPERATIONS"><font style="text-decoration:underline;">Condensed Consolidated Statements of Operations</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:82%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#CONDENSED_CONSOLIDATED_STATEMENTS_COMPRE"><font style="text-decoration:underline;">Condensed Consolidated</font><font style="letter-spacing:0.05pt;text-decoration:underline;"> </font><font style="text-decoration:underline;">Statements</font><font style="letter-spacing:0.1pt;text-decoration:underline;"> </font><font style="text-decoration:underline;">of Comprehensive</font><font style="letter-spacing:0.05pt;text-decoration:underline;"> </font><font style="text-decoration:underline;">Loss</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:82%;">
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#CONDENSED_CONSOLIDATED_STATEMENT_STOCKHO"><font style="text-decoration:underline;">Condensed Consolidated Statement of Stockholders&#8217; Equity</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#CONSOLIDATED_STATEMENTS_CASH_FLOWS"><font style="text-decoration:underline;">Condensed Consolidated Statements of Cash Flows</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:6.85pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:82%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="#NOTES_TO_CONDENSED_CONSOLIDATED_FINANCIA"><font style="text-decoration:underline;">Notes to the Condensed Consolidated Financial Statements</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 2.</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_2_MANAGEMENTS_DISCUSSION_ANALYSIS_F"><font style="text-decoration:underline;">Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">17</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 3.</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_3_QUANTITATIVE_QUALITATIVE_DISCLOSU"><font style="text-decoration:underline;">Quantitative and Qualitative Disclosures About Market Risk</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">25</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 4.</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_4_CONTROLS_PROCEDURES"><font style="text-decoration:underline;">Controls and Procedures</font></a></p></td>
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<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">25</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">PART II.</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#PART_II_OR_INFORMATION"><font style="text-decoration:underline;">OTHER INFORMATION</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">26</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 1.</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_1_LEGAL_PROCEEDINGS"><font style="text-decoration:underline;">Legal Proceedings</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">26</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 1A.</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_1A_RISK_FACTORS"><font style="text-decoration:underline;">Risk Factors</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">26</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 2.</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:82%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_2_UNREGISTERED_SALES_EQUITY_SECURIT"><font style="text-decoration:underline;">Unregistered Sales of Equity Securities and Use of Proceeds</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">57</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 3.</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:82%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_3_DEFAULTS_UPON_SENIOR_SECURITIES"><font style="text-decoration:underline;">Defaults Upon Senior Securities</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">57</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 4.</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_4_MINE_SAFETY_DISCLOSURES"><font style="text-decoration:underline;">Mine Safety Disclosures</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">57</p></td>
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<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 5.</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:82%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_5_OR_INFORMATION"><font style="text-decoration:underline;">Other Information</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">57</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Item 6.</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:82%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#ITEM_6_EXHIBITS"><font style="text-decoration:underline;">Exhibits</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">58</p></td>
</tr>
<tr>
<td colspan="2" valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a href="#Signatures"><font style="text-decoration:underline;">Signatures</font></a></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">59</p></td>
</tr>
<tr>
<td colspan="2" valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Exhibit Index</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0pt;padding-Top:0pt;padding-Bottom:0pt;width:6%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">i</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU3"></a><a name="PART_I"></a><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="PART_I"></a>PART</font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> I</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_1_CONDENSED_CONSOLIDATED_FINANCIAL_"></a>ITEM 1. <a name="ITEM_1_CONDENSED_CONSOLIDATED_FINANCIAL_"></a>CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">RESTORATION<font style="letter-spacing:-0.1pt;"> </font>ROBOTICS,<font style="letter-spacing:-0.05pt;"> </font>INC.</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="CONDENSED_CONSOLIDATED_BALANCE_SHEETS"></a>Condensed<a name="CONDENSED_CONSOLIDATED_BALANCE_SHEETS"></a> Consolidated<font style="letter-spacing:0.05pt;"> </font>Balance Sheets</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(Unaudited)</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(in<font style="letter-spacing:0.05pt;"> </font>thousands, except<font style="letter-spacing:0.05pt;"> </font>share and per share data)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">December&#160;31,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">ASSETS</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">CURRENT ASSETS:</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash and cash equivalents</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">16,861</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">23,545</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accounts receivable, net of allowance of $499 and $229 as of June 30, 2018 and December 31, 2017, respectively</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,157</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,864</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Inventory</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,974</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,761</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Prepaid expenses and other current assets</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,393</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,562</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total current assets</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">27,385</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">31,732</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Property and equipment, net</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,455</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,138</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Restricted cash</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">100</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">100</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other assets</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">100</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">TOTAL ASSETS</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">29,040</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">32,970</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">LIABILITIES AND STOCKHOLDERS&#8217; EQUITY</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">CURRENT LIABILITIES:</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accounts payable</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,014</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,044</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accrued compensation</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,800</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,630</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other accrued liabilities</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,266</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,125</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Deferred revenue</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,500</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,517</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Current portion of long-term debt, net of discount of $270 as of December 31, 2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7,730</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total current liabilities</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8,580</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">14,046</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other long-term liabilities</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">629</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">459</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Long-term debt, net of discount of $1,602 and $29 as of June 30, 2018 and December 31, 2017</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">19,228</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,271</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">TOTAL LIABILITIES</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">28,437</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">19,776</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Commitments and Contingencies (Note 6)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Convertible preferred stock, $0.0001 par value; 236,154,444 shares authorized and no shares issued and outstanding as of June 30, 2018 and December 31, 2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">STOCKHOLDERS&#8217; EQUITY:</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Common stock, $0.0001 par value; 350,490,000 shares authorized as of June 30, 2018 and December&#160;31, 2017; 29,137,695 and 28,940,282 shares issued and outstanding as of&#160;June 30, 2018 and December 31, 2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Additional paid-in capital</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">178,799</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">177,757</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accumulated other comprehensive loss</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(37</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(79</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accumulated deficit</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(178,162</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(164,487</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">TOTAL STOCKHOLDERS&#8217; EQUITY</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">603</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13,194</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">TOTAL LIABILITIES AND STOCKHOLDERS&#8217; EQUITY</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">29,040</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">32,970</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">The accompanying notes are an integral part of these condensed consolidated financial statements.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU4"></a><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">RESTORATION</font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">ROBOTICS,</font><font style="letter-spacing:-0.05pt;"> </font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">INC.</font></p>
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="CONSOLIDATED_STATEMENTS_OPERATIONS"></a>Condensed Consolidated<font style="letter-spacing:0.05pt;"> </font><a name="CONSOLIDATED_STATEMENTS_OPERATIONS"></a>Statements<font style="letter-spacing:0.1pt;"> </font>of Operations</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(Unaudited)</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(in<font style="letter-spacing:0.05pt;"> </font>thousands, except<font style="letter-spacing:0.05pt;"> </font>share and per share data)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Revenue</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,475</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,789</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10,480</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11,264</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cost of revenue</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,514</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,487</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,699</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,578</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Gross profit</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,961</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,302</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,781</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,686</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Operating expenses:</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sales and marketing</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,365</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,338</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8,749</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7,304</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,153</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,925</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,278</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,841</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">General and administrative</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,617</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,484</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,968</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,410</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total operating expenses</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8,135</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,747</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">16,995</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13,555</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Loss from operations</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(5,174</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(4,445</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(12,214</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(8,869</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other expense, net:</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Interest expense</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(500</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(529</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(858</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,115</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other expense, net</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(559</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(25</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(579</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(174</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total other expense, net</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,059</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(554</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,437</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,289</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss before provision for income taxes</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(6,233</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(4,999</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13,651</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(10,158</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Provision for income taxes</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">24</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">24</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss attributable to common stockholders</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(6,244</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(5,007</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13,675</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(10,182</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss per share attributable to common stockholders, basic and diluted</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(0.21</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(3.09</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(0.47</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(6.29</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">29,080,414</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,618,581</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">29,038,730</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,619,172</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">The accompanying notes are an integral part of these condensed consolidated financial statements.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="Comprehensive_Income"></a><a name="_AEIOULastRenderedPageBreakAEIOU5"></a><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">RESTORATION</font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">ROBOTICS,</font><font style="letter-spacing:-0.05pt;"> </font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">INC.</font></p>
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="CONDENSED_CONSOLIDATED_STATEMENTS_COMPRE"></a>Condensed Consolidated<font style="letter-spacing:0.05pt;"> </font><a name="CONDENSED_CONSOLIDATED_STATEMENTS_COMPRE"></a>Statements<font style="letter-spacing:0.1pt;"> </font>of Comprehensive<font style="letter-spacing:0.05pt;"> </font>Loss </p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(Unaudited)</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(in<font style="letter-spacing:0.05pt;"> </font>thousands, except<font style="letter-spacing:0.05pt;"> </font>share and per share data)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(6,244</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(5,007</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13,675</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(10,182</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other comprehensive income (loss):</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cumulative translation adjustment</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">38</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">42</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(48</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Comprehensive loss</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(6,206</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(4,996</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13,633</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(10,230</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">The accompanying notes are an integral part of these condensed consolidated financial statements.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU6"></a><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">RESTORATION</font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">ROBOTICS,</font><font style="letter-spacing:-0.05pt;"> </font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">INC.</font></p>
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="CONDENSED_CONSOLIDATED_STATEMENT_STOCKHO"></a>Condensed Consolidated<font style="letter-spacing:0.05pt;"> </font><a name="CONDENSED_CONSOLIDATED_STATEMENT_STOCKHO"></a>Statement<font style="letter-spacing:0.1pt;"> of </font>Stockholders&#8217;<font style="letter-spacing:0.05pt;"> Equity</font></p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(Unaudited)</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(in<font style="letter-spacing:0.05pt;"> </font>thousands, except<font style="letter-spacing:0.05pt;"> </font>share and per share data)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:40.74%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:18.08%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Common Stock</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:8.04%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Additional</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Paid-in</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:8.04%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Accumulated</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Other</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Comprehensive</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:8.04%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Accumulated</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:8.04%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Total</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Stockholders&#8217;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:40.74%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.04%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Shares</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.04%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Amount</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.04%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Capital</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.04%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Income (Loss)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.04%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Deficit</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.04%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Equity</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Balance &#8212; December 31, 2017</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">28,940,282</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">177,757</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(79</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(164,487</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13,194</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Issuance of common stock pursuant to stock option exercises of vested options</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">197,413</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">386</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">386</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Stock-based compensation</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">252</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">252</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Issuance of common stock warrants pursuant to debt financing</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">404</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">404</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other comprehensive gain</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">42</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">42</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:40.74%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13,675</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13,675</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:40.74%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Balance &#8212; June 30, 2018</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">29,137,695</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">178,799</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(37</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(178,162</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.04%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">603</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">The accompanying<font style="letter-spacing:0.05pt;"> </font>notes<font style="letter-spacing:0.05pt;"> </font>are an integral<font style="letter-spacing:0.1pt;"> </font>part<font style="letter-spacing:0.05pt;"> </font>of these<font style="letter-spacing:0.05pt;"> condensed </font>consolidated<font style="letter-spacing:0.1pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>statements.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="Cash_Flow"></a><a name="_AEIOULastRenderedPageBreakAEIOU7"></a><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">RESTORATION</font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">ROBOTICS,</font><font style="letter-spacing:-0.05pt;"> </font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">INC.</font></p>
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="CONSOLIDATED_STATEMENTS_CASH_FLOWS"></a>Condensed Consolidated<font style="letter-spacing:0.05pt;"> </font><a name="CONSOLIDATED_STATEMENTS_CASH_FLOWS"></a>Statements<font style="letter-spacing:0.1pt;"> </font>of Cash Flows</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(Unaudited)</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(in<font style="letter-spacing:0.05pt;"> </font>thousands, except share and per share data)</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.38%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.38%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Calibri;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">CASH FLOWS FROM OPERATING ACTIVITIES:</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13,675</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(10,182</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Adjustments to reconcile net loss to net cash used in operating activities:</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Depreciation and amortization</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">271</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">313</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Amortization of debt issuance costs</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">170</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">311</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Non-cash loss on extinguishment of debt</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">178</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Stock-based compensation</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">252</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">231</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Changes in fair value of preferred stock warrant liabilities</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">193</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Provision for bad debt</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">270</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Provision for excess and obsolete inventory</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.88%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">108</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Changes in operating assets and liabilities:</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:41.05pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accounts receivable</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(2,563</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(870</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:41.05pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Inventory</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(321</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">637</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:41.05pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Prepaid expenses and other assets</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">69</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(247</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:41.05pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accounts payable</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,010</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">799</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:41.05pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accrued and other liabilities</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,251</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">256</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:41.05pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Deferred revenue</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">211</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">77</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:54.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net cash used in operating activities</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(12,769</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(8,482</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">CASH FLOWS FROM INVESTING ACTIVITIES:</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Proceeds from sale of property and equipment</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">12</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Purchases of property and equipment</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(627</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(155</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:41.05pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net cash used in investing activities</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(627</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(143</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">CASH FLOWS FROM FINANCING ACTIVITIES:</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Proceeds from issuance of Series C convertible preferred stock, net</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10,225</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Proceeds from exercised stock options</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">386</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">9</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Proceeds from long-term debt, net</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">19,584</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Principal payments on long-term debt</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13,300</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(4,000</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:41.05pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net cash provided by financing activities</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,670</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,234</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Effect of exchange rate changes on cash, cash equivalents and restricted cash</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">42</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(49</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(6,684</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(2,440</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">CASH, CASH EQUIVALENTS AND RESTRICTED CASH &#8212; Beginning of period</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">23,645</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11,906</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">CASH, CASH EQUIVALENTS AND RESTRICTED CASH &#8212; End of period</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">16,961</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">9,466</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash paid for income taxes</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Interest paid during the period</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">561</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">434</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.98%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:9pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.62%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Purchase of property and equipment included in accounts payable</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">18</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Discounts and issuance costs in connection with long-term debt</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:11pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,246</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:11pt;font-family:Calibri;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.98%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Issuance of warrants in connection with long-term debt</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">404</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.62%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.88%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:9pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="middle"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">The accompanying notes are an integral part of these condensed consolidated financial statements.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:6pt;">&nbsp;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU8"></a><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">RESTORATION</font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">ROBOTICS,</font><font style="letter-spacing:-0.05pt;"> </font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">INC.</font></p>
<p style="text-align:center;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="NOTES_TO_CONDENSED_CONSOLIDATED_FINANCIA"></a>Notes to <a name="NOTES_TO_CONDENSED_CONSOLIDATED_FINANCIA"></a>Condensed Consolidated Financial Statements</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(Unaudited)</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">(in<font style="letter-spacing:0.05pt;"> </font>thousands, except<font style="letter-spacing:0.05pt;"> </font>share and per share data)</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-style:normal;font-size:10pt;font-family:Times New Roman;color:#auto;text-transform:uppercase;font-weight:bold;font-variant: normal;">1. Nature of Operations</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Restoration Robotics, Inc. is a medical technology company incorporated in the state of Delaware on November 22, 2002 and headquartered in San Jose, California. The Company develops an image-guided robotic system that enables follicular unit extraction (FUE) for use in the field of hair transplantation and markets the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> Robotic System in the United States and other countries.&nbsp;&nbsp;In these notes to the unaudited condensed consolidated financial statements, the &#8220;Company,&#8221; &#8220;Restoration Robotics,&#8221; &#8220;we,&#8221; &#8220;us,&#8221; and &#8220;our&#8221; refers to Restoration Robotics, Inc. and its subsidiaries on a consolidated basis.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Initial Public Offering </p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On October 11, 2017, the Company&#8217;s Registration Statement on Form S-1 (File No. 333-220303) relating to the initial public offering (IPO) of its common stock was declared effective by the Securities and Exchange Commission (SEC). Pursuant to such Registration Statement, the Company completed its IPO of 3,897,910 shares of its common stock (inclusive of 322,910 shares of common stock from the subsequent exercise of the over-allotment option granted to the underwriters) at a price of $7.00 per share for aggregate cash proceeds of approximately $22,114, after deducting underwriting discounts and commissions, and offering costs of $5,171.</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Immediately prior to the closing of the IPO, all outstanding shares of convertible preferred stock converted into 22,671,601 shares of common stock and all the outstanding convertible preferred stock warrants converted into common stock warrants resulting in the reclassification of our preferred stock warrant liabilities to additional paid-in capital. In addition, the principal and accrued interest on the outstanding Convertible Notes converted into 718,184 shares of common stock. The IPO closed on October 16, 2017. </p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Reverse Stock Split</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On September 15, 2017, the Company effected a 1-for-10 reverse stock split of its common stock. Upon the effectiveness of the reverse stock split, (i) every 10 shares of outstanding common stock were combined into one share of common stock, (ii) the number of shares of common stock for which each outstanding option to purchase common stock is exercisable was proportionately decreased on a 1-for-10 basis, (iii) the exercise price of each outstanding option to purchase common stock was proportionally increased on a l-for-10 basis, and (iv) the conversion ratio for each share of outstanding preferred stock which is convertible into our common stock was proportionately reduced on a 1-for-10 basis. All of the outstanding common stock share numbers (including shares of common stock into which our outstanding convertible preferred stock shares are convertible), share prices, exercise prices and per share amounts have been adjusted in these consolidated statements, on a retroactive basis, to reflect this l-for-10 reverse stock split for all periods presented. The par value per share and the authorized number of shares of common stock and convertible preferred stock were not adjusted because of the reverse stock split.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="NOTE_1_SUMMARY_SIGNIFICANT_ACCOUNTING_PO"></a><a name="NOTE_1_SUMMARY_SIGNIFICANT_ACCOUNTING_PO"></a>2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Liquidity</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">These condensed consolidated financial statements are prepared on a going concern basis that contemplates the realization of assets and extinguishment of liabilities in the normal course of business. The Company has incurred net operating losses and negative cash flows from operations since inception. As of June 30, 2018, and December 31, 2017, the Company has an accumulated deficit of $178,162 and $164,487 and, as of such dates, and through the date of this filing, does not have sufficient capital to fund its planned operations. Because of the Company&#8217;s recurring losses from operations and negative cash flows, the Company&#8217;s independent registered public accounting firm included an explanatory paragraph in its report on the Company&#8217;s consolidated financial statements as of, and for the year ended, December 31, 2017 that such factors raise substantial doubt about the Company&#8217;s ability to continue as a going concern. To continue its operations, the Company must achieve profitable operations and/or obtain additional financing. Until the Company generates revenue at a level to support its cost structure, the Company expects to continue to incur substantial operating losses and net cash outflows. The Company may never become profitable and even if it does attain profitable operations, it may not be able to sustain profitability or positive cash flows on a recurring basis.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU9"></a><font style="letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company will need to raise further capital in the future to service its debt or fund its operations until the time it can s</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ustain positive cash flows. There can be no assurance that the Company will be successful in raising additional capital or that such capital, if available, will be on terms that are acceptable to the Company. If the Company is unable to raise sufficient ad</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ditional capital, it may be compelled to reduce the scope of its operations and planned capital expenditures or sell certain assets, including intellectual property assets.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business, and, as such, the condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Basis of Presentation</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The condensed consolidated balance sheet as of June 30, 2018, the condensed consolidated statements of operations and condensed consolidated statements of comprehensive loss for the three and six months ended June 30, 2018 and 2017 and the condensed consolidated statements of cash flows for the six months ended June 30, 2018 and 2017 and the condensed consolidated statement of stockholders&#8217; equity for the six months ended June 30, 2018 are unaudited. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and in the opinion of management, reflect all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company&#8217;s condensed consolidated financial statements included in this report. The condensed consolidated financial data disclosed in these notes to the condensed consolidated financial statements related to the three- and six-month periods are also unaudited. The condensed consolidated results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018, or for any other future annual or interim period. The consolidated balance sheet as of December 31, 2017 included herein was derived from the audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read in conjunction with the Company&#8217;s audited consolidated financial statements included in its Annual Report filed on Form 10-K for the year ended December 31, 2017, with the SEC on March 5, 2018.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Principles of Consolidation</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;letter-spacing:0.15pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The<font style="letter-spacing:-0.2pt;"> accompanying condensed </font><font style="letter-spacing:0.05pt;">c</font>o<font style="letter-spacing:-0.05pt;">n</font><font style="letter-spacing:0.05pt;">s</font>o<font style="letter-spacing:-0.05pt;">l</font><font style="letter-spacing:0.05pt;">i</font>d<font style="letter-spacing:-0.05pt;">a</font>t<font style="letter-spacing:0.1pt;">e</font>d<font style="letter-spacing:-0.55pt;"> </font><font style="letter-spacing:0.05pt;">f</font><font style="letter-spacing:-0.05pt;">i</font>n<font style="letter-spacing:0.05pt;">a</font>n<font style="letter-spacing:0.05pt;">c</font><font style="letter-spacing:-0.05pt;">i</font><font style="letter-spacing:0.1pt;">a</font>l<font style="letter-spacing:-0.3pt;"> </font><font style="letter-spacing:0.05pt;">s</font>ta<font style="letter-spacing:-0.05pt;">t</font>e<font style="letter-spacing:0.2pt;">m</font>e<font style="letter-spacing:-0.05pt;">n</font>ts<font style="letter-spacing:-0.45pt;"> </font><font style="letter-spacing:-0.05pt;">i</font>n<font style="letter-spacing:0.05pt;">c</font><font style="letter-spacing:-0.05pt;">l</font><font style="letter-spacing:0.1pt;">u</font>de<font style="letter-spacing:-0.35pt;"> </font><font style="letter-spacing:0.1pt;">t</font>he<font style="letter-spacing:-0.2pt;"> </font>acco<font style="letter-spacing:-0.05pt;">u</font>nts<font style="letter-spacing:-0.4pt;"> </font>of<font style="letter-spacing:-0.05pt;"> Restoration Robotics, Inc.</font> and its wholly owned subsidiaries, which are organized in the United States, United Kingdom, Spain, Hong Kong and South Korea. <font style="letter-spacing:0.05pt;">A</font><font style="letter-spacing:-0.05pt;">l</font>l significant<font style="letter-spacing:-0.05pt;"> </font><font style="letter-spacing:0.05pt;">i</font>nt<font style="letter-spacing:-0.05pt;">e</font><font style="letter-spacing:0.05pt;">rc</font>o<font style="letter-spacing:0.2pt;">m</font>p<font style="letter-spacing:-0.05pt;">a</font><font style="letter-spacing:0.1pt;">n</font>y a<font style="letter-spacing:0.05pt;">cc</font>o<font style="letter-spacing:-0.05pt;">u</font>nts<font style="letter-spacing:-0.4pt;"> </font>a<font style="letter-spacing:0.05pt;">n</font>d<font style="letter-spacing:-0.15pt;"> </font><font style="letter-spacing:-0.05pt;">t</font><font style="letter-spacing:0.05pt;">r</font><font style="letter-spacing:0.1pt;">a</font>n<font style="letter-spacing:0.05pt;">s</font>a<font style="letter-spacing:0.05pt;">c</font>t<font style="letter-spacing:-0.05pt;">i</font><font style="letter-spacing:0.1pt;">o</font>ns<font style="letter-spacing:-0.5pt;"> </font>h<font style="letter-spacing:-0.05pt;">a</font><font style="letter-spacing:0.05pt;">v</font>e<font style="letter-spacing:-0.2pt;"> </font><font style="letter-spacing:0.05pt;">b</font>e<font style="letter-spacing:-0.05pt;">e</font>n<font style="letter-spacing:-0.1pt;"> </font>e<font style="letter-spacing:0.05pt;">l</font><font style="letter-spacing:-0.05pt;">i</font><font style="letter-spacing:0.2pt;">m</font><font style="letter-spacing:-0.05pt;">i</font>n<font style="letter-spacing:-0.05pt;">a</font>ted<font style="letter-spacing:-0.4pt;"> </font><font style="letter-spacing:-0.05pt;">i</font>n<font style="letter-spacing:-0.1pt;"> </font>c<font style="letter-spacing:0.1pt;">o</font>n<font style="letter-spacing:0.05pt;">s</font>o<font style="letter-spacing:-0.05pt;">l</font><font style="letter-spacing:0.05pt;">i</font>d<font style="letter-spacing:-0.05pt;">a</font><font style="letter-spacing:0.1pt;">t</font><font style="letter-spacing:-0.05pt;">i</font>o<font style="letter-spacing:0.05pt;">n</font>.</p>
<p style="margin-bottom:0pt;margin-top:18pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><font style="text-decoration:none;">Use of Estimates</font></p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to revenue recognition, the fair value of common stock, and the recoverability of the Company&#8217;s net deferred tax assets and related valuation allowance. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates.</p>
<p style="margin-bottom:0pt;margin-top:18pt;text-align:justify;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Reclassification</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Accrued compensation, which were previously included in other accrued liabilities in the prior year's condensed consolidated balance sheet have been reclassified to conform to the current period's presentation. The reclassification had no impact on the previously reported consolidated financial statements for the year ended December 31, 2017.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:18pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU10"></a><font style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Concentration of Customers</font></p>
<p style="margin-bottom:0pt;margin-top:6pt;margin-left:4.54%;text-indent:0%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For the three and six months ended June 30, 2018, no customers accounted for more than 10% of the Company&#8217;s revenue. For the three and six months ended June 30, 2017, no customers accounted for more than 10% of the Company&#8217;s revenue. As of June 30, 2018, no customers accounted for more than 10% of the Company&#8217;s accounts receivable. As of December 31, 2017, two customers accounted for 10% and 11% of the Company&#8217;s accounts receivable.</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:18pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">JOBS Act Accounting Election</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS&#160;Act. Under the JOBS&#160;Act, emerging growth companies can delay adopting new or revised accounting standards issued after the enactment of the JOBS&#160;Act until those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it is (i) no longer an emerging growth company or (ii)&#160;affirmatively and irrevocably opt out of the extended transition period provided in the JOBS&#160;Act. As a result, these condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Recently Issued Accounting Standards Not Yet Adopted</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In May&#160;2014, the Financial Accounting Standards Board (FASB)&#160;issued ASU No.&#160;2014&#8209;09, <font style="font-style:italic;">Revenue from Contracts with Customers</font> (Topic 606), as amended by ASU No. 2015-14, ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-12, and ASU No. 2016-20, collectively, ASU 2014-09. ASU 2014-09 establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers in an amount that reflects the expected consideration received in exchange for those goods or services and provides guidance on the recognition of costs related to obtaining and fulfilling customer contracts. For public entities, this standard is effective for annual reporting periods beginning after December&#160;15, 2017, including interim periods within that reporting period.&#160;For all other entities, this standard is effective for annual reporting periods beginning after December&#160;15, 2018, and interim periods within annual periods beginning after December&#160;15, 2019. Early adoption is permitted. ASU 2014&#8209;09 may be adopted either retrospectively to each prior period presented (full retrospective method) or with the cumulative effect recognized as of the date of initial application (modified retrospective method). The Company expects to adopt this standard effective January 1, 2019 using the modified retrospective adoption method. The Company&#8217;s preliminary assessment of areas to be impacted by the new standard identified possible impact to the deferral of costs to obtain a contract, which are primarily commission expense directly incurred because of sales of products and related support, and the allocation of revenue between products and support and maintenance for certain arrangements. While the Company continues to assess the potential impact of the new standard, including the areas described above, it has not yet quantified the impact the new standard may have on its consolidated financial statements.</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:12pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In February&#160;2016, the FASB&#160;issued ASU&#160;No. 2016&#8209;02, <font style="font-style:italic;">Leases (Topic 842)</font>, or ASU&#160;2016&#8209;02, which requires lessees to record most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. Under ASU&#160;2016&#8209;02, a lessee would recognize a lease liability for the obligation to make lease payments and a right&#8209;to&#8209;use asset for the right to use the underlying asset for the lease term. For public entities, this standard is effective for annual reporting periods beginning after December&#160;15, 2018, including interim periods within that reporting period.&#160;For all other entities, this standard is effective for annual reporting periods beginning after December&#160;15, 2019, and interim periods within annual periods beginning after December&#160;15, 2020. Early adoption is permitted. The Company is currently evaluating the standard and its impact on the condensed consolidated financial statements. However, the Company does expect an increase in its consolidated assets and liabilities upon adoption of this standard. </p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="NOTE_2_NET_LOSS_PER_SHARE"></a><a name="NOTE_2_NET_LOSS_PER_SHARE"></a>3. NET LOSS PER SHARE</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Net Loss Per Share</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, convertible preferred stock, preferred stock warrants and stock options are common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">9</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU11"></a><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
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<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.54%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">As of June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Options to purchase common stock</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,963,117</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,939,894</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Convertible preferred stock</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">22,671,601</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Warrants for preferred stock</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">385,126</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Warrants for common stock</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">468,181</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total potential dilutive shares</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,431,298</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">24,996,621</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:5pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:5pt;">&nbsp;</p>
<p style="margin-top:8pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">4. FAIR<font style="letter-spacing:-0.05pt;"> </font>VALUE<font style="letter-spacing:-0.1pt;"> </font>MEASUREMENTS</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash and cash<font style="letter-spacing:0.05pt;"> </font>equivalents,<font style="letter-spacing:0.1pt;"> </font>restricted<font style="letter-spacing:0.15pt;"> </font>cash,<font style="letter-spacing:0.05pt;"> </font>accounts<font style="letter-spacing:0.05pt;"> </font>receivable,<font style="letter-spacing:0.1pt;"> </font>accounts<font style="letter-spacing:0.05pt;"> </font>payable,<font style="letter-spacing:0.05pt;"> </font>and accrued<font style="letter-spacing:0.05pt;"> </font>liabilities approximate<font style="letter-spacing:0.1pt;"> </font>fair<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>because<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>short-term<font style="letter-spacing:0.15pt;"> </font>nature<font style="letter-spacing:0.05pt;"> </font>of those<font style="letter-spacing:0.05pt;"> </font>instruments.<font style="letter-spacing:0.15pt;"> The Company&#8217;s lease obligation, term loan and Convertible Notes have fair values that approximate their carrying value.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">U.S.<font style="letter-spacing:-0.05pt;"> </font>GAAP<font style="letter-spacing:-0.05pt;"> </font>establishes<font style="letter-spacing:0.1pt;"> </font>a framework<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>measuring<font style="letter-spacing:0.1pt;"> </font>fair<font style="letter-spacing:0.05pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>and a fair<font style="letter-spacing:0.05pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>hierarchy<font style="letter-spacing:0.1pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>inputs used to measure<font style="letter-spacing:0.1pt;"> </font>fair<font style="letter-spacing:0.05pt;"> </font>value.<font style="letter-spacing:0.05pt;"> </font>This framework<font style="letter-spacing:0.1pt;"> </font>maximizes<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>use of observable<font style="letter-spacing:0.1pt;"> </font>inputs<font style="letter-spacing:0.05pt;"> </font>and minimizes<font style="letter-spacing:0.15pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>use of unobservable<font style="letter-spacing:0.1pt;"> </font>inputs<font style="letter-spacing:0.05pt;"> </font>by requiring<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>observable<font style="letter-spacing:0.1pt;"> </font>inputs<font style="letter-spacing:0.05pt;"> </font>be used when available.<font style="letter-spacing:0.1pt;"> </font>Fair<font style="letter-spacing:0.05pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>defined as the<font style="letter-spacing:0.05pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>would be received<font style="letter-spacing:0.1pt;"> </font>to sell<font style="letter-spacing:0.05pt;"> </font>an asset<font style="letter-spacing:0.05pt;"> </font>or paid<font style="letter-spacing:0.05pt;"> </font>to transfer<font style="letter-spacing:0.1pt;"> </font>a liability<font style="letter-spacing:0.15pt;"> </font>in an orderly<font style="letter-spacing:0.05pt;"> </font>transaction between<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>participants<font style="letter-spacing:0.15pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>measurement<font style="letter-spacing:0.15pt;"> </font>date.<font style="letter-spacing:0.05pt;"> </font>It<font style="letter-spacing:0.05pt;"> </font>applies<font style="letter-spacing:0.05pt;"> </font>to both items<font style="letter-spacing:0.1pt;"> </font>recognized<font style="letter-spacing:0.1pt;"> </font>and reported<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>fair value<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> condensed consolidated </font>financial<font style="letter-spacing:0.1pt;"> </font>statements<font style="letter-spacing:0.15pt;"> </font>and items<font style="letter-spacing:0.1pt;"> </font>disclosed<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>fair<font style="letter-spacing:0.05pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>notes<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> condensed consolidated </font>financial<font style="letter-spacing:0.1pt;"> </font>statements.</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Observable<font style="letter-spacing:0.05pt;"> </font>inputs<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>inputs<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>participants<font style="letter-spacing:0.15pt;"> </font>would use in pricing<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>asset<font style="letter-spacing:0.05pt;"> </font>or liability<font style="letter-spacing:0.15pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>on market<font style="letter-spacing:0.1pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>obtained<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>independent<font style="letter-spacing:0.05pt;"> </font>sources.<font style="letter-spacing:0.05pt;"> </font>Unobservable<font style="letter-spacing:0.05pt;"> </font>inputs<font style="letter-spacing:0.05pt;"> </font>reflect<font style="letter-spacing:0.1pt;"> </font>assumptions<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>market participants<font style="letter-spacing:0.15pt;"> </font>would use in pricing<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>asset<font style="letter-spacing:0.05pt;"> </font>or liability<font style="letter-spacing:0.15pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>best<font style="letter-spacing:0.05pt;"> </font>information<font style="letter-spacing:0.15pt;"> </font>available<font style="letter-spacing:0.1pt;"> </font>in the circumstances.<font style="letter-spacing:0.15pt;"> </font>The hierarchy<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>broken<font style="letter-spacing:0.05pt;"> </font>down into<font style="letter-spacing:0.05pt;"> </font>three<font style="letter-spacing:0.05pt;"> </font>levels<font style="letter-spacing:0.05pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>transparency<font style="letter-spacing:0.1pt;"> </font>of inputs<font style="letter-spacing:0.05pt;"> </font>as follows:</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:9.06%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Level<font style="letter-spacing:0.05pt;"> </font>1 <font style="font-style:normal;">- Quoted prices</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">are</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">available</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">in active</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">markets</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">for</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">identical</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">assets</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">or liabilities</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">as of the</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">report date.</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">A quoted</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">price</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">for</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">an identical</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">asset</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">or liability</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">in an active</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">market</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">provides</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">the</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">most</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">reliable</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">fair value</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">measurement</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">because</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">it</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">is</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">directly</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">observable</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">to the</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">market.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:9.06%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Level<font style="letter-spacing:0.05pt;"> </font>2 <font style="font-style:normal;">- Pricing</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">inputs</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">are</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">other</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">than</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">quoted</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">prices</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">in active</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">markets,</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">which are</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">either</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">directly</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">or indirectly</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">observable</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">as of the</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">report</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">date.</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">The nature</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">of these</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">securities</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">includes</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">investments</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">for</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">which quoted</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">prices</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">are</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">available</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">but traded</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">less</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">frequently</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">and investments</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">that</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">are</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">fair</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">valued</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">using</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">other securities,</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">the</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">parameters</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">of which can be directly</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">observed.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:9.06%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Level<font style="letter-spacing:0.05pt;"> </font>3 <font style="font-style:normal;">- Securities</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">that</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">have little</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">to no pricing</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">observability</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">as of the</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">report</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">date.</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">These securities</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">are measured</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">using</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">management&#8217;s</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">best</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">estimate</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">of fair</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">value,</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">where the</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">inputs</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">into</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">the</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">determination</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">of fair value</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">are</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">not observable</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">and require</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">significant</font><font style="letter-spacing:0.15pt;font-style:normal;"> </font><font style="font-style:normal;">management</font><font style="letter-spacing:0.1pt;font-style:normal;"> </font><font style="font-style:normal;">judgment</font><font style="letter-spacing:0.05pt;font-style:normal;"> </font><font style="font-style:normal;">or estimation.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">A financial<font style="letter-spacing:0.1pt;"> </font>instrument&#8217;s<font style="letter-spacing:0.15pt;"> </font>level<font style="letter-spacing:0.05pt;"> </font>within<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>fair<font style="letter-spacing:0.05pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>hierarchy<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>lowest<font style="letter-spacing:0.05pt;"> </font>level<font style="letter-spacing:0.05pt;"> </font>of any input<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>is significant<font style="letter-spacing:0.15pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>fair<font style="letter-spacing:0.05pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>measurement.<font style="letter-spacing:0.15pt;"> </font>However, the<font style="letter-spacing:0.05pt;"> </font>determination<font style="letter-spacing:0.15pt;"> </font>of what constitutes<font style="letter-spacing:0.1pt;"> </font>&#8220;observable&#8221; requires<font style="letter-spacing:0.1pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>judgment<font style="letter-spacing:0.05pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>Company. The categorization<font style="letter-spacing:0.15pt;"> </font>of a financial<font style="letter-spacing:0.1pt;"> </font>instrument<font style="letter-spacing:0.1pt;"> </font>within<font style="letter-spacing:0.05pt;"> </font>the hierarchy<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>upon the<font style="letter-spacing:0.05pt;"> </font>pricing<font style="letter-spacing:0.05pt;"> </font>transparency<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>instrument<font style="letter-spacing:0.1pt;"> </font>and does not necessarily<font style="letter-spacing:0.1pt;"> </font>correspond<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>Company&#8217;s<font style="letter-spacing:0.05pt;"> </font>perceived<font style="letter-spacing:0.1pt;"> </font>risk<font style="letter-spacing:0.05pt;"> </font>of that<font style="letter-spacing:0.05pt;"> </font>instrument.</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following<font style="letter-spacing:0.05pt;"> </font>tables<font style="letter-spacing:0.05pt;"> </font>summarize<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>levels<font style="letter-spacing:0.05pt;"> </font>of fair<font style="letter-spacing:0.05pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>measurements<font style="letter-spacing:0.15pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>Company&#8217;s<font style="letter-spacing:0.05pt;"> </font>cash<font style="letter-spacing:0.05pt;"> </font>equivalents:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Fair Value Measurements as of June 30, 2018</p></td>
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<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Quoted Prices</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">in Active</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Markets</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">using&#160;Identical</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Assets</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Level 1)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Significant</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Other</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Observable</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Inputs</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Level 2)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Significant</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Unobservable</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Inputs</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Level 3)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Total</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Assets</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash Equivalents:</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Money market account</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">14,695</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">14,695</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Restricted cash:</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:46.74%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Money market account</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">100</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">100</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:46.74%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total assets</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">14,795</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:double 2.5pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:double 2.5pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">14,795</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:46.74%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="14" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:51.02%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Fair&#160;Value&#160;Measurements&#160;as&#160;of&#160;December 31,&#160;2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:46.74%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Quoted Prices</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">in Active</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Markets</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">using&#160;Identical</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Assets</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Level 1)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Significant</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Other</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Observable</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Inputs</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Level 2)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-top:solid 0.75pt #000000;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Significant</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Unobservable</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Inputs</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">(Level 3)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-top:solid 0.75pt #000000;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:11.1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Total</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Assets</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash Equivalents: (1)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Money market account</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">18,728</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">18,728</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Restricted cash:</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:46.74%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Money market account</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">100</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">100</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:46.74%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total assets</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">18,828</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:double 2.5pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.2%; border-bottom:double 2.5pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">18,828</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.74%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.2%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.1%; border-top:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:6pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td colspan="16" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:99%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1) The Company incorrectly overstated its cash equivalents by $4,817 in its annual report on Form 10-K for the year ended December 31, 2017. Cash equivalents were $18,728, while cash was $4,817. The error in disclosure had no impact on previously reported cash and cash equivalents in the consolidated balance sheet as of December 31, 2017 or consolidated statement of operations for the year ended December 31, 2017.</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:8pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;letter-spacing:-0.05pt;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">5. BALANCE<font style="letter-spacing:-0.15pt;"> </font>SHEET COMPONENTS</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Inventory</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Inventory<font style="letter-spacing:0.05pt;"> </font>consists<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>following:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:70%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">December 31,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Finished goods</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,685</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,761</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Raw materials</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">289</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total inventory</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,974</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,761</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:8pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Property<font style="letter-spacing:0.05pt;"> </font>and Equipment,<font style="letter-spacing:0.05pt;"> </font>Net</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Property<font style="letter-spacing:0.05pt;"> </font>and equipment,<font style="letter-spacing:0.1pt;"> </font>net<font style="letter-spacing:0.05pt;"> </font>consist<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>following:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:70%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">December 31,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Equipment</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,935</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,929</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Computer hardware and software</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,115</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">721</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Leasehold improvements</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">874</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">869</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furniture and fixtures</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">453</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">270</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total property and equipment</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,377</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,789</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Less: Accumulated depreciation and amortization</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(3,922</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(3,651</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total property and equipment, net</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,455</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,138</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Depreciation and amortization expense was $139 and $271 for three and six months ended June 30, 2018. Depreciation and amortization expense was $171 and $313 for the three and six months ended June 30, 2017.&nbsp;&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:8pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">6. COMMITMENTS<font style="letter-spacing:-0.05pt;"> </font>AND<font style="letter-spacing:-0.05pt;"> </font>CONTINGENCIES</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Operating<font style="letter-spacing:0.05pt;"> </font>Leases</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has various operating leases including 23,000 square feet of office space in San Jose, California, which expires in April 2022.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:12pt;margin-left:4.54%;text-indent:0%;font-weight:normal;font-style:normal;font-size:10pt;font-family:Times New Roman;text-transform:none;letter-spacing:-0.15pt;color:#auto;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU12"></a><font style="font-weight:normal;font-style:normal;font-size:10pt;font-family:Times New Roman;text-transform:none;letter-spacing:-0.15pt;color:#auto;font-variant: normal;">Aggregate future minimum lease payments required under the Company&#8217;s operating leases as of June 30, 2018 are as fol</font><font style="font-weight:normal;font-style:normal;font-size:10pt;font-family:Times New Roman;text-transform:none;letter-spacing:-0.15pt;color:#auto;font-variant: normal;">lows:</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:60%;">
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:80.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:underline;">Years Ending December 31,</font></p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.06%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:80.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2018 (remaining 6 months)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.06%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">253</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:80.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2019</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.06%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">518</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:80.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.06%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">534</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:80.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.06%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">550</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:80.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2022</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.06%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.88%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">188</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:80.02%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Thereafter</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:2.06%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:16.88%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:80.02%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total future minimum lease payments</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:2.06%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:15.88%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,043</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total rent expense was $135 and $238 for three and six months ended June 30, 2018. Total rent expense was $102 and $207 for the three and six months ended June 30, 2017.</p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Commitments </p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has two master agreements and a component pricing agreement with Evolve Manufacturing Technologies, Inc. (Evolve) for the supply of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System and consumable products. The terms of these master agreements are substantially similar. The master agreement for the sale of ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> Systems was effective beginning on April 1, 2016 and the master agreement for the sale of kits used with the ARTAS System was effective beginning on March 1, 2016. Both agreements are effective for an initial term of two years and will continue to automatically renew for additional twelve-month periods, subject to either party&#8217;s right to terminate the agreement upon 180 days advance notice during the initial term, if our quarterly forecasted demand falls below 75% of our historical forecasted demand for the same period in the previous year or upon 120 days&#8217; advance notice after the initial term. Under the agreements, the Company has future purchase commitments up to $1,200 as of June 30, 2018.</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In March 2018, the Company received U.S. FDA 510(k) clearance to expand the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System technology to include an implantation functionality, referred to as ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> iX. Based on manufacturing changes associated with the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> iX System, the Company determined that certain components procured or expected to be procured by Evolve, will be in excess of expected demand or usage. Although the Company will be taking steps to minimize the adverse impact on the Company&#8217;s business, based on information available as of June 30, 2018, the Company&#8217;s management recorded a loss contingency accrual of $715 which is reported in &#8220;Cost of revenue&#8221; in the condensed consolidated statements of operations for the six-months ended June 30, 2018 and included in &#8220;Other accrued liabilities&#8221; on the condensed consolidated balance sheets as of June 30, 2018. </p>
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Licensing<font style="letter-spacing:0.05pt;"> </font>Agreements</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In July 2006, the Company entered into a license agreement with Rassman Licensing, LLC (Rassman) for non-exclusive, royalty bearing, non-transferable, perpetual, world-wide rights for use on approved fields relating to robotically controlled hair removal and implantation procedures. In consideration for this license, the Company paid Rassman a one-time payment of $1,000. The agreement terminates on May 9, 2020. In February 2012, the Company amended its license agreement with Rassman. In exchange for a one-time $400 payment to Rassman, the Company now has a fully paid royalty-free perpetual license to a patent subject to this license agreement. <font style="font-family:Garamond;">&#160;</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In July 2006, the Company entered into a license agreement with HSC Development, LLC for exclusive non-transferable, royalty-free worldwide rights for use in approved fields relating to a computer-controlled system in which a device is carried on a mechanized arm for extraction or implantation of a follicular unit without manual manipulation. In consideration for this license, the Company paid HSC Development, LLC a one-time payment of $25 and issued 2,500 shares of the Company&#8217;s common stock. The agreement terminates on July 27, 2024.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="NOTE_6_LONGTERM_DEBT"></a>7.<a name="NOTE_6_LONGTERM_DEBT"></a> LONG-TERM<font style="letter-spacing:-0.05pt;"> </font>DEBT</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;margin-left:4.54%;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Loan and Security Agreement</p>
<p style="margin-bottom:0pt;margin-top:6pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU13"></a><font style="text-decoration:none;">In </font><font style="text-decoration:none;color:#000000;">May 2018, the Company entered into a Loan and Security Agreement (the &#8220;Solar Agreement&#8221;) with Solar Capital Ltd. (&#8220;Solar&#8221;) and certain other lenders thereunder (together with Solar, the &#8220;Lenders&#8221;), and Solar, as the Collateral Agent. The Solar Agreement consists of a four-year term loan for an aggregate principal amount of $20,000 (the &#8220;Borrowings&#8221;), for working capital, to fund the Company&#8217;s general business requirements and to repay indebtedness of the Company to Oxford Finance LLC (the &#8220;Oxford Agreement&#8221;). The Company used $10,085 of the loan proceeds to repay the outstanding principal of $8,667, </font></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">12</p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:6pt;margin-left:4.54%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="text-decoration:none;color:#000000;">a final payment fee of $1,300 plus accrued interest and prepayment fees of $118 under the Oxford Agreement. The Borrowings under the Solar Agreement bear interest through maturity at a rate equal </font><font style="text-decoration:none;color:#000000;">to the U.S. Dollar LIBOR rate plus 7.95% per annum (the &#8220;Interest Rate&#8221;). </font><font style="text-decoration:none;letter-spacing:-0.1pt;">The outstanding balance on the loan was $20,000 and accrued interest totaled $196 as of June 30, 2018. The interest rate was 9.95% at June 30, 2018. </font></p>
<p style="Background-color:#FFFFFF;margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Pursuant to the terms of the Solar Agreement, the Company shall make interest only payments until December&#160;1, 2019 (the &#8220;Interest Only Period&#8221;). The Interest Only Period may be extended up to three additional months, if the Company achieves certain revenue and capital fundraising thresholds. Following cessation of the Interest Only Period, the Company shall make equal monthly payments on the outstanding principal balance of the Borrowings and any unpaid and accrued interest such that the Borrowings shall be fully repaid on May&#160;1, 2022.</p>
<p style="Background-color:#FFFFFF;margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition, pursuant to the Solar Agreement, the Company issued the Lenders warrants (the &#8220;Warrants&#8221;) to purchase an aggregate of 161,725 shares of the Company&#8217;s common stock, $0.0001 par value per share, at an exercise price of $3.71 per share. The Warrants were immediately exercisable upon issuance, and excluding certain mergers or acquisitions, will expire on the ten-year anniversary of the date of issuance. The fair value of the Warrants issued was determined to be $404 using a Black-Scholes valuation model with the following assumptions: common stock price at issuance of $3.71 per share; exercise price of $3.71; risk-free interest rate of 2.97% based upon observed risk-free interest rates; expected volatility of 55.50% based on the Company&#8217;s implied volatility; expected term of ten years, which is the contractual life of the Warrants; and a dividend yield of 0%. The fair value of the Warrants was recorded as a debt discount within notes payable and an increase to additional paid-in capital on the Company&#8217;s balance sheet. The debt discount is being amortized as interest expense over the term of the Solar Agreement, using the effective interest method.</p>
<p style="Background-color:#FFFFFF;margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The third-party transaction costs (not paid directly to the lenders) related to the debt of $404&#160;are being accounted for as a debt discount and classified within notes payable on the Company&#8217;s balance sheet and amortized as interest expense over the term of the loan using the effective interest method.<font style="color:#000000;"> </font>Unamortized debt discounts related to the Oxford Agreement and all fees paid directly to Solar and Oxford totaling $505 in connection with the debt financing in May 2018 were written off to &#8220;Other expense, net&#8221; in the consolidated statement of operations.</p>
<p style="Background-color:#FFFFFF;margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The obligations under the Solar Agreement are secured by a lien on substantially all of the Company&#8217;s property, excluding intellectual property. The Solar Agreement contains certain affirmative covenants, negative covenants and events of default, including, covenants and restrictions that among other things, require the Company and its subsidiary to satisfy certain financial covenants including covenants requiring the Company to satisfy certain revenue and liquidity thresholds, and restricts the ability of the Company and its subsidiary&#8217;s ability to, incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales or sale and leaseback transactions, and declare dividends or redeem or repurchase capital stock. A failure to comply with these covenants could permit the Lenders under the Solar Agreement to declare the Borrowings, together with accrued but unpaid interest and certain Prepayment Fees, to be immediately due and payable. As of June 30, 2018, the Company was in compliance with all covenants under the Solar Agreement.</p>
<p style="Background-color:#FFFFFF;margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company is also required to make mandatory prepayments of the Borrowings, subject to specified exceptions, upon defaulting on any payments of principal or interest on the Borrowings, the occurrence of certain specified defaults of the covenants in the Solar Agreement, the occurrence of a material adverse change in the business, operations or conditions of the Company and specified other events (each, an &#8220;Event of Default&#8221;). Upon the occurrence and continuation of an Event of Default, the Borrowings shall accrue at the Interest Rate plus 4.0%.</p>
<p style="Background-color:#FFFFFF;margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If all or any of the Borrowings are prepaid or required to be prepaid under the Solar Agreement, then the Company shall pay, in addition to such prepayment, a prepayment premium (the &#8220;Prepayment Premium&#8221;) equal to (i)&#160;with respect to any such prepayment paid on or prior to May&#160;1, 2019, 3.0% of the principal amount of the Borrowings being prepaid, (ii)&#160;with respect to any prepayments paid after May&#160;1, 2019 but on or prior to May&#160;1, 2020, 2.0% of the principal amount of the Borrowings being prepaid and (iii)&#160;with respect to any prepayments paid after May&#160;1, 2020 but on or prior to May&#160;1, 2021, 1.0% of the principal amount of the Borrowings being prepaid. Notwithstanding the foregoing, if the Lenders each participate in a refinancing of the Borrowings, then the Prepayment Premium shall be 0%.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU14"></a><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The scheduled principal payments on the outstanding borrowings as of June 30, 2018 are as follows:</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:60%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:78.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:18.7%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">As of</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:78.26%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:2.02%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:18.7%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30, 2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:78.26%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2018 (remaining 6 months)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:78.26%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2019</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">667</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:78.26%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2020</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8,000</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:78.26%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2021</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8,000</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:78.26%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2022</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:2.02%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,163</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:78.26%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:2.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">20,830</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:78.26%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Less debt discount</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:2.02%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,602</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:78.26%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Non-current portion</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:2.02%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.7%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">19,228</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:8pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="NOTE_9_COMMON_STOCK_RESERVED_FOR_ISSUANC"></a>8<a name="NOTE_9_COMMON_STOCK_RESERVED_FOR_ISSUANC"></a>. COMMON STOCK RESERVED<font style="letter-spacing:-0.15pt;"> </font>FOR ISSUANCE</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company is<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>to reserve<font style="letter-spacing:0.1pt;"> </font>and keep available<font style="letter-spacing:0.1pt;"> </font>out of its<font style="letter-spacing:0.05pt;"> </font>authorized<font style="letter-spacing:0.1pt;"> </font>but unissued<font style="letter-spacing:0.05pt;"> </font>shares<font style="letter-spacing:0.05pt;"> </font>of common stock<font style="letter-spacing:0.05pt;"> </font>a number<font style="letter-spacing:0.05pt;"> </font>of shares<font style="letter-spacing:0.05pt;"> </font>sufficient<font style="letter-spacing:0.15pt;"> </font>to affect<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>conversion<font style="letter-spacing:0.05pt;"> </font>of all<font style="letter-spacing:0.05pt;"> </font>outstanding<font style="letter-spacing:0.1pt;"> </font>shares<font style="letter-spacing:0.05pt;"> </font>of convertible<font style="letter-spacing:0.1pt;"> </font>preferred stock,<font style="letter-spacing:0.1pt;"> of which, there are none, </font>plus<font style="letter-spacing:0.05pt;"> </font>options<font style="letter-spacing:0.05pt;"> </font>granted<font style="letter-spacing:0.05pt;"> </font>and available<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>grant<font style="letter-spacing:0.05pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>incentive<font style="letter-spacing:0.1pt;"> </font>plans.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:70%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">December 31,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.9%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Outstanding common stock warrants</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">468,181</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">306,456</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.7%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Outstanding and issued stock options</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,963,117</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.72%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,930,752</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Shares reserved for future option grants <sup style="font-size:85%; vertical-align:top">1</sup></p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,944,225</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,162,037</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:66.7%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total common stock reserved for issuance</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,375,523</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.72%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.9%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,399,245</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.54%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
<td valign="top" style="width:4.54%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><sup style="font-size:85%; vertical-align:top">(1)</sup></font></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;"><sup style="font-size:85%; vertical-align:top"></sup>The Company incorrectly understated its shares reserved for future option grants by 1,890,547 in its annual report on Form 10-K for the year ended December 31, 2017. The Company disclosed 271,490 shares reserved for future option grants at December 31, 2017, instead of 2,162,037 shares reserved for future option grants (as shown in the table above). The error in disclosure had no impact on previously reported consolidated financial statements as of and for the year ended December 31, 2017.</p></td></tr></table></div>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">9. STOCK OPTION PLAN</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">2005 and 2015 Plan</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company granted incentive stock options (&#8220;ISOs&#8221;) and non-statutory stock options (&#8220;NSOs&#8221;) pursuant to its 2005 Stock Option Plan (the &#8220;2005 Plan&#8221;) until the Board of Directors approved the 2015 Stock Option Plan (the &#8220;2015 Plan&#8221;), and all remaining shares available for future award under the 2005 Plan were transferred to the 2015 Plan and the 2005 Plan was terminated. The Company granted ISOs and NSOs pursuant to its 2015 Plan until the 2017 Equity Incentive Plan (the 2017 Plan) was approved by the Board of Directors and became effective on October 11, 2017. As a result of the 2017 Plan becoming effective, all remaining shares available for future award under the 2015 Plan were transferred to the 2017 Plan, the 2015 Plan was terminated, and no further grants will be made under the Company&#8217;s 2005 Plan and the 2015 Plan. Any outstanding stock awards granted under the 2005 Plan and the 2015 Plan will remain outstanding, subject to the terms of the Company&#8217;s 2005 Plan and 2015 Plan and the applicable stock award agreements, until such outstanding stock awards that are stock options are exercised or until they terminate or expire by their terms, or until such stock awards are fully settled, terminated or forfeited.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">2017 Plan</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company&#8217;s 2017 Plan provides for the grant of ISOs, NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other forms of equity compensation to employees, directors and consultants. In addition, the Company&#8217;s 2017 Plan provides for the grant of performance cash awards to employees, directors and consultants.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">14</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU15"></a><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Compan</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">y recognized</font><font style="letter-spacing:0.1pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">stock-based</font><font style="letter-spacing:0.1pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">compensation</font><font style="letter-spacing:0.1pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">expense</font><font style="letter-spacing:0.05pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">for</font><font style="letter-spacing:0.05pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">its</font><font style="letter-spacing:0.05pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">employees</font><font style="letter-spacing:0.1pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and non-employees</font><font style="letter-spacing:0.1pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in the accompanying</font><font style="letter-spacing:0.1pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">consolidated</font><font style="letter-spacing:0.1pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">statements</font><font style="letter-spacing:0.15pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of operations</font><font style="letter-spacing:0.1pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as follows:</font></p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:90%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:28.56%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:28.56%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:38.46%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:28.56%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:28.56%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:38.46%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cost of revenue</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sales and marketing</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">24</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">20</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">46</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">35</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">30</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">28</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">51</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:38.46%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">General and administrative</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">86</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">75</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">170</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">140</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:38.46%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total stock-based compensation</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">127</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">125</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">252</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">231</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:8pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Determination<font style="letter-spacing:0.1pt;"> </font>of Fair Value</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The estimated<font style="letter-spacing:0.1pt;"> </font>grant-date<font style="letter-spacing:0.1pt;"> </font>fair<font style="letter-spacing:0.05pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>of all<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>Company&#8217;s<font style="letter-spacing:0.05pt;"> </font>stock-based<font style="letter-spacing:0.1pt;"> </font>awards<font style="letter-spacing:0.05pt;"> </font>was calculated<font style="letter-spacing:0.1pt;"> </font>using<font style="letter-spacing:0.05pt;"> </font>the Black-Scholes-Merton<font style="letter-spacing:0.15pt;"> </font>option<font style="letter-spacing:0.05pt;"> </font>pricing<font style="letter-spacing:0.05pt;"> </font>model,<font style="letter-spacing:0.05pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>following<font style="letter-spacing:0.05pt;"> </font>assumptions:</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:90%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.12%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="4" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:28.72%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="4" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:28.72%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:38.12%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="4" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:28.72%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="4" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:28.72%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:38.12%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Expected term (years)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5.37</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4.95 - 7.50</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5.37 - 6.10</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4.95 - 7.50</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Risk-free interest rate</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2.82%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.77 - 2.13%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2.40 - 2.82%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.77 - 2.13%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Expected volatility</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">53.72%</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">51.62 - 53.58%</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">53.72 - 55.49%</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">51.62 - 53.58%</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Dividend yield</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.26%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following table summarizes stock option activity under the Company&#8217;s stock option plan:</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:90%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted-</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Weighted-</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Average</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Average</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Remaining</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Aggregate</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Number of</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Exercise Price</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Contractual</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Intrinsic</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:38.46%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Shares</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">per Share</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Term</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.18%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Value</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Outstanding &#8212; December 31, 2017</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,930,752</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.90</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7.9</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,322</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Options granted</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">384,340</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4.45</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Options exercised</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(197,413</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.96</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:38.46%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Options cancelled</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(154,562</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.18%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.99</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.18%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.18%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:38.46%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Outstanding &#8212; June 30, 2018</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,963,117</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2.38</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7.9</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.18%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,800</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:38.46%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Vested and expected to vest &#8212; June 30, 2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,932,990</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.18%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2.34</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.18%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7.9</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.18%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,682</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:38.46%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Exercisable &#8212; June 30, 2018</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.18%; border-top:double 2.5pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,014,692</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.18%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.80</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.18%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7.1</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.18%; border-bottom:double 2.5pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:12.18%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,705</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The weighted-average grant date fair value of options granted was $2.38 per share for six months ended June 30, 2018. </p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The total intrinsic value of options exercised was $812.0 and $0 for six months ended June 30, 2018 and 2017, respectively.</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Unamortized stock-based compensation was $1,322 as of June 30, 2018, which is expected to be recognized over a weighted-average period of approximately 3.75 years.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="NOTE_11_INCOME_TAXES"></a><a name="NOTE_11_INCOME_TAXES"></a>10. INCOME TAXES</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company generated a loss for the three and six months ended June 30, 2018 and incurred $11 and $24 of tax expense for the three and six months ended June 30, 2018, respectively. The Company&#8217;s effective tax rate is (0.18)% and (0.18)% for income tax for the three and six months ended June 30, 2018 and the Company expects that its effective tax rate for the full year 2018 will be (0.20)%. Based on available evidence, including cumulative losses since inception and expected future losses, the Company has determined that it is more likely than not that the Company&#8217;s U.S. federal, U.S. state&#160;and Korea deferred tax assets will not be realized and therefore a valuation allowance has been provided on these net deferred tax assets.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">15</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU16"></a><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has substantial net operating loss</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> carry forwards available to offset future taxable income for U.S. federal and state income tax purposes. The Company&#8217;s ability to utilize its net operating losses may be limited due to changes in its ownership as defined by Section 382 of the Internal Rev</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">enue Code (the Code). Under the provisions of Sections 382 and 383 of the Code, a change of control, as defined in the Code, may impose an annual limitation on the amount of the Company&#8217;s net operating loss and tax credit carryforwards, and other tax attri</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">butes that can be used to reduce future tax liabilities.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company files tax returns for U.S. federal and state tax returns along with tax returns in the United Kingdom, Hong Kong, Spain and South Korea. The Company is not currently subject to any income tax examinations. Since the Company&#8217;s inception, the Company had incurred losses from its U.S. operations, which generally allows all tax years to remain open.</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Beginning in first quarter of 2018, the Company is subject to new provisions of the tax law, including provisions related to Global Low Taxed Intangible Income (GILTI), Foreign Derived Intangible Income deductions (FDII), and other changes. However, due to the Company&#8217;s losses and full valuation allowance in the U.S., these were determined to have no material impact to the Estimated Annual Effective Tax Rate due to the full Valuation Allowance in the U.S.</p>
<p style="Background-color:#FFFFFF;margin-top:18pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-weight:bold;font-style:italic;color:#282828;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Uncertain Tax Positions</p>
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Effective January 1, 2009, the Company adopted ASC 740-10, which requires that the Company recognize the financial statement effects of a tax position when it becomes more likely than not, based upon the technical merits, that the position will be sustained upon examination. The gross amount of unrecognized tax benefits as of June 30, 2018 is approximately $1,400&#160;and related to the reserve on R&amp;D credits, none of which will affect the effective tax rate if recognized due to the valuation allowance. The Company does not expect any material changes in the next 12 months in unrecognized tax benefits.</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company recognizes interest and/or penalties related to uncertain tax positions. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected in the period that such determination is made. The interest and penalties are recognized as other expense and not tax expense. The Company currently has no interest and penalties related to uncertain tax positions.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">11. SEGMENT AND GEOGRAPHIC INFORMATION</p>
<p style="margin-bottom:0pt;margin-top:6pt;margin-left:4.54%;text-indent:0%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has determined that it operates in a single operating segment and has one reportable segment, as its Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The Company does not assess the performance of individual product line on measures of profit or loss, or asset-based metrics. Therefore, the information below is presented only for revenues by geography.</p>
<p style="margin-top:12pt;margin-bottom:0pt;margin-left:4.54%;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following<font style="letter-spacing:0.05pt;"> </font>table<font style="letter-spacing:0.05pt;"> </font>reflects<font style="letter-spacing:0.1pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> </font>by geographic<font style="letter-spacing:0.05pt;"> </font>area<font style="letter-spacing:0.05pt;"> </font>by customer<font style="letter-spacing:0.1pt;"> </font>location:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.04%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.66%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.66%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months Ended</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.04%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.66%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.66%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.04%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-top:solid 0.75pt #000000;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.04%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">United States</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,601</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,269</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,856</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,813</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.04%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Europe and Middle East</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">988</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,574</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,961</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,127</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.04%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Asia Pacific</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,556</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,154</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,660</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.28%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,319</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.04%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Rest of World</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">330</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">792</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,003</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,005</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.04%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total revenue</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,475</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,789</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10,480</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.28%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11,264</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:4.54%;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As of&#160;June 30, 2018, and December&#160;31, 2017, all long-lived assets were located within the United States.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">16</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU17"></a><a name="ITEM_2_MANAGEMENTS_DISCUSSION_ANALYSIS_F"></a><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_2_MANAGEMENTS_DISCUSSION_ANALYSIS_F"></a>ITEM&#160;2. MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS OF</font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> FINANCIAL CONDITION AND RESULTS OF OPERATIONS</font></p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;text-indent:0%;font-style:italic;font-family:Times New Roman;letter-spacing:-0.1pt;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q and with our audited financial statements and notes thereto in the Company&#8217;s Annual Report filed on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (&#8220;SEC&#8221;) and other filings we have made with the SEC.</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">This Quarterly Report on Form 10-Q contains &#8220;forward-looking statements&#8221; within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are often identified by the use of words such as &#8220;may,&#8221; &#8220;will,&#8221; &#8220;expect,&#8221; &#8220;believe,&#8221; &#8220;anticipate,&#8221; &#8220;intend,&#8221; &#8220;could,&#8221; &#8220;estimate,&#8221; or &#8220;continue,&#8221; and similar expressions or variations. These statements are based on the beliefs and assumptions of our management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified herein, and those discussed in the section titled &#8220;Risk Factors,&#8221; set forth in Part II, Item 1A of this Form 10-Q and in our other SEC filings, including the Prospectus. You should review the risk factors for a more complete understanding of the risks associated with an investment in our securities. We disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q. Our fiscal year end is December 31, and references throughout this Quarterly Report on Form 10-Q to a given fiscal year are to the twelve months ended on that date.</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Overview</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are a medical technology company developing and commercializing a robotic device, the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System, which assists physicians in performing many of the repetitive tasks that are a part of a follicular unit extraction, or FUE surgery, a type of hair restoration procedure. We believe the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System is the first and only physician assisted robotic system that can identify and dissect hair follicular units directly from the scalp, create recipient implant sites and robotically implant the hair follicles into the implant sites. In addition to the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System, we also offer the ARTAS Hair Studio application, an interactive three-dimensional patient consultation tool that enables a physician to create a simulated hair transplant model for use in patient consultations. We received clearance from the U.S. Food and Drug Administration, or FDA, in April 2011 to market the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System in the U.S., and we have sold the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System into 37 other countries. In March 2018, we received 510(k) clearance from the FDA to expand the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> technology to include implantation. In the third quarter of 2018, we commercially launched the next generation ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup>&#160;system, called ARTAS<sup style="font-size:85%; vertical-align:top">&#174;&#160;</sup>iX system, which incorporates the implantation functionality as well as other functionalities. As of June 30, 2018, the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System and ARTAS Hair Studio application are protected by over 80 patents in the U.S. and over 110 international patents.</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On October 11, 2017, our Registration Statement on Form S-1 (File No. 333-220303) relating to our initial public offering (&#8220;IPO&#8221;) of its common stock was declared effective by the SEC. Pursuant to such Registration Statement, we sold an aggregate of 3,897,910 shares of its common stock (inclusive of 322,910 shares of common stock from the subsequent exercise of the over-allotment option granted to the underwriters) at a price of $7.00 per share for aggregate cash proceeds of approximately $22.1 million after deducting offering costs and commissions of $5.2 million.</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On May&#160;10, 2018, we entered into a Loan and Security Agreement (the &#8220;Solar Agreement&#8221;) with Solar Capital Ltd. (&#8220;Solar&#8221;)<font style="color:#auto;"> </font>and certain other Lenders thereunder (together with Solar, the &#8220;Lenders&#8221;).  Pursuant to the terms of the Solar Agreement, we borrowed $20.0 million with an interest rate at U.S. Dollar LIBOR plus 7.95% per annum (the &#8220;Borrowings&#8221;). All amounts borrowed under the Solar Agreement are secured by liens over all personal property of the Company, excluding&#160;intellectual property. Monthly payments on any amounts drawn shall consist of the interest only payments for the first 18 months, followed by payments of principal and accrued interest monthly thereafter until the four-year anniversary of the date of the Solar Agreement. In connection with the Solar Agreement, we granted the Lenders warrants to purchase<font style="color:#auto;"> </font>an aggregate of 161,725 shares of our common stock exercisable at a price of $3.71 per share. </p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We used approximately $10.1&#160;million of the net proceeds to repay the entire outstanding principal balance and accrued interest under our existing loan agreement with Oxford Finance, LLC and terminated our loan agreement with Oxford.</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have funded our operations to date primarily from the issuance and sale of our common stock in our IPO, private placements of our equity securities and, to a lesser extent, through debt financings, exercises of our common stock warrants and payments from our customers. As of June 30, 2018, we had cash and cash equivalents of $16.9&#160;million.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">17</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU18"></a><font style="font-weight:bold;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Factors Affecting our Results of Operations</font></p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:0%;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_1_313"></a>We believe there are several important factors that have impacted, and that we expect will impact, our results of operations.</p>
<p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-style:italic;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;text-transform:none;font-variant: normal;"><a name="_cp_text_1_314"></a><a name="_Hlk520462735"></a><a name="_Hlk520462735"></a>Adoption of the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:0%;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_1_315"></a>The growth of our business depends on our ability to gain broader acceptance of the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System and, in particular, ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> iX, as well as the ARTAS procedure by successfully marketing and distributing the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System and the ARTAS procedure. If we are unable to successfully commercialize our ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> System and the ARTAS procedure, we may not be able to generate sufficient revenue to achieve or sustain profitability. In the near term, we expect we will continue to operate at a loss and we anticipate we will finance our operations principally through offerings of our capital stock and by incurring debt. If we are unable to raise adequate additional capital, we will be unable to maintain our commercialization efforts and our revenue could decline.</p>
<p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-style:italic;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;text-transform:none;font-variant: normal;"><a name="_cp_text_1_316"></a>Significant Investment in our Sales and Marketing</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:0%;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_1_317"></a><a name="_cp_text_1_318"></a>The Company has a new leadership team, made certain strategic changes to and investments in our U.S. sales and global marketing organizations, which included terminating certain personnel and hiring new personnel and realigning our reporting and leadership structure in the sales organization. For example, throughout 2018 we are increasing the size of our U.S. sales force by hiring sales professionals with experience selling capital equipment and equipment to physicians in the aesthetic market. In addition, we are investing significantly in our sales and marketing efforts related to the launch of the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> iX System. Strategically, we have been focused on our branding and have consolidated our regional marketing teams to standardize our messaging and focus of our marketing spending with an aim to be more efficient and cost-effective. As a result, we have <a name="_cp_text_1_318"></a>seen a reduction in and improved efficiency of our marketing spending. </p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">While we increased revenue in 2017 because of increased unit sales, these sales initiatives have also increased our sales and marketing expenses. Furthermore, we anticipate as we continue to advance the commercialization of the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> iX System, our sales and marketing expenses will continue to increase.</p>
<p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-style:italic;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;text-transform:none;font-variant: normal;"><a name="_cp_text_1_319"></a>Revenue Composition and Trends</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_1_320"></a>The following<font style="letter-spacing:0.05pt;"> </font>table<font style="letter-spacing:0.05pt;"> </font>reflects<font style="letter-spacing:0.1pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> by category</font>:</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
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<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three Months Ended</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months Ended</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:22.6%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:10.18%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Systems</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,526</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,568</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,531</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,448</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:50.34%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Procedure-based</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,397</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,743</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,870</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,834</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Service related fees</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">552</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">478</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,079</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">982</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:50.34%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total revenue</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,475</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,789</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10,480</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.22%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:9.18%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11,264</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We derive our revenue from the sale and service of ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> Systems and procedure-based fees.</p>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">Revenue from systems for the three and six months ended June 30, 2018 decreased as compared to the same period in </font><font style="font-family:Times New Roman;color:#000000;">2017 due to a decrease in the number of ARTAS</font><font style="color:#000000;font-family:Times New Roman;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-family:Times New Roman;color:#000000;"> Systems sold. </font><font style="font-family:Times New Roman;">We believe the decrease in system revenue was due, in part, to customers delaying purchases until the ARTAS iX System is available, as well as our ongoing implementation of our new sales strategy, which has not taken full effect given the recent key hires within the Company, including our new Vice President of Sales who joined in February 2018, and the weaker than expected performance in the EMEA region. </font></p></td></tr></table></div>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><a name="_Hlk512593945"></a><font style="font-family:Times New Roman;">Revenue from procedure-based fees increased for the three and six months ended June 30, 2018 as compared to the same period in 2017. While revenue from procedure-based fees increased between these periods, the total number of procedures performed by our customers on their patients did not increase proportionally to our revenue from procedure base fees due to the timing of when we sold the procedures to our customers versus when procedures are utilized by our customers after their purchase. </font></p></td></tr></table></div>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">Service-related fees increased slightly for the three and six months ended June 30, 2018 as compared to the same period in 2017.</font></p></td></tr></table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">18</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU19"></a><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Historically, the majority of our revenue and our revenue growth has been generated through system sales. While we would expect our proc</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">edure-based fees to continue to increase as our installed base of ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> Systems grows worldwide, the total number of procedures has not </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">followed </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the increase in our installed base</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of systems sold. In particular, </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the number of procedures performed</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> on a qua</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rterly basis</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">varies </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from quarter-to-quarter</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> and has not increased with the installed base</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">. While procedure-based </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">revenue </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">increased</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">,</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on a percentage basis,</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> more than the installed base of ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> Systems during the aforementioned periods, we believe that revenue from procedure-based fees may not grow proportionally as compared to the increase in our installed base and that it could vary from quarter-to-quarter due to a number factors, including:</font></p>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><a name="_cp_text_1_331"></a><font style="font-family:Times New Roman;">physician uptake causing a slow ramp-up to utilizing the ARTAS</font><font style="color:#000000;font-family:Times New Roman;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-family:Times New Roman;"> System, which is particularly evident with physicians who are new to hair restoration procedures or physicians who do not operate a solely hair restoration focused practice who are commonly the profile we are targeting;</font></p></td></tr></table></div>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">capacity limitations with the current installed base of ARTAS</font><font style="color:#000000;font-family:Times New Roman;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-family:Times New Roman;"> Systems, which can result in procedure-based fees not growing as quickly as system sales, as high performing practitioners are limited in the number of procedures that can be performed in any given period;</font></p></td></tr></table></div>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
<td valign="top">
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">limited or no utilization of the ARTAS</font><font style="color:#000000;font-family:Times New Roman;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-family:Times New Roman;"> System after purchase because of a change in physician preference or practice; and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
<td valign="top">
<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the concentration of ARTAS procedures being performed on a limited number of ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-family:Times New Roman;"> Systems leading to volatility between periods if particular high-volume practitioners perform a smaller number of procedures in a given period.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In order to increase the number of procedures performed per ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System, and in turn increase revenue from procedure-based fees, we have, in connection with the leadership and sales and marketing changes, initiated programs to assist certain physicians in marketing efforts, patient education and practice optimization to increase utilization of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System. If these efforts are successful, we anticipate that the growth in procedure-based fees will increase and that quarterly fluctuations in the number of total procedures performed will be reduced.</p>
<p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Revenue from Markets Outside the U.S.</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:0%;color:#231F20;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_1_333"></a>Since launching the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System in 2011, we have obtained clearance to sell our products in over 60 countries. In June 2012, we obtained our CE mark to sell our product into the European Economic Area, or EEA. We have sold into 37 countries and sell directly into the U.S., Korea, Hong Kong, Singapore, Spain, Poland, Benelux, Scandinavia, <font style="color:#000000;">Portugal, the Netherlands</font> and through distributors in the other countries. We obtained clearance to sell in China in September 2016. However, we have not obtained any regulatory approvals or clearances outside of the U.S. for our implantation functionality.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Revenue from markets outside of the U.S accounted for 54% of our total revenue in the first six months of 2018, compared to 57% from the same period in 2017. Although we will continue to invest resources outside of the U.S., we anticipate that the strategic shift in our sales strategy towards the U.S. market will impact the revenue mix between the U.S. and non-U.S. markets. In particular, in connection with our newly launched ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> iX System, which is only cleared for sale in the U.S., our marketing efforts are highly focused on the U.S. </p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#231F20;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_1_340"></a>The ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System unit sales declined in the first six months of 2018 relative to the first six months of 2017 because of decreased unit sales in the U.S., Euro<a name="_cp_text_1_340"></a>pe and Middle East and Asia Pacific regions, partially offset by increased procedure-based fees in these regions.</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#000000;font-size:10pt;letter-spacing:0.15pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">While we believe our newly launched ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> iX System, which incorporates a robotic implantation functionality, could have a positive effect on system sales in the U.S., it may have a negative effect on system sales outside the U.S. as the robotic implantation functionality is only approved in the U.S. and potential non-U.S. customers of the ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> iX System may delay purchases of ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> systems until the implantation functionality is available in their market.</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#231F20;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We expect our operating expenses to increase because of increased sales and marketing activity to promote penetration in markets outside the U.S. where we already sell the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System and geographic expansion into new markets.</p>
<p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;color:#231F20;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Factors Affecting Comparability</p>
<p style="margin-bottom:0pt;margin-top:6pt;text-indent:0%;color:#231F20;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_1_342"></a>We anticipate that our quarterly results of operations may fluctuate for the foreseeable future due to several factors, including the performance of our direct sales force and international distributors, the launch of our implantation functionality and the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> iX System, and unanticipated interruptions and expenses related to our operations. In addition, due to the long lead time to finalize ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System unit sales with our physician customers, and the significant impact each unit sale has on a period&#8217;s revenue due to the price of each unit, our quarterly revenue may not be comparable from one period to another.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">19</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#231F20;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU20"></a><font style="color:#231F20;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore, our industry is characterized by seasonally lower </font><font style="color:#231F20;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">demand during the third calendar quarter of the year, when both physicians and prospective patients take summer vacations. A detailed discussion of these and other factors that impact our business is provided in the &#8220;Risk Factors&#8221; section in this Quarterly</font><font style="color:#231F20;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> Report on Form 10-Q.</font></p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Results of Operations </p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Three and Six Months Ended June 30, 2018 and 2017:</p>
<p style="margin-bottom:0pt;text-align:justify;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
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<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.44%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Three Months Ended</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.52%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months Ended</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
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<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:23.66%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.44%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:16.7%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Change</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:17.52%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:16.42%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Change</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:23.66%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.98%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.6%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="30" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:74.32%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-style:italic;color:#000000;font-size:8pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">(dollars in thousands)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-style:italic;color:#000000;font-size:8pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Revenue</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,475</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,789</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(314</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(5</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)%</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10,480</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11,264</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(784</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(7</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)%</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:23.66%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cost of revenue</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,514</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,487</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(973</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.98%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(28</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5,699</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,578</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(879</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.6%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Gross profit</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,961</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,302</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">659</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">29</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,781</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,686</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">95</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Gross margin</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">54</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">40</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">46</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">42</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Operating expenses:</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sales and marketing</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,365</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,338</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,027</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">31</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8,749</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">7,304</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,445</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">20</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Research and development</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,153</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,925</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">228</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">12</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4,278</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,841</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">437</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:23.66%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:13.7pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">General and administrative</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,617</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,484</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">133</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.98%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">9</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,968</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,410</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,558</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.6%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">65</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:23.66%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total operating expenses</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8,135</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,747</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,388</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.98%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">21</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">16,995</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13,555</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,440</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.6%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">25</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Loss from operations</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(5,174</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(4,445</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(729</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">16</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(12,214</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(8,869</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(3,345</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">38</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other expense, net:</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Interest expense</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(500</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(529</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">29</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(5</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(858</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,115</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">257</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(23</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:23.66%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:27.35pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Other expense, net</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(559</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(25</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(534</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.98%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,136</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(579</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(174</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(405</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.6%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">233</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:23.66%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total other expense, net</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,059</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(554</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(505</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.98%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">91</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,437</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,289</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(148</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.6%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:23.66%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss before provision for income taxes</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(6,233</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(4,999</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,234</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.98%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">25</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13,651</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(10,158</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(3,493</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.1%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:5.6%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">34</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:23.66%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Provision for income taxes</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">11</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.98%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">38</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">24</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">24</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.6%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:23.66%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net loss</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(6,244</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(5,007</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1,237</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:5.98%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">25</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(13,675</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.1%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:6.7%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(10,182</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">34</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">%</p></td>
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<p style="margin-bottom:0pt;text-align:justify;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Revenue, Net.<font style="font-style:normal;"> Revenue decreased 5% and 7%, for the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The overall decrease in revenue was primarily due to a decline in volume of system sales for the&#160;three and six months ended&#160;June 30, 2018, as compared to the same periods in&#160;2017. We placed 11 and 19 systems in the&#160;three and six months ended&#160;June&#160;30, 2018, respectively, as compared to 14 and 27 systems in the&#160;three and six months ended&#160;June 30, 2017, respectively. The revenue decrease was partially offset by an increase of $0.7 million and $1.1&#160;million from procedures-based fees and service-related fees (on a combined basis) for the three and six months ended June 30, 2018, respectively, as compared to same periods in 2017. The increase in procedures-based fees and service-related fees was a result of an increased number of ARTAS procedures purchased by our customers and, to a lesser extent, post-warranty maintenance contracts during the period.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Gross Margin<font style="font-style:normal;">. Gross margin typically fluctuates with product mix, selling prices, material costs and revenue level. Gross margin for the three and six months ended June 30, 2018 increased by 14 percentage points and four percentage points, respectively, compared to the same periods in 2017. The increase for the three and six months ended June 30,2018 was primarily driven by decreased product costs due to certain efficiencies and higher percentage of revenue from procedure-based fees which generally have a higher gross margin than sales of our ARTAS</font><font style="letter-spacing:0.15pt;font-style:normal;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-style:normal;"> Systems. For the six months ended June 30, 2018, the increase was partially offset by a charge related to a loss contingency accrual of $0.7 million, which was reported in cost of revenue. The charge was related to certain excess inventory components procured for our ARTAS</font><font style="letter-spacing:0.15pt;font-style:normal;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-style:normal;"> System by our third-party manufacturer, which we determined would be in excess of expected demand due to manufacturing changes associated with the ARTAS</font><font style="letter-spacing:0.15pt;font-style:normal;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-style:normal;"> System as a result of the approval of the implantation functionality. </font><font style="font-style:normal;color:#000000;">We initially anticipate higher manufacturing, warranty, and service costs associated with the ARTAS iX System which will result in a lower gross margin moving forward. </font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Sales and Marketing<font style="font-style:normal;">. Sales and marketing expenses increased 31% and 20%, for the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The increase was </font><font style="color:#231F20;font-style:normal;">primarily</font><font style="font-style:normal;"> due to the growth in employee headcount to support our overall sales and marketing activities, including the ongoing commercialization efforts for the ARTAS</font><font style="letter-spacing:0.15pt;font-style:normal;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-style:normal;"> System and ARTAS</font><font style="letter-spacing:0.15pt;font-style:normal;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-style:normal;"> iX System and the timing of expenditures for certain tradeshows in first six months of 2018, which historically were held later in the calendar year.</font></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">20</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU21"></a><font style="font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Research and Development</font><font style="font-style:normal;">. Research and development expense increased 12% and 11%, f</font><font style="font-style:normal;">or the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The increase was primarily due to incremental outside services and consulting costs associated with the development of the ARTAS</font><font style="font-style:normal;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-style:normal;"> iX System, which was comm</font><font style="font-style:normal;">ercially launched in July 2018.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">General and Administrative<font style="font-style:normal;">. General and administrative expenses increased 9% and 65%, for the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The increase was primarily the result of an increase in professional service costs, consisting of accounting, consulting, legal and other professional fees incurred in connection with our status as a public company following our IPO in October 2017. </font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Interest expense<font style="font-style:normal;">. Interest expense decreased 5% and 23% for the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The decrease in interest expense was related to a reduction in the principal balance of our outstanding long-term-debt obligations as we repaid a portion of the principal on our outstanding credit facility with Oxford prior to repaying the entire outstanding principal balance following the financing of our loan with Solar in May 2018.</font></p>
<p style="text-align:left;margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Other expense, Net<font style="font-style:normal;">. Other expense, net increased by $0.5 million and $0.4&#160;million for the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The increase was primarily due to (i) unamortized debt issuance and debt discounts written off by us and (ii) fees paid directly to Oxford and Solar in connection with the extinguishment of the Oxford loan and the entry into the new Solar loan as mentioned above.</font></p>
<p style="text-align:left;margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Provision for income tax:<font style="font-style:normal;"> Our effective tax rate is (.18%) for income tax for the three and six months ended June 30, 2018 and we expect that our effective tax rate for the full year 2018 will be (.20%). Based on available evidence, including cumulative losses since inception and expected future losses, we have determined that it is more likely than not that our U.S. federal, U.S. state and Korea deferred tax assets will not be realized and therefore a valuation allowance has been provided on the U.S. federal, U.S. state and Korea net deferred tax assets.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In general, if we experience a greater than 50% aggregate change in ownership over a three-year period, utilization of our pre-change net operating loss, or NOL, and credit carryforwards are subject to an annual limitation under Sections 382 and 383 of the U.S. Internal Revenue Code, or the Code. Generally, U.S. states maintain similar laws or regulations as Sections 382 and 383 of the Code. The annual limitation generally is determined by multiplying the value of our stock at the time of such ownership change (subject to certain adjustments) by the applicable long-term tax-exempt rate. Such limitations may result in expiration of a portion of the NOL or tax credit carryforwards before utilization.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We file tax returns for U.S. federal and state taxes along with tax returns in the United Kingdom, Hong Kong, Spain and South Korea. We are not currently subject to any income tax examinations. Since our inception, we have incurred losses from our U.S. operations, which generally allows all tax years to remain open.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We recognize the financial statement effects of a tax position when it becomes more likely than not, based upon the technical merits, that the position will be sustained upon examination. We do not expect any material changes in the next 12 months in unrecognized tax benefits.</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We recognize interest and/or penalties related to uncertain tax positions. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected in the period that such determination is made. The interest and penalties are recognized as other expense and not tax expense. We currently have no interest and penalties related to uncertain tax positions.</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Liquidity and Capital Resources</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">To date, we have incurred significant net losses and negative cash flows from operations. Our net loss was $6.2&#160;million and $5.0 million for the three months ended June 30, 2018 and 2017, respectively, and $13.7&#160;million and $10.2&#160;million for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, we had an accumulated deficit of $178.2 million. As of June 30, 2018, and December 31, 2017, we had cash and cash equivalents of $16.9 million and $23.5 million, respectively. As of the filing date of this Quarterly Report, we believe our current cash and cash equivalents will not be sufficient to fund our operations for the next twelve months. These factors raise substantial doubt about our ability to continue as a going concern. </p>
<p style="text-align:left;margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In connection with our IPO, we sold an aggregate of 3,897,910 shares of our common stock (inclusive of 322,910 shares of common stock from the exercise of the over-allotment option granted to the underwriters) at a price of $7.00 per share and we received aggregate cash proceeds of approximately $22.1 million,<font style="Background-color:#FFFFFF;color:#000000;"> net of underwriting discounts and commissions, and offering costs.</font></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">21</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU22"></a><font style="font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Debt Obligations</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In May 2018, we entered into the Solar Agreement. The Solar Agreement consists of a four-year term loan for an aggregate principal amount of $20.0&#160;million, for working capital, to fund our general business requirements and to repay our indebtedness under the Oxford Agreement. We used $10.1&#160;million of the loan proceeds to repay the outstanding principal of $8.7&#160;million, a final payment fee of $1.3&#160;million plus accrued interest and prepayment fees of $0.1&#160;million under the Oxford Agreement. The Borrowings under the Solar Agreement bear interest through maturity at a rate equal to the U.S. Dollar LIBOR rate plus 7.95% per annum. The outstanding balance on the Solar Agreement was $20.0&#160;million as of June 30, 2018. The Solar Agreement contains various covenants. As of June 30, 2018, we were in compliance with all required covenants.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Capital Resources</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have financed our operations principally through the issuance and sale of our common stock in our IPO, private placements of our capital stock, and to a lesser extent, secured debt financing and payments from customers. We believe that our existing cash and cash equivalents and cash expected to be generated from sales of our products will not be sufficient to fund our planned operations through the next 12 months. However, we will need additional capital to fund our future operations and we intend to obtain such capital through the sale of additional shares of capital stock or related securities. To the extent that we raise additional capital through future equity financings, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing common stockholders. If we raise additional funds through the issuance of debt securities, these securities could contain covenants that would restrict our operations. Further, there can be no assurance that we will be able to raise additional funds on favorable terms, or at all. Our failure to raise additional capital would have a negative impact on our financial condition and our ability to execute our business plan.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use all our available capital resources sooner than we expect. Because of the numerous risks and uncertainties associated with the ongoing commercialization of the ARTAS<font style="letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System, we are unable to estimate the exact amount of our operating capital requirements. Our future funding requirements will depend on many factors, including, but not limited to:</p>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the revenue we generate from our operations;</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the scope and timing</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of our investment</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">in our commercial</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">infrastructure</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and sales</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;">-</font><font style="font-family:Times New Roman;">force;</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the costs</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of commercialization</font><font style="letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">activities</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">including</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">product</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">sales,</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">marketing,</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">manufacturing</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and distribution;</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the degree</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and rate</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of market</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">acceptance</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">System</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and the ARTAS</font><font style="letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">procedure;</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the costs</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of filing,</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">prosecuting,</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">defending</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and enforcing</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">any patent</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">claims</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and other</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">intellectual property</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">rights;</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">our need to implement</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">additional</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">infrastructure</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and internal</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">systems;</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the research</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and development</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">activities</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">we</font><font style="letter-spacing:-0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">intend</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">to undertake</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">in order</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">to expand the approved indications</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of use for the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">System;</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the emergence</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of competing</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">technologies</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">or other</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">adverse</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">market</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">developments;</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">any product</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">liability</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">or other</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">lawsuits</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">related</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">to our products;</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the expenses</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">needed to attract</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and retain</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">skilled</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">personnel;</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the costs</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">associated</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">with being a public</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">company;</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:6pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the costs</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">associated</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">with maintaining</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">subsidiaries</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">in foreign</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">jurisdictions.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We cannot assure that we will ever be profitable or generate positive cash flow from operating activities.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">22</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU23"></a><font style="font-weight:bold;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Cash flows</font></p>
<p style="text-align:left;margin-bottom:0pt;margin-top:6pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following table summarizes our cash flows for the periods indicated: </p>
<p style="text-align:left;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;">&nbsp;</p>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.34%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Six Months Ended</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.34%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">June&#160;30,</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.92%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2018</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:13.92%; border-top:solid 0.75pt #000000; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">2017</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:67.16%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="6" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:30.34%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-style:italic;color:#000000;font-size:8pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">(dollars in thousands)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-style:italic;color:#000000;font-size:8pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:67.16%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash used in operating activities</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.92%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(12,769</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.92%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(8,482</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:67.16%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash used in investing activities</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.92%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(627</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.92%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(143</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:67.16%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash provided by financing activities</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.92%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,670</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.92%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">6,234</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:67.16%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Effect of exchange rate changes on cash, cash equivalents and restricted cash</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.92%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">42</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.92%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(49</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:67.16%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net decrease in cash, cash equivalents and restricted cash</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%; border-bottom:double 2.5pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.92%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(6,684</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%; border-bottom:double 2.5pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:12.92%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(2,440</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td>
</tr>
</table></div>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Cash Flows from Operating Activities</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For the six months ended June 30, 2018, cash used in operating activities of $12.8 million was attributable to a net loss of $13.7 million and a decrease from operating assets and liabilities of $0.3&#160;million, partially offset by $1.2 million in non-cash charges. The non-cash charges consisted primarily of provision for bad debt of $0.3&#160;million, depreciation and amortization of $0.3 million, amortization of debt issuance costs of $0.2 million, stock-based compensation of $0.3 million and provision for excess and obsolete inventory of $0.1&#160;million. The net change in operating assets and liabilities was primarily attributable to an increase in accounts payable and accrued other liabilities of $2.3&#160;million, which was offset by an increase in accounts receivable of $2.6 million due to the timing of collections from customers in the second quarter of 2018.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For the six months ended June&#160;30, 2017, cash used in operating activities of $8.5&#160;million was attributable to a net loss of $10.2&#160;million, partially offset by $1.0&#160;million in non-cash charges and a net change in operating assets and liabilities of $0.7 million. The non-cash charges consisted primarily of amortization of debt issuance costs of $0.3&#160;million, depreciation and amortization of $0.3&#160;million, $0.2 million related to a change in fair value of preferred stock warrants, and stock-based compensation of $0.2&#160;million. The net change in operating assets and liabilities was primarily attributable to a decrease in inventory of $0.6&#160;million due to the sale of inventory in excess of purchases and an overall increase of $1.1&#160;million in accounts payable and accrued and other liabilities due to growth in operations and the timing of receipt and payment of vendor invoices, partially offset by an increase of $0.9&#160;million in accounts receivable and an increase of $0.2&#160;million in prepaid expenses and other assets.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Cash Flows from Investing Activities</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For the six months ended June 30, 2018 and 2017, cash used in investing activities related to purchases of property and equipment.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Cash Flows from Financing Activities</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For the six months ended June 30, 2018, cash provided by financing activities was $6.7 million, consisting of net proceeds from our Solar loan of $19.6 million and $0.4&#160;million of stock option exercises, which was offset by $13.3&#160;million for the retirement of our Oxford loan.</p>
<p style="text-align:left;margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For the six months ended June 30, 2017,<font style="Background-color:#FFFFFF;color:#000000;"> c</font>ash provided by financing activities was $6.2&#160;million, consisting of net proceeds from the issuance of our Series&#160;C convertible preferred stock of $10.2&#160;million, partially offset by $4.0&#160;million in principal payments on our Oxford loan.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">23</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU24"></a><font style="font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Contractual Obligations and Other Commitments</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The following table summarizes our contractual obligations as of June 30, 2018, which represent material expected or contractually committed future obligations. </p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<div>
<table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;">
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:44.5%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:8pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="18" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:53.34%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Payments Due by Period</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:44.5%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Less than</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">More than</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:44.5%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">1 Year</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">1 to 3 Years</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">3 to 5 Years</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">5 Years</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="2" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Total</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:44.5%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td colspan="18" valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:53.34%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-style:italic;color:#000000;font-size:8pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">(dollars in thousands)</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-style:italic;color:#000000;font-size:8pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:44.5%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Debt obligations, including interest <font style="font-size:11pt;"><sup style="font-size:85%; vertical-align:top">(1)</sup></font></p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,005</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">12,226</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13,008</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.14%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">26,239</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:44.5%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Operating leases</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">253</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,052</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">738</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-bottom:solid 0.75pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,043</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="top"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:44.5%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total contractual obligations</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:double 2.5pt transparent;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,258</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13,278</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13,746</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8212;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.14%; border-bottom:double 2.5pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000; border-bottom:double 2.5pt #000000;white-space:nowrap;">
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">28,282</p></td>
<td valign="bottom"  BGCOLOR="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:double 2.5pt transparent;white-space:nowrap;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
</table></div>
<p style="margin-top:0pt;border-bottom:Solid 1pt;padding-bottom:1pt;margin-bottom:0pt;margin-right:83.33%;text-indent:0%;font-size:6pt;">&nbsp;</p>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.54%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(1)</font></p></td>
<td valign="top">
<p style="margin-bottom:0pt;margin-top:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">Represents our loan with Solar and our anticipated repayment schedule for the loan. Pursuant to our loan agreement with Oxford, the loan will mature in May 2022. The loan with Solar accrues interest at prime plus 7.9% per annum. The outstanding principal balance on the Solar loan was $20.8 million as of June 30, 2018, which includes a final payment of $0.8 million to Solar on the maturity of the loan. </p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition to the contractual obligations listed in the table above, in March 2018, we received U.S. FDA 510(k) clearance to expand the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System technology to include an implantation functionality. Based on manufacturing changes associated with the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System, we determined that certain components procured or expected to be procured by Evolve Manufacturing Technologies, Inc., our single third-party manufacturer, who assemble the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> Systems, will be in excess of expected demand or usage. As a result, we recorded a loss contingency accrual of $0.7&#160;million, which is reported in &#8220;Cost of revenue&#8221; in the condensed consolidated statements of operations for the six-months ended June 30, 2018 and included in &#8220;Other accrued liabilities&#8221; on the condensed consolidated balance sheets as of June 30, 2018.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Off-Balance Sheet Arrangements</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We do not currently engage in off-balance sheet financing arrangements. In addition, we do not have any interest in entities referred to as variable interest entities, which includes special purpose entities and other structure finance entities. </p>
<p style="margin-bottom:6pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Critical Accounting Policies and Estimates</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. Preparation of these statements requires management to make judgments and estimates. Some accounting policies have a significant impact on amounts reported in these financial statements. A summary of significant accounting policies and a description of accounting policies that are considered critical may be found in our 2017 Annual Report on Form&#160;10-K for the year ended December 31, 2017, in the Notes to the Consolidated Financial Statements (Note 1) and the Critical Accounting Policies and Estimates section in Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations. There have been no changes in these significant accounting policies during the three months ended June 30, 2018.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">JOBS Act Accounting Election</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued after the enactment of the JOBS Act until those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Recent Accounting Pronouncements</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">See Note 2 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted as of the date of this Quarterly Report on Form 10-Q.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">24</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU25"></a><a name="ITEM_3_QUANTITATIVE_QUALITATIVE_DISCLOSU"></a><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_3_QUANTITATIVE_QUALITATIVE_DISCLOSU"></a>ITEM 3. QUANTITATIVE AND QUALITATI</font><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">VE DISCLOSURES ABOUT MARKET RISK.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are<font style="letter-spacing:0.05pt;"> </font>exposed<font style="letter-spacing:0.05pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>risks<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>ordinary<font style="letter-spacing:0.05pt;"> </font>course<font style="letter-spacing:0.05pt;"> </font>of our business.<font style="letter-spacing:0.05pt;"> </font>These risks<font style="letter-spacing:0.05pt;"> </font>primarily<font style="letter-spacing:0.15pt;"> </font>relate<font style="letter-spacing:0.1pt;"> </font>to interest<font style="letter-spacing:0.1pt;"> </font>rate and currency<font style="letter-spacing:0.05pt;"> </font>exchange<font style="letter-spacing:0.05pt;"> </font>rate<font style="letter-spacing:0.05pt;"> </font>fluctuations.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Interest<font style="letter-spacing:0.1pt;"> </font>Rate Risk</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our cash<font style="letter-spacing:0.05pt;"> </font>and cash<font style="letter-spacing:0.05pt;"> </font>equivalents<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>held<font style="letter-spacing:0.05pt;"> </font>in cash<font style="letter-spacing:0.05pt;"> </font>deposits<font style="letter-spacing:0.05pt;"> </font>and money<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>funds.<font style="letter-spacing:0.05pt;"> </font>Due to the<font style="letter-spacing:0.05pt;"> </font>short-term<font style="letter-spacing:0.15pt;"> </font>nature<font style="letter-spacing:0.05pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>instruments,<font style="letter-spacing:0.15pt;"> </font>we do not believe<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we have any material<font style="letter-spacing:0.15pt;"> </font>exposure<font style="letter-spacing:0.05pt;"> </font>to changes<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>fair<font style="letter-spacing:0.05pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>of our investment<font style="letter-spacing:0.1pt;"> </font>portfolio<font style="letter-spacing:0.1pt;"> </font>because of changes<font style="letter-spacing:0.05pt;"> </font>in interest<font style="letter-spacing:0.1pt;"> </font>rates.<font style="letter-spacing:0.05pt;"> </font>Declines<font style="letter-spacing:0.05pt;"> </font>in interest<font style="letter-spacing:0.1pt;"> </font>rates,<font style="letter-spacing:0.05pt;"> </font>however, would reduce<font style="letter-spacing:0.05pt;"> </font>our future<font style="letter-spacing:0.05pt;"> </font>interest<font style="letter-spacing:0.1pt;"> </font>income.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are<font style="letter-spacing:0.05pt;"> </font>exposed<font style="letter-spacing:0.05pt;"> </font>to interest<font style="letter-spacing:0.1pt;"> </font>rate<font style="letter-spacing:0.05pt;"> </font>risk<font style="letter-spacing:0.05pt;"> </font>related<font style="letter-spacing:0.1pt;"> </font>to our debt<font style="letter-spacing:0.05pt;"> </font>obligations<font style="letter-spacing:0.1pt;"> </font>which are<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to variable<font style="letter-spacing:0.1pt;"> </font>interest<font style="letter-spacing:0.1pt;"> </font>rates.<font style="letter-spacing:0.05pt;"> </font>As of June 30, 2018, a 100-basis<font style="letter-spacing:0.05pt;"> </font>point<font style="letter-spacing:0.05pt;"> </font>increase<font style="letter-spacing:0.1pt;"> </font>in interest<font style="letter-spacing:0.1pt;"> </font>rates<font style="letter-spacing:0.05pt;"> </font>on our debt<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to variable<font style="letter-spacing:0.1pt;"> </font>interest<font style="letter-spacing:0.1pt;"> </font>rate fluctuations<font style="letter-spacing:0.15pt;"> </font>would increase<font style="letter-spacing:0.1pt;"> </font>our interest<font style="letter-spacing:0.1pt;"> </font>expense<font style="letter-spacing:0.05pt;"> </font>$0.1 million<font style="letter-spacing:0.1pt;"> </font>annually.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Foreign Currency Risk</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our sales<font style="letter-spacing:0.05pt;"> </font>contracts<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>primarily<font style="letter-spacing:0.15pt;"> </font>denominated<font style="letter-spacing:0.1pt;"> </font>in U.S.<font style="letter-spacing:-0.05pt;"> </font>dollars<font style="letter-spacing:0.1pt;"> </font>and, therefore,<font style="letter-spacing:0.1pt;"> </font>substantially<font style="letter-spacing:0.15pt;"> </font>all<font style="letter-spacing:0.05pt;"> </font>of our revenue<font style="letter-spacing:0.05pt;"> </font>is not subject<font style="letter-spacing:0.05pt;"> </font>to foreign<font style="letter-spacing:0.05pt;"> </font>currency<font style="letter-spacing:0.05pt;"> </font>risk.<font style="letter-spacing:0.05pt;"> </font>However, a strengthening<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>Dollar<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>increase<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>real<font style="letter-spacing:0.05pt;"> </font>cost<font style="letter-spacing:0.05pt;"> </font>of our products<font style="letter-spacing:0.05pt;"> </font>to our customers<font style="letter-spacing:0.1pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>U.S.,<font style="letter-spacing:-0.05pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>adversely<font style="letter-spacing:0.1pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our financial<font style="letter-spacing:0.1pt;"> </font>condition<font style="letter-spacing:0.05pt;"> </font>and operating<font style="letter-spacing:0.1pt;"> </font>results.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>a portion<font style="letter-spacing:0.05pt;"> </font>of our operating<font style="letter-spacing:0.1pt;"> </font>expenses<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>incurred<font style="letter-spacing:0.1pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>and are denominated<font style="letter-spacing:0.1pt;"> </font>in foreign<font style="letter-spacing:0.05pt;"> </font>currencies<font style="letter-spacing:0.1pt;"> </font>and are<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to fluctuations<font style="letter-spacing:0.15pt;"> </font>due to changes<font style="letter-spacing:0.05pt;"> </font>in foreign<font style="letter-spacing:0.05pt;"> </font>currency<font style="letter-spacing:0.05pt;"> </font>exchange rates,<font style="letter-spacing:0.05pt;"> </font>particularly<font style="letter-spacing:0.15pt;"> </font>changes<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>British<font style="letter-spacing:0.05pt;"> </font>Pound Sterling,<font style="letter-spacing:0.1pt;"> </font>Euro, Hong Kong Dollar,<font style="letter-spacing:0.05pt;"> </font>and South Korean Won. Additionally,<font style="letter-spacing:0.1pt;"> </font>fluctuations<font style="letter-spacing:0.15pt;"> </font>in foreign<font style="letter-spacing:0.05pt;"> </font>currency<font style="letter-spacing:0.05pt;"> </font>exchange<font style="letter-spacing:0.05pt;"> </font>rates<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>us to recognize<font style="letter-spacing:0.1pt;"> </font>transaction<font style="letter-spacing:0.1pt;"> </font>gains<font style="letter-spacing:0.05pt;"> </font>and losses<font style="letter-spacing:0.05pt;"> </font>in our statement<font style="letter-spacing:0.1pt;"> </font>of operations.<font style="letter-spacing:0.1pt;"> </font>A 10% increase<font style="letter-spacing:0.1pt;"> </font>or decrease<font style="letter-spacing:0.1pt;"> </font>in current<font style="letter-spacing:0.1pt;"> </font>exchange<font style="letter-spacing:0.05pt;"> </font>rates<font style="letter-spacing:0.05pt;"> </font>would not have a material<font style="letter-spacing:0.15pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our financial<font style="letter-spacing:0.1pt;"> </font>results.<font style="letter-spacing:0.1pt;"> </font>To date,<font style="letter-spacing:0.05pt;"> </font>foreign<font style="letter-spacing:0.05pt;"> </font>currency<font style="letter-spacing:0.05pt;"> </font>transaction<font style="letter-spacing:0.1pt;"> </font>gains<font style="letter-spacing:0.05pt;"> </font>and losses<font style="letter-spacing:0.05pt;"> </font>have not been material<font style="letter-spacing:0.15pt;"> </font>to our consolidated<font style="letter-spacing:0.1pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>statements,<font style="letter-spacing:0.15pt;"> </font>and we have not engaged<font style="letter-spacing:0.05pt;"> </font>in any foreign<font style="letter-spacing:0.05pt;"> </font>currency<font style="letter-spacing:0.05pt;"> </font>hedging transactions.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_4_CONTROLS_PROCEDURES"></a><a name="ITEM_4_CONTROLS_PROCEDURES"></a>ITEM 4. CONTROLS AND PROCEDURES.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Evaluation of disclosure controls and procedures.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our management, with the participation and supervision of our Chief Executive Officer and our Chief Financial Officer, have evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. </p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Changes in internal control over financial reporting. </p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our Chief Executive Officer and Chief Financial Officer did not identify any changes in our internal control over financial reporting in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act during the quarter ended June 30, 2018, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. </p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Inherent limitation on the effectiveness of internal control.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, in designing and evaluating the disclosure controls and procedures, management recognizes that any system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable, not absolute assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business but cannot assure you that such improvements will be sufficient to provide us with effective internal control over financial reporting.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">25</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU26"></a><a name="PART_II_OR_INFORMATION"></a><font style="font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="PART_II_OR_INFORMATION"></a>PART II OTHER</font><font style="font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> INFORMATION</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_1_LEGAL_PROCEEDINGS"></a><a name="ITEM_1_LEGAL_PROCEEDINGS"></a>ITEM 1. LEGAL PROCEEDINGS</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On May 23, 2018 a putative shareholder class action complaint was filed in Superior Court of the State of California, County of San Mateo, captioned Wong v. Restoration Robotics, Inc., et al., No. 18CIV02609. On June 21, 2018 and June 28, 2018, two putative class action complaints were filed in the United States District Court for the Northern District of California, captioned Guerrini v. Restoration Robotics, Inc., et al., No. 5:18-cv-03712-EJD and Yzeiraj v. Restoration Robotics, Inc., et al., No. 5:18-cv-03883-BLF, respectively. The Wong and Guerrini complaints name us as defendants, and certain of our current and former executive officers and directors, certain of our venture capital investors and the underwriters in our IPO. The Yzeiraj complaint names us as defendants and certain of our current and former executive officers and directors. The Wong complaint asserts claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, or the Securities Act. The Guerrini and Yzeiraj complaints assert claims under Sections 11 and 15 of the Securities Act. The complaints all allege, among other things, that our Registration Statement filed with the SEC on September 1, 2017 and the Prospectus filed with the SEC on October 13, 2017 in connection with our IPO were inaccurate and misleading, contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and omitted to state material facts required to be stated therein. The complaints seek unspecified money damages, other equitable relief and attorneys&#8217; fees and costs.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We believe that these lawsuits are without merit and we intend to vigorously defend against these claims.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Further, we may from time to time continue to be involved in various legal proceedings of a character normally incident to the ordinary course of our business, which we do not deem to be material to our business and results of operations.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_1A_RISK_FACTORS"></a><a name="ITEM_1A_RISK_FACTORS"></a>ITEM 1A. RISK FACTORS</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Our operations and financial results are subject to various risk and uncertainties, including those<font style="letter-spacing:0.05pt;"> </font>described<font style="letter-spacing:0.05pt;"> </font>below, any of which could<font style="letter-spacing:0.05pt;"> </font>adversely<font style="letter-spacing:0.05pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our business,<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>of operations,<font style="color:#000000;font-style:normal;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>condition<font style="letter-spacing:0.05pt;"> </font>and prospects.<font style="letter-spacing:0.05pt;"> </font>In such an event,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.05pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:-0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>decline,<font style="letter-spacing:0.05pt;"> </font>and you may lose<font style="letter-spacing:0.05pt;"> </font>all<font style="letter-spacing:0.05pt;"> </font>or part<font style="letter-spacing:0.05pt;"> </font>of your investment.<font style="letter-spacing:0.1pt;"> </font>Additional<font style="letter-spacing:0.05pt;"> </font>risks<font style="letter-spacing:0.05pt;"> </font>and uncertainties<font style="letter-spacing:0.15pt;"> </font>not presently<font style="letter-spacing:0.1pt;"> </font>known to us or that<font style="letter-spacing:0.05pt;"> </font>we currently<font style="letter-spacing:0.1pt;"> </font>deem immaterial<font style="letter-spacing:0.05pt;"> </font>may also<font style="letter-spacing:0.05pt;"> </font>impair<font style="letter-spacing:0.05pt;"> </font>our business<font style="letter-spacing:0.05pt;"> </font>operations. You should carefully consider the risk described below and the other information in this Quarterly Report on Form 10-Q, including our unaudited condensed consolidated financial statements and the related notes thereto, and &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations.&#8221;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related<font style="letter-spacing:0.05pt;"> </font>to Our Business</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We have limited<font style="letter-spacing:0.1pt;"> </font>commercial<font style="letter-spacing:0.1pt;"> </font>history<font style="letter-spacing:0.05pt;"> </font>and we have incurred<font style="letter-spacing:0.05pt;"> </font>significant<font style="letter-spacing:0.1pt;"> </font>losses<font style="letter-spacing:0.05pt;"> </font>since<font style="letter-spacing:0.05pt;"> </font>our inception.<font style="letter-spacing:0.05pt;"> </font>We anticipate that<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>continue<font style="letter-spacing:0.05pt;"> </font>to incur losses<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the foreseeable<font style="letter-spacing:0.1pt;"> </font>future,<font style="letter-spacing:0.05pt;"> </font>which, together<font style="letter-spacing:0.05pt;"> </font>with our limited<font style="letter-spacing:0.1pt;"> </font>operating history,<font style="letter-spacing:0.05pt;"> </font>makes<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>difficult<font style="letter-spacing:0.1pt;"> </font>to assess<font style="letter-spacing:0.05pt;"> </font>our future<font style="letter-spacing:0.05pt;"> </font>viabilit<font style="letter-spacing:0.1pt;">y</font>.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have a limited<font style="letter-spacing:0.1pt;"> </font>commercial<font style="letter-spacing:0.15pt;"> </font>history<font style="letter-spacing:0.05pt;"> </font>and have focused<font style="letter-spacing:0.05pt;"> </font>primarily<font style="letter-spacing:0.15pt;"> </font>on research<font style="letter-spacing:0.1pt;"> </font>and development,<font style="letter-spacing:0.1pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>design and engineering,<font style="letter-spacing:0.1pt;"> </font>establishing<font style="letter-spacing:0.1pt;"> </font>supply<font style="letter-spacing:0.05pt;"> </font>and manufacturing<font style="letter-spacing:0.15pt;"> </font>relationships,<font style="letter-spacing:0.15pt;"> </font>seeking<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>clearances<font style="letter-spacing:0.1pt;"> </font>and approvals<font style="letter-spacing:0.05pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup><font style="letter-spacing:0.1pt;"> </font>System and ARTAS<sup style="font-size:85%; vertical-align:top">&#174;</sup> iX System,<font style="letter-spacing:0.05pt;"> </font>and selling<font style="letter-spacing:0.1pt;"> </font>and marketing.<font style="letter-spacing:0.1pt;"> </font>We have incurred<font style="letter-spacing:0.1pt;"> </font>losses<font style="letter-spacing:0.05pt;"> </font>in each<font style="letter-spacing:0.05pt;"> </font>year<font style="letter-spacing:0.05pt;"> </font>since<font style="letter-spacing:0.05pt;"> </font>our inception<font style="letter-spacing:0.1pt;"> </font>in 2002. Our net<font style="letter-spacing:0.05pt;"> </font>losses were approximately $13.7 million for the six months ended June 30, 2018 and $17.8 million for the year ended December 31, 2017.<font style="letter-spacing:0.15pt;"> </font>As of June 30, 2018, we had an accumulated<font style="letter-spacing:0.1pt;"> </font>deficit<font style="letter-spacing:0.1pt;"> </font>of $178.2 million.<font style="letter-spacing:0.1pt;"> </font>We will<font style="letter-spacing:0.05pt;"> </font>continue<font style="letter-spacing:0.05pt;"> </font>to incur<font style="letter-spacing:0.05pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>expenses<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the foreseeable<font style="letter-spacing:0.1pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>as we expand our sales<font style="letter-spacing:0.05pt;"> </font>and marketing,<font style="letter-spacing:0.1pt;"> </font>research<font style="letter-spacing:0.1pt;"> </font>and development,<font style="letter-spacing:0.1pt;"> </font>and clinical<font style="letter-spacing:0.1pt;"> </font>and regulatory activities.<font style="letter-spacing:0.15pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>never<font style="letter-spacing:0.05pt;"> </font>generate<font style="letter-spacing:0.1pt;"> </font>sufficient<font style="letter-spacing:0.15pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> </font>to achieve<font style="letter-spacing:0.05pt;"> </font>or sustain<font style="letter-spacing:0.05pt;"> </font>profitability.<font style="letter-spacing:0.15pt;"> </font>Even if<font style="letter-spacing:0.05pt;"> </font>we do achieve profitability,<font style="letter-spacing:0.15pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to sustain<font style="letter-spacing:0.05pt;"> </font>or increase<font style="letter-spacing:0.1pt;"> </font>profitability.<font style="letter-spacing:0.15pt;"> </font>Furthermore,<font style="letter-spacing:0.1pt;"> </font>because<font style="letter-spacing:0.05pt;"> </font>of our limited operating<font style="letter-spacing:0.1pt;"> </font>history<font style="letter-spacing:0.05pt;"> </font>and because<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>aesthetic<font style="letter-spacing:0.1pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>rapidly<font style="letter-spacing:0.05pt;"> </font>evolving,<font style="letter-spacing:0.05pt;"> </font>we have limited<font style="letter-spacing:0.1pt;"> </font>insight<font style="letter-spacing:0.05pt;"> </font>into the<font style="letter-spacing:0.05pt;"> </font>trends<font style="letter-spacing:0.05pt;"> </font>or competitive<font style="letter-spacing:0.15pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>emerge<font style="letter-spacing:0.05pt;"> </font>and affect<font style="letter-spacing:0.1pt;"> </font>our business.<font style="letter-spacing:0.05pt;"> </font>Before<font style="letter-spacing:0.05pt;"> </font>investing,<font style="letter-spacing:0.1pt;"> </font>you should consider<font style="letter-spacing:0.05pt;"> </font>an investment<font style="letter-spacing:0.1pt;"> </font>in our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>considering the<font style="letter-spacing:0.05pt;"> </font>risks,<font style="letter-spacing:0.05pt;"> </font>uncertainties,<font style="letter-spacing:0.15pt;"> </font>and difficulties<font style="letter-spacing:0.15pt;"> </font>frequently encountered<font style="letter-spacing:0.1pt;"> </font>by early-stage<font style="letter-spacing:0.15pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>technology<font style="letter-spacing:0.05pt;"> </font>companies<font style="letter-spacing:0.1pt;"> </font>in rapidly<font style="letter-spacing:0.05pt;"> </font>evolving<font style="letter-spacing:0.05pt;"> </font>markets<font style="letter-spacing:0.1pt;"> </font>such as ours.<font style="letter-spacing:0.05pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to successfully<font style="letter-spacing:0.1pt;"> </font>address<font style="letter-spacing:0.05pt;"> </font>any or all<font style="letter-spacing:0.05pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>risks,<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>failure<font style="letter-spacing:0.1pt;"> </font>to adequately<font style="letter-spacing:0.1pt;"> </font>do so could<font style="letter-spacing:0.05pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>our business,<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>of operations,<font style="letter-spacing:0.1pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition<font style="letter-spacing:0.05pt;"> </font>to suffer.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to correctly<font style="letter-spacing:0.1pt;"> </font>estimate<font style="letter-spacing:0.1pt;"> </font>or control<font style="letter-spacing:0.05pt;"> </font>our future<font style="letter-spacing:0.05pt;"> </font>operating<font style="letter-spacing:0.05pt;"> </font>expenses,<font style="letter-spacing:0.05pt;"> </font>which could lead<font style="letter-spacing:0.05pt;"> </font>to cash shortfalls.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our operating<font style="letter-spacing:0.1pt;"> </font>expenses<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>fluctuate<font style="letter-spacing:0.1pt;"> </font>significantly<font style="letter-spacing:0.15pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>because of a variety<font style="letter-spacing:0.1pt;"> </font>of factors,<font style="letter-spacing:0.1pt;"> </font>many<font style="letter-spacing:0.05pt;"> </font>of which are<font style="letter-spacing:0.05pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>of our control.<font style="letter-spacing:0.05pt;"> </font>These factors<font style="letter-spacing:0.1pt;"> </font>include:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">cost</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of growing our ongoing commercialization</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">activities;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">costs</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of manufacturing</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and maintaining</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sufficient</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">inventories</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to meet</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">anticipated demand and inventory write-offs related to obsolete products or components;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><a name="_AEIOULastRenderedPageBreakAEIOU27"></a><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">costs</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of enhancing</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">existing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">functionality</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and development</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of new functionalities</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;font-family:Times New Roman;">s</font><font style="color:#231F20;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and ARTAS</font><font style="color:#231F20;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;font-family:Times New Roman;"> iX System</font><font style="color:#231F20;font-family:Times New Roman;">;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">costs</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of preparing,</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">filing,</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">prosecuting,</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">defending,</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and enforcing</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">patent</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">claims</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and other</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">patent related</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">costs,</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">including</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">litigation</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">costs</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and the</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">results</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of such litigation; </font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the variability of ARTAS procedures being performed between periods if particular high-volume practitioners perform a smaller number of procedures in a given period as a result of the concentration of procedures performed by certain practitioners;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">any product</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">liability</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">or other</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">lawsuits</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and the</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">costs</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">associated</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">with defending them</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">or the</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">results</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of such lawsuits;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">costs</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">associated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with conducting</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">business</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and maintaining</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">subsidiaries</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in foreign</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">jurisdictions;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">costs</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to attract</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and retain</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">personnel</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">skills</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">required</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">effective</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">operations;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">costs</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">associated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with being</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a public</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">company.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our budgeted<font style="letter-spacing:0.05pt;"> </font>expense<font style="letter-spacing:0.05pt;"> </font>levels<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>in part<font style="letter-spacing:0.05pt;"> </font>on our expectations<font style="letter-spacing:0.1pt;"> </font>concerning<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> Systems<font style="letter-spacing:0.05pt;"> </font>sales,<font style="letter-spacing:0.05pt;"> </font>servicing<font style="letter-spacing:0.1pt;"> </font>and procedure<font style="letter-spacing:0.05pt;">-based </font>fees.<font style="letter-spacing:0.05pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>be unable<font style="letter-spacing:0.05pt;"> </font>to reduce<font style="letter-spacing:0.05pt;"> </font>our expenditures<font style="letter-spacing:0.1pt;"> </font>in a timely manner<font style="letter-spacing:0.05pt;"> </font>to compensate<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>any unexpected<font style="letter-spacing:0.05pt;"> </font>shortfalls<font style="letter-spacing:0.15pt;"> </font>in revenue.<font style="letter-spacing:0.05pt;"> </font>Accordingly,<font style="letter-spacing:0.05pt;"> </font>a significant<font style="letter-spacing:0.15pt;"> </font>shortfall<font style="letter-spacing:0.1pt;"> </font>in market acceptance<font style="letter-spacing:0.1pt;"> </font>or demand<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>Systems<font style="letter-spacing:0.05pt;"> </font>and procedures<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>have an immediate<font style="letter-spacing:0.15pt;"> </font>and material<font style="letter-spacing:0.15pt;"> </font>adverse impact<font style="letter-spacing:0.1pt;"> </font>on our business<font style="letter-spacing:0.05pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">It<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>difficult<font style="letter-spacing:0.1pt;"> </font>to forecast<font style="letter-spacing:0.1pt;"> </font>our future<font style="letter-spacing:0.05pt;"> </font>performance<font style="letter-spacing:0.1pt;"> </font>and our financial<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>fluctuate<font style="letter-spacing:0.1pt;"> </font>unpredictably.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our limited<font style="letter-spacing:0.1pt;"> </font>commercial<font style="letter-spacing:0.15pt;"> </font>history<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>rapid<font style="letter-spacing:0.05pt;"> </font>evolution<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>markets<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>technologies<font style="letter-spacing:0.1pt;"> </font>and aesthetic products<font style="letter-spacing:0.05pt;"> </font>make<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>difficult<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>us to predict<font style="letter-spacing:0.1pt;"> </font>our future<font style="letter-spacing:0.05pt;"> </font>performance.<font style="letter-spacing:0.1pt;"> </font>Several factors,<font style="letter-spacing:0.1pt;"> </font>many<font style="letter-spacing:0.05pt;"> </font>of which are outside<font style="letter-spacing:0.05pt;"> </font>of our control,<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>contribute<font style="letter-spacing:0.1pt;"> </font>to fluctuations<font style="letter-spacing:0.15pt;"> </font>in our financial<font style="letter-spacing:0.1pt;"> </font>results,<font style="letter-spacing:0.1pt;"> </font>such as:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">physician</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">demand</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and procedure</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">usage</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">vary</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">quarter</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to quarter;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">delays in purchasing ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-family:Times New Roman;"> Systems in advance of the availability of implantation functionality, including, in particular, purchasing delays in international markets as we await regulatory clearance for the implantation function;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">inability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of physicians</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to obtain</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">necessary</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">financing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to purchase</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">changes</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">length</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">process</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">performance of new functionalities and system updates, such as the robotic implantation functionality in the new ARTAS iX System;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">performance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our international</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">distributors;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">positive</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or negative</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">media</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">coverage</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">procedures</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our competitors,</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or our industry</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">generally;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to maintain</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our current,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or obtain</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">further,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearances</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or approvals such as the regulatory clearances and approvals necessary to market the ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;font-family:Times New Roman;"> iX System outside the U.S.;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">delays</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in, or failure</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of, product</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and component</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">deliveries</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by our third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">manufacturers</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or suppliers;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">seasonal</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">variations</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in patient</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">demand</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">aesthetic</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">procedures;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">introduction</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of new aesthetic</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">procedures</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">compete</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">Systems;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">changes</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in accounting</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rules</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">cause</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">restatement</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our consolidated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">financial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">statements</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or have other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">adverse</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">effects;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">adverse</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">changes</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">economy</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">reduce</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">patient</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">demand</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">elective</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">aesthetic</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">procedures.</font></p></td></tr></table></div>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The long sales<font style="letter-spacing:0.05pt;"> </font>cycl<font style="letter-spacing:0.05pt;">e</font>, low unit volume<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>Systems<font style="letter-spacing:0.05pt;"> </font>and the historic<font style="letter-spacing:0.1pt;"> </font>seasonality<font style="letter-spacing:0.1pt;"> </font>of our industry,<font style="letter-spacing:0.05pt;"> </font>each may<font style="letter-spacing:0.05pt;"> </font>contribute<font style="letter-spacing:0.05pt;"> </font>to substantial<font style="letter-spacing:0.1pt;"> </font>fluctuations<font style="letter-spacing:0.1pt;"> </font>in our operating<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.05pt;"> </font>and stock<font style="letter-spacing:0.05pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>and make<font style="letter-spacing:0.05pt;"> </font>it difficult<font style="letter-spacing:0.1pt;"> </font>to compare<font style="letter-spacing:0.05pt;"> </font>our results<font style="letter-spacing:0.05pt;"> </font>of operations<font style="letter-spacing:0.05pt;"> </font>to prior<font style="letter-spacing:0.05pt;"> </font>periods<font style="letter-spacing:0.05pt;"> </font>and predict<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.05pt;"> </font>results.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU28"></a>We sell<font style="letter-spacing:0.05pt;"> </font>a relatively<font style="letter-spacing:0.15pt;"> </font>small<font style="letter-spacing:0.1pt;"> </font>number<font style="letter-spacing:0.05pt;"> </font>of ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>Systems<font style="letter-spacing:0.05pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>a relatively<font style="letter-spacing:0.15pt;"> </font>high price,<font style="letter-spacing:0.05pt;"> </font>with each<font style="letter-spacing:0.05pt;"> </font>sale<font style="letter-spacing:0.05pt;"> </font>of an ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System<font style="letter-spacing:0.05pt;"> </font>typically<font style="letter-spacing:0.1pt;"> </font>involving<font style="letter-spacing:0.05pt;"> </font>a significant<font style="letter-spacing:0.15pt;"> </font>amount<font style="letter-spacing:0.05pt;"> </font>of time.<font style="letter-spacing:0.05pt;"> </font>Because<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>relatively<font style="letter-spacing:0.15pt;"> </font>small<font style="letter-spacing:0.1pt;"> </font>number<font style="letter-spacing:0.05pt;"> </font>of ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> Systems<font style="letter-spacing:0.05pt;"> </font>we expect<font style="letter-spacing:0.05pt;"> </font>to sell<font style="letter-spacing:0.05pt;"> </font>in any period,<font style="letter-spacing:0.05pt;"> </font>each<font style="letter-spacing:0.05pt;"> </font>sale<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>represent<font style="letter-spacing:0.1pt;"> </font>a significant<font style="letter-spacing:0.15pt;"> </font>percentage of our revenue<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>a particular<font style="letter-spacing:0.15pt;"> </font>period.<font style="letter-spacing:0.05pt;"> </font>Furthermore,<font style="letter-spacing:0.1pt;"> </font>due to the<font style="letter-spacing:0.05pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>amount<font style="letter-spacing:0.05pt;"> </font>of time<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>can take<font style="letter-spacing:0.05pt;"> </font>to finalize<font style="color:#000000;"> </font>the<font style="letter-spacing:0.05pt;"> </font>sale<font style="letter-spacing:0.05pt;"> </font>of an ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>likely<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>a sale<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be recognized<font style="letter-spacing:0.1pt;"> </font>in a </p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">subsequent</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">period</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which could have a material</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">effect</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on our results</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">quarter</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to quarter</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and increase</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">volatility</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of quarterly</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results.</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our industry</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">is</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">characterized</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">by seasonally</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">lower</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">demand</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">during</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">third</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">quarter</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">calendar</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">year, generally</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">when both physicians</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and prospective</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">patients</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">take</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">summer</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vacation.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As a result</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of these</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">factor</font><font style="letter-spacing:0.1pt;">s</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">, future</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">fluctuations</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in quarterly</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">cause</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our revenue</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and cash</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">flows</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to be below analyst</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and investor expectations,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">cause</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">decline</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in our stock</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">price.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Due to future</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">fluctuations</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in revenue</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and costs,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">well as other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">potential</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">fluctuations,</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">you should</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">not rely</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">upon our operating</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in any particular</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">period</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as an indication</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of future</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">performance.</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we do not sell</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Systems</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as anticipated,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our operating</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">will</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">vary significantly</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">expectations.</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">selling</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">requires</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">significant</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">marketing</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">effort and expenditure</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in advance</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">receipt</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of revenue</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and our efforts</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">not result</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in a sale.</font></p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our recurring<font style="letter-spacing:0.05pt;"> </font>losses<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>operations<font style="letter-spacing:0.05pt;"> </font>and negative<font style="letter-spacing:0.05pt;"> </font>cash flows<font style="letter-spacing:0.05pt;"> </font>have raised<font style="letter-spacing:0.05pt;"> </font>substantial<font style="letter-spacing:0.1pt;"> </font>doubt regarding<font style="letter-spacing:0.05pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to continue<font style="letter-spacing:0.05pt;"> </font>as a going concern.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our independent<font style="letter-spacing:0.05pt;"> </font>registered<font style="letter-spacing:0.1pt;"> </font>public<font style="letter-spacing:0.05pt;"> </font>accounting<font style="letter-spacing:0.05pt;"> </font>firm<font style="letter-spacing:0.1pt;"> </font>included<font style="letter-spacing:0.05pt;"> </font>an explanatory paragraph<font style="letter-spacing:0.05pt;"> </font>in its<font style="letter-spacing:0.05pt;"> </font>report<font style="letter-spacing:0.05pt;"> </font>on our consolidated<font style="letter-spacing:0.1pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>statements<font style="letter-spacing:0.15pt;"> </font>as of, and for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>year<font style="letter-spacing:0.05pt;"> </font>ended, December<font style="letter-spacing:0.05pt;"> </font>31, 2017 that our recurring losses from operations and negative cash flows raise substantial doubt about our ability to continue as a going concern. Our ability<font style="letter-spacing:0.1pt;"> </font>to continue<font style="letter-spacing:0.05pt;"> </font>as a going concern<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>us to obtain<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>financing<font style="letter-spacing:0.1pt;"> </font>to fund our operations. <font style="color:#000000;">As of the filing date of this Quarterly Report, we believe our current cash and cash equivalents will not be sufficient to fund our operations for the next twelve months.</font> The perception<font style="letter-spacing:0.1pt;"> </font>of our ability<font style="letter-spacing:0.1pt;"> </font>to continue<font style="letter-spacing:0.05pt;"> </font>as a going concern<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>make<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>more<font style="letter-spacing:0.05pt;"> </font>difficult<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>us to obtain<font style="letter-spacing:0.05pt;"> </font>financing for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>continuation<font style="letter-spacing:0.1pt;"> </font>of our operations<font style="letter-spacing:0.1pt;"> </font>and could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>loss<font style="letter-spacing:0.05pt;"> </font>of confidence<font style="letter-spacing:0.1pt;"> </font>by investors,<font style="letter-spacing:0.1pt;"> </font>suppliers<font style="letter-spacing:0.1pt;"> </font>and employees.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We will<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.05pt;"> </font>substantial<font style="letter-spacing:0.1pt;"> </font>additional<font style="letter-spacing:0.05pt;"> </font>financing<font style="letter-spacing:0.05pt;"> </font>to achieve<font style="letter-spacing:0.05pt;"> </font>our goals,<font style="letter-spacing:0.05pt;"> </font>and a failure<font style="letter-spacing:0.05pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>this<font style="letter-spacing:0.05pt;"> </font>necessary capital<font style="letter-spacing:0.05pt;"> </font>when<font style="letter-spacing:-0.05pt;"> </font>needed on acceptable<font style="letter-spacing:0.1pt;"> </font>terms,<font style="letter-spacing:0.05pt;"> </font>or at all,<font style="letter-spacing:0.05pt;"> </font>could force<font style="letter-spacing:0.05pt;"> </font>us to delay,<font style="letter-spacing:0.05pt;"> </font>limit,<font style="letter-spacing:0.1pt;"> </font>reduce<font style="letter-spacing:0.05pt;"> </font>or terminate<font style="letter-spacing:0.1pt;"> </font>our product<font style="letter-spacing:0.05pt;"> </font>development,<font style="letter-spacing:0.1pt;"> </font>commercialization<font style="letter-spacing:0.2pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>operations<font style="letter-spacing:0.05pt;"> </font>or efforts.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Since<font style="letter-spacing:0.05pt;"> </font>our inception,<font style="letter-spacing:0.1pt;"> </font>we have invested<font style="letter-spacing:0.05pt;"> </font>a significant<font style="letter-spacing:0.15pt;"> </font>portion<font style="letter-spacing:0.05pt;"> </font>of our efforts<font style="letter-spacing:0.1pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>resources<font style="letter-spacing:0.1pt;"> </font>in research<font style="letter-spacing:0.1pt;"> </font>and development<font style="letter-spacing:0.1pt;"> </font>and sales<font style="letter-spacing:0.05pt;"> </font>and marketing<font style="letter-spacing:0.1pt;"> </font>activities.<font style="letter-spacing:0.15pt;"> </font>Research<font style="letter-spacing:0.05pt;"> </font>and development,<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials,<font style="letter-spacing:0.1pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>engineering, ongoing product<font style="letter-spacing:0.05pt;"> </font>upgrades<font style="letter-spacing:0.05pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>enhancements<font style="letter-spacing:0.1pt;"> </font>such as software-updates<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>Systems<font style="letter-spacing:0.05pt;"> </font>and seeking regulatory<font style="letter-spacing:0.1pt;"> </font>clearances<font style="letter-spacing:0.1pt;"> </font>and approvals<font style="letter-spacing:0.05pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>products will<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>substantial<font style="letter-spacing:0.1pt;"> </font>funds<font style="letter-spacing:0.05pt;"> </font>to complete.<font style="letter-spacing:0.1pt;"> </font>As of June 30, 2018, we had capital resources<font style="letter-spacing:0.1pt;"> </font>consisting<font style="letter-spacing:0.1pt;"> </font>of cash<font style="letter-spacing:0.05pt;"> </font>and cash<font style="letter-spacing:0.05pt;"> </font>equivalents<font style="letter-spacing:0.1pt;"> </font>of $16.9 million.<font style="letter-spacing:0.1pt;"> In connection with our IPO, we raised an additional $22.1 million of proceeds, net of underwriting discounts and commissions, and offering expenses. </font>We believe<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>continue<font style="letter-spacing:0.05pt;"> </font>to expend substantial<font style="letter-spacing:0.1pt;"> </font>resources<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>foreseeable<font style="letter-spacing:0.1pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>in connection<font style="letter-spacing:0.05pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>ongoing commercializing<font style="letter-spacing:0.2pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System,<font style="letter-spacing:0.05pt;"> </font>increasing<font style="letter-spacing:0.1pt;"> </font>our sales<font style="letter-spacing:0.05pt;"> </font>and marketing<font style="letter-spacing:0.1pt;"> </font>efforts,<font style="letter-spacing:0.1pt;"> </font>and continuing<font style="letter-spacing:0.05pt;"> </font>research<font style="letter-spacing:0.1pt;"> </font>and development<font style="letter-spacing:0.1pt;"> </font>and product enhancements<font style="letter-spacing:0.1pt;"> </font>activities.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We believe<font style="letter-spacing:0.05pt;"> </font>our existing<font style="letter-spacing:0.1pt;"> </font>cash<font style="letter-spacing:0.05pt;"> </font>and cash<font style="letter-spacing:0.05pt;"> </font>equivalents and cash expected to be generated from the sale of our products will not be sufficient for us to fund our planned operations for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>next<font style="letter-spacing:0.05pt;"> </font>twelve<font style="letter-spacing:0.05pt;"> </font>months.<font style="letter-spacing:0.05pt;"> </font>Therefore, we will need additional capital to fund our future operations. In addition, our operating<font style="letter-spacing:0.1pt;"> </font>plans<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>change as a result<font style="letter-spacing:0.1pt;"> </font>of many<font style="letter-spacing:0.05pt;"> </font>factors<font style="letter-spacing:0.1pt;"> some of which may be </font>unknown to us, and we may<font style="letter-spacing:0.05pt;"> </font>need to seek<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>funds<font style="letter-spacing:0.05pt;"> </font>sooner<font style="letter-spacing:0.05pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>planned, through<font style="letter-spacing:0.05pt;"> </font>public<font style="letter-spacing:0.05pt;"> </font>or private<font style="letter-spacing:0.1pt;"> </font>equity<font style="letter-spacing:0.05pt;"> </font>or debt<font style="letter-spacing:0.05pt;"> </font>financings<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>sources,<font style="letter-spacing:0.05pt;"> </font>such as strategic<font style="letter-spacing:0.1pt;"> </font>collaborations.<font style="letter-spacing:0.15pt;"> </font>Such financing<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in dilution<font style="letter-spacing:0.1pt;"> </font>to stockholders,<font style="letter-spacing:0.1pt;"> </font>imposition<font style="letter-spacing:0.1pt;"> </font>of burdensome<font style="letter-spacing:0.05pt;"> </font>debt<font style="letter-spacing:0.05pt;"> </font>covenants<font style="letter-spacing:0.05pt;"> </font>and repayment obligations,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>licensing<font style="letter-spacing:0.1pt;"> </font>of rights<font style="letter-spacing:0.05pt;"> </font>to our technology<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>restrictions<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our business.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>seek<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>capital<font style="letter-spacing:0.1pt;"> </font>due to favorable<font style="letter-spacing:0.1pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>conditions<font style="letter-spacing:0.1pt;"> </font>or strategic<font style="letter-spacing:0.1pt;"> </font>considerations<font style="letter-spacing:0.15pt;"> </font>even if<font style="letter-spacing:0.05pt;"> </font>we believe<font style="letter-spacing:0.05pt;"> </font>we have sufficient<font style="letter-spacing:0.15pt;"> </font>funds<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our current<font style="letter-spacing:0.1pt;"> </font>or future<font style="letter-spacing:0.05pt;"> </font>operating<font style="letter-spacing:0.1pt;"> </font>plans.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Additional<font style="letter-spacing:0.05pt;"> </font>funds<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be available<font style="letter-spacing:0.1pt;"> </font>when we need them,<font style="letter-spacing:0.05pt;"> </font>on terms<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>acceptable<font style="letter-spacing:0.1pt;"> </font>to us, or at<font style="letter-spacing:0.05pt;"> </font>all.<font style="letter-spacing:0.05pt;"> </font>If adequate<font style="letter-spacing:0.05pt;"> </font>funds<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>not available<font style="letter-spacing:0.1pt;"> </font>to us on a timely<font style="letter-spacing:0.1pt;"> </font>basis,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be required<font style="letter-spacing:0.1pt;"> </font>to:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">delay</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or curtail</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our efforts</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to develop</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">enhancements</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">any clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trials that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be required</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to market</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such enhancements;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">delay</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or curtail</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our plans</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to increase</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and expand our sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">efforts;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">delay</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or curtail</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our plans</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to enhance</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our customer</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">support</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">activities.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are<font style="letter-spacing:0.05pt;"> </font>restricted<font style="letter-spacing:0.15pt;"> </font>by covenants<font style="letter-spacing:0.05pt;"> </font>in the Solar Agreement. These covenants<font style="letter-spacing:0.05pt;"> </font>restrict,<font style="letter-spacing:0.15pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things,<font style="letter-spacing:0.05pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to incur<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>debt<font style="letter-spacing:0.05pt;"> </font>without<font style="letter-spacing:0.05pt;"> Solar&#8217;s </font>consent,<font style="letter-spacing:0.05pt;"> </font>which may limit<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>funds. In addition, the Solar Agreement contains certain minimum liquidity and minimum revenue covenants, which, if we fail to maintain or achieve, will result in a default under the agreement and the requirement for us to repay all outstanding principal amounts and accrued interest repay all amounts outstanding</p>
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<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU29"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We are dependent</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">upon the success</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">of the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">System,</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">which has a limited</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">commercial</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">history.</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">we are unsuccessful</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">in developing</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">the market</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">for</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">robotic</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">hair restoration</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or the market</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">acceptance</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">for</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"> System</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">fails</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">to grow significantly,</font><font style="letter-spacing:0.15pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">our business</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">and future</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">prospects</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">will</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">be harmed.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We commenced<font style="letter-spacing:0.1pt;"> </font>commercial<font style="letter-spacing:0.15pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>follicle<font style="letter-spacing:0.1pt;"> </font>dissection<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>in 2011 and expect<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> </font>we generate<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>both system<font style="letter-spacing:0.05pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>and servicing<font style="letter-spacing:0.1pt;"> </font>as well<font style="letter-spacing:0.05pt;"> </font>as recurring<font style="letter-spacing:0.1pt;"> </font>procedure-based fees<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>account<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>all<font style="letter-spacing:0.05pt;"> </font>of our revenue<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>foreseeable<font style="letter-spacing:0.1pt;"> </font>future.<font style="letter-spacing:0.05pt;"> </font>Accordingly,<font style="letter-spacing:0.05pt;"> </font>our success<font style="letter-spacing:0.05pt;"> </font>depends<font style="letter-spacing:0.05pt;"> </font>on the acceptance<font style="letter-spacing:0.1pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>physicians<font style="letter-spacing:0.1pt;"> </font>and patients<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>as the<font style="letter-spacing:0.05pt;"> </font>preferred<font style="letter-spacing:0.1pt;"> </font>system<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>performing<font style="letter-spacing:0.1pt;"> </font>hair restoration<font style="letter-spacing:0.15pt;"> </font>surger<font style="letter-spacing:0.05pt;">y</font>. Acceptance<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>by physicians<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>significantly<font style="letter-spacing:0.15pt;"> </font>dependent<font style="letter-spacing:0.05pt;"> </font>on our ability<font style="letter-spacing:0.1pt;"> </font>to convince<font style="letter-spacing:0.05pt;"> </font>physicians<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>benefits<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>to their<font style="letter-spacing:0.05pt;"> </font>practices<font style="letter-spacing:0.1pt;"> </font>and, accordingly,<font style="letter-spacing:0.1pt;"> </font>develop<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>market for<font style="letter-spacing:0.05pt;"> </font>robotic-assisted<font style="letter-spacing:0.2pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>restoration<font style="letter-spacing:0.15pt;"> </font>surgery.<font style="letter-spacing:0.05pt;"> </font>Acceptance<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>by patients<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>equally important<font style="letter-spacing:0.1pt;"> </font>as patient<font style="letter-spacing:0.1pt;"> </font>demand<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>influence<font style="letter-spacing:0.1pt;"> </font>physicians<font style="letter-spacing:0.1pt;"> </font>to offer<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedure,<font style="letter-spacing:0.05pt;"> </font><font style="letter-spacing:0.1pt;">and </font>the<font style="letter-spacing:0.05pt;"> </font>degree<font style="letter-spacing:0.05pt;"> </font>of market<font style="letter-spacing:0.1pt;"> </font>acceptance<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>by physicians<font style="letter-spacing:0.1pt;"> </font>and patients<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>unproven.<font style="letter-spacing:0.05pt;"> </font>We believe<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>market acceptance<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>depend on many<font style="letter-spacing:0.05pt;"> </font>factors,<font style="letter-spacing:0.1pt;"> </font>including:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">perceived</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">advantages</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or disadvantages</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">compared</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">hair</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">restoration products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and treatments;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">safety</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and efficacy</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">relative</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">hair</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">restoration</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and treatments;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">price</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">relative</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">hair</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">restoration</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and treatments;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our success</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in expanding</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">organization;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">effectiveness</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our marketing,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">advertising,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and commercialization</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">initiatives;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our success</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in adding</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">new functionalities</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="font-weight:bold;font-style:italic;letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and enhancing</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">existing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">functions;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to obtain</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to market</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="font-weight:bold;font-style:italic;letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">additional</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">treatment indications</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">U.S.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Further, the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> iX System, which was launched in June 2018, includes our recently approved robotic implantation functionality. As this functionality is new, it is possible that it could include defaults, &#8220;bugs&#8221; or present other technical issues which could prompt potential physician customers to delay their purchase of the ARTAS iX System or could prompt physicians that have purchased the ARTAS iX System to either return or not utilize the system.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We cannot<font style="letter-spacing:0.05pt;"> </font>assure<font style="letter-spacing:0.05pt;"> </font>you that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>achieve<font style="letter-spacing:0.05pt;"> </font>broad<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>acceptance<font style="letter-spacing:0.1pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>physicians<font style="letter-spacing:0.1pt;"> </font>and patients.<font style="letter-spacing:0.1pt;"> </font>Because<font style="letter-spacing:0.05pt;"> </font>we expect<font style="letter-spacing:0.05pt;"> </font>to derive<font style="letter-spacing:0.05pt;"> </font>substantially<font style="letter-spacing:0.15pt;"> </font>all<font style="letter-spacing:0.05pt;"> </font>of our revenue<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>foreseeable<font style="letter-spacing:0.1pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System<font style="letter-spacing:0.05pt;"> </font>sales,<font style="letter-spacing:0.05pt;"> </font>servicing<font style="letter-spacing:0.1pt;"> </font>and procedure<font style="letter-spacing:0.05pt;">-based </font>fees,<font style="letter-spacing:0.05pt;"> </font>any failure<font style="letter-spacing:0.1pt;"> </font>of this<font style="letter-spacing:0.05pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>to satisfy<font style="letter-spacing:0.1pt;"> </font>physician<font style="letter-spacing:0.05pt;"> </font>or patient demand<font style="letter-spacing:0.05pt;"> </font>or to achieve<font style="letter-spacing:0.05pt;"> </font>meaningful<font style="letter-spacing:0.1pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>acceptance<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our business<font style="letter-spacing:0.05pt;"> </font>and future<font style="letter-spacing:0.05pt;"> </font>prospects.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>there<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>not sufficient<font style="letter-spacing:0.1pt;"> </font>patient<font style="letter-spacing:0.05pt;"> </font>demand for<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedures,<font style="letter-spacing:0.05pt;"> </font>our financial<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.05pt;"> </font>and future<font style="letter-spacing:0.05pt;"> </font>prospects<font style="letter-spacing:0.05pt;"> </font>will be harmed.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>an elective<font style="letter-spacing:0.1pt;"> </font>aesthetic<font style="letter-spacing:0.1pt;"> </font>procedure,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>cost<font style="letter-spacing:0.05pt;"> </font>of which must<font style="letter-spacing:0.05pt;"> </font>be borne<font style="letter-spacing:0.05pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>patient,<font style="letter-spacing:0.1pt;"> </font>and is not covered<font style="letter-spacing:0.05pt;"> </font>by or reimbursable<font style="letter-spacing:0.15pt;"> </font>through<font style="letter-spacing:0.05pt;"> </font>government<font style="letter-spacing:0.1pt;"> </font>or private<font style="letter-spacing:0.1pt;"> </font>health<font style="letter-spacing:0.05pt;"> </font>insurance.<font style="letter-spacing:0.1pt;"> </font>The decision<font style="letter-spacing:0.05pt;"> </font>to undergo<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>thus<font style="letter-spacing:0.05pt;"> </font>driven<font style="letter-spacing:0.05pt;"> </font>by patient<font style="letter-spacing:0.1pt;"> </font>demand,<font style="letter-spacing:0.05pt;"> </font>which may<font style="letter-spacing:0.05pt;"> </font>be influenced<font style="letter-spacing:0.1pt;"> </font>by a number<font style="letter-spacing:0.05pt;"> </font>of factors,<font style="letter-spacing:0.1pt;"> </font>such as:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">success</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">programs;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">extent</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to which our physician</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">customers</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">recommend</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to their</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">patients;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our success</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in attracting</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">consumers</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">who have not previously</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">undergone</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">hair</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">restoration</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">treatment;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">extent</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to which the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">procedure</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">satisfies</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">patient</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">expectations;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to properly</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">train</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our physician</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">customers</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">use of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">so that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">their patients</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">do not experience</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">excessive</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">discomfort</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">during</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">treatment</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or adverse</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">side</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">effects;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">cost,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">safety,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and effectiveness</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">versus</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">aesthetic</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">treatments;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">consumer</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sentiment</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">about</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">benefits</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and risks</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of aesthetic</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">procedures</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">generally</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;font-family:Times New Roman;"> System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in particular;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">success</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of any direct-to-consumer</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">efforts</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">we may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">initiate;</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">general</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">consumer</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">confidence,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be impacted</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by economic</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and political</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">conditions</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">outside</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our control.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our financial<font style="letter-spacing:0.1pt;"> </font>performance<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be materially<font style="letter-spacing:0.15pt;"> </font>harmed<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>event<font style="letter-spacing:0.05pt;"> </font>we cannot<font style="letter-spacing:0.05pt;"> </font>generate<font style="letter-spacing:0.1pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>patient<font style="letter-spacing:0.1pt;"> </font>demand for<font style="letter-spacing:0.05pt;"> </font>procedures<font style="letter-spacing:0.1pt;"> </font>performed<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">29</a></p>
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<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU30"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our success</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">depends in</font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"> part</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">upon patient</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">satisfaction</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">with the effectiveness</font><font style="letter-spacing:0.15pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">of the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">System.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In order<font style="letter-spacing:0.05pt;"> </font>to generate<font style="letter-spacing:0.1pt;"> </font>repeat<font style="letter-spacing:0.05pt;"> </font>and referral<font style="letter-spacing:0.15pt;"> </font>business,<font style="letter-spacing:0.05pt;"> </font>patients<font style="letter-spacing:0.1pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>be satisfied<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>effectiveness<font style="letter-spacing:0.15pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>not done correctly,<font style="letter-spacing:0.1pt;"> </font>and or the<font style="letter-spacing:0.05pt;"> </font>patient<font style="letter-spacing:0.1pt;"> </font>suffers<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>complications<font style="letter-spacing:0.15pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effects,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>patient<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be satisfied<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>benefits<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.<font style="letter-spacing:0.05pt;"> </font>Furthermore,<font style="letter-spacing:0.1pt;"> </font>if the<font style="letter-spacing:0.05pt;"> </font>transplanted<font style="letter-spacing:0.1pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>follicles<font style="letter-spacing:0.15pt;"> </font>do not grow or survive<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>transplant,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>patient<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>likely<font style="letter-spacing:0.05pt;"> </font>not view the<font style="letter-spacing:0.05pt;"> </font>procedure as having<font style="letter-spacing:0.05pt;"> </font>a satisfactory<font style="letter-spacing:0.15pt;"> </font>outcome.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>patients<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>not satisfied<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>aesthetic<font style="letter-spacing:0.1pt;"> </font>benefits<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System or feel<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>too expensive<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>obtained,<font style="letter-spacing:0.05pt;"> </font>our reputation<font style="letter-spacing:0.1pt;"> </font>and future<font style="letter-spacing:0.05pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>suffer.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our success<font style="letter-spacing:0.05pt;"> </font>depends on growing physician<font style="letter-spacing:0.05pt;"> </font>adoption<font style="letter-spacing:0.05pt;"> </font>and use of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our ability<font style="letter-spacing:0.1pt;"> </font>to increase<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>number<font style="letter-spacing:0.05pt;"> </font>of physicians<font style="letter-spacing:0.1pt;"> </font>willing<font style="letter-spacing:0.05pt;"> </font>to make<font style="letter-spacing:0.05pt;"> </font>a significant<font style="letter-spacing:0.15pt;"> </font>capital<font style="letter-spacing:0.1pt;"> </font>expenditure<font style="letter-spacing:0.1pt;"> </font>to purchase<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>and make<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>a significant<font style="letter-spacing:0.15pt;"> </font>part<font style="letter-spacing:0.05pt;"> </font>of their<font style="letter-spacing:0.05pt;"> </font>practices,<font style="letter-spacing:0.1pt;"> </font>depends<font style="letter-spacing:0.05pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>success<font style="letter-spacing:0.05pt;"> </font>of our sales<font style="letter-spacing:0.05pt;"> </font>and marketing<font style="letter-spacing:0.1pt;"> </font>programs.<font style="letter-spacing:0.1pt;"> </font>We must<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to demonstrate<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>cost<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>a physician<font style="letter-spacing:0.05pt;"> </font>can derive<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>performing<font style="letter-spacing:0.1pt;"> </font>ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedures<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>compelling<font style="letter-spacing:0.1pt;"> </font>when compared<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>and revenue<font style="letter-spacing:0.05pt;"> </font>associated<font style="letter-spacing:0.1pt;"> </font>with alternative<font style="letter-spacing:0.15pt;"> </font>aesthetic<font style="letter-spacing:0.1pt;"> </font>treatments<font style="letter-spacing:0.15pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>physician<font style="letter-spacing:0.05pt;"> </font>can offer.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>we believe<font style="letter-spacing:0.05pt;"> </font>our marketing<font style="letter-spacing:0.1pt;"> </font>programs,<font style="letter-spacing:0.1pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>and practice<font style="letter-spacing:0.1pt;"> </font>development<font style="letter-spacing:0.1pt;"> </font>support,<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be critical<font style="letter-spacing:0.15pt;"> </font>to increasing<font style="letter-spacing:0.1pt;"> </font>utilization and awareness<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>but these<font style="letter-spacing:0.05pt;"> </font>programs<font style="letter-spacing:0.1pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>physician<font style="letter-spacing:0.05pt;"> </font>commitment<font style="letter-spacing:0.15pt;"> </font>and involvement<font style="letter-spacing:0.1pt;"> </font>to succeed.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>unable<font style="letter-spacing:0.05pt;"> </font>to increase<font style="letter-spacing:0.1pt;"> </font>physician<font style="letter-spacing:0.05pt;"> </font>adoption<font style="letter-spacing:0.05pt;"> </font>and use of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>our financial performance<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be adversely<font style="letter-spacing:0.1pt;"> </font>affected.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our inability<font style="letter-spacing:0.1pt;"> </font>to effectively<font style="letter-spacing:0.15pt;"> </font>compete<font style="letter-spacing:0.05pt;"> </font>with competitive<font style="letter-spacing:0.15pt;"> </font>hair restoration<font style="letter-spacing:0.1pt;"> </font>treatments<font style="letter-spacing:0.1pt;"> </font>or procedures<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>prevent<font style="letter-spacing:0.05pt;"> </font>us from<font style="letter-spacing:0.05pt;"> </font>achieving<font style="letter-spacing:0.05pt;"> </font>significant<font style="letter-spacing:0.1pt;"> </font>market<font style="letter-spacing:0.05pt;"> </font>penetration<font style="letter-spacing:0.05pt;"> </font>or improving<font style="letter-spacing:0.05pt;"> </font>our operating<font style="letter-spacing:0.05pt;"> </font>results.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The medical<font style="letter-spacing:0.1pt;"> </font>technology<font style="letter-spacing:0.05pt;"> </font>and aesthetic<font style="letter-spacing:0.1pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>markets<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>highly<font style="letter-spacing:0.05pt;"> </font>competitive<font style="letter-spacing:0.15pt;"> </font>and dynamic,<font style="letter-spacing:0.05pt;"> </font>and are<font style="letter-spacing:0.05pt;"> </font>characterized by rapid<font style="letter-spacing:0.05pt;"> </font>and substantial<font style="letter-spacing:0.1pt;"> </font>technological<font style="letter-spacing:0.1pt;"> </font>development<font style="letter-spacing:0.1pt;"> </font>and product<font style="letter-spacing:0.05pt;"> </font>innovations.<font style="letter-spacing:0.1pt;"> </font>We designed<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>to assist<font style="letter-spacing:0.1pt;"> </font>physicians<font style="letter-spacing:0.1pt;"> </font>in performing<font style="letter-spacing:0.1pt;"> </font>follicular<font style="letter-spacing:0.15pt;"> </font>unit<font style="letter-spacing:0.05pt;"> </font>extraction<font style="letter-spacing:0.1pt;"> </font>surgery.<font style="letter-spacing:0.05pt;"> </font>Demand for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>and ARTAS procedures<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be limited<font style="letter-spacing:0.1pt;"> </font>by other<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>and technologies.<font style="letter-spacing:0.1pt;"> </font>Competition<font style="letter-spacing:0.1pt;"> </font>to address<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>loss<font style="letter-spacing:0.05pt;"> </font>comes<font style="letter-spacing:0.05pt;"> </font>from various<font style="letter-spacing:0.05pt;"> </font>sources,<font style="letter-spacing:0.05pt;"> </font>including:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">therapeutic</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">options</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">Rogaine, which is</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">applied</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">topically,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and Propecia,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which is</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ingested,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">both of which have been approved</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">FDA;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">non-surgical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">options,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such as wigs, hair-loss</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">concealer</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sprays</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and similar</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">surgical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">alternatives,</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">hair</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">transplantation</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">surgery</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">using</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">strip</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">surgery</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">method</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or using</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">hand-held</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">devices.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Surgical<font style="letter-spacing:0.05pt;"> </font>alternatives<font style="letter-spacing:0.15pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to compete<font style="letter-spacing:0.05pt;"> </font>more<font style="letter-spacing:0.05pt;"> </font>effectively<font style="letter-spacing:0.15pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedure in established<font style="letter-spacing:0.1pt;"> </font>practices<font style="letter-spacing:0.1pt;"> </font>with trained<font style="letter-spacing:0.1pt;"> </font>staff<font style="letter-spacing:0.1pt;"> </font>and workflows<font style="letter-spacing:0.05pt;"> </font>built<font style="letter-spacing:0.05pt;"> </font>around<font style="letter-spacing:0.05pt;"> </font>performing<font style="letter-spacing:0.1pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>surgical<font style="letter-spacing:0.1pt;"> </font>alternatives. Practices<font style="letter-spacing:0.1pt;"> </font>experienced<font style="letter-spacing:0.1pt;"> </font>in offering<font style="letter-spacing:0.1pt;"> </font>strip<font style="letter-spacing:0.05pt;"> </font>surgery<font style="letter-spacing:0.05pt;"> </font>or follicular<font style="letter-spacing:0.15pt;"> </font>unit<font style="letter-spacing:0.05pt;"> </font>extractions<font style="letter-spacing:0.1pt;"> </font>using<font style="letter-spacing:0.05pt;"> </font>hand-held<font style="letter-spacing:0.05pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be reluctant<font style="letter-spacing:0.1pt;"> </font>to incorporate or convert<font style="letter-spacing:0.05pt;"> </font>their<font style="letter-spacing:0.05pt;"> </font>practices<font style="letter-spacing:0.1pt;"> </font>to offer<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedures<font style="letter-spacing:0.1pt;"> </font>due to the<font style="letter-spacing:0.05pt;"> </font>effort<font style="letter-spacing:0.1pt;"> </font>involved<font style="letter-spacing:0.05pt;"> </font>to make such changes.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Many options<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to provide<font style="letter-spacing:0.05pt;"> </font>satisfactory<font style="letter-spacing:0.15pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>male<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>loss, generally<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>a lower<font style="letter-spacing:0.05pt;"> </font>cost<font style="letter-spacing:0.05pt;"> </font>to the patient<font style="letter-spacing:0.1pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.<font style="letter-spacing:0.05pt;"> </font>As a result,<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>patients<font style="letter-spacing:0.1pt;"> </font>choose<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>competitive<font style="letter-spacing:0.15pt;"> </font>alternatives,<font style="letter-spacing:0.15pt;"> </font>our results<font style="letter-spacing:0.1pt;"> </font>of operation<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be adversely<font style="letter-spacing:0.1pt;"> </font>affected.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We also face competition from other aesthetic devices that physicians may consider adding to their practice in lieu of building a hair restoration practice, for instance CoolSculpting, which is utilized for body contouring or cosmetic fat reduction. As a result, if physicians choose these competitive products over building a hair restoration practice with the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System, our results of operation could be adversely affected.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Some of our competitors<font style="letter-spacing:0.15pt;"> </font>have a broad<font style="letter-spacing:0.05pt;"> </font>range<font style="letter-spacing:0.05pt;"> </font>of product<font style="letter-spacing:0.05pt;"> </font>offerings,<font style="letter-spacing:0.1pt;"> </font>large<font style="letter-spacing:0.05pt;"> </font>direct<font style="letter-spacing:0.1pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>forces,<font style="letter-spacing:0.05pt;"> </font>and long-term customer<font style="letter-spacing:0.1pt;"> </font>relationships<font style="letter-spacing:0.15pt;"> </font>with our target<font style="letter-spacing:0.1pt;"> </font>physicians,<font style="letter-spacing:0.1pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>inhibit<font style="letter-spacing:0.1pt;"> </font>our market<font style="letter-spacing:0.1pt;"> </font>penetration<font style="letter-spacing:0.1pt;"> </font>efforts.<font style="letter-spacing:0.1pt;"> </font>Our potential<font style="letter-spacing:0.1pt;"> </font>physician<font style="letter-spacing:0.05pt;"> </font>customers<font style="letter-spacing:0.1pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>need to recoup<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>cost<font style="letter-spacing:0.05pt;"> </font>of expensive<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>they<font style="letter-spacing:0.05pt;"> </font>have already purchased<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>our competitors,<font style="letter-spacing:0.15pt;"> </font>and thus<font style="letter-spacing:0.05pt;"> </font>they<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>decide<font style="letter-spacing:0.05pt;"> </font>to delay<font style="letter-spacing:0.05pt;"> </font>purchasing,<font style="letter-spacing:0.05pt;"> </font>or not to purchase,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Many of our competitors<font style="letter-spacing:0.15pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>large,<font style="letter-spacing:0.05pt;"> </font>experienced<font style="letter-spacing:0.1pt;"> </font>companies<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>have substantially<font style="letter-spacing:0.15pt;"> </font>greater<font style="letter-spacing:0.1pt;"> </font>resources<font style="letter-spacing:0.1pt;"> </font>and brand recognition<font style="letter-spacing:0.1pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>we do. Competition<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in price-cutting,<font style="letter-spacing:0.15pt;"> </font>reduced<font style="letter-spacing:0.05pt;"> </font>profit<font style="letter-spacing:0.1pt;"> </font>margins,<font style="letter-spacing:0.1pt;"> </font>and limited<font style="letter-spacing:0.1pt;"> </font>market share,<font style="letter-spacing:0.05pt;"> </font>any of which would harm<font style="letter-spacing:0.05pt;"> </font>our business,<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>condition,<font style="letter-spacing:0.05pt;"> </font>and results<font style="letter-spacing:0.1pt;"> </font>of operations.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">30</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU31"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">not be able</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">to establish</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or strengthen</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">our brand.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We believe<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>establishing<font style="letter-spacing:0.1pt;"> </font>and strengthening<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>Restoration<font style="letter-spacing:0.1pt;"> </font>Robotics<font style="letter-spacing:0.05pt;"> </font>and ARTAS<font style="letter-spacing:-0.1pt;"> </font>brand<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>critical<font style="letter-spacing:0.15pt;"> </font>to achieving<font style="letter-spacing:0.05pt;"> </font>widespread<font style="letter-spacing:0.05pt;"> </font>acceptance<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>particularly<font style="letter-spacing:0.15pt;"> </font>because<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>highly<font style="letter-spacing:0.05pt;"> </font>competitive<font style="letter-spacing:0.15pt;"> </font>nature<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>aesthetic<font style="letter-spacing:0.1pt;"> </font>treatments<font style="letter-spacing:0.15pt;"> </font>and procedures<font style="letter-spacing:0.1pt;"> </font>to address<font style="letter-spacing:0.05pt;"> </font>male<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>loss. Promoting<font style="letter-spacing:0.05pt;"> </font>and positioning<font style="letter-spacing:0.1pt;"> </font>our brand<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>depend largely<font style="letter-spacing:0.1pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>success<font style="letter-spacing:0.05pt;"> </font>of our marketing<font style="letter-spacing:0.1pt;"> </font>efforts<font style="letter-spacing:0.1pt;"> </font>and our ability<font style="letter-spacing:0.1pt;"> </font>to provide<font style="letter-spacing:0.05pt;"> </font>physicians<font style="letter-spacing:0.1pt;"> </font>with a reliable<font style="letter-spacing:0.1pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>to assist<font style="letter-spacing:0.1pt;"> </font>them<font style="letter-spacing:0.05pt;"> </font>in performing<font style="letter-spacing:0.1pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>restoration<font style="letter-spacing:0.15pt;"> </font>surger<font style="letter-spacing:0.05pt;">y</font>. Given the<font style="letter-spacing:0.05pt;"> </font>established<font style="letter-spacing:0.1pt;"> </font>nature<font style="letter-spacing:0.05pt;"> </font>of our competitors,<font style="letter-spacing:0.15pt;"> </font>and our limited<font style="letter-spacing:0.1pt;"> </font>commercialization<font style="letter-spacing:0.2pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>U.S., it<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>likely<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>our future<font style="letter-spacing:0.05pt;"> </font>marketing<font style="letter-spacing:0.1pt;"> </font>efforts<font style="letter-spacing:0.1pt;"> </font>will require<font style="letter-spacing:0.1pt;"> </font>us to incur<font style="letter-spacing:0.05pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>expenses.<font style="letter-spacing:0.05pt;"> </font>These brand<font style="letter-spacing:0.05pt;"> </font>promotion<font style="letter-spacing:0.1pt;"> </font>activities<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not yield<font style="letter-spacing:0.05pt;"> </font>increased sales<font style="letter-spacing:0.05pt;"> </font>and, even if<font style="letter-spacing:0.05pt;"> </font>they<font style="letter-spacing:0.05pt;"> </font>do, any sales<font style="letter-spacing:0.05pt;"> </font>increases<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not offset<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>expenses<font style="letter-spacing:0.05pt;"> </font>we incur<font style="letter-spacing:0.05pt;"> </font>to promote<font style="letter-spacing:0.05pt;"> </font>our brand.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we fail<font style="letter-spacing:0.05pt;"> </font>to successfully<font style="letter-spacing:0.1pt;"> </font>promote<font style="letter-spacing:0.05pt;"> </font>and maintain<font style="letter-spacing:0.1pt;"> </font>our brand,<font style="letter-spacing:0.05pt;"> </font>or if<font style="letter-spacing:0.05pt;"> </font>we incur<font style="letter-spacing:0.05pt;"> </font>substantial<font style="letter-spacing:0.1pt;"> </font>expenses<font style="letter-spacing:0.05pt;"> </font>in an unsuccessful attempt<font style="letter-spacing:0.1pt;"> </font>to promote<font style="letter-spacing:0.05pt;"> </font>and maintain<font style="letter-spacing:0.1pt;"> </font>our brand,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be accepted<font style="letter-spacing:0.05pt;"> </font>by physicians,<font style="letter-spacing:0.1pt;"> </font>which would adversely<font style="letter-spacing:0.1pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our business,<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>of operations<font style="letter-spacing:0.1pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We have limited<font style="letter-spacing:0.1pt;"> </font>experience<font style="letter-spacing:0.05pt;"> </font>with our direct<font style="letter-spacing:0.05pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>and marketing<font style="letter-spacing:0.05pt;"> </font>force<font style="letter-spacing:0.05pt;"> </font>and any failure<font style="letter-spacing:0.05pt;"> </font>to build<font style="letter-spacing:0.05pt;"> </font>and manage our direct<font style="letter-spacing:0.05pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>and marketing<font style="letter-spacing:0.05pt;"> </font>force<font style="letter-spacing:0.05pt;"> </font>effectively<font style="letter-spacing:0.15pt;"> </font>could have a material<font style="letter-spacing:0.1pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our business.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We rely on a direct sales force to sell the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System in the U.S. and certain markets outside the U.S. In order to meet our anticipated sales objectives, we expect to grow our direct sales and marketing organization significantly over the next several years and intend to opportunistically build a direct sales and marketing force in certain international markets where we do not have a direct sales force. There are significant risks involved in building and managing our sales and marketing organization, including risks related to our ability to:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">hire</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">qualified</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">individuals</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">as needed;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">generate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sufficient</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">leads</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">within</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our target</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">physician</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">group for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">force;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">provide</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">adequate</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">training</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">effective</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sale</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">retain</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and motivate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our direct</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">professionals;</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">effectively</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">oversee</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">geographically</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">dispersed</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">teams.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our failure<font style="letter-spacing:0.1pt;"> </font>to adequately<font style="letter-spacing:0.1pt;"> </font>address<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>risks<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>have a material<font style="letter-spacing:0.15pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our ability<font style="letter-spacing:0.1pt;"> </font>to increase<font style="letter-spacing:0.1pt;"> </font>sales and use of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>which would cause<font style="letter-spacing:0.05pt;"> </font>our revenue<font style="letter-spacing:0.05pt;"> </font>to be lower<font style="letter-spacing:0.05pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>expected<font style="letter-spacing:0.05pt;"> </font>and harm<font style="letter-spacing:0.05pt;"> </font>our results of operations.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">To market<font style="letter-spacing:0.05pt;"> </font>and sell<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>in certain<font style="letter-spacing:0.05pt;"> </font>markets<font style="letter-spacing:0.05pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>of the U.S., we depend on third-party distributors.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We depend on third-party<font style="letter-spacing:0.15pt;"> </font>distributors<font style="letter-spacing:0.15pt;"> </font>to sell,<font style="letter-spacing:0.05pt;"> </font>market,<font style="letter-spacing:0.1pt;"> </font>and service<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>Systems<font style="letter-spacing:0.05pt;"> </font>in certain<font style="letter-spacing:0.1pt;"> </font>markets<font style="letter-spacing:0.1pt;"> </font>outside of the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>and to train<font style="letter-spacing:0.05pt;"> </font>our physician<font style="letter-spacing:0.05pt;"> </font>customers<font style="letter-spacing:0.1pt;"> </font>in such markets.<font style="letter-spacing:0.1pt;"> </font>Furthermore,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>need to engage<font style="letter-spacing:0.05pt;"> </font>additional third-party<font style="letter-spacing:0.15pt;"> </font>distributors<font style="letter-spacing:0.15pt;"> </font>to expand into<font style="letter-spacing:0.05pt;"> </font>new markets<font style="letter-spacing:0.1pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>where we do not have a direct<font style="letter-spacing:0.1pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>force. We are<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to a number<font style="letter-spacing:0.05pt;"> </font>of risks<font style="letter-spacing:0.05pt;"> </font>associated<font style="letter-spacing:0.1pt;"> </font>with our dependence<font style="letter-spacing:0.05pt;"> </font>on these<font style="letter-spacing:0.05pt;"> </font>third-parties,<font style="letter-spacing:0.15pt;"> </font>including:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">lack</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of day-to-day</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">control</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">over</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">activities</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">distributors;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">distributors</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not commit</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">necessary</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">resources</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to market,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sell,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">train,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">support</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and service</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our systems</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">level</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our expectations;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">distributors</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">emphasize</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sale</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">over</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our products;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">distributors</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not be as selective</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">as we would be in choosing</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">physicians</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to purchase</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or as effective</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in training</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">physicians</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and patient</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">selection;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">distributors</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">violate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">applicable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">laws and regulations</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">expose</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">us to potential liability</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or limit</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to sell</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in certain</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">markets</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">distributors</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">terminate</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">their</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">arrangements</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with us on limited,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or no, notice</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or may change</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">terms</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of these</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">arrangements</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in a manner</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">unfavorable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to us;</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">disagreements</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with our distributors</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">could</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">require</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or result</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in costly</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and time-consuming</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">litigation or arbitration</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which we could</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be required</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to conduct</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in jurisdictions</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with which we are</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not familiar.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>we fail<font style="letter-spacing:0.05pt;"> </font>to establish<font style="letter-spacing:0.1pt;"> </font>and maintain<font style="letter-spacing:0.1pt;"> </font>satisfactory<font style="letter-spacing:0.15pt;"> </font>relationships<font style="letter-spacing:0.15pt;"> </font>with our third-party<font style="letter-spacing:0.15pt;"> </font>distributors,<font style="letter-spacing:0.15pt;"> </font>our revenue<font style="letter-spacing:0.05pt;"> </font>and market<font style="letter-spacing:0.1pt;"> </font>share<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not grow as anticipated,<font style="letter-spacing:0.1pt;"> </font>and we could<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to unexpected<font style="letter-spacing:0.05pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>which would harm<font style="letter-spacing:0.05pt;"> </font>our results<font style="letter-spacing:0.1pt;"> </font>of operations<font style="letter-spacing:0.1pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">31</a></p>
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<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU32"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">To successfully</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">market</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">a</font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">nd sell</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">in markets</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">outside</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">of the U.S., we must</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">address</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">many international</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">business</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">risks</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">with which we have limited</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">experience.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sales<font style="letter-spacing:0.05pt;"> </font>in markets<font style="letter-spacing:0.1pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>accounted<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>approximately<font style="letter-spacing:0.15pt;"> </font>58% of our revenue<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>year<font style="letter-spacing:0.05pt;"> </font>ended December<font style="letter-spacing:0.05pt;"> </font>31, 2017 and 54% and 57% of our revenue<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the six<font style="letter-spacing:0.05pt;"> </font>months<font style="letter-spacing:0.05pt;"> </font>ended June 30, 2018 and 2017, respectively. We believe<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>a significant<font style="letter-spacing:0.15pt;"> </font>percentage<font style="letter-spacing:0.1pt;"> </font>of our business<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>continue<font style="letter-spacing:0.05pt;"> </font>to come<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>in markets<font style="letter-spacing:0.1pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>through increased<font style="letter-spacing:0.1pt;"> </font>penetration<font style="letter-spacing:0.1pt;"> </font>in countries<font style="letter-spacing:0.1pt;"> </font>where we market<font style="letter-spacing:0.1pt;"> </font>and sell<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>and with expansion<font style="letter-spacing:0.05pt;"> </font>into<font style="letter-spacing:0.05pt;"> </font>new international<font style="letter-spacing:0.15pt;"> </font>markets.<font style="letter-spacing:0.1pt;"> </font>However, international<font style="letter-spacing:0.15pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to a number<font style="letter-spacing:0.05pt;"> </font>of risks,<font style="letter-spacing:0.05pt;"> </font>including:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">difficulties</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in staffing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and managing</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our international</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">operations;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">increased</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">competition</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">as a result</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of more</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and procedures</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">receiving</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">approval</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or otherwise</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">free</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to market</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in international</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">markets;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">longer</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">accounts</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">receivable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">payment</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">cycles</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and difficulties</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in collecting</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">accounts</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">receivable;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">reduced</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or varied</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">protection</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">intellectual</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">property</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rights</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in some</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">countries;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">export</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">restrictions,</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trade</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulations,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and foreign</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">tax</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">laws;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">fluctuations</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in currency</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">exchange</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rates;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">foreign</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">certification</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or approval</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">requirements, including receiving regulatory approval and clearance for the robotic implantation functionality included in our ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;font-family:Times New Roman;"> iX System;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">difficulties</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">in developing</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">effective</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">marketing</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">campaigns</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">in unfamiliar</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">foreign</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">countries;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">customs</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and shipping</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">delays;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">political,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">social,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and economic</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">instability</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">abroad,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">terrorist</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">attacks,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and security</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">concerns</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in general;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">preference</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">locally</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">produced</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">potentially</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">adverse</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">tax</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">consequences,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">complexities</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of foreign</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">value-added</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">tax</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">systems, tax</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">inefficiencies</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">related</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to our corporate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">structure,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and restrictions</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">repatriation</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of earnings;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">burdens</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of complying</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with a wide variety</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of foreign</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">laws and different</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">legal</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">standards;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">increased</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">financial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">accounting</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and reporting</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">burdens</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and complexities.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>one or more<font style="letter-spacing:0.05pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>risks<font style="letter-spacing:0.05pt;"> </font>were realized,<font style="letter-spacing:0.1pt;"> </font>our results<font style="letter-spacing:0.1pt;"> </font>of operations<font style="letter-spacing:0.1pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be adversely affected.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We expect that our revenue from international markets may decrease in the near term as we have received regulatory approval or clearance for the implantation function outside of the U.S., which may result in purchasing delays in international markets as customers await the availability of that function. In addition, the number of ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> systems previously sold to distributors that have not yet been placed with an end user has increased in recent periods, which, in combination with the launch of ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> iX, System may further exaggerate delays in international system sales.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">While<font style="letter-spacing:0.05pt;"> </font>traditional<font style="letter-spacing:0.1pt;"> </font>hair transplantation<font style="letter-spacing:0.1pt;"> </font>surgery<font style="letter-spacing:0.05pt;"> </font>has been available<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>many years,<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>has only been commercially<font style="letter-spacing:0.15pt;"> </font>available<font style="letter-spacing:0.1pt;"> </font>since<font style="letter-spacing:0.05pt;"> </font>2011. As a result,<font style="letter-spacing:0.05pt;"> </font>we have a limited<font style="letter-spacing:0.1pt;"> </font>track<font style="letter-spacing:0.05pt;"> </font>record<font style="letter-spacing:0.05pt;"> </font>compared<font style="letter-spacing:0.05pt;"> </font>to traditional hair transplantation<font style="letter-spacing:0.1pt;"> </font>surgery<font style="letter-spacing:0.05pt;"> </font>and the safety<font style="letter-spacing:0.05pt;"> </font>and efficacy<font style="letter-spacing:0.1pt;"> </font>of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>not yet<font style="letter-spacing:0.05pt;"> </font>supported<font style="letter-spacing:0.05pt;"> </font>by long-term<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>data, which could limit<font style="letter-spacing:0.1pt;"> </font>sales,<font style="letter-spacing:0.05pt;"> </font>and the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>could prove<font style="letter-spacing:0.05pt;"> </font>to be less<font style="letter-spacing:0.05pt;"> </font>safe<font style="letter-spacing:0.05pt;"> </font>or effective<font style="letter-spacing:0.15pt;"> </font>than initially<font style="letter-spacing:0.1pt;"> </font>thought.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we market<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>regulated<font style="letter-spacing:0.1pt;"> </font>as a medical<font style="letter-spacing:0.1pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>Food and Drug Administration,<font style="letter-spacing:0.15pt;"> </font>or the<font style="letter-spacing:0.05pt;"> </font>FDA,<font style="letter-spacing:-0.05pt;"> </font>and has received<font style="letter-spacing:0.1pt;"> </font>premarket<font style="letter-spacing:0.1pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>Section<font style="letter-spacing:0.05pt;"> </font>510(k)<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>Federal Food, Drug and Cosmetic<font style="letter-spacing:0.05pt;"> </font>Act, or FDCA.<font style="letter-spacing:-0.05pt;"> </font>In the<font style="letter-spacing:0.05pt;"> </font>510(k)<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>process,<font style="letter-spacing:0.05pt;"> </font>before<font style="letter-spacing:0.05pt;"> </font>a device<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be marketed,<font style="letter-spacing:0.1pt;"> </font>the FDA<font style="letter-spacing:-0.05pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>determine<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>a proposed<font style="letter-spacing:0.05pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>&#8220;substantially<font style="letter-spacing:0.15pt;"> </font>equivalent&#8221;<font style="letter-spacing:0.1pt;"> </font>to a legally-marketed<font style="letter-spacing:0.2pt;"> </font>&#8220;predicate&#8221; device,<font style="letter-spacing:0.05pt;"> </font>which includes<font style="letter-spacing:0.05pt;"> </font>a device<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>has been previously<font style="letter-spacing:0.1pt;"> </font>cleared<font style="letter-spacing:0.1pt;"> </font>through<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>510(k)<font style="letter-spacing:0.05pt;"> </font>process,<font style="letter-spacing:0.05pt;"> </font>a device<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>was legally<font style="letter-spacing:0.1pt;"> </font>marketed<font style="letter-spacing:0.1pt;"> </font>prior<font style="letter-spacing:0.05pt;"> </font>to May 28, 1976 (pre-amendments<font style="letter-spacing:0.15pt;"> </font>device),<font style="letter-spacing:0.05pt;"> </font>a device<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>was originally<font style="letter-spacing:0.1pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>market pursuant<font style="letter-spacing:0.05pt;"> </font>to an approved<font style="letter-spacing:0.05pt;"> </font>premarket<font style="letter-spacing:0.1pt;"> </font>approval,<font style="letter-spacing:0.05pt;"> </font>or PMA, application<font style="letter-spacing:0.1pt;"> </font>and later<font style="letter-spacing:0.1pt;"> </font>down-classified,<font style="letter-spacing:0.1pt;"> </font>or a 510(k)-exempt device.<font style="letter-spacing:0.05pt;"> </font>This process<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>typically<font style="letter-spacing:0.1pt;"> </font>shorter<font style="letter-spacing:0.1pt;"> </font>and generally<font style="letter-spacing:0.1pt;"> </font>requires<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>submission<font style="letter-spacing:0.1pt;"> </font>of less<font style="letter-spacing:0.05pt;"> </font>supporting<font style="letter-spacing:0.05pt;"> </font>documentation than<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA&#8217;s PMA process<font style="letter-spacing:0.05pt;"> </font>and does not always<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>long-term<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>studies.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU33"></a>Hair<font style="letter-spacing:0.05pt;"> </font>transplantation<font style="letter-spacing:0.15pt;"> </font>surgery<font style="letter-spacing:0.05pt;"> </font>has been a treatment<font style="letter-spacing:0.15pt;"> </font>option<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>restoration<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>many<font style="letter-spacing:0.05pt;"> </font>years,<font style="letter-spacing:0.05pt;"> </font>while<font style="letter-spacing:0.05pt;"> </font>we only began commercializing<font style="letter-spacing:0.2pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>in 2011. Consequently,<font style="letter-spacing:0.05pt;"> </font>we lack<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>breadth<font style="letter-spacing:0.05pt;"> </font>of published<font style="letter-spacing:0.05pt;"> </font>long-term<font style="letter-spacing:0.1pt;"> </font>clinical data<font style="letter-spacing:0.05pt;"> </font>supporting<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>safety<font style="letter-spacing:0.05pt;"> </font>and efficacy<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>benefits<font style="letter-spacing:0.1pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>offers<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>might<font style="letter-spacing:0.05pt;"> </font>have been generated<font style="letter-spacing:0.1pt;"> </font>in connection<font style="letter-spacing:0.05pt;"> </font>with other<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>restoration<font style="letter-spacing:0.15pt;"> </font>techniques.<font style="letter-spacing:0.1pt;"> </font>As a result,<font style="letter-spacing:0.1pt;"> </font>physicians<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be slow to adopt<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not have comparative<font style="letter-spacing:0.1pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>our competitors<font style="letter-spacing:0.15pt;"> </font>have or are<font style="letter-spacing:0.05pt;"> </font></p>
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<p style="margin-top:12pt;margin-bottom:0pt;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">generating,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and we may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be subject</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to greater</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">regulatory</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and product</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">liability</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">risks.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">future</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">patient</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">studies</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or clinical</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">experience may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">indicate</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">treatment</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">does not improve</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">patient</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">outcomes</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">compared</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">hair restoration</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">techniques.</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Such results</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">would slow the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">adoption</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">by physicians,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">would significantly</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reduce</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our ability</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to achieve</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">expected</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">sales</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">prevent</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us from</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">achieving</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and maintaining profitability.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have limited<font style="letter-spacing:0.1pt;"> </font>complication<font style="letter-spacing:0.15pt;"> </font>or patient<font style="letter-spacing:0.1pt;"> </font>success<font style="letter-spacing:0.05pt;"> </font>rate<font style="letter-spacing:0.05pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>with respect<font style="letter-spacing:0.1pt;"> </font>to treatment<font style="letter-spacing:0.15pt;"> </font>using<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.<font style="letter-spacing:0.05pt;"> </font>If future<font style="letter-spacing:0.05pt;"> </font>patient<font style="letter-spacing:0.1pt;"> </font>studies<font style="letter-spacing:0.05pt;"> </font>or clinical<font style="letter-spacing:0.1pt;"> </font>testing<font style="letter-spacing:0.1pt;"> </font>do not support<font style="letter-spacing:0.05pt;"> </font>our belief<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>our system<font style="letter-spacing:0.05pt;"> </font>offers<font style="letter-spacing:0.1pt;"> </font>a more<font style="letter-spacing:0.05pt;"> </font>advantageous treatment<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>restoration,<font style="letter-spacing:0.15pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>acceptance<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>fail<font style="letter-spacing:0.05pt;"> </font>to increase<font style="letter-spacing:0.1pt;"> </font>or could<font style="letter-spacing:0.05pt;"> </font>decrease and our business<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be harmed.<font style="letter-spacing:0.05pt;"> </font>Moreover,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>and experience<font style="letter-spacing:0.1pt;"> </font>indicate<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>our implant<font style="letter-spacing:0.1pt;"> </font>products cause<font style="letter-spacing:0.05pt;"> </font>unexpected<font style="letter-spacing:0.05pt;"> </font>or serious<font style="letter-spacing:0.05pt;"> </font>complications<font style="letter-spacing:0.15pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>unforeseen<font style="letter-spacing:0.1pt;"> </font>negative<font style="letter-spacing:0.05pt;"> </font>effects,<font style="letter-spacing:0.1pt;"> </font>we could<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to mandatory<font style="letter-spacing:0.1pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>recalls,<font style="letter-spacing:0.1pt;"> </font>suspension<font style="letter-spacing:0.05pt;"> </font>or withdrawal<font style="letter-spacing:0.05pt;"> </font>of FDA<font style="letter-spacing:-0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>governmental<font style="letter-spacing:0.1pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>or, CE Certificates<font style="letter-spacing:0.15pt;"> </font>of Conformity,<font style="letter-spacing:0.1pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>legal<font style="letter-spacing:0.05pt;"> </font>liability<font style="letter-spacing:0.15pt;"> </font>or harm<font style="letter-spacing:0.05pt;"> </font>to our business<font style="letter-spacing:0.05pt;"> </font>reputation.<font style="letter-spacing:0.1pt;"> </font>Furthermore,<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>patients that<font style="letter-spacing:0.05pt;"> </font>receive<font style="letter-spacing:0.1pt;"> </font>traditional<font style="letter-spacing:0.15pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>transplantation<font style="letter-spacing:0.15pt;"> </font>surgery,<font style="letter-spacing:0.05pt;"> </font>such as strip<font style="letter-spacing:0.05pt;"> </font>surgery,<font style="letter-spacing:0.05pt;"> </font>were to experience<font style="letter-spacing:0.1pt;"> </font>unexpected<font style="letter-spacing:0.05pt;"> </font>or serious<font style="letter-spacing:0.05pt;"> </font>complications<font style="letter-spacing:0.15pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>unforeseen<font style="letter-spacing:0.1pt;"> </font>effects,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be adversely<font style="letter-spacing:0.1pt;"> </font>affected, even if<font style="letter-spacing:0.05pt;"> </font>such effects<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>not applicable<font style="letter-spacing:0.1pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>we choose<font style="letter-spacing:0.05pt;"> </font>to, or are<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>to, conduct<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>studies,<font style="letter-spacing:0.05pt;"> </font>such studies<font style="letter-spacing:0.05pt;"> </font>or experience<font style="letter-spacing:0.1pt;"> </font>could,<font style="letter-spacing:0.05pt;"> </font>slow the<font style="letter-spacing:0.05pt;"> </font>market adoption<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>by physicians,<font style="letter-spacing:0.1pt;"> </font>significantly<font style="letter-spacing:0.15pt;"> </font>reduce<font style="letter-spacing:0.05pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to achieve<font style="letter-spacing:0.05pt;"> </font>expected<font style="letter-spacing:0.05pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> </font>and prevent<font style="letter-spacing:0.05pt;"> </font>us from<font style="letter-spacing:0.05pt;"> </font>becoming<font style="letter-spacing:0.05pt;"> </font>profitable.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We were the subject of purported class action lawsuits, and additional litigation may be brought against us in the future.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In May 2018, a number of purported stockholder class action complaints were filed against us, the members of our board of directors (and affiliated venture funds), as well as certain of our current and former officers and the underwriters in our IPO. The complaints all allege, among other things, that our Registration Statement filed with the SEC on September 1, 2017 and the Prospectus filed with the SEC on October 13, 2017 in connection with our IPO were inaccurate and misleading, contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and omitted to state material facts required to be stated therein. The complaints seek unspecified money damages, other equitable relief and attorneys&#8217; fees and costs. While we believe these claims to be without merit, we cannot assure you that additional claims alleging the same or similar facts will not be filed. Any litigation could result in substantial costs and a diversion of management&#8217;s attention and resources. </p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We rely<font style="letter-spacing:0.05pt;"> </font>on a single<font style="letter-spacing:0.05pt;"> </font>third-party<font style="letter-spacing:0.1pt;"> </font>manufacturer<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the manufacturing<font style="letter-spacing:0.05pt;"> </font>of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Evolve Manufacturing<font style="letter-spacing:0.1pt;"> </font>Technologies,<font style="letter-spacing:0.05pt;"> </font>Inc.,<font style="letter-spacing:0.05pt;"> </font>or Evolve, assembles<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>and produces<font style="letter-spacing:0.05pt;"> </font>reusable procedure<font style="letter-spacing:0.05pt;"> </font>kits,<font style="letter-spacing:0.05pt;"> </font>disposable<font style="letter-spacing:0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>kits,<font style="letter-spacing:0.05pt;"> </font>upgrade<font style="letter-spacing:0.05pt;"> </font>kits<font style="letter-spacing:0.05pt;"> </font>and spare<font style="letter-spacing:0.05pt;"> </font>kits<font style="letter-spacing:0.05pt;"> </font>used with the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>the operations<font style="letter-spacing:0.1pt;"> </font>of Evolve are<font style="letter-spacing:0.05pt;"> </font>interrupted<font style="letter-spacing:0.1pt;"> </font>or if<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>unable<font style="letter-spacing:0.05pt;"> </font>or unwilling<font style="letter-spacing:0.05pt;"> </font>to meet<font style="letter-spacing:0.05pt;"> </font>our delivery<font style="letter-spacing:0.1pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>due to capacity<font style="letter-spacing:0.1pt;"> </font>limitations<font style="letter-spacing:0.15pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>constraints,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be limited<font style="letter-spacing:0.1pt;"> </font>in our ability<font style="letter-spacing:0.1pt;"> </font>to fulfill<font style="letter-spacing:0.1pt;"> </font>new customer<font style="letter-spacing:0.1pt;"> </font>orders,<font style="letter-spacing:0.05pt;"> </font>to provide<font style="letter-spacing:0.05pt;"> </font>kits<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>use with existing<font style="letter-spacing:0.1pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>Systems<font style="letter-spacing:0.05pt;"> </font>and to repair<font style="letter-spacing:0.1pt;"> </font>equipment<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>current<font style="letter-spacing:0.1pt;"> </font>customer<font style="letter-spacing:0.1pt;"> </font>sites. Any change<font style="letter-spacing:0.05pt;"> </font>to another<font style="letter-spacing:0.05pt;"> </font>contract<font style="letter-spacing:0.1pt;"> </font>manufacturer<font style="letter-spacing:0.15pt;"> </font>would likely<font style="letter-spacing:0.05pt;"> </font>entail<font style="letter-spacing:0.1pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>delay,<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>us to devote substantial<font style="letter-spacing:0.1pt;"> </font>time<font style="letter-spacing:0.05pt;"> </font>and resources,<font style="letter-spacing:0.1pt;"> </font>and could<font style="letter-spacing:0.05pt;"> </font>involve<font style="letter-spacing:0.05pt;"> </font>a period<font style="letter-spacing:0.05pt;"> </font>in which our products<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>not be produced<font style="letter-spacing:0.05pt;"> </font>in a timely<font style="letter-spacing:0.1pt;"> </font>or consistently<font style="letter-spacing:0.1pt;"> </font>high-quality<font style="letter-spacing:0.1pt;"> </font>manner,<font style="letter-spacing:0.05pt;"> </font>any of which could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our reputation<font style="letter-spacing:0.1pt;"> </font>and results<font style="letter-spacing:0.1pt;"> </font>of operations.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have two master<font style="letter-spacing:0.1pt;"> </font>agreements<font style="letter-spacing:0.1pt;"> and a component pricing agreement </font>with Evolve for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>supply<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>and consumable<font style="letter-spacing:0.1pt;"> </font>products, including<font style="letter-spacing:0.05pt;"> </font>reusable<font style="letter-spacing:0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>kits,<font style="letter-spacing:0.05pt;"> </font>disposable<font style="letter-spacing:0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>kits,<font style="letter-spacing:0.05pt;"> </font>upgrade<font style="letter-spacing:0.05pt;"> </font>kits<font style="letter-spacing:0.05pt;"> </font>and spare<font style="letter-spacing:0.05pt;"> </font>kits<font style="letter-spacing:0.05pt;"> </font>used with the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System,<font style="letter-spacing:0.05pt;"> </font>pursuant<font style="letter-spacing:0.05pt;"> </font>to both of which we make<font style="letter-spacing:0.05pt;"> </font>purchases<font style="letter-spacing:0.05pt;"> </font>on a purchase<font style="letter-spacing:0.05pt;"> </font>order<font style="letter-spacing:0.05pt;"> </font>basis.<font style="letter-spacing:0.05pt;"> </font>The terms<font style="letter-spacing:0.1pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>master agreements<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>substantially<font style="letter-spacing:0.15pt;"> </font>similar.<font style="letter-spacing:0.1pt;"> </font>The master<font style="letter-spacing:0.1pt;"> </font>agreement<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>sale<font style="letter-spacing:0.05pt;"> </font>of ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>Systems<font style="letter-spacing:0.05pt;"> </font>was effective beginning<font style="letter-spacing:0.05pt;"> </font>on April<font style="letter-spacing:0.05pt;"> </font>1, 2016 and the<font style="letter-spacing:0.05pt;"> </font>master<font style="letter-spacing:0.1pt;"> </font>agreement<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>sale<font style="letter-spacing:0.05pt;"> </font>of kits<font style="letter-spacing:0.05pt;"> </font>used with the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>was effective<font style="letter-spacing:0.1pt;"> </font>beginning<font style="letter-spacing:0.05pt;"> </font>on March<font style="letter-spacing:0.05pt;"> </font>1, 2016. Both agreements<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>effective<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>an initial<font style="letter-spacing:0.1pt;"> </font>term<font style="letter-spacing:0.05pt;"> </font>of two years<font style="letter-spacing:0.05pt;"> </font>and will continue<font style="letter-spacing:0.05pt;"> </font>to automatically<font style="letter-spacing:0.15pt;"> </font>renew for<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>twelve<font style="letter-spacing:0.05pt;">-month </font>periods,<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to either<font style="letter-spacing:0.1pt;"> </font>party&#8217;s<font style="letter-spacing:0.1pt;"> </font>right<font style="letter-spacing:0.05pt;"> </font>to terminate the<font style="letter-spacing:0.05pt;"> </font>agreement<font style="letter-spacing:0.1pt;"> </font>upon 180 days advance<font style="letter-spacing:0.05pt;"> </font>notice<font style="letter-spacing:0.05pt;"> </font>during<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>initial<font style="letter-spacing:0.1pt;"> </font>term<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>our quarterly<font style="letter-spacing:0.1pt;"> </font>forecasted<font style="letter-spacing:0.1pt;"> </font>demand<font style="letter-spacing:0.05pt;"> </font>falls below 75% of our historical<font style="letter-spacing:0.15pt;"> </font>forecasted<font style="letter-spacing:0.1pt;"> </font>demand<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>same<font style="letter-spacing:0.05pt;"> </font>period<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>previous<font style="letter-spacing:0.05pt;"> </font>year<font style="letter-spacing:0.05pt;"> </font>or upon 120 days&#8217; advance<font style="letter-spacing:0.05pt;"> </font>notice<font style="letter-spacing:0.05pt;"> </font>after<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>initial<font style="letter-spacing:0.1pt;"> </font>term.<font style="letter-spacing:0.05pt;"> </font>We have an agreement<font style="letter-spacing:0.1pt;"> </font>with Evolve for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>pricing<font style="letter-spacing:0.05pt;"> </font>of certain<font style="letter-spacing:0.1pt;"> </font>components<font style="letter-spacing:0.05pt;"> </font>at certain<font style="letter-spacing:0.1pt;"> </font>quantities,<font style="letter-spacing:0.1pt;"> </font>which requires<font style="letter-spacing:0.1pt;"> </font>a minimum<font style="letter-spacing:0.1pt;"> </font>purchase<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>us. Otherwise,<font style="letter-spacing:0.05pt;"> </font>without<font style="letter-spacing:0.05pt;"> </font>this<font style="letter-spacing:0.05pt;"> </font>agreement,<font style="letter-spacing:0.1pt;"> </font>Evolve is<font style="letter-spacing:0.05pt;"> </font>not required<font style="letter-spacing:0.1pt;"> </font>and may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>or willing,<font style="letter-spacing:0.05pt;"> </font>to meet<font style="letter-spacing:0.05pt;"> </font>our future<font style="letter-spacing:0.05pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>current<font style="letter-spacing:0.1pt;"> </font>prices,<font style="letter-spacing:0.05pt;"> </font>or at<font style="letter-spacing:0.05pt;"> </font>all.<font style="letter-spacing:0.05pt;"> </font>We recently amended<font style="letter-spacing:0.05pt;"> </font>this<font style="letter-spacing:0.05pt;"> </font>agreement<font style="letter-spacing:0.1pt;"> </font>to extend<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>maturity<font style="letter-spacing:0.1pt;"> </font>date<font style="letter-spacing:0.05pt;"> </font>until<font style="letter-spacing:0.05pt;"> </font>August 2018.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Additionally,<font style="letter-spacing:0.1pt;"> </font>while<font style="letter-spacing:0.05pt;"> </font>we do have agreements<font style="letter-spacing:0.1pt;"> </font>with some<font style="letter-spacing:0.05pt;"> </font>of our component<font style="letter-spacing:0.05pt;"> </font>suppliers,<font style="letter-spacing:0.1pt;"> </font>many<font style="letter-spacing:0.05pt;"> </font>of our component suppliers<font style="letter-spacing:0.1pt;"> </font>contract<font style="letter-spacing:0.1pt;"> </font>directly<font style="letter-spacing:0.1pt;"> </font>with Evolve and we have limited<font style="letter-spacing:0.1pt;"> </font>control<font style="letter-spacing:0.05pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>components<font style="letter-spacing:0.05pt;"> </font>they<font style="letter-spacing:0.05pt;"> </font>supply<font style="letter-spacing:0.05pt;"> </font>or the timeliness<font style="letter-spacing:0.15pt;"> </font>by which they<font style="letter-spacing:0.05pt;"> </font>supply<font style="letter-spacing:0.05pt;"> </font>them.<font style="letter-spacing:0.05pt;"> </font>Evolve may<font style="letter-spacing:0.05pt;"> </font>be unable<font style="letter-spacing:0.05pt;"> </font>to acquire<font style="letter-spacing:0.05pt;"> </font>components<font style="letter-spacing:0.05pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>quantities<font style="letter-spacing:0.1pt;"> </font>and prices at<font style="letter-spacing:0.05pt;"> </font>which we need them.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">33</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU34"></a><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our reliance</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on Evolve involves</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a number of </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">risks,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">including,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">among</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">things,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that:</font></p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not be manufactured</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in accordance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with agreed</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">upon specifications</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or in compliance with regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">requirements,</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or its</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">manufacturing</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">facilities</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not be able</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to maintain</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">compliance with regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">requirements,</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which could</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">negatively</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">affect</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">safety</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or efficacy</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our products, cause</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">delays</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in shipments</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our products,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or require</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">us to recall</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">previously</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">delivered</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to customers;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">we may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not be able</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to timely</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">respond</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to unanticipated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">changes</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in customer</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">orders,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and if</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">orders</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">do not match</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">forecasts,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">we may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">have excess</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or inadequate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">inventory</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of materials</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and components;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">we may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be subject</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to price</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">fluctuations</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">when a supply</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">contract</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">is</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">renegotiated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or if</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our existing contract</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">is</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not renewed;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">Evolve may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">wish to discontinue</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">manufacturing</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and supplying</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to us for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">risk</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">management reasons;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">Evolve may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">encounter</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">financial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">hardships</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">unrelated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to our demand</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which could inhibit</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">its</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to fulfill</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our orders</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and meet</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our requirements.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>any of these<font style="letter-spacing:0.05pt;"> </font>risks<font style="letter-spacing:0.05pt;"> </font>materialize,<font style="letter-spacing:0.15pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>significantly<font style="letter-spacing:0.15pt;"> </font>increase<font style="letter-spacing:0.1pt;"> </font>our costs,<font style="letter-spacing:0.05pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to generate<font style="letter-spacing:0.1pt;"> </font>net<font style="letter-spacing:0.05pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>would be impaired,<font style="letter-spacing:0.1pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>acceptance<font style="letter-spacing:0.1pt;"> </font>of our products<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be adversely<font style="letter-spacing:0.1pt;"> </font>affected,<font style="letter-spacing:0.1pt;"> </font>and customers<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>instead<font style="letter-spacing:0.05pt;"> </font>purchase or use our competitors&#8217;<font style="letter-spacing:0.15pt;"> </font>products,<font style="letter-spacing:0.05pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>have a materially<font style="letter-spacing:0.15pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our business,<font style="letter-spacing:0.05pt;"> </font>financial condition<font style="letter-spacing:0.05pt;"> </font>and results<font style="letter-spacing:0.1pt;"> </font>of operations.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>to change<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>manufacturer<font style="letter-spacing:0.15pt;"> </font>of a critical<font style="letter-spacing:0.15pt;"> </font>component<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>be required<font style="letter-spacing:0.1pt;"> </font>to verify<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>new manufacturer<font style="letter-spacing:0.15pt;"> </font>maintains<font style="letter-spacing:0.1pt;"> </font>facilities,<font style="letter-spacing:0.15pt;"> </font>procedures<font style="letter-spacing:0.1pt;"> </font>and operations<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>comply with our quality<font style="letter-spacing:0.05pt;"> </font>and applicable<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>requirements,<font style="letter-spacing:0.15pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>further<font style="letter-spacing:0.1pt;"> </font>impede<font style="letter-spacing:0.05pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to manufacture the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>in a timely<font style="letter-spacing:0.1pt;"> </font>manner.<font style="letter-spacing:0.05pt;"> </font>Transitioning<font style="letter-spacing:0.1pt;"> </font>to a new supplier<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be time-consuming<font style="letter-spacing:0.15pt;"> </font>and expensive, may<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in interruptions<font style="letter-spacing:0.15pt;"> </font>in our operations<font style="letter-spacing:0.1pt;"> </font>and product<font style="letter-spacing:0.05pt;"> </font>delivery,<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>performance<font style="letter-spacing:0.1pt;"> </font>specifications<font style="letter-spacing:0.15pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>or could<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we modify<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>design<font style="letter-spacing:0.05pt;"> </font>of those<font style="letter-spacing:0.05pt;"> </font>systems.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>change<font style="letter-spacing:0.05pt;"> </font>in manufacturer results<font style="letter-spacing:0.1pt;"> </font>in a significant<font style="letter-spacing:0.15pt;"> </font>change<font style="letter-spacing:0.05pt;"> </font>to any product,<font style="letter-spacing:0.05pt;"> </font>a new 510(k)<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>or similar<font style="letter-spacing:0.1pt;"> </font>international regulatory<font style="letter-spacing:0.1pt;"> </font>authorization<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be necessary<font style="letter-spacing:0.1pt;"> </font>before<font style="letter-spacing:0.05pt;"> </font>we implement<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>change,<font style="letter-spacing:0.05pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>substantial delays.<font style="letter-spacing:0.05pt;"> </font>The occurrence<font style="letter-spacing:0.1pt;"> </font>of any of these<font style="letter-spacing:0.05pt;"> </font>events<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to meet<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>demand<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our products<font style="letter-spacing:0.05pt;"> </font>in a timely<font style="letter-spacing:0.1pt;"> </font>or cost-effective<font style="letter-spacing:0.2pt;"> </font>manne<font style="letter-spacing:0.05pt;">r</font>.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We cannot<font style="letter-spacing:0.05pt;"> </font>assure<font style="letter-spacing:0.05pt;"> </font>you that<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to secure<font style="letter-spacing:0.05pt;"> </font>alternative<font style="letter-spacing:0.15pt;"> </font>equipment<font style="letter-spacing:0.1pt;"> </font>and materials<font style="letter-spacing:0.15pt;"> </font>and utilize<font style="letter-spacing:0.1pt;"> </font>such equipment<font style="letter-spacing:0.1pt;"> </font>and materials<font style="letter-spacing:0.15pt;"> </font>without<font style="letter-spacing:0.05pt;"> </font>experiencing<font style="letter-spacing:0.1pt;"> </font>interruptions<font style="letter-spacing:0.15pt;"> </font>in our workflow. If<font style="letter-spacing:0.05pt;"> </font>we should<font style="letter-spacing:0.05pt;"> </font>encounter<font style="letter-spacing:0.05pt;"> </font>delays<font style="letter-spacing:0.05pt;"> </font>or difficulties<font style="letter-spacing:0.15pt;"> </font>in securing,<font style="letter-spacing:0.05pt;"> </font>reconfiguring<font style="letter-spacing:0.1pt;"> </font>or revalidating<font style="letter-spacing:0.15pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>equipment<font style="letter-spacing:0.1pt;"> </font>and components<font style="letter-spacing:0.05pt;"> </font>we require<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System,<font style="letter-spacing:0.05pt;"> </font>our reputation,<font style="letter-spacing:0.1pt;"> </font>business,<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>condition<font style="letter-spacing:0.05pt;"> </font>and results<font style="letter-spacing:0.1pt;"> </font>of operations<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be negatively<font style="letter-spacing:0.1pt;"> </font>impacted.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If Evolve<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>unable to manufacture<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>in high-quality<font style="letter-spacing:0.1pt;"> </font>commercial<font style="letter-spacing:0.1pt;"> </font>quantities<font style="letter-spacing:0.1pt;"> </font>successfully<font style="letter-spacing:0.1pt;"> </font>and consistently<font style="letter-spacing:0.1pt;"> </font>to meet<font style="letter-spacing:0.05pt;"> </font>demand, our growth will<font style="letter-spacing:0.05pt;"> </font>be limited.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">To manufacture<font style="letter-spacing:0.1pt;"> </font>our ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>quantities<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we believe<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be required<font style="letter-spacing:0.1pt;"> </font>to meet<font style="letter-spacing:0.05pt;"> </font>anticipated<font style="letter-spacing:0.1pt;"> </font>market demand,<font style="letter-spacing:0.05pt;"> </font>Evolve will<font style="letter-spacing:0.05pt;"> </font>need to increase<font style="letter-spacing:0.1pt;"> </font>manufacturing<font style="letter-spacing:0.15pt;"> </font>capacity,<font style="letter-spacing:0.1pt;"> </font>which will<font style="letter-spacing:0.05pt;"> </font>involve<font style="letter-spacing:0.05pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>challenges.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>development<font style="letter-spacing:0.1pt;"> </font>of commercial-scale<font style="letter-spacing:0.2pt;"> </font>manufacturing<font style="letter-spacing:0.15pt;"> </font>capabilities<font style="letter-spacing:0.15pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>us and Evolve to invest substantial<font style="letter-spacing:0.1pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>funds<font style="letter-spacing:0.05pt;"> </font>and hire<font style="letter-spacing:0.05pt;"> </font>and retain<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>technical<font style="letter-spacing:0.1pt;"> </font>personnel<font style="letter-spacing:0.05pt;"> </font>who have the<font style="letter-spacing:0.05pt;"> </font>necessary<font style="letter-spacing:0.1pt;"> </font>manufacturing experience.<font style="letter-spacing:0.1pt;"> </font>Neither<font style="letter-spacing:0.05pt;"> </font>we nor our third-party<font style="letter-spacing:0.15pt;"> </font>manufacturer<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>successfully<font style="letter-spacing:0.1pt;"> </font>complete<font style="letter-spacing:0.1pt;"> </font>any required<font style="letter-spacing:0.1pt;"> </font>increase<font style="letter-spacing:0.1pt;"> </font>to existing<font style="letter-spacing:0.1pt;"> </font>manufacturing<font style="letter-spacing:0.15pt;"> </font>processes<font style="letter-spacing:0.1pt;"> </font>in a timely<font style="letter-spacing:0.1pt;"> </font>manner,<font style="letter-spacing:0.05pt;"> </font>or at<font style="letter-spacing:0.05pt;"> </font>all.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>Evolve is<font style="letter-spacing:0.05pt;"> </font>unable<font style="letter-spacing:0.05pt;"> </font>to produce<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>reusable<font style="letter-spacing:0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>kits,<font style="letter-spacing:0.05pt;"> </font>disposable<font style="letter-spacing:0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>kits,<font style="letter-spacing:0.05pt;"> </font>upgrade kits<font style="letter-spacing:0.05pt;"> </font>and spare<font style="letter-spacing:0.05pt;"> </font>kits<font style="letter-spacing:0.05pt;"> </font>in sufficient<font style="letter-spacing:0.15pt;"> </font>quantities<font style="letter-spacing:0.1pt;"> </font>to meet<font style="letter-spacing:0.05pt;"> </font>anticipated<font style="letter-spacing:0.1pt;"> </font>customer<font style="letter-spacing:0.1pt;"> </font>demand,<font style="letter-spacing:0.05pt;"> </font>our revenue,<font style="letter-spacing:0.05pt;"> </font>business,<font style="letter-spacing:0.05pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>prospects<font style="letter-spacing:0.1pt;"> </font>would be harmed.<font style="letter-spacing:0.05pt;"> </font>The limited<font style="letter-spacing:0.1pt;"> </font>experience<font style="letter-spacing:0.1pt;"> </font>Evolve has in producing<font style="letter-spacing:0.05pt;"> </font>larger<font style="letter-spacing:0.1pt;"> </font>quantities<font style="letter-spacing:0.1pt;"> </font>of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>and kits<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in quality<font style="letter-spacing:0.05pt;"> </font>issues,<font style="letter-spacing:0.05pt;"> </font>and possibly<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in product<font style="letter-spacing:0.05pt;"> </font>recalls.<font style="letter-spacing:0.1pt;"> </font>Manufacturing delays<font style="letter-spacing:0.05pt;"> </font>related<font style="letter-spacing:0.1pt;"> </font>to quality<font style="letter-spacing:0.05pt;"> </font>control<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our reputation and decrease<font style="letter-spacing:0.1pt;"> </font>our revenue.<font style="letter-spacing:0.05pt;"> </font>Any recall<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be expensive<font style="letter-spacing:0.05pt;"> </font>and generate<font style="letter-spacing:0.1pt;"> </font>negative<font style="letter-spacing:0.05pt;"> </font>publicity,<font style="letter-spacing:0.1pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>impair<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>and procedures<font style="letter-spacing:0.1pt;"> </font>and further<font style="letter-spacing:0.1pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our results<font style="letter-spacing:0.1pt;"> </font>of operations.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If we are unable to manufacture our next generation ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System, called the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> iX System in high-quality commercial quantities successfully and consistently to meet demand, our growth will be limited, and our reputation could be harmed.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_Hlk520465869"></a>To manufacture our ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> iX System in the quantities that we believe will be required to meet anticipated market demand, we will need to develop and maintain sufficient manufacturing capacity, which will involve significant challenges. Historically, we have not manufactured any of our other products (e.g. ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System) in-house or without the contract manufacturer involvement. We have not determined whether our ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> iX System will be solely manufactured by us or by a third-party manufacturer. The development of commercial-scale manufacturing capabilities will require us or our contract manufacturer for ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> iX System to invest substantial additional funds and hire and retain the technical personnel who have the necessary manufacturing experience. Neither we nor our third-party manufacturer may successfully complete any required increase to existing manufacturing processes in a timely manner, or at all.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">34</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU35"></a><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If we or our contract manufacturer are unable to produce the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> iX System, reusable procedure kits, disposable procedure ki</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ts, upgrade kits and spare kits in sufficient quantities to meet anticipated customer demand, our revenue, business, financial prospects, and reputation would be harmed. The limited experience we or our third-party manufacturer in producing the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> iX S</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ystem and kits may also result in quality issues, and possibly result in product recalls. Manufacturing delays related to quality control could harm our reputation and decrease our revenue. Any recall could be expensive and generate negative publicity, whi</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ch could impair our ability to market the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> iX System and procedures and further affect our results of operations.</font></p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Evolve&#8217;s<font style="letter-spacing:0.05pt;"> </font>manufacturing<font style="letter-spacing:0.05pt;"> </font>operations<font style="letter-spacing:0.05pt;"> </font>are dependent<font style="letter-spacing:0.05pt;"> </font>upon third-party<font style="letter-spacing:0.1pt;"> </font>suppliers<font style="letter-spacing:0.05pt;"> </font>and, in some<font style="letter-spacing:0.05pt;"> </font>cases,<font style="letter-spacing:0.05pt;"> </font>sole suppliers,<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the majority<font style="letter-spacing:0.1pt;"> </font>of our components,<font style="letter-spacing:0.05pt;"> </font>subassemblies<font style="letter-spacing:0.1pt;"> </font>and materials,<font style="letter-spacing:0.1pt;"> </font>making<font style="letter-spacing:0.05pt;"> </font>us vulnerable<font style="letter-spacing:0.05pt;"> </font>to supply shortages<font style="letter-spacing:0.05pt;"> </font>and price<font style="letter-spacing:0.05pt;"> </font>fluctuations,<font style="letter-spacing:0.1pt;"> </font>which could harm our business.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Evolve relies<font style="letter-spacing:0.1pt;"> </font>on several<font style="letter-spacing:0.1pt;"> </font>sole<font style="letter-spacing:0.05pt;"> </font>source<font style="letter-spacing:0.05pt;"> </font>suppliers,<font style="letter-spacing:0.1pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>St&#228;ubli<font style="letter-spacing:0.05pt;"> </font>Corporation,<font style="letter-spacing:0.05pt;"> </font>FLIR Integrated<font style="letter-spacing:0.1pt;"> </font>Imaging<font style="letter-spacing:0.05pt;"> </font>Solutions Inc.<font style="letter-spacing:0.05pt;"> </font>and Preproduction<font style="letter-spacing:0.1pt;"> </font>Plastics<font style="letter-spacing:0.1pt;"> </font>Inc.,<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>certain<font style="letter-spacing:0.1pt;"> </font>components<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>reusable<font style="letter-spacing:0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>kits, disposable<font style="letter-spacing:0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>kits,<font style="letter-spacing:0.05pt;"> </font>upgrade<font style="letter-spacing:0.05pt;"> </font>kits,<font style="letter-spacing:0.05pt;"> </font>and spare<font style="letter-spacing:0.05pt;"> </font>kits.<font style="letter-spacing:0.05pt;"> </font>These sole<font style="letter-spacing:0.05pt;"> </font>suppliers,<font style="letter-spacing:0.1pt;"> </font>and any of our other<font style="letter-spacing:0.05pt;"> </font>suppliers,<font style="letter-spacing:0.1pt;"> </font>may be unwilling<font style="letter-spacing:0.05pt;"> </font>or unable<font style="letter-spacing:0.05pt;"> </font>to supply<font style="letter-spacing:0.05pt;"> </font>components<font style="letter-spacing:0.05pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>systems<font style="letter-spacing:0.1pt;"> </font>to Evolve reliably<font style="letter-spacing:0.1pt;"> </font>and at<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>levels<font style="letter-spacing:0.05pt;"> </font>we anticipate or are<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>market.<font style="letter-spacing:0.1pt;"> </font>For us to be successful,<font style="letter-spacing:0.1pt;"> </font>our third-party<font style="letter-spacing:0.15pt;"> </font>manufacturer<font style="letter-spacing:0.15pt;"> </font>and its<font style="letter-spacing:0.05pt;"> </font>suppliers<font style="letter-spacing:0.1pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>be able to provide<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>and components<font style="letter-spacing:0.05pt;"> </font>in substantial<font style="letter-spacing:0.1pt;"> </font>quantities,<font style="letter-spacing:0.1pt;"> </font>in compliance<font style="letter-spacing:0.1pt;"> </font>with regulatory<font style="letter-spacing:0.1pt;"> </font>requirements,<font style="letter-spacing:0.15pt;"> </font>in accordance<font style="letter-spacing:0.1pt;"> </font>with agreed<font style="letter-spacing:0.05pt;"> </font>upon specifications,<font style="letter-spacing:0.15pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>acceptable<font style="letter-spacing:0.1pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>and on a timely<font style="letter-spacing:0.1pt;"> </font>basis.<font style="letter-spacing:0.05pt;"> </font>An interruption<font style="letter-spacing:0.15pt;"> </font>in our commercial<font style="letter-spacing:0.15pt;"> </font>operations<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>occur<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>we or Evolve encounter<font style="letter-spacing:0.05pt;"> </font>delays<font style="letter-spacing:0.05pt;"> </font>or difficulties<font style="letter-spacing:0.15pt;"> </font>in securing<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>components, and if<font style="letter-spacing:0.05pt;"> </font>we cannot<font style="letter-spacing:0.05pt;"> </font>then<font style="letter-spacing:0.05pt;"> </font>obtain<font style="letter-spacing:0.05pt;"> </font>an acceptable<font style="letter-spacing:0.1pt;"> </font>substitute.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>to transition<font style="letter-spacing:0.1pt;"> </font>to new third-party<font style="letter-spacing:0.15pt;"> </font>suppliers for<font style="letter-spacing:0.05pt;"> </font>certain<font style="letter-spacing:0.1pt;"> </font>components<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>we believe<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>there<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>only a few such suppliers<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>can supply<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>necessary<font style="letter-spacing:0.1pt;"> </font>components.<font style="letter-spacing:0.05pt;"> </font>A supply<font style="letter-spacing:0.05pt;"> </font>interruption,<font style="letter-spacing:0.15pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>fluctuation<font style="letter-spacing:0.1pt;"> </font>or an increase<font style="letter-spacing:0.1pt;"> </font>in demand beyond our current<font style="letter-spacing:0.1pt;"> </font>suppliers&#8217;<font style="letter-spacing:0.1pt;"> </font>capabilities<font style="letter-spacing:0.15pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>Evolve&#8217;s<font style="letter-spacing:0.05pt;"> </font>ability<font style="letter-spacing:0.1pt;"> </font>to manufacture<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>until new sources<font style="letter-spacing:0.05pt;"> </font>of supply<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>identified<font style="letter-spacing:0.1pt;"> </font>and qualified.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>use of components<font style="letter-spacing:0.05pt;"> </font>or materials<font style="letter-spacing:0.15pt;"> </font>furnished<font style="letter-spacing:0.1pt;"> </font>by these<font style="letter-spacing:0.05pt;"> </font>alternative<font style="letter-spacing:0.15pt;"> </font>suppliers<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>us to alter<font style="letter-spacing:0.1pt;"> </font>our operations.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our reliance<font style="letter-spacing:0.1pt;"> </font>on these<font style="letter-spacing:0.05pt;"> </font>suppliers<font style="letter-spacing:0.1pt;"> </font>subjects<font style="letter-spacing:0.1pt;"> </font>us to a number of risks<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our reputation,<font style="letter-spacing:0.1pt;"> </font>business,<font style="letter-spacing:0.05pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition,<font style="letter-spacing:0.05pt;"> </font>including,<font style="letter-spacing:0.05pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">interruption</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of supply</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">resulting</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">modifications</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to or discontinuation</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of a supplier&#8217;s</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">operations;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">delays</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in product</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">shipments</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">resulting</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">uncorrected</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">defects,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">reliability</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">issues,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or a supplier&#8217;s variation</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in a component;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">a lack</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of long-term</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">supply</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">arrangements</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">key components</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with our suppliers;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">inability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to obtain</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">adequate</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">supply</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in a timely</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">manner,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or to obtain</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">adequate</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">supply</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on commercially reasonable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">terms;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">difficulty</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and cost</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">associated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with locating</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and qualifying</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">alternative</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">suppliers</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our components</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in a timely</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">manner;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">production</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">delays</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">related</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">evaluation</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and testing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">alternative</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">suppliers,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and corresponding</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">qualifications;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">delay</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in delivery</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">due to our suppliers</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">prioritizing</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">customer</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">orders</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">over</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ours;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">damage</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to our reputation</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">caused</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by defective</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">components</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">produced</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by our suppliers;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">increased</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">cost</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our warranty</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">program</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">due to product</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">repair</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or replacement</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">based</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">upon defects</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in components</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">produced</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by our suppliers;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">fluctuation</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in delivery</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by our suppliers</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">due to changes</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in demand</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">us or their</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">customers.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Where<font style="letter-spacing:0.05pt;"> </font>practicable,<font style="letter-spacing:0.15pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>seeking,<font style="letter-spacing:0.05pt;"> </font>or intending<font style="letter-spacing:0.05pt;"> </font>to seek, second-source<font style="letter-spacing:0.1pt;"> </font>manufacturers<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>certain<font style="letter-spacing:0.1pt;"> </font>of our components.<font style="letter-spacing:0.05pt;"> </font>However, we cannot<font style="letter-spacing:0.05pt;"> </font>provide<font style="letter-spacing:0.05pt;"> </font>assurance<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>be successful<font style="letter-spacing:0.1pt;"> </font>in establishing<font style="letter-spacing:0.1pt;"> </font>second-source manufacturers<font style="letter-spacing:0.15pt;"> </font>or that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>second-source<font style="letter-spacing:0.1pt;"> </font>manufacturers<font style="letter-spacing:0.15pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to satisfy<font style="letter-spacing:0.1pt;"> </font>commercial<font style="letter-spacing:0.15pt;"> </font>demand<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>any of these<font style="letter-spacing:0.05pt;"> </font>risks<font style="letter-spacing:0.05pt;"> </font>materialize,<font style="letter-spacing:0.15pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>significantly<font style="letter-spacing:0.15pt;"> </font>increase<font style="letter-spacing:0.1pt;"> </font>and our ability<font style="letter-spacing:0.1pt;"> </font>to meet<font style="letter-spacing:0.05pt;"> </font>demand<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our products<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be impacted.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>unable<font style="letter-spacing:0.05pt;"> </font>to satisfy<font style="letter-spacing:0.1pt;"> </font>commercial<font style="letter-spacing:0.15pt;"> </font>demand<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>in a timely manner,<font style="letter-spacing:0.05pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to generate<font style="letter-spacing:0.1pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> </font>would be impaired<font style="letter-spacing:0.1pt;"> </font>and market<font style="letter-spacing:0.1pt;"> </font>acceptance<font style="letter-spacing:0.1pt;"> </font>of our products<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be adversely<font style="letter-spacing:0.1pt;"> </font>affected.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We forecast<font style="letter-spacing:0.1pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>to determine<font style="letter-spacing:0.1pt;"> </font>requirements<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>components<font style="letter-spacing:0.05pt;"> </font>and materials<font style="letter-spacing:0.1pt;"> </font>used in the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System, reusable<font style="letter-spacing:0.05pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>kits,<font style="letter-spacing:0.05pt;"> </font>disposable<font style="letter-spacing:0.05pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>kits,<font style="letter-spacing:0.05pt;"> </font>upgrade kits<font style="letter-spacing:0.05pt;"> </font>and spare<font style="letter-spacing:0.05pt;"> </font>kits<font style="letter-spacing:0.05pt;"> </font>and if<font style="letter-spacing:0.05pt;"> </font>our forecasts<font style="letter-spacing:0.1pt;"> </font>are incorrect,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>experience<font style="letter-spacing:0.05pt;"> </font>delays<font style="letter-spacing:0.05pt;"> </font>in shipments<font style="letter-spacing:0.05pt;"> </font>or increased<font style="letter-spacing:0.05pt;"> </font>inventory<font style="letter-spacing:0.05pt;"> </font>costs.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU36"></a>We keep limited<font style="letter-spacing:0.1pt;"> </font>finished<font style="letter-spacing:0.1pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>on hand. To manage<font style="letter-spacing:0.05pt;"> </font>our operations,<font style="letter-spacing:0.1pt;"> </font>we forecast<font style="letter-spacing:0.1pt;"> </font>anticipated<font style="letter-spacing:0.1pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>orders and material<font style="letter-spacing:0.15pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>to predict<font style="letter-spacing:0.1pt;"> </font>our inventory<font style="letter-spacing:0.05pt;"> </font>needs<font style="letter-spacing:0.05pt;"> </font>and enter<font style="letter-spacing:0.05pt;"> </font>purchase<font style="letter-spacing:0.05pt;"> </font>orders<font style="letter-spacing:0.05pt;"> </font>based on these requirements.<font style="letter-spacing:0.15pt;"> </font>Several<font style="letter-spacing:0.05pt;"> </font>components<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>order<font style="letter-spacing:0.05pt;"> </font>lead<font style="letter-spacing:0.05pt;"> </font>time.<font style="letter-spacing:0.05pt;"> </font>Our limited historical<font style="letter-spacing:0.15pt;"> </font>commercial<font style="letter-spacing:0.15pt;"> </font>experience<font style="letter-spacing:0.1pt;"> </font>and anticipated<font style="letter-spacing:0.1pt;"> </font>growth may<font style="letter-spacing:0.05pt;"> </font>not provide<font style="letter-spacing:0.05pt;"> </font>us with enough data<font style="letter-spacing:0.05pt;"> </font>to consistently and accurately<font style="letter-spacing:0.1pt;"> </font>predict<font style="letter-spacing:0.1pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>demand.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>our business<font style="letter-spacing:0.05pt;"> </font>expands<font style="letter-spacing:0.05pt;"> </font>and our demand<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">35</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">components</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and materials increases</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">beyond our estimates,</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our manufacturers</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and suppliers</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be unable</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to meet</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our demand.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition, if</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we underestimate</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our component</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and material</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">requirements,</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have inadequate</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">inventory,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which could interrupt,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">delay,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or prevent</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">delivery</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and related</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">products</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to our customers.</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In contrast,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">if we overestimate</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our requirements,</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have excess</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">inventory,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which would increase</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">use of our working capital.</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any of</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> these</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">occurrences</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">would negatively</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">affect</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our financial</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">condition</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">level</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of satisfaction</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our physician</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">customers</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have with our business.</font></p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Even though the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>marketed<font style="letter-spacing:0.05pt;"> </font>to physicians,<font style="letter-spacing:0.05pt;"> </font>there<font style="letter-spacing:0.05pt;"> </font>exists<font style="letter-spacing:0.05pt;"> </font>a potential<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>misuse<font style="letter-spacing:0.05pt;"> </font>by the operator of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>by physicians,<font style="letter-spacing:0.05pt;"> </font>non-physicians<font style="letter-spacing:0.05pt;"> </font>or individuals<font style="letter-spacing:0.1pt;"> </font>who<font style="letter-spacing:-0.05pt;"> </font>are not sufficiently<font style="letter-spacing:0.15pt;"> </font>trained,<font style="letter-spacing:0.05pt;"> </font>which could harm our reputation<font style="letter-spacing:0.05pt;"> </font>and our business.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We and our independent<font style="letter-spacing:0.05pt;"> </font>distributors<font style="letter-spacing:0.15pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>and sell<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>to physicians.<font style="letter-spacing:0.1pt;"> </font>Under state<font style="letter-spacing:0.05pt;"> </font>law in the U.S., our physician<font style="letter-spacing:0.05pt;"> </font>customers<font style="letter-spacing:0.1pt;"> </font>can generally<font style="letter-spacing:0.1pt;"> </font>allow<font style="letter-spacing:0.05pt;"> </font>nurse<font style="letter-spacing:0.05pt;"> </font>practitioners,<font style="letter-spacing:0.15pt;"> </font>technicians,<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>non-physicians<font style="letter-spacing:0.1pt;"> </font>to perform<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedures<font style="letter-spacing:0.1pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>their<font style="letter-spacing:0.05pt;"> </font>direct<font style="letter-spacing:0.1pt;"> </font>supervision.<font style="letter-spacing:0.1pt;"> </font>Similarly,<font style="letter-spacing:0.1pt;"> </font>in markets<font style="letter-spacing:0.1pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>U.S., physicians<font style="letter-spacing:0.1pt;"> </font>can allow<font style="letter-spacing:0.05pt;"> </font>non-physicians<font style="letter-spacing:0.1pt;"> </font>to perform<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedures<font style="letter-spacing:0.1pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>their<font style="letter-spacing:0.05pt;"> </font>supervision.<font style="letter-spacing:0.1pt;"> </font>Although we and our distributors<font style="letter-spacing:0.15pt;"> </font>provide<font style="letter-spacing:0.05pt;"> </font>training<font style="letter-spacing:0.1pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>use of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>we do not supervise<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>procedures performed<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>nor can we be assured<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>direct<font style="letter-spacing:0.1pt;"> </font>physician<font style="letter-spacing:0.05pt;"> </font>supervision<font style="letter-spacing:0.1pt;"> </font>of procedures<font style="letter-spacing:0.1pt;"> </font>occurs according<font style="letter-spacing:0.05pt;"> </font>to our recommendations.<font style="letter-spacing:0.15pt;"> </font>The potential<font style="letter-spacing:0.1pt;"> </font>misuse<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>by physicians<font style="letter-spacing:0.1pt;"> </font>and non- physicians<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in adverse<font style="letter-spacing:0.05pt;"> </font>treatment<font style="letter-spacing:0.15pt;"> </font>outcomes,<font style="letter-spacing:0.05pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our reputation<font style="letter-spacing:0.1pt;"> </font>and expose<font style="letter-spacing:0.05pt;"> </font>us to costly product<font style="letter-spacing:0.05pt;"> </font>liability<font style="letter-spacing:0.15pt;"> </font>litigation.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We and our distributors<font style="letter-spacing:0.15pt;"> </font>offer<font style="letter-spacing:0.05pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>training<font style="letter-spacing:0.1pt;"> </font>sessions,<font style="letter-spacing:0.05pt;"> </font>but neither<font style="letter-spacing:0.1pt;"> </font>we nor our distributors<font style="letter-spacing:0.15pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>purchasers<font style="letter-spacing:0.1pt;"> </font>or operators<font style="letter-spacing:0.1pt;"> </font>of our products<font style="letter-spacing:0.05pt;"> </font>to attend<font style="letter-spacing:0.05pt;"> </font>training<font style="letter-spacing:0.1pt;"> </font>sessions.<font style="letter-spacing:0.05pt;"> </font>The lack<font style="letter-spacing:0.05pt;"> </font>of required<font style="letter-spacing:0.1pt;"> </font>training<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>operators<font style="letter-spacing:0.1pt;"> </font>of our product and the<font style="letter-spacing:0.05pt;"> </font>use of our products<font style="letter-spacing:0.05pt;"> </font>by non-physicians<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in product<font style="letter-spacing:0.05pt;"> </font>misuse<font style="letter-spacing:0.05pt;"> </font>and adverse<font style="letter-spacing:0.05pt;"> </font>treatment<font style="letter-spacing:0.15pt;"> </font>outcomes, which could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our reputation<font style="letter-spacing:0.1pt;"> </font>and expose<font style="letter-spacing:0.05pt;"> </font>us to costly<font style="letter-spacing:0.05pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>liability<font style="letter-spacing:0.15pt;"> </font>litigation.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Product liability<font style="letter-spacing:0.15pt;"> </font>suits<font style="letter-spacing:0.05pt;"> </font>could be brought against<font style="letter-spacing:0.05pt;"> </font>us for<font style="letter-spacing:0.05pt;"> </font>defective<font style="letter-spacing:0.1pt;"> </font>design,<font style="letter-spacing:0.05pt;"> </font>labeling,<font style="letter-spacing:0.05pt;"> </font>material,<font style="letter-spacing:0.1pt;"> </font>or workmanship, or misuse<font style="letter-spacing:0.05pt;"> </font>of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>and could result<font style="letter-spacing:0.05pt;"> </font>in expensive<font style="letter-spacing:0.05pt;"> </font>and time-consuming<font style="letter-spacing:0.1pt;"> </font>litigation,<font style="letter-spacing:0.1pt;"> </font>payment<font style="letter-spacing:0.05pt;"> </font>of substantial<font style="letter-spacing:0.1pt;"> </font>damages,<font style="letter-spacing:0.05pt;"> </font>an increase<font style="letter-spacing:0.05pt;"> </font>in our insurance<font style="letter-spacing:0.05pt;"> </font>rates<font style="letter-spacing:0.05pt;"> </font>and substantial<font style="letter-spacing:0.1pt;"> </font>harm to our reputation.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>defectively<font style="letter-spacing:0.1pt;"> </font>designed,<font style="letter-spacing:0.05pt;"> </font>manufactured,<font style="letter-spacing:0.1pt;"> </font>or labeled,<font style="letter-spacing:0.05pt;"> </font>contains<font style="letter-spacing:0.05pt;"> </font>defective<font style="letter-spacing:0.1pt;"> </font>components,<font style="letter-spacing:0.05pt;"> </font>or is misused,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>become<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to substantial<font style="letter-spacing:0.1pt;"> </font>and costly<font style="letter-spacing:0.05pt;"> </font>litigation<font style="letter-spacing:0.15pt;"> </font>by our physician<font style="letter-spacing:0.05pt;"> </font>customers<font style="letter-spacing:0.1pt;"> </font>or their<font style="letter-spacing:0.05pt;"> </font>patients. Misuse<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>or failure<font style="letter-spacing:0.1pt;"> </font>to adhere<font style="letter-spacing:0.05pt;"> </font>to operating<font style="letter-spacing:0.1pt;"> </font>guidelines<font style="letter-spacing:0.1pt;"> </font>can cause<font style="letter-spacing:0.05pt;"> </font>skin<font style="letter-spacing:0.05pt;"> </font>damage<font style="letter-spacing:0.05pt;"> </font>and underlying tissue<font style="letter-spacing:0.05pt;"> </font>damage<font style="letter-spacing:0.05pt;"> </font>and, if<font style="letter-spacing:0.05pt;"> </font>our operating<font style="letter-spacing:0.1pt;"> </font>guidelines<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>found to be inadequate,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to liability. Furthermore,<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>a patient<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>injured<font style="letter-spacing:0.05pt;"> </font>in an unexpected<font style="letter-spacing:0.05pt;"> </font>manner<font style="letter-spacing:0.05pt;"> </font>or suffers<font style="letter-spacing:0.1pt;"> </font>unanticipated<font style="letter-spacing:0.1pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>events<font style="letter-spacing:0.05pt;"> </font>after undergoing<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedure,<font style="letter-spacing:0.05pt;"> </font>even if<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>was performed<font style="letter-spacing:0.1pt;"> </font>in accordance<font style="letter-spacing:0.1pt;"> </font>with our operating guidelines,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to product<font style="letter-spacing:0.05pt;"> </font>liability<font style="letter-spacing:0.15pt;"> </font>claims.<font style="letter-spacing:0.1pt;"> </font>Claims<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>be asserted<font style="letter-spacing:0.1pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>state<font style="letter-spacing:0.05pt;"> </font>consumer protection<font style="letter-spacing:0.1pt;"> </font>acts.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we cannot<font style="letter-spacing:0.05pt;"> </font>successfully<font style="letter-spacing:0.1pt;"> </font>defend<font style="letter-spacing:0.05pt;"> </font>ourselves<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>liability<font style="letter-spacing:0.15pt;"> </font>claims,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>incur substantial<font style="letter-spacing:0.1pt;"> </font>liabilities.<font style="letter-spacing:0.15pt;"> </font>Even successful<font style="letter-spacing:0.1pt;"> </font>defense<font style="letter-spacing:0.05pt;"> </font>would require<font style="letter-spacing:0.1pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>and management<font style="letter-spacing:0.1pt;"> </font>resources. Regardless<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>merits<font style="letter-spacing:0.1pt;"> </font>or eventual<font style="letter-spacing:0.05pt;"> </font>outcome,<font style="letter-spacing:0.05pt;"> </font>liability<font style="letter-spacing:0.15pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">decreased</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">demand</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or any future</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">damage</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to our reputation;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">withdrawal</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">participants;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">costs</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to defend</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">related</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">litigation;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">a diversion</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of management&#8217;s</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">time</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and our resources;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">substantial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">monetary</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">awards</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to physician</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">customers,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">patients</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">participants;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">investigations,</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">product</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">recalls,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">withdrawals</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or labeling,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or promotional restrictions;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">loss</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of revenue;</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">inability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to commercialize</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">any future</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our inability<font style="letter-spacing:0.1pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>and maintain<font style="letter-spacing:0.1pt;"> </font>sufficient<font style="letter-spacing:0.15pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>liability<font style="letter-spacing:0.15pt;"> </font>insurance<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>an acceptable<font style="letter-spacing:0.1pt;"> </font>cost<font style="letter-spacing:0.05pt;"> </font>and scope<font style="letter-spacing:0.05pt;"> </font>of coverage<font style="letter-spacing:0.05pt;"> </font>to protect<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>potential<font style="letter-spacing:0.1pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>liability<font style="letter-spacing:0.15pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>inhibit<font style="letter-spacing:0.1pt;"> </font>commercialization<font style="letter-spacing:0.2pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System.<font style="letter-spacing:0.05pt;"> </font>As of June 30, 2018, we carry<font style="letter-spacing:0.05pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>liability<font style="letter-spacing:0.15pt;"> </font>insurance<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>amount<font style="letter-spacing:0.05pt;"> </font>of $4.0 million<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>aggregate.<font style="letter-spacing:0.1pt;"> </font>Although we maintain<font style="letter-spacing:0.1pt;"> </font>such insurance,<font style="letter-spacing:0.1pt;"> </font>any claim<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be brought<font style="letter-spacing:0.05pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in a court<font style="letter-spacing:0.05pt;"> </font>judgment<font style="letter-spacing:0.05pt;"> </font>or settlement<font style="color:#000000;"> </font>in an amount<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>not covered,<font style="letter-spacing:0.05pt;"> </font>in whole or in part,<font style="letter-spacing:0.05pt;"> </font>by our insurance<font style="letter-spacing:0.1pt;"> </font>or that<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>more than the<font style="letter-spacing:0.05pt;"> </font>limits<font style="letter-spacing:0.1pt;"> </font>of our insurance<font style="letter-spacing:0.1pt;"> </font>coverage.<font style="letter-spacing:0.05pt;"> </font>Our insurance<font style="letter-spacing:0.1pt;"> </font>policies<font style="letter-spacing:0.1pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>have various<font style="letter-spacing:0.05pt;"> </font>exclusions<font style="letter-spacing:0.1pt;"> </font>and deductibles,<font style="letter-spacing:0.1pt;"> </font>and we may<font style="letter-spacing:0.05pt;"> </font>be subject to a product<font style="letter-spacing:0.05pt;"> </font>liability<font style="letter-spacing:0.15pt;"> </font>claim<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>which we have no coverage.<font style="letter-spacing:0.05pt;"> </font>We will<font style="letter-spacing:0.05pt;"> </font>have to pay any amounts<font style="letter-spacing:0.05pt;"> </font>awarded<font style="letter-spacing:0.05pt;"> </font>by a court or negotiated<font style="letter-spacing:0.1pt;"> </font>in a settlement<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>exceed<font style="letter-spacing:0.05pt;"> </font>our coverage<font style="letter-spacing:0.05pt;"> </font>limitations<font style="letter-spacing:0.15pt;"> </font>or that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>not covered<font style="letter-spacing:0.05pt;"> </font>by our insurance,<font style="letter-spacing:0.1pt;"> </font>and<font style="color:#000000;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not have, or be able<font style="letter-spacing:0.05pt;"> </font>to obtain,<font style="letter-spacing:0.05pt;"> </font>sufficient<font style="letter-spacing:0.15pt;"> </font>funds<font style="letter-spacing:0.05pt;"> </font>to pay such amounts.<font style="letter-spacing:0.05pt;"> </font>Moreover,<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to maintain<font style="letter-spacing:0.1pt;"> </font>insurance<font style="letter-spacing:0.1pt;"> </font>coverage<font style="letter-spacing:0.05pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>a reasonable<font style="letter-spacing:0.1pt;"> </font>cost<font style="letter-spacing:0.05pt;"> </font>or in sufficient<font style="letter-spacing:0.15pt;"> </font>amounts<font style="letter-spacing:0.05pt;"> </font>to protect<font style="letter-spacing:0.1pt;"> </font>us against<font style="letter-spacing:0.05pt;"> </font>losses.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">36</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU37"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our ability</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">to market</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">in the U.S.</font><font style="letter-spacing:-0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">is</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">limited</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">to hair follicle</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">dissection</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">in males</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">have black</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">brown straight</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">hair, and if</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">we want to expand our marketing</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">claims,</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">we will</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">need to obtain</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">additional FDA</font><font style="letter-spacing:-0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">clearances</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or approvals,</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">which may</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">not be granted.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have FDA<font style="letter-spacing:-0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>dissecting<font style="letter-spacing:0.1pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>follicles<font style="letter-spacing:0.15pt;"> </font>only from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>scalp in men<font style="letter-spacing:0.05pt;"> </font>diagnosed<font style="letter-spacing:0.05pt;"> </font>with androgenic<font style="letter-spacing:0.05pt;"> </font>alopecia,<font style="letter-spacing:0.1pt;"> </font>or AGA,<font style="letter-spacing:-0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>referred<font style="letter-spacing:0.1pt;"> </font>to as male<font style="letter-spacing:0.05pt;"> </font>pattern<font style="letter-spacing:0.1pt;"> </font>baldness,<font style="letter-spacing:0.05pt;"> </font>who have black<font style="letter-spacing:0.05pt;"> </font>or brown straight<font style="letter-spacing:0.1pt;"> </font>hair.<font style="letter-spacing:0.05pt;"> </font>This clearance<font style="letter-spacing:0.1pt;"> </font>restricts<font style="letter-spacing:0.15pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>or advertise<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>treatment<font style="letter-spacing:0.15pt;"> </font>for women or men<font style="letter-spacing:0.05pt;"> </font>who do not have black<font style="letter-spacing:0.05pt;"> </font>or brown straight<font style="letter-spacing:0.1pt;"> </font>hair,<font style="letter-spacing:0.05pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>limit<font style="letter-spacing:0.1pt;"> </font>physician<font style="letter-spacing:0.05pt;"> </font>and patient<font style="letter-spacing:0.1pt;"> </font>adoption<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.<font style="letter-spacing:0.05pt;"> </font>Developing<font style="letter-spacing:0.05pt;"> </font>and promoting<font style="letter-spacing:0.1pt;"> </font>new treatment<font style="letter-spacing:0.15pt;"> </font>indications<font style="letter-spacing:0.1pt;"> </font>and protocols<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>elements<font style="letter-spacing:0.1pt;"> </font>of our growth strategy,<font style="letter-spacing:0.1pt;"> </font>but we cannot<font style="letter-spacing:0.05pt;"> </font>predict<font style="letter-spacing:0.1pt;"> </font>when or if<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>receive<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>clearances<font style="letter-spacing:0.1pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>to so implement<font style="letter-spacing:0.1pt;"> </font>those<font style="letter-spacing:0.05pt;"> </font>elements.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be required<font style="letter-spacing:0.1pt;"> </font>to conduct<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>or studies<font style="letter-spacing:0.05pt;"> </font>to support<font style="letter-spacing:0.05pt;"> </font>our applications,<font style="letter-spacing:0.1pt;"> </font>which may<font style="letter-spacing:0.05pt;"> </font>be time-consuming<font style="letter-spacing:0.15pt;"> </font>and expensive,<font style="letter-spacing:0.05pt;"> </font>and may<font style="letter-spacing:0.05pt;"> </font>produce<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>do not result<font style="letter-spacing:0.1pt;"> </font>in FDA<font style="letter-spacing:-0.05pt;"> </font>clearances.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we do not obtain additional<font style="letter-spacing:0.1pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>clearances,<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to promote<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be limited.<font style="letter-spacing:0.1pt;"> </font>Because<font style="letter-spacing:0.05pt;"> </font>we anticipate<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>continue<font style="letter-spacing:0.05pt;"> </font>to be a significant<font style="letter-spacing:0.15pt;"> </font>portion<font style="letter-spacing:0.05pt;"> </font>of our business<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>foreseeable<font style="letter-spacing:0.1pt;"> </font>future, ongoing restrictions<font style="letter-spacing:0.15pt;"> </font>on our ability<font style="letter-spacing:0.1pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our business<font style="letter-spacing:0.05pt;"> </font>and limit our revenue<font style="letter-spacing:0.05pt;"> </font>growth.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.05pt;"> </font>process<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.05pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.05pt;"> </font>clearances<font style="letter-spacing:0.05pt;"> </font>or approvals<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>lengthy<font style="letter-spacing:0.05pt;"> </font>and expensive<font style="letter-spacing:0.05pt;"> </font>with uncertain<font style="letter-spacing:0.05pt;"> </font>outcomes and could result<font style="letter-spacing:0.05pt;"> </font>in delays<font style="letter-spacing:0.05pt;"> </font>in new product<font style="letter-spacing:0.05pt;"> </font>introductions.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In order<font style="letter-spacing:0.05pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>510(k)<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>we were required<font style="letter-spacing:0.1pt;"> </font>to conduct<font style="letter-spacing:0.05pt;"> </font>a clinical<font style="letter-spacing:0.1pt;"> </font>trial,<font style="letter-spacing:0.1pt;"> </font>and we expect<font style="letter-spacing:0.05pt;"> </font>to conduct<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>in support<font style="letter-spacing:0.05pt;"> </font>of marketing<font style="letter-spacing:0.1pt;"> </font>authorization<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>and product enhancements.<font style="letter-spacing:0.1pt;"> </font>Conducting<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>a complex<font style="letter-spacing:0.05pt;"> </font>and expensive<font style="letter-spacing:0.05pt;"> </font>process,<font style="letter-spacing:0.05pt;"> </font>can take<font style="letter-spacing:0.05pt;"> </font>many<font style="letter-spacing:0.05pt;"> </font>years,<font style="letter-spacing:0.05pt;"> </font>and outcomes are<font style="letter-spacing:0.05pt;"> </font>inherently<font style="letter-spacing:0.1pt;"> </font>uncertain.<font style="letter-spacing:0.1pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>suffer<font style="letter-spacing:0.1pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>setbacks<font style="letter-spacing:0.05pt;"> </font>in clinical<font style="letter-spacing:0.1pt;"> </font>trials,<font style="letter-spacing:0.1pt;"> </font>even after<font style="letter-spacing:0.1pt;"> </font>earlier<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials showed promising<font style="letter-spacing:0.1pt;"> </font>results,<font style="letter-spacing:0.1pt;"> </font>and failure<font style="letter-spacing:0.1pt;"> </font>can occur<font style="letter-spacing:0.05pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>any time<font style="letter-spacing:0.05pt;"> </font>during<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>process.<font style="letter-spacing:0.05pt;"> </font>Any of our products may<font style="letter-spacing:0.05pt;"> </font>malfunction<font style="letter-spacing:0.1pt;"> </font>or may<font style="letter-spacing:0.05pt;"> </font>produce<font style="letter-spacing:0.05pt;"> </font>undesirable<font style="letter-spacing:0.1pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effects<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>us or regulatory<font style="letter-spacing:0.1pt;"> </font>authorities<font style="letter-spacing:0.15pt;"> </font>to interrupt,<font style="letter-spacing:0.1pt;"> </font>delay<font style="letter-spacing:0.05pt;"> </font>or halt<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials.<font style="letter-spacing:0.1pt;"> </font>We, the<font style="letter-spacing:0.05pt;"> </font>FDA,<font style="letter-spacing:-0.05pt;"> </font>or another<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>authority<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>suspend<font style="letter-spacing:0.05pt;"> </font>or terminate clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>any time<font style="letter-spacing:0.05pt;"> </font>to avoid<font style="letter-spacing:0.05pt;"> </font>exposing<font style="letter-spacing:0.05pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>participants<font style="letter-spacing:0.15pt;"> </font>to unacceptable<font style="letter-spacing:0.1pt;"> </font>health<font style="letter-spacing:0.05pt;"> </font>risks.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Successful<font style="letter-spacing:0.1pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>of pre-clinical<font style="letter-spacing:0.15pt;"> </font>studies<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>not necessarily<font style="letter-spacing:0.1pt;"> </font>indicative<font style="letter-spacing:0.1pt;"> </font>of future<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>results,<font style="letter-spacing:0.1pt;"> </font>and predecessor<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be replicated<font style="letter-spacing:0.1pt;"> </font>in subsequent<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials.<font style="letter-spacing:0.1pt;"> </font>Additionally,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>may disagree<font style="letter-spacing:0.1pt;"> </font>with our interpretation<font style="letter-spacing:0.15pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>our pre-clinical<font style="letter-spacing:0.15pt;"> </font>studies<font style="letter-spacing:0.05pt;"> </font>and clinical<font style="letter-spacing:0.1pt;"> </font>trials,<font style="letter-spacing:0.1pt;"> </font>or may<font style="letter-spacing:0.05pt;"> </font>find<font style="letter-spacing:0.05pt;"> </font>the clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>design,<font style="letter-spacing:0.05pt;"> </font>conduct<font style="letter-spacing:0.05pt;"> </font>or results<font style="letter-spacing:0.1pt;"> </font>inadequate<font style="letter-spacing:0.1pt;"> </font>to prove<font style="letter-spacing:0.05pt;"> </font>safety<font style="letter-spacing:0.05pt;"> </font>or efficacy,<font style="letter-spacing:0.1pt;"> </font>and may<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>us to pursue additional<font style="letter-spacing:0.1pt;"> </font>pre-clinical<font style="letter-spacing:0.15pt;"> </font>studies<font style="letter-spacing:0.05pt;"> </font>or clinical<font style="letter-spacing:0.1pt;"> </font>trials,<font style="letter-spacing:0.1pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>further<font style="letter-spacing:0.1pt;"> </font>delay<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>of our products.<font style="letter-spacing:0.05pt;"> </font>The data<font style="letter-spacing:0.05pt;"> </font>we collect<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>our pre-clinical<font style="letter-spacing:0.15pt;"> </font>studies<font style="letter-spacing:0.05pt;"> </font>and clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be sufficient<font style="letter-spacing:0.15pt;"> </font>to support FDA<font style="letter-spacing:-0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval,<font style="letter-spacing:0.05pt;"> </font>and if<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>unable<font style="letter-spacing:0.05pt;"> </font>to demonstrate<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>safety<font style="letter-spacing:0.05pt;"> </font>and efficacy<font style="letter-spacing:0.1pt;"> </font>of our future<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>in our clinical<font style="letter-spacing:0.1pt;"> </font>trials,<font style="letter-spacing:0.1pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>be unable<font style="letter-spacing:0.05pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>our products.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>estimate<font style="letter-spacing:0.1pt;"> </font>and publicly<font style="letter-spacing:0.05pt;"> </font>announce<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>anticipated<font style="letter-spacing:0.1pt;"> </font>timing<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>accomplishment<font style="letter-spacing:0.15pt;"> </font>of various clinical,<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>development<font style="letter-spacing:0.1pt;"> </font>goals,<font style="letter-spacing:0.05pt;"> </font>which are<font style="letter-spacing:0.05pt;"> </font>often<font style="letter-spacing:0.05pt;"> </font>referred<font style="letter-spacing:0.1pt;"> </font>to as milestones.<font style="letter-spacing:0.1pt;"> </font>These milestones<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>include<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>obtainment<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>right<font style="letter-spacing:0.05pt;"> </font>to affix<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>CE<font style="letter-spacing:-0.05pt;"> </font>Mark<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>European<font style="letter-spacing:0.05pt;"> </font>Union; the<font style="letter-spacing:0.05pt;"> </font>submission to the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>of an investigational<font style="letter-spacing:0.15pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>exemption,<font style="letter-spacing:0.1pt;"> </font>or IDE, application<font style="letter-spacing:0.1pt;"> </font>to commence<font style="letter-spacing:0.1pt;"> </font>a pivotal<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>a new product;<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>enrollment<font style="letter-spacing:0.1pt;"> </font>of patients<font style="letter-spacing:0.1pt;"> </font>in clinical<font style="letter-spacing:0.1pt;"> </font>trials;<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>release<font style="letter-spacing:0.1pt;"> </font>of data<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials;<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>clinical and regulatory<font style="letter-spacing:0.1pt;"> </font>events.<font style="letter-spacing:0.05pt;"> </font>The actual<font style="letter-spacing:0.05pt;"> </font>timing<font style="letter-spacing:0.1pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>milestones<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>vary<font style="letter-spacing:0.05pt;"> </font>dramatically<font style="letter-spacing:0.15pt;"> </font>compared<font style="letter-spacing:0.05pt;"> </font>to our estimates, in some<font style="letter-spacing:0.05pt;"> </font>cases<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>reasons<font style="letter-spacing:0.05pt;"> </font>beyond our control.<font style="letter-spacing:0.05pt;"> </font>We cannot<font style="letter-spacing:0.05pt;"> </font>assure<font style="letter-spacing:0.05pt;"> </font>you that<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>meet<font style="letter-spacing:0.05pt;"> </font>our projected<font style="letter-spacing:0.1pt;"> </font>milestones and if<font style="letter-spacing:0.05pt;"> </font>we do not meet<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>milestones<font style="letter-spacing:0.1pt;"> </font>as publicly<font style="letter-spacing:0.05pt;"> </font>announced,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>commercialization<font style="letter-spacing:0.2pt;"> </font>of our products<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be delayed<font style="letter-spacing:0.05pt;"> </font>and, as a result,<font style="letter-spacing:0.1pt;"> </font>our stock<font style="letter-spacing:0.05pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>decline.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Delays<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>commencement<font style="letter-spacing:0.15pt;"> </font>or completion<font style="letter-spacing:0.1pt;"> </font>of clinical<font style="letter-spacing:0.1pt;"> </font>testing<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>significantly<font style="letter-spacing:0.15pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our product<font style="letter-spacing:0.05pt;"> </font>development costs.<font style="letter-spacing:0.05pt;"> </font>We do not know whether<font style="letter-spacing:0.05pt;"> </font>planned<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>begin<font style="letter-spacing:0.05pt;"> </font>on time,<font style="letter-spacing:0.05pt;"> </font>need to be redesigned,<font style="letter-spacing:0.1pt;"> </font>enroll<font style="letter-spacing:0.05pt;"> </font>an adequate<font style="letter-spacing:0.05pt;"> </font>number<font style="letter-spacing:0.05pt;"> </font>of patients<font style="letter-spacing:0.1pt;"> </font>in a timely<font style="letter-spacing:0.1pt;"> </font>manner<font style="letter-spacing:0.05pt;"> </font>or be completed<font style="letter-spacing:0.1pt;"> </font>on schedule,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>all.<font style="letter-spacing:0.05pt;"> </font>The commencement<font style="letter-spacing:0.15pt;"> </font>and completion<font style="letter-spacing:0.1pt;"> </font>of clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>can be delayed<font style="letter-spacing:0.05pt;"> </font>or terminated<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>a number of reasons,<font style="letter-spacing:0.05pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>delays<font style="letter-spacing:0.05pt;"> </font>or failures related<font style="letter-spacing:0.1pt;"> </font>to:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">the</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">FDA</font><font style="letter-spacing:-0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">or comparable</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">foreign</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">regulatory</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">authorities</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">disagreeing</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">as to the</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">design</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">or implementation</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of our clinical</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">studies;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">obtaining</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">regulatory</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">approval</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">to commence</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">a clinical</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">trial;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">reaching</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">agreement</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">on acceptable</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">terms</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">with prospective</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">clinical</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">research</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">organizations,</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">or CROs,</font><font style="letter-spacing:-0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and trial</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">sites,</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">the</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">terms</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of which can be subject</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">to extensive</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">negotiation</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and may</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">vary</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">significantly</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">among different</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">CROs</font><font style="letter-spacing:-0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and trial</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">sites;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">manufacturing</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">sufficient</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">quantities</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of a product</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">for</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">use in clinical</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">trials;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">obtaining</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">institutional</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">review</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">board,</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">or IRB, or ethics</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">committees</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">approval</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">to conduct</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">a clinical</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">trial</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">at each</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">prospective</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">site;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">recruiting</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and enrolling</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">patients</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and maintaining</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">their</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">participation</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">in clinical</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">trials;</font></p></td></tr></table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">37</a></p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><a name="_AEIOULastRenderedPageBreakAEIOU38"></a><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="font-family:Times New Roman;">having</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">clinical</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">sites</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">observe</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">trial</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">protocol</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">or continue</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">to participate</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">in a trial;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">addressing</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">any patient</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">safety</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">concerns</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">that</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">arise</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">during</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">the</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">course</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of a clinical</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">trial;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">addressing</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">any conflicts</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">with new or existing</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">laws or regulations;</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="font-family:Times New Roman;">adding</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">a sufficient</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">number</font><font style="letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">of clinical</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">trial</font><font style="letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="font-family:Times New Roman;">sites.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Patient<font style="letter-spacing:0.05pt;"> </font>enrollment<font style="letter-spacing:0.1pt;"> </font>in clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>and completion<font style="letter-spacing:0.1pt;"> </font>of patient<font style="letter-spacing:0.1pt;"> </font>follow-up<font style="letter-spacing:0.05pt;"> </font>depend on many<font style="letter-spacing:0.05pt;"> </font>factors,<font style="letter-spacing:0.1pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>the size<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>patient<font style="letter-spacing:0.1pt;"> </font>population,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>nature<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>protocol,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>proximity<font style="letter-spacing:0.1pt;"> </font>of patients<font style="letter-spacing:0.1pt;"> </font>to clinical<font style="letter-spacing:0.1pt;"> </font>sites,<font style="letter-spacing:0.05pt;"> </font>the eligibility<font style="letter-spacing:0.15pt;"> </font>criteria<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial,<font style="letter-spacing:0.1pt;"> </font>patient<font style="letter-spacing:0.1pt;"> </font>compliance,<font style="letter-spacing:0.1pt;"> </font>competing<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>and clinicians&#8217;<font style="letter-spacing:0.15pt;"> </font>and patients&#8217; perceptions<font style="letter-spacing:0.1pt;"> </font>as to the<font style="letter-spacing:0.05pt;"> </font>potential<font style="letter-spacing:0.1pt;"> </font>advantages<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>being<font style="letter-spacing:0.05pt;"> </font>studied<font style="letter-spacing:0.05pt;"> </font>in relation<font style="letter-spacing:0.1pt;"> </font>to other<font style="letter-spacing:0.05pt;"> </font>available<font style="letter-spacing:0.1pt;"> </font>therapies, including<font style="letter-spacing:0.05pt;"> </font>any new treatments<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be cleared<font style="letter-spacing:0.1pt;"> </font>or approved<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>indications<font style="letter-spacing:0.1pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>investigating.<font style="letter-spacing:0.15pt;"> </font>For example,<font style="letter-spacing:0.05pt;"> </font>patients<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be discouraged<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>enrolling<font style="letter-spacing:0.1pt;"> </font>in our clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>protocol<font style="letter-spacing:0.05pt;"> </font>requires<font style="letter-spacing:0.1pt;"> </font>them<font style="letter-spacing:0.05pt;"> </font>to undergo<font style="letter-spacing:0.05pt;"> </font>extensive<font style="letter-spacing:0.1pt;"> </font>post-treatment<font style="letter-spacing:0.2pt;"> </font>procedures<font style="letter-spacing:0.1pt;"> </font>or follow-up<font style="letter-spacing:0.05pt;"> </font>to assess<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>safety<font style="letter-spacing:0.05pt;"> </font>and efficacy<font style="letter-spacing:0.1pt;"> </font>of a product,<font style="letter-spacing:0.05pt;"> </font>or they may<font style="letter-spacing:0.05pt;"> </font>be persuaded<font style="letter-spacing:0.05pt;"> </font>to participate<font style="letter-spacing:0.15pt;"> </font>in contemporaneous<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>of a competitor&#8217;s<font style="letter-spacing:0.15pt;"> </font>product.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>patients participating<font style="letter-spacing:0.15pt;"> </font>in our clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>drop out before<font style="letter-spacing:0.05pt;"> </font>completion<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>or suffer<font style="letter-spacing:0.1pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>events unrelated<font style="letter-spacing:0.1pt;"> </font>to our products.<font style="letter-spacing:0.05pt;"> </font>Delays<font style="letter-spacing:0.05pt;"> </font>in patient<font style="letter-spacing:0.1pt;"> </font>enrollment<font style="letter-spacing:0.1pt;"> </font>or failure<font style="letter-spacing:0.1pt;"> </font>of patients<font style="letter-spacing:0.1pt;"> </font>to continue<font style="letter-spacing:0.05pt;"> </font>to participate<font style="letter-spacing:0.15pt;"> </font>in a clinical trial<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>delay<font style="letter-spacing:0.05pt;"> </font>commencement<font style="letter-spacing:0.15pt;"> </font>or completion<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial,<font style="letter-spacing:0.1pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>an increase<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>clinical trial<font style="letter-spacing:0.1pt;"> </font>and delays,<font style="letter-spacing:0.05pt;"> </font>or result<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>failure<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We could<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>encounter<font style="letter-spacing:0.05pt;"> </font>delays<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>concluded<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>our financial<font style="letter-spacing:0.1pt;"> </font>relationships<font style="letter-spacing:0.15pt;"> </font>with our principal investigators<font style="letter-spacing:0.15pt;"> </font>resulted<font style="letter-spacing:0.1pt;"> </font>in a perceived<font style="letter-spacing:0.1pt;"> </font>or actual<font style="letter-spacing:0.05pt;"> </font>conflict<font style="letter-spacing:0.1pt;"> </font>of interest<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>have affected<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>interpretation<font style="letter-spacing:0.15pt;"> </font>of a study,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>integrity<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>generated<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>applicable<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>site<font style="letter-spacing:0.05pt;"> </font>or the<font style="letter-spacing:0.05pt;"> </font>utility<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>itself. Principal<font style="letter-spacing:0.1pt;"> </font>investigators<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>serve<font style="letter-spacing:0.05pt;"> </font>as scientific<font style="letter-spacing:0.15pt;"> </font>advisors<font style="letter-spacing:0.05pt;"> </font>or consultants<font style="letter-spacing:0.1pt;"> </font>to us from<font style="letter-spacing:0.05pt;"> </font>time<font style="letter-spacing:0.05pt;"> </font>to time<font style="letter-spacing:0.05pt;"> </font>and receive<font style="letter-spacing:0.1pt;"> </font>cash<font style="letter-spacing:0.05pt;"> </font>compensation<font style="letter-spacing:0.1pt;"> </font>and/or<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>options<font style="letter-spacing:0.05pt;"> </font>in connection<font style="letter-spacing:0.05pt;"> </font>with such services.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>relationships and any related<font style="letter-spacing:0.1pt;"> </font>compensation<font style="letter-spacing:0.1pt;"> </font>to or ownership<font style="letter-spacing:0.05pt;"> </font>interest<font style="letter-spacing:0.1pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>investigator<font style="letter-spacing:0.15pt;"> </font>carrying<font style="letter-spacing:0.1pt;"> </font>out the<font style="letter-spacing:0.05pt;"> </font>study<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in perceived<font style="letter-spacing:0.1pt;"> </font>or actual<font style="letter-spacing:0.05pt;"> </font>conflicts<font style="letter-spacing:0.1pt;"> </font>of interest,<font style="letter-spacing:0.1pt;"> </font>or the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>concludes<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>relationship<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>have affected interpretation<font style="letter-spacing:0.15pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>study,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>integrity<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>generated<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>applicable<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>site<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be questioned<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>utility<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>itself<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be jeopardized,<font style="letter-spacing:0.1pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>delay<font style="letter-spacing:0.05pt;"> </font>or rejection<font style="letter-spacing:0.1pt;"> </font>of our marketing<font style="letter-spacing:0.1pt;"> </font>application<font style="letter-spacing:0.1pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>FDA.<font style="letter-spacing:-0.05pt;"> </font>Any such delay<font style="letter-spacing:0.05pt;"> </font>or rejection<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>prevent<font style="letter-spacing:0.05pt;"> </font>us from commercializing<font style="letter-spacing:0.2pt;"> </font>any of our products<font style="letter-spacing:0.05pt;"> </font>in development.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>be delayed<font style="letter-spacing:0.05pt;"> </font>because of ambiguous<font style="letter-spacing:0.05pt;"> </font>or negative<font style="letter-spacing:0.05pt;"> </font>interim<font style="letter-spacing:0.1pt;"> </font>results.<font style="letter-spacing:0.1pt;"> </font>In addition, a clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be suspended<font style="letter-spacing:0.05pt;"> </font>or terminated<font style="letter-spacing:0.15pt;"> </font>by us, the<font style="letter-spacing:0.05pt;"> </font>FDA,<font style="letter-spacing:-0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>IRB overseeing<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>issue,<font style="letter-spacing:0.05pt;"> </font>the Data Safety<font style="letter-spacing:0.05pt;"> </font>Monitoring<font style="letter-spacing:0.1pt;"> </font>Board for<font style="letter-spacing:0.05pt;"> </font>such trial,<font style="letter-spacing:0.1pt;"> </font>any of our clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>sites<font style="letter-spacing:0.05pt;"> </font>with respect<font style="letter-spacing:0.1pt;"> </font>to that<font style="letter-spacing:0.05pt;"> </font>site,<font style="letter-spacing:0.05pt;"> </font>or other regulatory<font style="letter-spacing:0.1pt;"> </font>authorities<font style="letter-spacing:0.15pt;"> </font>due to several factors,<font style="letter-spacing:0.1pt;"> </font>including:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">failure</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to conduct</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in accordance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with applicable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">requirements</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or our clinical protocols;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">inspection</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">operations</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or trial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sites</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">FDA</font><font style="color:#231F20;letter-spacing:-0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">authorities resulting</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">imposition</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of a clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">hold;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">inability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of a clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">investigator</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">site</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to continue</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to participate</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trial;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">unforeseen</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">safety</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">issues</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or adverse</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">side</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">effects;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">failure</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to demonstrate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a benefit</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">using</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">product;</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">lack</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of adequate</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">funding</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to continue</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trial.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Additionally,<font style="letter-spacing:0.1pt;"> </font>changes<font style="letter-spacing:0.05pt;"> </font>in regulatory<font style="letter-spacing:0.1pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>and guidance<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>occur<font style="letter-spacing:0.05pt;"> </font>and we may<font style="letter-spacing:0.05pt;"> </font>need to amend<font style="letter-spacing:0.05pt;"> </font>clinical trial<font style="letter-spacing:0.1pt;"> </font>protocols<font style="letter-spacing:0.1pt;"> </font>to reflect<font style="letter-spacing:0.1pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>changes.<font style="letter-spacing:0.05pt;"> </font>Amendments<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>us to resubmit<font style="letter-spacing:0.1pt;"> </font>our clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>protocols<font style="letter-spacing:0.1pt;"> </font>to IRBs for<font style="letter-spacing:0.05pt;"> </font>reexamination,<font style="letter-spacing:0.15pt;"> </font>which may<font style="letter-spacing:0.05pt;"> </font>impact<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>costs,<font style="letter-spacing:0.05pt;"> </font>timing<font style="letter-spacing:0.1pt;"> </font>or successful<font style="letter-spacing:0.1pt;"> </font>completion<font style="letter-spacing:0.1pt;"> </font>of a clinical<font style="letter-spacing:0.1pt;"> </font>trial.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we experience<font style="letter-spacing:0.1pt;"> </font>delays<font style="letter-spacing:0.05pt;"> </font>in completion<font style="letter-spacing:0.1pt;"> </font>of, or if<font style="letter-spacing:0.05pt;"> </font>we terminate,<font style="letter-spacing:0.15pt;"> </font>any of our clinical<font style="letter-spacing:0.1pt;"> </font>trials,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>commercial<font style="letter-spacing:0.15pt;"> </font>prospects<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our products<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be harmed<font style="letter-spacing:0.05pt;"> </font>and our ability<font style="letter-spacing:0.1pt;"> </font>to generate<font style="letter-spacing:0.1pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be delayed<font style="letter-spacing:0.05pt;"> </font>or not realized<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>all.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>any delays<font style="letter-spacing:0.05pt;"> </font>in completing<font style="letter-spacing:0.1pt;"> </font>our clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>increase<font style="letter-spacing:0.1pt;"> </font>our costs,<font style="letter-spacing:0.05pt;"> </font>slow down our product<font style="letter-spacing:0.05pt;"> </font>development<font style="letter-spacing:0.1pt;"> </font>and approval<font style="letter-spacing:0.05pt;"> </font>process<font style="letter-spacing:0.05pt;"> </font>and jeopardize<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to commence<font style="letter-spacing:0.1pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>and generate revenue.<font style="letter-spacing:0.05pt;"> </font>Any of these<font style="letter-spacing:0.05pt;"> </font>occurrences<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>significantly<font style="letter-spacing:0.15pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our business,<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>condition<font style="letter-spacing:0.05pt;"> </font>and prospects significantly.<font style="letter-spacing:0.15pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>many<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>factors<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>cause,<font style="letter-spacing:0.05pt;"> </font>or lead<font style="letter-spacing:0.05pt;"> </font>to, a delay<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>commencement<font style="letter-spacing:0.15pt;"> </font>or completion of a clinical<font style="letter-spacing:0.1pt;"> </font>trial<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>ultimately<font style="letter-spacing:0.15pt;"> </font>lead<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>denial<font style="letter-spacing:0.05pt;"> </font>of regulatory<font style="letter-spacing:0.1pt;"> </font>approval<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>product.</p>
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<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU39"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our business</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">could be adversely</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">affected</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">if</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">we are unable to extend</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">the</font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"> cleared</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">uses of the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or successfully</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">pursue the development,</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">regulatory</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">clearance</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or approval</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">and commercialization</font><font style="letter-spacing:0.2pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">of future products.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our only product<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>follicle<font style="letter-spacing:0.1pt;"> </font>dissectio<font style="letter-spacing:0.1pt;">n</font>, which has been cleared<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>use in the<font style="letter-spacing:0.05pt;"> </font>U.S. only for<font style="letter-spacing:0.05pt;"> </font>dissecting<font style="letter-spacing:0.1pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>follicles<font style="letter-spacing:0.15pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>scalp<font style="letter-spacing:0.05pt;"> </font>in men<font style="letter-spacing:0.05pt;"> </font>diagnosed<font style="letter-spacing:0.05pt;"> </font>with AGA<font style="letter-spacing:-0.05pt;"> </font>who have black<font style="letter-spacing:0.05pt;"> </font>or brown straight hair, recipient<font style="letter-spacing:0.1pt;"> </font>site<font style="letter-spacing:0.05pt;"> </font>making<font style="letter-spacing:0.05pt;"> </font>for the follicle transplantation sites and robotic implantation in which hair follicles are robotically transplanted, which recently has been approved for commercial marketing in the U.S.<font style="letter-spacing:0.1pt;"> </font>Our business<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be adversely<font style="letter-spacing:0.1pt;"> </font>affected<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>unable<font style="letter-spacing:0.05pt;"> </font>to extend<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>cleared<font style="letter-spacing:0.1pt;"> </font>uses<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>or successfully<font style="letter-spacing:0.1pt;"> </font>pursue<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>development,<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>and commercialization<font style="letter-spacing:0.2pt;"> </font>of future<font style="letter-spacing:0.05pt;"> </font>products. In the<font style="letter-spacing:0.05pt;"> </font>future,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>become<font style="letter-spacing:0.05pt;"> </font>dependent<font style="letter-spacing:0.05pt;"> </font>on other<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>develop<font style="letter-spacing:0.05pt;"> </font>or acquire.<font style="letter-spacing:0.05pt;"> </font>The clinical<font style="letter-spacing:0.1pt;"> </font>and commercial<font style="letter-spacing:0.15pt;"> </font>success<font style="letter-spacing:0.05pt;"> </font>of our products<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>depend on several factors,<font style="letter-spacing:0.1pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>following:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to raise</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">any additional</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">required</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">capital</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on acceptable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">terms,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or at</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">all;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">timely</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">completion</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our nonclinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">studies</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trials,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be significantly</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">slower</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or cost</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">more</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">than</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">we anticipate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and will</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">depend substantially</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">upon the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">performance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of third-party contractors;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">whether</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">we are</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">required</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">FDA</font><font style="color:#231F20;letter-spacing:-0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or similar</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">foreign</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">agencies</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to conduct</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">additional clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trials</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">studies</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">beyond those</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">planned</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to support</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or approval</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and commercialization</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of any future</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">indications</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or products;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to demonstrate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">satisfaction</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">FDA</font><font style="color:#231F20;letter-spacing:-0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and similar</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">foreign</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">authorities</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the safety,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">efficacy</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and acceptable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">risk</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to benefit</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">profile</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of any future</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">indications</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or products;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">prevalence,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">duration</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and severity</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of potential</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">side</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">effects</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">safety</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">issues</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">experienced</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with our future</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">approved</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">if</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">any;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">timely</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">receipt</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of necessary</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">approvals</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or clearances</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">FDA</font><font style="color:#231F20;letter-spacing:-0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and foreign</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory authorities;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">achieving</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and maintaining,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and, where applicable,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ensuring</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">contractors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">achieve</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and maintain,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">compliance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with our contractual</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">obligations</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and with all</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">requirements</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">applicable to any future</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or additional</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">approved</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">indication</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;">s</font><font style="color:#231F20;font-family:Times New Roman;">, if</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">any;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">acceptance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by physicians</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and patients</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">benefits,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">safety</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and efficacy</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of any future</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">if approved</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or cleared,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">relative</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to alternative</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and competing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">treatments;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to establish</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and enforce</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">intellectual</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">property</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rights</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in and to our products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or any future indications</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or products;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to avoid</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">patent</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">interference,</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">intellectual</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">property</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">challenges</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or intellectual property</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">infringement</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">claims.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Even if<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>approvals<font style="letter-spacing:0.05pt;"> </font>or clearances<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>obtained,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>never<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to successfully<font style="letter-spacing:0.1pt;"> </font>commercialize<font style="letter-spacing:0.2pt;"> </font>any future<font style="letter-spacing:0.05pt;"> </font>indications<font style="letter-spacing:0.1pt;"> </font>or products.<font style="letter-spacing:0.05pt;"> </font>Accordingly,<font style="letter-spacing:0.05pt;"> </font>we cannot<font style="letter-spacing:0.05pt;"> </font>provide<font style="letter-spacing:0.05pt;"> </font>assurances<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to generate sufficient<font style="letter-spacing:0.15pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> </font>through<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>sale<font style="letter-spacing:0.05pt;"> </font>of any future<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>to continue<font style="letter-spacing:0.05pt;"> </font>our business.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our loan and security agreement<font style="letter-spacing:0.05pt;"> </font>contains<font style="letter-spacing:0.05pt;"> </font>restrictions<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>limit<font style="letter-spacing:0.1pt;"> </font>our flexibility<font style="letter-spacing:0.15pt;"> </font>in operating<font style="letter-spacing:0.05pt;"> </font>our business.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In May 2018, we entered<font style="letter-spacing:0.05pt;"> </font>into<font style="letter-spacing:0.05pt;"> </font>a loan<font style="letter-spacing:0.05pt;"> </font>and security<font style="letter-spacing:0.05pt;"> </font>agreement<font style="letter-spacing:0.1pt;"> </font>with Solar Capital Ltd. and other lenders. We borrowed<font style="letter-spacing:0.05pt;"> </font>$20.0&#160;million<font style="letter-spacing:0.1pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>loan and security agreement<font style="letter-spacing:0.1pt;"> </font>with Solar, the Solar Agreement. The Solar Agreement also<font style="letter-spacing:0.05pt;"> </font>contains<font style="letter-spacing:0.05pt;"> </font>various<font style="letter-spacing:0.05pt;"> </font>covenants<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>limit<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to engage<font style="letter-spacing:0.05pt;"> </font>in specified<font style="letter-spacing:0.1pt;"> </font>types<font style="letter-spacing:0.05pt;"> </font>of transactions.<font style="letter-spacing:0.15pt;"> </font>Subject<font style="letter-spacing:0.05pt;"> </font>to limited<font style="letter-spacing:0.1pt;"> </font>exceptions,<font style="letter-spacing:0.1pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>covenants<font style="letter-spacing:0.05pt;"> </font>limit<font style="letter-spacing:0.1pt;"> </font>our abilit<font style="letter-spacing:0.1pt;">y</font>, without <font style="letter-spacing:0.05pt;">Solar&#8217;s </font>consent,<font style="letter-spacing:0.05pt;"> </font>to, among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">sell,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">lease,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">transfer,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">exclusively</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">license</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or dispose</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our assets;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">create,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">incur,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">assume</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or permit</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to exist</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">additional</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">indebtedness</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or liens, which may limit our ability to raise additional capital;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">make</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">restricted</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">payments,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">paying</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">dividends</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on, repurchasing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or making</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">distributions</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with respect</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to our capital</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">stock;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">pay any cash</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">dividend</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or make</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">any other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">cash</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">distribution</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or payment</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in respect</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our capital</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">stock</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">more than $150,000 in aggregate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">per</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">calendar</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">year;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">make</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">specified</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">investments</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">(including</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">loans</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and advances);</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">make</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">changes</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to certain</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">key personnel</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our President</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and Chief</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">Executive</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">Officer;</font></p></td></tr></table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">39</a></p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><a name="_AEIOULastRenderedPageBreakAEIOU40"></a><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#231F20;font-family:Times New Roman;">merge,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">consolidate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or liquidate;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">enter</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">into</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">certain</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">transactions</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with our affiliates.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition, the Solar Agreement contains certain covenants that require us to achieve certain revenue and liquidity thresholds. These covenants under the agreement require us to meet certain minimum liquidity and minimum revenue covenants, which, if we fail to maintain or achieve, will result in a default and require us to repay all outstanding principal amounts and accrued interest repay all amounts outstanding. In the event of a default, if we are unable to repay all outstanding amounts Solar<font style="letter-spacing:0.05pt;"> </font>may foreclose<font style="letter-spacing:0.1pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>collateral<font style="letter-spacing:0.15pt;"> </font>granted<font style="letter-spacing:0.05pt;"> </font>to it<font style="letter-spacing:0.05pt;"> </font>to collateralize<font style="letter-spacing:0.2pt;"> </font>such indebtedness and will significantly affect our ability to operate our business.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We will<font style="letter-spacing:0.05pt;"> </font>need to increase<font style="letter-spacing:0.05pt;"> </font>the size<font style="letter-spacing:0.05pt;"> </font>of our organization,<font style="letter-spacing:0.05pt;"> </font>and we may<font style="letter-spacing:0.05pt;"> </font>experience<font style="letter-spacing:0.05pt;"> </font>difficulties<font style="letter-spacing:0.15pt;"> </font>in managing growth.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As of June 30, 2018, we had 105 employees,<font style="letter-spacing:0.1pt;"> </font>with 47 employees<font style="letter-spacing:0.1pt;"> </font>in sales<font style="letter-spacing:0.05pt;"> </font>and marketing,<font style="letter-spacing:0.1pt;"> </font>18 employees<font style="letter-spacing:0.1pt;"> </font>in customer<font style="letter-spacing:0.1pt;"> </font>support,<font style="letter-spacing:0.05pt;"> </font>24 employees<font style="letter-spacing:0.1pt;"> </font>in research<font style="letter-spacing:0.1pt;"> </font>and development,<font style="letter-spacing:0.1pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>clinical,<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>and certain<font style="letter-spacing:0.1pt;"> </font>quality control<font style="letter-spacing:0.05pt;"> </font>functions,<font style="letter-spacing:0.1pt;"> </font>four<font style="letter-spacing:0.05pt;"> </font>employees<font style="letter-spacing:0.1pt;"> </font>in manufacturing<font style="letter-spacing:0.15pt;"> </font>operations<font style="letter-spacing:0.1pt;"> </font>and 12 employees<font style="letter-spacing:0.1pt;"> </font>in general<font style="letter-spacing:0.05pt;"> </font>management<font style="letter-spacing:0.1pt;"> </font>and administration.<font style="letter-spacing:0.15pt;"> </font>We will<font style="letter-spacing:0.05pt;"> </font>need to continue<font style="letter-spacing:0.05pt;"> </font>to expand our sales,<font style="letter-spacing:0.05pt;"> </font>marketing,<font style="letter-spacing:0.1pt;"> </font>managerial,<font style="letter-spacing:0.1pt;"> </font>operational,<font style="letter-spacing:0.1pt;"> </font>finance<font style="letter-spacing:0.05pt;"> </font>and administrative<font style="letter-spacing:0.2pt;"> </font>resources<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ongoing commercialization<font style="letter-spacing:0.2pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System and continue<font style="letter-spacing:0.05pt;"> </font>our development<font style="letter-spacing:0.1pt;"> </font>activities<font style="letter-spacing:0.15pt;"> </font>of any future<font style="letter-spacing:0.05pt;"> </font>products.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our existing<font style="letter-spacing:0.1pt;"> </font>management,<font style="letter-spacing:0.1pt;"> </font>personnel,<font style="letter-spacing:0.05pt;"> </font>systems<font style="letter-spacing:0.1pt;"> </font>and facilities<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be adequate<font style="letter-spacing:0.05pt;"> </font>to support<font style="letter-spacing:0.05pt;"> </font>our future<font style="letter-spacing:0.05pt;"> </font>growth. Our need to effectively<font style="letter-spacing:0.15pt;"> </font>execute<font style="letter-spacing:0.05pt;"> </font>our growth strategy<font style="letter-spacing:0.1pt;"> </font>requires<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">identify,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">recruit,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">retain,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">incentivize</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and integrate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">additional</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">employees,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">personnel;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">manage</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our internal</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">development</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and operational</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">efforts</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">effectively</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">while</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">carrying</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">out our contractual obligations</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to third</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">parties;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">continue</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to improve</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our operational,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">financial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and management</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">controls,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">reports</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">systems</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and procedures.</font></p></td></tr></table></div>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>we fail<font style="letter-spacing:0.05pt;"> </font>to attract<font style="letter-spacing:0.1pt;"> </font>and retain<font style="letter-spacing:0.05pt;"> </font>senior<font style="letter-spacing:0.05pt;"> </font>management<font style="letter-spacing:0.05pt;"> </font>and key personnel,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be unable to successfully<font style="letter-spacing:0.1pt;"> </font>grow our business.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our success<font style="letter-spacing:0.05pt;"> </font>depends<font style="letter-spacing:0.05pt;"> </font>in part<font style="letter-spacing:0.05pt;"> </font>on our continued<font style="letter-spacing:0.05pt;"> </font>ability<font style="letter-spacing:0.1pt;"> </font>to attract,<font style="letter-spacing:0.1pt;"> </font>retain<font style="letter-spacing:0.1pt;"> </font>and motivate<font style="letter-spacing:0.1pt;"> </font>highly<font style="letter-spacing:0.05pt;"> </font>qualified<font style="letter-spacing:0.1pt;"> </font>management, clinical<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>personnel.<font style="letter-spacing:0.05pt;"> </font>We are<font style="letter-spacing:0.05pt;"> </font>highly<font style="letter-spacing:0.05pt;"> </font>dependent<font style="letter-spacing:0.05pt;"> </font>upon our senior<font style="letter-spacing:0.05pt;"> </font>management,<font style="letter-spacing:0.1pt;"> </font>particularly<font style="letter-spacing:0.15pt;"> </font>our President and Chief<font style="letter-spacing:0.05pt;"> </font>Executive<font style="letter-spacing:0.05pt;"> </font>Officer,<font style="letter-spacing:0.1pt;"> </font>our management<font style="letter-spacing:0.1pt;"> </font>team<font style="letter-spacing:0.05pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>key personnel.<font style="letter-spacing:0.05pt;"> </font>The loss<font style="letter-spacing:0.05pt;"> </font>of services<font style="letter-spacing:0.1pt;"> </font>of any of these individuals<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>delay<font style="letter-spacing:0.05pt;"> </font>or prevent<font style="letter-spacing:0.05pt;"> </font>enhancement<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>expansion<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>to new indications,<font style="letter-spacing:0.1pt;"> </font>or the<font style="letter-spacing:0.05pt;"> </font>development<font style="letter-spacing:0.1pt;"> </font>of any future<font style="letter-spacing:0.05pt;"> </font>products.<font style="letter-spacing:0.05pt;"> </font>Although we have entered<font style="letter-spacing:0.05pt;"> </font>into<font style="letter-spacing:0.05pt;"> </font>employment agreements<font style="letter-spacing:0.1pt;"> </font>with our senior<font style="letter-spacing:0.05pt;"> </font>management<font style="letter-spacing:0.1pt;"> </font>team,<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>agreements<font style="letter-spacing:0.1pt;"> </font>do not provide<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>a fixed<font style="letter-spacing:0.05pt;"> </font>term<font style="letter-spacing:0.05pt;"> </font>of service.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Competition<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>qualified<font style="letter-spacing:0.1pt;"> </font>personnel<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>field<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>intense<font style="letter-spacing:0.05pt;"> </font>due to the<font style="letter-spacing:0.05pt;"> </font>limited<font style="letter-spacing:0.1pt;"> </font>number<font style="letter-spacing:0.05pt;"> </font>of individuals<font style="letter-spacing:0.1pt;"> </font>who possess<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>skills<font style="letter-spacing:0.1pt;"> </font>and experience<font style="letter-spacing:0.1pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>by our industry.<font style="letter-spacing:0.05pt;"> </font>We will<font style="letter-spacing:0.05pt;"> </font>need to hire<font style="letter-spacing:0.05pt;"> </font>additional personnel<font style="letter-spacing:0.05pt;"> </font>and we may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to attract<font style="letter-spacing:0.1pt;"> </font>and retain<font style="letter-spacing:0.1pt;"> </font>quality<font style="letter-spacing:0.05pt;"> </font>personnel<font style="letter-spacing:0.05pt;"> </font>on acceptable<font style="letter-spacing:0.1pt;"> </font>terms,<font style="letter-spacing:0.1pt;"> </font>or at<font style="letter-spacing:0.05pt;"> </font>all.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>extent<font style="letter-spacing:0.05pt;"> </font>we hire<font style="letter-spacing:0.05pt;"> </font>personnel<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>competitors,<font style="letter-spacing:0.15pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to allegations<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>they<font style="letter-spacing:0.05pt;"> </font>have been improperly<font style="letter-spacing:0.1pt;"> </font>solicited<font style="letter-spacing:0.1pt;"> </font>or that<font style="letter-spacing:0.05pt;"> </font>they<font style="letter-spacing:0.05pt;"> </font>have divulged<font style="letter-spacing:0.05pt;"> </font>proprietary<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>confidential<font style="letter-spacing:0.15pt;"> </font>information,<font style="letter-spacing:0.15pt;"> </font>or that<font style="letter-spacing:0.05pt;"> </font>their<font style="letter-spacing:0.05pt;"> </font>former employers<font style="letter-spacing:0.1pt;"> </font>own their<font style="letter-spacing:0.05pt;"> </font>research<font style="letter-spacing:0.1pt;"> </font>output.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Because<font style="letter-spacing:0.05pt;"> </font>we have opted<font style="letter-spacing:0.05pt;"> </font>to take<font style="letter-spacing:0.05pt;"> </font>advantage<font style="letter-spacing:0.05pt;"> </font>of the JOBS<font style="letter-spacing:-0.05pt;"> </font>Act provision<font style="letter-spacing:0.05pt;"> </font>which allows<font style="letter-spacing:0.05pt;"> </font>us to delay<font style="letter-spacing:0.05pt;"> </font>implementing new accounting<font style="letter-spacing:0.05pt;"> </font>standards,<font style="letter-spacing:0.05pt;"> </font>our consolidated<font style="letter-spacing:0.1pt;"> </font>financial<font style="letter-spacing:0.05pt;"> </font>statements<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be directly<font style="letter-spacing:0.1pt;"> </font>comparable<font style="letter-spacing:0.05pt;"> </font>to other public<font style="letter-spacing:0.05pt;"> </font>companies.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Pursuant<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>Jumpstart<font style="letter-spacing:0.1pt;"> </font>Our Business<font style="letter-spacing:0.05pt;"> </font>Startups<font style="letter-spacing:0.05pt;"> </font>Act of 2012, or the<font style="letter-spacing:0.05pt;"> </font>JOBS<font style="letter-spacing:-0.05pt;"> </font>Act, emerging<font style="letter-spacing:0.1pt;"> </font>growth companies<font style="letter-spacing:0.1pt;"> </font>can delay<font style="letter-spacing:0.05pt;"> </font>adopting<font style="letter-spacing:0.05pt;"> </font>new or revised<font style="letter-spacing:0.05pt;"> </font>accounting<font style="letter-spacing:0.05pt;"> </font>standards<font style="letter-spacing:0.1pt;"> </font>issued<font style="letter-spacing:0.05pt;"> </font>after the<font style="letter-spacing:0.05pt;"> </font>enactment<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>JOBS<font style="letter-spacing:-0.05pt;"> </font>Act until those<font style="letter-spacing:0.05pt;"> </font>standards<font style="letter-spacing:0.1pt;"> </font>apply<font style="letter-spacing:0.05pt;"> </font>to private<font style="letter-spacing:0.1pt;"> </font>companies.<font style="letter-spacing:0.1pt;"> </font>We have elected<font style="letter-spacing:0.1pt;"> </font>to use this<font style="letter-spacing:0.05pt;"> </font>extended<font style="letter-spacing:0.05pt;"> </font>transition<font style="letter-spacing:0.1pt;"> </font>period for<font style="letter-spacing:0.05pt;"> </font>complying<font style="letter-spacing:0.05pt;"> </font>with new or revised<font style="letter-spacing:0.05pt;"> </font>accounting<font style="letter-spacing:0.05pt;"> </font>standards<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>have different<font style="letter-spacing:0.1pt;"> </font>effective<font style="letter-spacing:0.1pt;"> </font>dates<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>public<font style="letter-spacing:0.05pt;"> </font>and private companies<font style="letter-spacing:0.1pt;"> </font>until<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>earlier<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>date<font style="letter-spacing:0.05pt;"> </font>we (i)<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>no longer<font style="letter-spacing:0.05pt;"> </font>an emerging<font style="letter-spacing:0.1pt;"> </font>growth company<font style="letter-spacing:0.05pt;"> </font>or (ii)<font style="letter-spacing:0.1pt;"> </font>affirmatively<font style="letter-spacing:0.2pt;"> </font>and irrevocably<font style="letter-spacing:0.1pt;"> </font>opt out of the<font style="letter-spacing:0.05pt;"> </font>extended<font style="letter-spacing:0.05pt;"> </font>transition<font style="letter-spacing:0.1pt;"> </font>period<font style="letter-spacing:0.05pt;"> </font>provided<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>JOBS<font style="letter-spacing:-0.05pt;"> </font>Act. Because<font style="letter-spacing:0.05pt;"> </font>we have elected<font style="letter-spacing:0.1pt;"> </font>to take advantage<font style="letter-spacing:0.05pt;"> </font>of this<font style="letter-spacing:0.05pt;"> </font>provision<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>JOBS<font style="letter-spacing:-0.05pt;"> </font>Act, our consolidated<font style="letter-spacing:0.1pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>statements<font style="letter-spacing:0.15pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>reported<font style="letter-spacing:0.1pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>of operations<font style="letter-spacing:0.1pt;"> </font>contained<font style="letter-spacing:0.05pt;"> </font>therein<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be directly<font style="letter-spacing:0.1pt;"> </font>comparable<font style="letter-spacing:0.1pt;"> </font>to other<font style="letter-spacing:0.05pt;"> </font>public<font style="letter-spacing:0.05pt;"> </font>companies.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We incur significant<font style="letter-spacing:0.1pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>because of operating<font style="letter-spacing:0.05pt;"> </font>as a public<font style="letter-spacing:0.05pt;"> </font>company,<font style="letter-spacing:0.05pt;"> </font>and our management<font style="letter-spacing:0.05pt;"> </font>devotes substantial<font style="letter-spacing:0.1pt;"> </font>time<font style="letter-spacing:0.05pt;"> </font>to new compliance<font style="letter-spacing:0.1pt;"> </font>initiatives.<font style="letter-spacing:0.15pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>fail<font style="letter-spacing:0.05pt;"> </font>to comply<font style="letter-spacing:0.05pt;"> </font>with the rules<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>apply<font style="letter-spacing:0.05pt;"> </font>to public companies,<font style="letter-spacing:0.05pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>Section<font style="letter-spacing:0.05pt;"> </font>404 of the Sarbanes-Oxley<font style="letter-spacing:0.05pt;"> </font>Act of 2002, which could result<font style="letter-spacing:0.05pt;"> </font>in sanctions<font style="letter-spacing:0.05pt;"> </font>or other penalties<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>would harm our business.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU41"></a>We<font style="letter-spacing:0.05pt;"> </font>incur<font style="letter-spacing:0.05pt;"> </font>significant<font style="letter-spacing:0.15pt;"> </font>legal,<font style="letter-spacing:0.05pt;"> </font>accounting<font style="letter-spacing:0.05pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>expenses<font style="letter-spacing:0.05pt;"> </font>as a public<font style="letter-spacing:0.05pt;"> </font>company,<font style="letter-spacing:0.05pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>resulting from<font style="letter-spacing:0.05pt;"> </font>public<font style="letter-spacing:0.05pt;"> </font>company<font style="letter-spacing:0.05pt;"> </font>reporting<font style="letter-spacing:0.1pt;"> </font>obligations<font style="letter-spacing:0.1pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>Securities<font style="letter-spacing:0.1pt;"> </font>Exchange Act of 1934, as amended,<font style="letter-spacing:0.05pt;"> </font>and regulations<font style="letter-spacing:0.1pt;"> </font>regarding<font style="letter-spacing:0.1pt;"> </font>corporate<font style="letter-spacing:0.1pt;"> </font>governance<font style="letter-spacing:0.05pt;"> </font>practices.<font style="letter-spacing:0.1pt;"> </font>The listing<font style="letter-spacing:0.1pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>of The Nasdaq<font style="letter-spacing:-0.1pt;"> </font>Global<font style="letter-spacing:0.05pt;"> </font>Market and the<font style="letter-spacing:0.05pt;"> </font>rules<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>Securities<font style="letter-spacing:0.1pt;"> </font>and Exchange Commission,<font style="letter-spacing:0.1pt;"> </font>or SEC,<font style="letter-spacing:-0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we satisfy<font style="letter-spacing:0.1pt;"> </font>certain<font style="letter-spacing:0.1pt;"> </font>corporate governance<font style="letter-spacing:0.05pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>relating<font style="letter-spacing:0.1pt;"> </font>to director<font style="letter-spacing:0.1pt;"> </font>independence,<font style="letter-spacing:0.05pt;"> </font>filing<font style="letter-spacing:0.1pt;"> </font>annual<font style="letter-spacing:0.05pt;"> </font>and interim<font style="letter-spacing:0.1pt;"> </font>reports,<font style="letter-spacing:0.1pt;"> </font></p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">40</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">stockholder meetings,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">approvals</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and voting,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">soliciting</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">proxies,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">conflicts</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of interest</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and a code of conduct.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our management and other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">personnel devote</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a substantial</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">amount</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of time</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to ensure</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we comply</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with all</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of these requirements.</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Moreover,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reporting</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">requirements,</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rules</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and regulations</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">will continue to</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">increase</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our legal</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and financial compliance</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">costs</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and will</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">make</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">some</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">activities</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">more</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">time-consuming</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and costly.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any changes</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we make</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to comply</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> these</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">obligations</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">not be sufficient</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to allow</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us to satisfy</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our obligations</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as a public</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">company</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on a timely</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">basis,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or at</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">all.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">These reporting</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">requirements,</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rules</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and regulations,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">coupled</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">increase</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in potential</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">litigation</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">exposure</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">associated</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">wit</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">h being</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a public</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">company,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">also</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">make</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">it</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">more</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">difficult</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">for</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us to attract</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and retain</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">qualified</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">persons</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to serve</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on our board</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of directors</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or board</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">committees</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or to serve</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">as executive</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">officers,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or to obtain</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">certain</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">types</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of insurance,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">including</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">directors&#8217;</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and officers&#8217;</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">insurance,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on acceptable</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">terms.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to Section<font style="letter-spacing:0.05pt;"> </font>404 of The Sarbanes-Oxley<font style="letter-spacing:0.1pt;"> </font>Act of 2002, or Section<font style="letter-spacing:0.05pt;"> </font>404, and the related<font style="letter-spacing:0.1pt;"> </font>rules<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>SEC,<font style="letter-spacing:-0.05pt;"> </font>which generally<font style="letter-spacing:0.1pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>our management<font style="letter-spacing:0.1pt;"> </font>and independent<font style="letter-spacing:0.05pt;"> </font>registered<font style="letter-spacing:0.1pt;"> </font>public<font style="letter-spacing:0.05pt;"> </font>accounting firm<font style="letter-spacing:0.1pt;"> </font>to report<font style="letter-spacing:0.05pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>effectiveness<font style="letter-spacing:0.15pt;"> </font>of our internal<font style="letter-spacing:0.1pt;"> </font>control<font style="letter-spacing:0.05pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>reporting.<font style="letter-spacing:0.1pt;"> </font>Beginning<font style="letter-spacing:0.05pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>second annual<font style="letter-spacing:0.05pt;"> </font>report<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>be required<font style="letter-spacing:0.1pt;"> </font>to file<font style="letter-spacing:0.05pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>SEC,<font style="letter-spacing:-0.05pt;"> </font>Section<font style="letter-spacing:0.05pt;"> </font>404 requires<font style="letter-spacing:0.1pt;"> </font>an annual<font style="letter-spacing:0.05pt;"> </font>management assessment<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>effectiveness<font style="letter-spacing:0.15pt;"> </font>of our internal<font style="letter-spacing:0.1pt;"> </font>control<font style="letter-spacing:0.05pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>reporting.<font style="letter-spacing:0.1pt;"> </font>However, for<font style="letter-spacing:0.05pt;"> </font>so long as we remain<font style="letter-spacing:0.1pt;"> </font>an emerging<font style="letter-spacing:0.1pt;"> </font>growth company<font style="letter-spacing:0.05pt;"> </font>as defined<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>JOBS<font style="letter-spacing:-0.05pt;"> </font>Act, we intend<font style="letter-spacing:0.05pt;"> </font>to take<font style="letter-spacing:0.05pt;"> </font>advantage<font style="letter-spacing:0.05pt;"> </font>of certain exemptions<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>various<font style="letter-spacing:0.05pt;"> </font>reporting<font style="letter-spacing:0.1pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>applicable<font style="letter-spacing:0.1pt;"> </font>to public<font style="letter-spacing:0.05pt;"> </font>companies<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>not emerging growth companies,<font style="letter-spacing:0.1pt;"> </font>including,<font style="letter-spacing:0.05pt;"> </font>but not limited<font style="letter-spacing:0.1pt;"> </font>to, not being<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>to comply<font style="letter-spacing:0.05pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>auditor<font style="letter-spacing:0.05pt;"> </font>attestation requirements<font style="letter-spacing:0.15pt;"> </font>of Section<font style="letter-spacing:0.05pt;"> </font>404. Once we are<font style="letter-spacing:0.05pt;"> </font>no longer<font style="letter-spacing:0.05pt;"> </font>an emerging<font style="letter-spacing:0.1pt;"> </font>growth company<font style="letter-spacing:0.05pt;"> </font>or, if<font style="letter-spacing:0.05pt;"> </font>prior<font style="letter-spacing:0.05pt;"> </font>to such date,<font style="letter-spacing:0.05pt;"> </font>we opt to no longer<font style="letter-spacing:0.05pt;"> </font>take<font style="letter-spacing:0.05pt;"> </font>advantage<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>applicable<font style="letter-spacing:0.1pt;"> </font>exemption,<font style="letter-spacing:0.1pt;"> </font>our independent<font style="letter-spacing:0.05pt;"> </font>registered<font style="letter-spacing:0.1pt;"> </font>public<font style="letter-spacing:0.05pt;"> </font>accounting<font style="letter-spacing:0.05pt;"> </font>firm will<font style="letter-spacing:0.05pt;"> </font>be engaged<font style="letter-spacing:0.05pt;"> </font>to provide<font style="letter-spacing:0.05pt;"> </font>an attestation<font style="letter-spacing:0.15pt;"> </font>report<font style="letter-spacing:0.05pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>effectiveness<font style="letter-spacing:0.15pt;"> </font>of our internal<font style="letter-spacing:0.1pt;"> </font>control<font style="letter-spacing:0.05pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>financial reporting.<font style="letter-spacing:0.1pt;"> </font>We will<font style="letter-spacing:0.05pt;"> </font>remain<font style="letter-spacing:0.1pt;"> </font>an emerging<font style="letter-spacing:0.1pt;"> </font>growth company<font style="letter-spacing:0.05pt;"> </font>until<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>earlier<font style="letter-spacing:0.1pt;"> </font>of (1)<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>last<font style="letter-spacing:0.05pt;"> </font>day of the<font style="letter-spacing:0.05pt;"> </font>fiscal<font style="letter-spacing:0.1pt;"> </font>year (a)<font style="letter-spacing:0.05pt;"> </font>following<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>fifth<font style="letter-spacing:0.1pt;"> </font>anniversary<font style="letter-spacing:0.1pt;"> </font>of our initial public<font style="letter-spacing:0.05pt;"> </font>offering,<font style="letter-spacing:0.1pt;"> </font>(b)<font style="letter-spacing:0.05pt;"> </font>in which we have total<font style="letter-spacing:0.05pt;"> </font>annual<font style="letter-spacing:0.05pt;"> </font>gross revenue<font style="letter-spacing:0.05pt;"> </font>of at<font style="letter-spacing:0.05pt;"> </font>least<font style="letter-spacing:0.05pt;"> </font>$1.07 billion,<font style="letter-spacing:0.1pt;"> </font>or (c)<font style="letter-spacing:0.05pt;"> </font>in which we are<font style="letter-spacing:0.05pt;"> </font>deemed<font style="letter-spacing:0.05pt;"> </font>to be a large<font style="letter-spacing:0.05pt;"> </font>accelerated<font style="letter-spacing:0.15pt;"> </font>filer,<font style="letter-spacing:0.1pt;"> </font>which means<font style="letter-spacing:0.05pt;"> </font>the market<font style="letter-spacing:0.1pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>held<font style="letter-spacing:0.05pt;"> </font>by non-affiliates<font style="letter-spacing:0.2pt;"> </font>exceeds<font style="letter-spacing:0.05pt;"> </font>$700.0 million<font style="letter-spacing:0.1pt;"> </font>as of the<font style="letter-spacing:0.05pt;"> </font>prior<font style="letter-spacing:0.05pt;"> </font>September 30th, and (2)<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>date<font style="letter-spacing:0.05pt;"> </font>on which we have issued<font style="letter-spacing:0.05pt;"> </font>more<font style="letter-spacing:0.05pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>$1.0 billion<font style="letter-spacing:0.1pt;"> </font>in non-convertible<font style="letter-spacing:0.15pt;"> </font>debt<font style="letter-spacing:0.05pt;"> </font>during<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>prior<font style="letter-spacing:0.05pt;"> </font>three- year<font style="letter-spacing:0.05pt;"> </font>period.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">To date,<font style="letter-spacing:0.05pt;"> </font>we have never<font style="letter-spacing:0.05pt;"> </font>conducted<font style="letter-spacing:0.05pt;"> </font>a review<font style="letter-spacing:0.05pt;"> </font>of our internal<font style="letter-spacing:0.1pt;"> </font>control<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>purpose<font style="letter-spacing:0.05pt;"> </font>of providing<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>reports required<font style="letter-spacing:0.1pt;"> </font>by these<font style="letter-spacing:0.05pt;"> </font>rules.<font style="letter-spacing:0.05pt;"> </font>During the<font style="letter-spacing:0.05pt;"> </font>course<font style="letter-spacing:0.05pt;"> </font>of our review<font style="letter-spacing:0.05pt;"> </font>and testing,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>identify<font style="letter-spacing:0.1pt;"> </font>deficiencies<font style="letter-spacing:0.15pt;"> </font>and be unable to remediate<font style="letter-spacing:0.1pt;"> </font>them<font style="letter-spacing:0.05pt;"> </font>before<font style="letter-spacing:0.05pt;"> </font>we must<font style="letter-spacing:0.05pt;"> </font>provide<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>reports.<font style="letter-spacing:0.1pt;"> </font>Furthermore,<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>we have a material<font style="letter-spacing:0.15pt;"> </font>weakness<font style="letter-spacing:0.05pt;"> </font>in our internal<font style="letter-spacing:0.1pt;"> </font>controls<font style="letter-spacing:0.1pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>reporting,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not detect<font style="letter-spacing:0.05pt;"> </font>errors<font style="letter-spacing:0.1pt;"> </font>on a timely<font style="letter-spacing:0.1pt;"> </font>basis<font style="letter-spacing:0.05pt;"> </font>and our consolidated financial<font style="letter-spacing:0.1pt;"> </font>statements<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be materially<font style="letter-spacing:0.15pt;"> </font>misstated.<font style="letter-spacing:0.1pt;"> </font>We or our independent<font style="letter-spacing:0.05pt;"> </font>registered<font style="letter-spacing:0.1pt;"> </font>public<font style="letter-spacing:0.05pt;"> </font>accounting<font style="letter-spacing:0.05pt;"> </font>firm<font style="letter-spacing:0.1pt;"> </font>may not be able<font style="letter-spacing:0.05pt;"> </font>to conclude<font style="letter-spacing:0.05pt;"> </font>on an ongoing basis<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we have effective<font style="letter-spacing:0.1pt;"> </font>internal<font style="letter-spacing:0.1pt;"> </font>control<font style="letter-spacing:0.05pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>reporting, which could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our operating<font style="letter-spacing:0.1pt;"> </font>results,<font style="letter-spacing:0.1pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>investors<font style="letter-spacing:0.1pt;"> </font>to lose<font style="letter-spacing:0.05pt;"> </font>confidence<font style="letter-spacing:0.1pt;"> </font>in our reported<font style="letter-spacing:0.1pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>information and cause<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>of our stock<font style="letter-spacing:0.05pt;"> </font>to decline.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>as a public<font style="letter-spacing:0.05pt;"> </font>company<font style="letter-spacing:0.05pt;"> </font>we are required<font style="letter-spacing:0.1pt;"> </font>to file accurate<font style="letter-spacing:0.1pt;"> </font>and timely<font style="letter-spacing:0.1pt;"> </font>quarterly<font style="letter-spacing:0.1pt;"> </font>and annual<font style="letter-spacing:0.05pt;"> </font>reports<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>SEC<font style="letter-spacing:-0.05pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>Securities<font style="letter-spacing:0.1pt;"> </font>Exchange Act of 1934, as amended.<font style="letter-spacing:0.05pt;"> </font>Any failure<font style="letter-spacing:0.1pt;"> </font>to report<font style="letter-spacing:0.05pt;"> </font>our financial<font style="letter-spacing:0.1pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>on an accurate<font style="letter-spacing:0.1pt;"> </font>and timely<font style="letter-spacing:0.1pt;"> </font>basis<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in sanctions, lawsuits,<font style="letter-spacing:0.05pt;"> </font>delisting<font style="letter-spacing:0.1pt;"> </font>of our shares<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>The Nasdaq<font style="letter-spacing:-0.1pt;"> </font>Global<font style="letter-spacing:0.05pt;"> </font>Market<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>consequences<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>would materially<font style="letter-spacing:0.15pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>to our business<font style="letter-spacing:0.05pt;"> </font>and cause<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>to decline.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Unfavorable<font style="letter-spacing:0.05pt;"> </font>global<font style="letter-spacing:0.05pt;"> </font>economic<font style="letter-spacing:0.05pt;"> </font>conditions<font style="letter-spacing:0.05pt;"> </font>could adversely<font style="letter-spacing:0.1pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our business,<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.05pt;"> </font>condition<font style="letter-spacing:0.05pt;"> </font>or results<font style="letter-spacing:0.05pt;"> </font>of operations.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our results<font style="letter-spacing:0.1pt;"> </font>of operations<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be adversely<font style="letter-spacing:0.1pt;"> </font>affected<font style="letter-spacing:0.1pt;"> </font>by general<font style="letter-spacing:0.05pt;"> </font>conditions<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>global<font style="letter-spacing:0.05pt;"> </font>economy<font style="letter-spacing:0.05pt;"> </font>and in the global<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>markets.<font style="letter-spacing:0.1pt;"> </font>Furthermore,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>aesthetic<font style="letter-spacing:0.1pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>procedures<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be particularly vulnerable<font style="letter-spacing:0.1pt;"> </font>to unfavorable<font style="letter-spacing:0.1pt;"> </font>economic<font style="letter-spacing:0.05pt;"> </font>conditions.<font style="letter-spacing:0.1pt;"> </font>In particular,<font style="letter-spacing:0.15pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="letter-spacing:-0.1pt;"> </font>procedures<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>not receive<font style="letter-spacing:0.1pt;"> </font>coverage and reimbursement<font style="letter-spacing:0.15pt;"> </font>and, as a result,<font style="letter-spacing:0.1pt;"> </font>demand<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>this<font style="letter-spacing:0.05pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be tied<font style="letter-spacing:0.05pt;"> </font>to discretionary<font style="letter-spacing:0.15pt;"> </font>spending<font style="letter-spacing:0.05pt;"> </font>levels<font style="letter-spacing:0.05pt;"> </font>of our targeted<font style="letter-spacing:0.1pt;"> </font>patient<font style="letter-spacing:0.1pt;"> </font>population.<font style="letter-spacing:0.05pt;"> </font>The recent<font style="letter-spacing:0.05pt;"> </font>global<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>crisis<font style="letter-spacing:0.1pt;"> </font>caused<font style="letter-spacing:0.05pt;"> </font>extreme<font style="letter-spacing:0.1pt;"> </font>volatility<font style="letter-spacing:0.15pt;"> </font>and disruptions<font style="letter-spacing:0.1pt;"> </font>in the capital<font style="letter-spacing:0.1pt;"> </font>and credit<font style="letter-spacing:0.1pt;"> </font>markets.<font style="letter-spacing:0.1pt;"> </font>A severe<font style="letter-spacing:0.05pt;"> </font>or prolonged<font style="letter-spacing:0.05pt;"> </font>economic<font style="letter-spacing:0.05pt;"> </font>downturn, such as the<font style="letter-spacing:0.05pt;"> </font>recent<font style="letter-spacing:0.05pt;"> </font>global<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>crisis, could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in a variety<font style="letter-spacing:0.1pt;"> </font>of risks<font style="letter-spacing:0.05pt;"> </font>to our business,<font style="letter-spacing:0.05pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>weakened demand<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>ARTAS procedures<font style="letter-spacing:0.1pt;"> </font>or any future<font style="letter-spacing:0.05pt;"> </font>products,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>approved,<font style="letter-spacing:0.05pt;"> </font>and our ability<font style="letter-spacing:0.1pt;"> </font>to raise<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>capital<font style="letter-spacing:0.1pt;"> </font>when needed<font style="letter-spacing:0.05pt;"> </font>on acceptable<font style="letter-spacing:0.1pt;"> </font>terms,<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>all.<font style="letter-spacing:0.05pt;"> </font>A weak or declining<font style="letter-spacing:0.1pt;"> </font>economy<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>strain<font style="letter-spacing:0.1pt;"> </font>our manufacturers<font style="letter-spacing:0.15pt;"> </font>or suppliers, possibly<font style="letter-spacing:0.05pt;"> </font>resulting<font style="letter-spacing:0.1pt;"> </font>in supply<font style="letter-spacing:0.05pt;"> </font>disruption,<font style="letter-spacing:0.1pt;"> </font>or cause<font style="letter-spacing:0.05pt;"> </font>our customers<font style="letter-spacing:0.1pt;"> </font>to delay<font style="letter-spacing:0.05pt;"> </font>making<font style="letter-spacing:0.05pt;"> </font>payments<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our services.<font style="letter-spacing:0.1pt;"> </font>Any of the<font style="letter-spacing:0.05pt;"> </font>foregoing<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our business<font style="letter-spacing:0.05pt;"> </font>and we cannot<font style="letter-spacing:0.05pt;"> </font>anticipate<font style="letter-spacing:0.1pt;"> </font>all the<font style="letter-spacing:0.05pt;"> </font>ways in which the<font style="letter-spacing:0.05pt;"> </font>economic<font style="letter-spacing:0.05pt;"> </font>climate and financial<font style="letter-spacing:0.1pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>conditions<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>adversely<font style="letter-spacing:0.1pt;"> </font>impact<font style="letter-spacing:0.1pt;"> </font>our business.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We or the third<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.05pt;"> </font>upon whom we depend may<font style="letter-spacing:0.05pt;"> </font>be adversely<font style="letter-spacing:0.1pt;"> </font>affected<font style="letter-spacing:0.1pt;"> </font>by earthquakes<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>natural disasters<font style="letter-spacing:0.1pt;"> </font>and our business<font style="letter-spacing:0.05pt;"> </font>continuity<font style="letter-spacing:0.05pt;"> </font>and disaster<font style="letter-spacing:0.1pt;"> </font>recovery<font style="letter-spacing:0.05pt;"> </font>plans may<font style="letter-spacing:0.05pt;"> </font>not adequately<font style="letter-spacing:0.05pt;"> </font>protect<font style="letter-spacing:0.05pt;"> </font>us from<font style="letter-spacing:0.05pt;"> </font>a serious disaster.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our corporate<font style="letter-spacing:0.1pt;"> </font>headquarters<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>facilities<font style="letter-spacing:0.15pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>located<font style="letter-spacing:0.05pt;"> </font>in San Jose,<font style="letter-spacing:0.05pt;"> </font>California,<font style="letter-spacing:0.1pt;"> </font>which in the<font style="letter-spacing:0.05pt;"> </font>past<font style="letter-spacing:0.05pt;"> </font>has experienced<font style="letter-spacing:0.1pt;"> </font>both severe<font style="letter-spacing:0.05pt;"> </font>earthquakes<font style="letter-spacing:0.1pt;"> </font>and floods.<font style="letter-spacing:0.05pt;"> </font>We do not carry<font style="letter-spacing:0.05pt;"> </font>earthquake<font style="letter-spacing:0.1pt;"> </font>or flood<font style="letter-spacing:0.05pt;"> </font>insurance.<font style="letter-spacing:0.1pt;"> </font>Earthquakes<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>natural<font style="letter-spacing:0.1pt;"> </font>disasters<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>severely<font style="letter-spacing:0.1pt;"> </font>disrupt<font style="letter-spacing:0.05pt;"> </font>our operations,<font style="letter-spacing:0.1pt;"> </font>and have a material<font style="letter-spacing:0.15pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our business, results<font style="letter-spacing:0.1pt;"> </font>of operations,<font style="letter-spacing:0.1pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>condition<font style="letter-spacing:0.05pt;"> </font>and prospects.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">41</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU42"></a><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a natural</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">disaster,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">power outage</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">event</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">occurred</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">prevented</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us from</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">using</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">all</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or a significant</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">portion of our headquarters,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">damaged</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">critical</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">infrastructure,</font><font style="letter-spacing:0.2pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such as our ARTAS</font><font style="letter-spacing:-0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">enterprise</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">system,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">enterprise financial</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">syste</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ms</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and records,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">manufacturing</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">resource</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">planning</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and enterprise</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">quality</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">systems,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or that</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">otherwise disrup</font><font style="letter-spacing:0.05pt;">t</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ed operations,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">it</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be difficult</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or, in certain</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">cases,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">impossible,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">for</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us to continue</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our business</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">for</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a substantial</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">period</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of time.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The disaster</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">recovery</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and business</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">continuity</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">plans</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we have in place</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">are</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">limited</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and are</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">unlikely</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to prove</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">adequate</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">event</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of a serious</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">disaster</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or similar</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">event.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">incur</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">substantial expenses</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">because of the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">limited</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">nature</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of our disaster</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">recovery</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">business</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">continuity</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">plans,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which, particularly</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">when taken</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">together</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with our lack</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of earthquake</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or flood</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">insurance,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have a material</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">adverse effect</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on our business.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,<font style="letter-spacing:0.1pt;"> </font>integral<font style="letter-spacing:0.1pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>in our supply<font style="letter-spacing:0.05pt;"> </font>chain<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>similarly<font style="letter-spacing:0.15pt;"> </font>vulnerable<font style="letter-spacing:0.1pt;"> </font>to natural<font style="letter-spacing:0.1pt;"> </font>disasters<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>sudden, unforeseen<font style="letter-spacing:0.1pt;"> </font>and severe<font style="letter-spacing:0.05pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>events.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>such an event<font style="letter-spacing:0.05pt;"> </font>were to affect<font style="letter-spacing:0.1pt;"> </font>our supply<font style="letter-spacing:0.05pt;"> </font>chain,<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>have a material adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our business.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Significant<font style="letter-spacing:0.1pt;"> </font>disruptions<font style="letter-spacing:0.05pt;"> </font>of information<font style="letter-spacing:0.1pt;"> </font>technology<font style="letter-spacing:0.05pt;"> </font>systems<font style="letter-spacing:0.1pt;"> </font>or breaches<font style="letter-spacing:0.05pt;"> </font>of data security<font style="letter-spacing:0.1pt;"> </font>could materially adversely<font style="letter-spacing:0.1pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our business,<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.05pt;"> </font>of operations<font style="letter-spacing:0.05pt;"> </font>and financial<font style="letter-spacing:0.05pt;"> </font>condition.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We collect<font style="letter-spacing:0.1pt;"> </font>and maintain<font style="letter-spacing:0.1pt;"> </font>information<font style="letter-spacing:0.15pt;"> </font>in digital<font style="letter-spacing:0.1pt;"> </font>form<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>necessary<font style="letter-spacing:0.1pt;"> </font>to conduct<font style="letter-spacing:0.05pt;"> </font>our business,<font style="letter-spacing:0.05pt;"> </font>and we are increasingly<font style="letter-spacing:0.1pt;"> </font>dependent<font style="letter-spacing:0.05pt;"> </font>on information<font style="letter-spacing:0.15pt;"> </font>technology<font style="letter-spacing:0.05pt;"> </font>systems<font style="letter-spacing:0.1pt;"> </font>and infrastructure<font style="letter-spacing:0.2pt;"> </font>to operate<font style="letter-spacing:0.05pt;"> </font>our business.<font style="letter-spacing:0.05pt;"> </font>In the ordinary<font style="letter-spacing:0.05pt;"> </font>course<font style="letter-spacing:0.05pt;"> </font>of our business,<font style="letter-spacing:0.05pt;"> </font>we collect,<font style="letter-spacing:0.1pt;"> </font>store<font style="letter-spacing:0.05pt;"> </font>and transmit<font style="letter-spacing:0.1pt;"> </font>large<font style="letter-spacing:0.05pt;"> </font>amounts<font style="letter-spacing:0.05pt;"> </font>of confidential<font style="letter-spacing:0.15pt;"> </font>information, including<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property,<font style="letter-spacing:0.05pt;"> </font>proprietary<font style="letter-spacing:0.1pt;"> </font>business<font style="letter-spacing:0.05pt;"> </font>information<font style="letter-spacing:0.15pt;"> </font>and personal<font style="letter-spacing:0.05pt;"> </font>information.<font style="letter-spacing:0.15pt;"> </font>It<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>critical<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we do so in a secure<font style="letter-spacing:0.05pt;"> </font>manner<font style="letter-spacing:0.05pt;"> </font>to maintain<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>confidentiality<font style="letter-spacing:0.15pt;"> </font>and integrity<font style="letter-spacing:0.1pt;"> </font>of such confidential<font style="letter-spacing:0.15pt;"> </font>information.<font style="letter-spacing:0.15pt;"> </font>We have established<font style="letter-spacing:0.1pt;"> </font>physical,<font style="letter-spacing:0.05pt;"> </font>electronic,<font style="letter-spacing:0.1pt;"> </font>and organizational<font style="letter-spacing:0.15pt;"> </font>measures<font style="letter-spacing:0.1pt;"> </font>to safeguard<font style="letter-spacing:0.1pt;"> </font>and secure<font style="letter-spacing:0.05pt;"> </font>our systems<font style="letter-spacing:0.1pt;"> </font>to prevent<font style="letter-spacing:0.05pt;"> </font>a data<font style="letter-spacing:0.05pt;"> </font>compromise,<font style="letter-spacing:0.1pt;"> </font>and rely<font style="letter-spacing:0.05pt;"> </font>on commercially<font style="letter-spacing:0.15pt;"> </font>available<font style="letter-spacing:0.1pt;"> </font>systems,<font style="letter-spacing:0.1pt;"> </font>software,<font style="letter-spacing:0.05pt;"> </font>tools,<font style="letter-spacing:0.05pt;"> </font>and monitoring<font style="letter-spacing:0.1pt;"> </font>to provide<font style="color:#000000;"> </font>security<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our information<font style="letter-spacing:0.15pt;"> </font>technology<font style="letter-spacing:0.05pt;"> </font>systems<font style="letter-spacing:0.1pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>processing,<font style="letter-spacing:0.1pt;"> </font>transmission<font style="letter-spacing:0.15pt;"> </font>and storage<font style="letter-spacing:0.05pt;"> </font>of digital information.<font style="letter-spacing:0.15pt;"> </font>We have also<font style="letter-spacing:0.05pt;"> </font>outsourced<font style="letter-spacing:0.05pt;"> </font>elements<font style="letter-spacing:0.1pt;"> </font>of our information<font style="letter-spacing:0.15pt;"> </font>technology<font style="letter-spacing:0.05pt;"> </font>infrastructure,<font style="letter-spacing:0.2pt;"> </font>and as a result<font style="letter-spacing:0.1pt;"> </font>a few third-party<font style="letter-spacing:0.15pt;"> </font>vendors<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>or could<font style="letter-spacing:0.05pt;"> </font>have access<font style="letter-spacing:0.05pt;"> </font>to our confidential<font style="letter-spacing:0.15pt;"> </font>information.<font style="letter-spacing:0.15pt;"> </font>Our internal<font style="letter-spacing:0.1pt;"> </font>information technology<font style="letter-spacing:0.05pt;"> </font>systems<font style="letter-spacing:0.1pt;"> </font>and infrastructure,<font style="letter-spacing:0.2pt;"> </font>and those<font style="letter-spacing:0.05pt;"> </font>of our current<font style="letter-spacing:0.1pt;"> </font>and any future<font style="letter-spacing:0.05pt;"> </font>collaborators,<font style="letter-spacing:0.15pt;"> </font>contractors<font style="letter-spacing:0.1pt;"> </font>and consultants<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>third<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>on which we rely,<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>vulnerable<font style="letter-spacing:0.1pt;"> </font>to damage<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>computer<font style="letter-spacing:0.1pt;"> </font>viruses,<font style="letter-spacing:0.05pt;"> </font>malware, natural<font style="letter-spacing:0.1pt;"> </font>disasters,<font style="letter-spacing:0.1pt;"> </font>terrorism,<font style="letter-spacing:0.15pt;"> </font>war, telecommunication<font style="letter-spacing:0.2pt;"> </font>and electrical<font style="letter-spacing:0.15pt;"> </font>failures,<font style="letter-spacing:0.1pt;"> </font>cyber-attacks<font style="letter-spacing:0.15pt;"> </font>or cyber-intrusions<font style="letter-spacing:0.15pt;"> </font>over the<font style="letter-spacing:0.05pt;"> </font>Internet,<font style="letter-spacing:0.1pt;"> </font>attachments<font style="letter-spacing:0.15pt;"> </font>to emails,<font style="letter-spacing:0.1pt;"> </font>persons<font style="letter-spacing:0.05pt;"> </font>inside<font style="letter-spacing:0.05pt;"> </font>our organization,<font style="letter-spacing:0.1pt;"> </font>or persons<font style="letter-spacing:0.05pt;"> </font>with access<font style="letter-spacing:0.05pt;"> </font>to systems<font style="letter-spacing:0.1pt;"> </font>inside<font style="letter-spacing:0.05pt;"> </font>our organization.<font style="letter-spacing:0.1pt;"> </font>The risk<font style="letter-spacing:0.05pt;"> </font>of a security<font style="letter-spacing:0.1pt;"> </font>breach<font style="letter-spacing:0.05pt;"> </font>or disruption,<font style="letter-spacing:0.1pt;"> </font>particularly<font style="letter-spacing:0.15pt;"> </font>through<font style="letter-spacing:0.05pt;"> </font>cyber-attacks<font style="letter-spacing:0.15pt;"> </font>or cyber<font style="letter-spacing:0.05pt;"> </font>intrusion, including<font style="letter-spacing:0.05pt;"> </font>by computer<font style="letter-spacing:0.1pt;"> </font>hackers,<font style="letter-spacing:0.05pt;"> </font>foreign<font style="letter-spacing:0.05pt;"> </font>governments,<font style="letter-spacing:0.1pt;"> </font>and cyber<font style="letter-spacing:0.05pt;"> </font>terrorists,<font style="letter-spacing:0.15pt;"> </font>has generally<font style="letter-spacing:0.1pt;"> </font>increased<font style="letter-spacing:0.1pt;"> </font>as the<font style="letter-spacing:0.05pt;"> </font>number, intensity<font style="letter-spacing:0.1pt;"> </font>and sophistication<font style="letter-spacing:0.15pt;"> </font>of attempted<font style="letter-spacing:0.1pt;"> </font>attacks<font style="letter-spacing:0.1pt;"> </font>and intrusions<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>around<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>world have increased.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>prevalent<font style="letter-spacing:0.1pt;"> </font>use of mobile<font style="letter-spacing:0.05pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>access<font style="letter-spacing:0.05pt;"> </font>confidential<font style="letter-spacing:0.15pt;"> </font>information<font style="letter-spacing:0.15pt;"> </font>increases<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>risk<font style="letter-spacing:0.05pt;"> </font>of data security<font style="letter-spacing:0.1pt;"> </font>breaches,<font style="letter-spacing:0.05pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>lead<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>loss<font style="letter-spacing:0.05pt;"> </font>of confidential<font style="letter-spacing:0.15pt;"> </font>information<font style="letter-spacing:0.15pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property.<font style="letter-spacing:0.05pt;"> </font>The costs<font style="letter-spacing:0.05pt;"> </font>to us to mitigate<font style="letter-spacing:0.1pt;"> </font>network<font style="letter-spacing:0.05pt;"> </font>security<font style="letter-spacing:0.1pt;"> </font>problems,<font style="letter-spacing:0.1pt;"> </font>bugs, viruses,<font style="letter-spacing:0.05pt;"> </font>worms,<font style="letter-spacing:0.05pt;"> </font>malicious<font style="letter-spacing:0.1pt;"> </font>software<font style="letter-spacing:0.05pt;"> </font>programs<font style="letter-spacing:0.1pt;"> </font>and security<font style="letter-spacing:0.1pt;"> </font>vulnerabilities<font style="letter-spacing:0.2pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be significant,<font style="letter-spacing:0.15pt;"> </font>and while<font style="letter-spacing:0.05pt;"> </font>we have implemented<font style="letter-spacing:0.15pt;"> </font>security<font style="letter-spacing:0.1pt;"> </font>measures<font style="letter-spacing:0.1pt;"> </font>to protect<font style="letter-spacing:0.1pt;"> </font>our data<font style="letter-spacing:0.05pt;"> </font>security<font style="letter-spacing:0.1pt;"> </font>and information<font style="letter-spacing:0.15pt;"> </font>technology<font style="letter-spacing:0.05pt;"> </font>systems,<font style="letter-spacing:0.1pt;"> </font>our efforts<font style="letter-spacing:0.1pt;"> </font>to address<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>problems<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be successful, and these<font style="letter-spacing:0.05pt;"> </font>problems<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in unexpected<font style="letter-spacing:0.05pt;"> </font>interruptions,<font style="letter-spacing:0.15pt;"> </font>delays,<font style="letter-spacing:0.05pt;"> </font>cessation<font style="letter-spacing:0.1pt;"> </font>of service<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>to our business<font style="letter-spacing:0.05pt;"> </font>and our competitive<font style="letter-spacing:0.15pt;"> </font>position.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>such an event<font style="letter-spacing:0.05pt;"> </font>were to occur<font style="letter-spacing:0.05pt;"> </font>and cause<font style="letter-spacing:0.05pt;"> </font>interruptions<font style="letter-spacing:0.15pt;"> </font>in our operations,<font style="letter-spacing:0.1pt;"> </font>it could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in a material<font style="letter-spacing:0.15pt;"> </font>disruption<font style="letter-spacing:0.1pt;"> </font>of our product<font style="letter-spacing:0.05pt;"> </font>development<font style="letter-spacing:0.1pt;"> </font>programs.<font style="letter-spacing:0.1pt;"> </font>Moreover,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>a computer<font style="letter-spacing:0.1pt;"> </font>security breach<font style="letter-spacing:0.05pt;"> </font>affects<font style="letter-spacing:0.1pt;"> </font>our systems<font style="letter-spacing:0.1pt;"> </font>or results<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>unauthorized<font style="letter-spacing:0.1pt;"> </font>release<font style="letter-spacing:0.1pt;"> </font>of personally<font style="letter-spacing:0.1pt;"> </font>identifiable<font style="letter-spacing:0.15pt;"> </font>information,<font style="letter-spacing:0.15pt;"> </font>our reputation<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be materially<font style="letter-spacing:0.15pt;"> </font>damaged.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>such a breach<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>notification<font style="letter-spacing:0.15pt;"> </font>to governmental agencies,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>media<font style="letter-spacing:0.05pt;"> </font>or individuals<font style="letter-spacing:0.1pt;"> </font>pursuant<font style="letter-spacing:0.05pt;"> </font>to various<font style="letter-spacing:0.05pt;"> </font>federal<font style="letter-spacing:0.1pt;"> </font>and state<font style="letter-spacing:0.05pt;"> </font>privacy<font style="letter-spacing:0.05pt;"> </font>and security<font style="letter-spacing:0.1pt;"> </font>laws, if<font style="letter-spacing:0.05pt;"> </font>applicable, including<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>Health<font style="letter-spacing:0.05pt;"> </font>Insurance<font style="letter-spacing:0.1pt;"> </font>Portability<font style="letter-spacing:0.1pt;"> </font>and Accountability<font style="letter-spacing:0.1pt;"> </font>Act of 1996, or HIPAA,<font style="letter-spacing:-0.05pt;"> </font>as amended<font style="letter-spacing:0.05pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>Health Information<font style="letter-spacing:0.15pt;"> </font>Technology<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>Clinical<font style="letter-spacing:0.1pt;"> </font>Health<font style="letter-spacing:0.05pt;"> </font>Act of 2009, or HITECH,<font style="letter-spacing:-0.05pt;"> </font>and its<font style="letter-spacing:0.05pt;"> </font>implementing<font style="letter-spacing:0.15pt;"> </font>rules<font style="letter-spacing:0.05pt;"> </font>and regulations,<font style="letter-spacing:0.1pt;"> </font>as well<font style="letter-spacing:0.05pt;"> </font>as regulations<font style="letter-spacing:0.1pt;"> </font>promulgated<font style="letter-spacing:0.1pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>Federal<font style="letter-spacing:0.05pt;"> </font>Trade<font style="letter-spacing:0.05pt;"> </font>Commission and state<font style="letter-spacing:0.05pt;"> </font>breach<font style="letter-spacing:0.05pt;"> </font>notification laws. We would also<font style="letter-spacing:0.05pt;"> </font>be exposed<font style="letter-spacing:0.05pt;"> </font>to a risk<font style="letter-spacing:0.05pt;"> </font>of loss<font style="letter-spacing:0.05pt;"> </font>or litigation<font style="letter-spacing:0.15pt;"> </font>and potential<font style="letter-spacing:0.1pt;"> </font>liability,<font style="letter-spacing:0.15pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>materially adversely<font style="letter-spacing:0.1pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our business,<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>of operations<font style="letter-spacing:0.1pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our employees<font style="letter-spacing:0.1pt;"> </font>and independent<font style="letter-spacing:0.05pt;"> </font>contractors,<font style="letter-spacing:0.1pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>consultants,<font style="letter-spacing:0.05pt;"> </font>manufacturers,<font style="letter-spacing:0.1pt;"> </font>distributors,<font style="letter-spacing:0.1pt;"> </font>commercial collaborators,<font style="letter-spacing:0.1pt;"> </font>service<font style="letter-spacing:0.1pt;"> </font>providers<font style="letter-spacing:0.05pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>vendors<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>engage in misconduct<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>improper<font style="letter-spacing:0.05pt;"> </font>activities, including<font style="letter-spacing:0.05pt;"> </font>noncompliance<font style="letter-spacing:0.05pt;"> </font>with regulatory<font style="letter-spacing:0.05pt;"> </font>standards<font style="letter-spacing:0.05pt;"> </font>and requirements,<font style="letter-spacing:0.1pt;"> </font>which could have an adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our results<font style="letter-spacing:0.05pt;"> </font>of operations.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU43"></a>We are<font style="letter-spacing:0.05pt;"> </font>exposed<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>risk<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>our employees<font style="letter-spacing:0.1pt;"> </font>and independent<font style="letter-spacing:0.05pt;"> </font>contractors,<font style="letter-spacing:0.1pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>consultants, manufacturers,<font style="letter-spacing:0.15pt;"> </font>distributors,<font style="letter-spacing:0.15pt;"> </font>commercial<font style="letter-spacing:0.15pt;"> </font>collaborators,<font style="letter-spacing:0.15pt;"> </font>service<font style="letter-spacing:0.1pt;"> </font>providers<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>vendors<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>engage<font style="letter-spacing:0.05pt;"> </font>in misconduct<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>illegal<font style="letter-spacing:0.1pt;"> </font>activity.<font style="letter-spacing:0.1pt;"> </font>Misconduct<font style="letter-spacing:0.1pt;"> </font>by these<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>include<font style="letter-spacing:0.05pt;"> </font>intentional,<font style="letter-spacing:0.1pt;"> </font>reckless<font style="letter-spacing:0.1pt;"> </font>and/or negligent<font style="letter-spacing:0.1pt;"> </font>conduct<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>unauthorized<font style="letter-spacing:0.1pt;"> </font>activities<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>violate<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>laws and regulations<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>and other similar<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>bodies,<font style="letter-spacing:0.05pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>those<font style="letter-spacing:0.05pt;"> </font>laws that<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>reporting<font style="letter-spacing:0.1pt;"> </font>of true,<font style="letter-spacing:0.05pt;"> </font>complete<font style="letter-spacing:0.1pt;"> </font>and accurate information<font style="letter-spacing:0.15pt;"> </font>to such regulatory<font style="letter-spacing:0.1pt;"> </font>bodies;<font style="letter-spacing:0.05pt;"> </font>manufacturing<font style="letter-spacing:0.15pt;"> </font>standards;<font style="letter-spacing:0.1pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>federal<font style="letter-spacing:0.1pt;"> </font>and state<font style="letter-spacing:0.05pt;"> </font>healthcare<font style="letter-spacing:0.1pt;"> </font>fraud<font style="letter-spacing:0.05pt;"> </font>and abuse,<font style="letter-spacing:0.05pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>privacy<font style="letter-spacing:0.05pt;"> </font>laws and other<font style="letter-spacing:0.05pt;"> </font>similar<font style="letter-spacing:0.1pt;"> </font>non-U.S. laws;<font style="letter-spacing:0.05pt;"> </font>or laws that<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>true,<font style="letter-spacing:0.05pt;"> </font>complete<font style="letter-spacing:0.1pt;"> </font>and accurate reporting<font style="letter-spacing:0.1pt;"> </font>of financial<font style="letter-spacing:0.1pt;"> </font>information<font style="letter-spacing:0.15pt;"> </font>or data.<font style="letter-spacing:0.05pt;"> </font>Activities<font style="letter-spacing:0.1pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to these<font style="letter-spacing:0.05pt;"> </font>laws also<font style="letter-spacing:0.05pt;"> </font>involve<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>improper<font style="letter-spacing:0.1pt;"> </font>use or misrepresentation<font style="letter-spacing:0.2pt;"> </font>of information<font style="letter-spacing:0.15pt;"> </font>obtained<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>course<font style="letter-spacing:0.05pt;"> </font>of clinical<font style="letter-spacing:0.1pt;"> </font>trials,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>creation<font style="letter-spacing:0.1pt;"> </font>of fraudulent<font style="letter-spacing:0.1pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>in our nonclinical<font style="letter-spacing:0.1pt;"> </font>studies<font style="letter-spacing:0.05pt;"> </font>or clinical<font style="letter-spacing:0.1pt;"> </font>trials,<font style="letter-spacing:0.1pt;"> </font>or illegal<font style="letter-spacing:0.1pt;"> </font>misappropriation<font style="letter-spacing:0.15pt;"> </font>of product,<font style="letter-spacing:0.05pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in regulatory sanctions<font style="letter-spacing:0.1pt;"> </font>and cause<font style="letter-spacing:0.05pt;"> </font>serious<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>to our reputation.<font style="letter-spacing:0.1pt;"> </font>It<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>not always<font style="letter-spacing:0.05pt;"> </font>possible<font style="letter-spacing:0.05pt;"> </font>to identify<font style="letter-spacing:0.1pt;"> </font>and deter<font style="letter-spacing:0.05pt;"> </font>misconduct<font style="letter-spacing:0.1pt;"> </font>by employees<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>third-parties,<font style="letter-spacing:0.15pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>precautions<font style="letter-spacing:0.1pt;"> </font>we take<font style="letter-spacing:0.05pt;"> </font>to detect<font style="letter-spacing:0.05pt;"> </font>and prevent<font style="letter-spacing:0.05pt;"> </font>this<font style="letter-spacing:0.05pt;"> </font>activity<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be effective<font style="letter-spacing:0.1pt;"> </font>in controlling<font style="letter-spacing:0.1pt;"> </font>unknown or unmanaged<font style="letter-spacing:0.05pt;"> </font>risks<font style="letter-spacing:0.05pt;"> </font>or losses<font style="letter-spacing:0.05pt;"> </font>or in protecting<font style="letter-spacing:0.1pt;"> </font>us from<font style="letter-spacing:0.05pt;"> </font>governmental investigations<font style="letter-spacing:0.15pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>actions<font style="letter-spacing:0.05pt;"> </font>or lawsuits<font style="letter-spacing:0.05pt;"> </font>stemming<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>a failure<font style="letter-spacing:0.1pt;"> </font>to be in compliance<font style="letter-spacing:0.1pt;"> </font>with such laws or regulations.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>risk<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>a person<font style="letter-spacing:0.05pt;"> </font>or </p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">42</p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:6pt;margin-bottom:0pt;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">government</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">allege</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">such fraud</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or other misconduct,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">even if</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">none occurred.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any such actions</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">are</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">instituted</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">against</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us, and we are</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">not successful</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in defending</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ourselves</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or asserting</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our rights,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">those</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">actions</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have a si</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">gnificant</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">impact</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on our business</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and financial</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">including,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">without</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">limitation,</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">imposition</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of significant</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">civil,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">criminal</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and administrative penalties,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">damages,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">monetary</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">fines,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">disgorgements,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">individual</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">imprisonment,</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">sanctions,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">contractual</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> damages,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">reputational</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">harm,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">diminished</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">profits</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and future</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">earnings</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and curtailment</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of our operations,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any of which could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">adversely</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">affect</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our ability</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to operate</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our business</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and our results</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of operations.</font></p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related<font style="letter-spacing:0.05pt;"> </font>to Intellectual<font style="letter-spacing:0.1pt;"> </font>Property</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<font style="letter-spacing:0.05pt;"> </font>in the future<font style="letter-spacing:0.05pt;"> </font>become<font style="letter-spacing:0.05pt;"> </font>involved<font style="letter-spacing:0.05pt;"> </font>in lawsuits<font style="letter-spacing:0.05pt;"> </font>to defend<font style="letter-spacing:0.05pt;"> </font>ourselves<font style="letter-spacing:0.05pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>disputes, which could be expensive<font style="letter-spacing:0.05pt;"> </font>and time<font style="letter-spacing:0.05pt;"> </font>consuming,<font style="letter-spacing:0.05pt;"> </font>and ultimately<font style="letter-spacing:0.15pt;"> </font>unsuccessful,<font style="letter-spacing:0.05pt;"> </font>and could result<font style="letter-spacing:0.05pt;"> </font>in the diversion of significant<font style="letter-spacing:0.1pt;"> </font>resources,<font style="letter-spacing:0.05pt;"> </font>and hinder our ability<font style="letter-spacing:0.1pt;"> </font>to commercialize<font style="letter-spacing:0.15pt;"> </font>our existing<font style="letter-spacing:0.05pt;"> </font>or future<font style="letter-spacing:0.05pt;"> </font>products.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our success<font style="letter-spacing:0.05pt;"> </font>depends<font style="letter-spacing:0.05pt;"> </font>in part<font style="letter-spacing:0.05pt;"> </font>on not infringing<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>or violating<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>proprietary<font style="letter-spacing:0.1pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>of others. Intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>disputes<font style="letter-spacing:0.05pt;"> </font>can be costly<font style="letter-spacing:0.05pt;"> </font>to defend<font style="letter-spacing:0.05pt;"> </font>and may<font style="letter-spacing:0.05pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>our business,<font style="letter-spacing:0.05pt;"> </font>operating<font style="letter-spacing:0.1pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>and financial condition<font style="letter-spacing:0.05pt;"> </font>to suffer.<font style="letter-spacing:0.1pt;"> </font>Significant<font style="letter-spacing:0.1pt;"> </font>litigation<font style="letter-spacing:0.15pt;"> </font>regarding<font style="letter-spacing:0.1pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>occurs<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>industry.<font style="letter-spacing:0.05pt;"> </font>Whether<font style="letter-spacing:0.05pt;"> </font>merited or not, it<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>possible<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>and foreign<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>and pending<font style="letter-spacing:0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>applications<font style="letter-spacing:0.1pt;"> </font>controlled<font style="letter-spacing:0.1pt;"> </font>by third<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>may be alleged<font style="letter-spacing:0.05pt;"> </font>to cover<font style="letter-spacing:0.05pt;"> </font>our products.<font style="letter-spacing:0.05pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>face<font style="letter-spacing:0.05pt;"> </font>allegations<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>our employees<font style="letter-spacing:0.1pt;"> </font>have misappropriated<font style="letter-spacing:0.15pt;"> </font>the intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>of their<font style="letter-spacing:0.05pt;"> </font>former<font style="letter-spacing:0.1pt;"> </font>employers<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>third<font style="letter-spacing:0.05pt;"> </font>parties.<font style="letter-spacing:0.1pt;"> </font>Our competitors<font style="letter-spacing:0.15pt;"> </font>in both the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>and abroad,<font style="letter-spacing:0.05pt;"> </font>many<font style="letter-spacing:0.05pt;"> </font>of which have substantially<font style="letter-spacing:0.15pt;"> </font>greater<font style="letter-spacing:0.1pt;"> </font>resources<font style="letter-spacing:0.1pt;"> </font>and have made<font style="letter-spacing:0.05pt;"> </font>substantial<font style="letter-spacing:0.1pt;"> </font>investments<font style="letter-spacing:0.1pt;"> </font>in patent portfolios<font style="letter-spacing:0.1pt;"> </font>and competing<font style="letter-spacing:0.1pt;"> </font>technologies,<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>have applied<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>or obtained<font style="letter-spacing:0.05pt;"> </font>or may<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>apply<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>and obtain,<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>prevent,<font style="letter-spacing:0.05pt;"> </font>limit,<font style="letter-spacing:0.1pt;"> </font>or otherwise<font style="letter-spacing:0.05pt;"> </font>interfere<font style="letter-spacing:0.15pt;"> </font>with our ability<font style="letter-spacing:0.1pt;"> </font>to make,<font style="letter-spacing:0.05pt;"> </font>use, sell,<font style="letter-spacing:0.05pt;"> </font>and/or<font style="letter-spacing:0.05pt;"> </font>export<font style="letter-spacing:0.05pt;"> </font>our products.<font style="letter-spacing:0.05pt;"> </font>Our competitors<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>have one or more<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>which they<font style="letter-spacing:0.05pt;"> </font>can threaten<font style="letter-spacing:0.1pt;"> </font>and/or<font style="letter-spacing:0.05pt;"> </font>initiate<font style="letter-spacing:0.1pt;"> </font>patent infringement<font style="letter-spacing:0.15pt;"> </font>actions<font style="letter-spacing:0.05pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us and/or<font style="letter-spacing:0.05pt;"> </font>any of our third-party<font style="letter-spacing:0.15pt;"> </font>suppliers.<font style="letter-spacing:0.1pt;"> </font>Our ability<font style="letter-spacing:0.1pt;"> </font>to defend<font style="letter-spacing:0.05pt;"> </font>ourselves<font style="letter-spacing:0.1pt;"> </font>and/or<font style="letter-spacing:0.05pt;"> </font>our third-party<font style="letter-spacing:0.15pt;"> </font>suppliers<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be limited<font style="letter-spacing:0.1pt;"> </font>by our financial<font style="letter-spacing:0.1pt;"> </font>and human<font style="letter-spacing:0.05pt;"> </font>resources,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>availability<font style="letter-spacing:0.15pt;"> </font>of reasonable defenses,<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>ultimate<font style="letter-spacing:0.1pt;"> </font>acceptance<font style="letter-spacing:0.1pt;"> </font>of our defenses<font style="letter-spacing:0.05pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>courts<font style="letter-spacing:0.05pt;"> </font>or juries.<font style="letter-spacing:0.1pt;"> </font>Furthermore,<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>such patents<font style="letter-spacing:0.05pt;"> </font>are successfully<font style="letter-spacing:0.1pt;"> </font>asserted<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us, this<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in an adverse<font style="letter-spacing:0.05pt;"> </font>impact<font style="letter-spacing:0.1pt;"> </font>on our business,<font style="letter-spacing:0.05pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>injunctions, damages,<font style="letter-spacing:0.05pt;"> </font>and/or<font style="letter-spacing:0.05pt;"> </font>attorneys&#8217;<font style="letter-spacing:0.1pt;"> </font>fees.<font style="letter-spacing:0.05pt;"> </font>From<font style="letter-spacing:0.05pt;"> </font>time<font style="letter-spacing:0.05pt;"> </font>to time<font style="letter-spacing:0.05pt;"> </font>and in the<font style="letter-spacing:0.05pt;"> </font>ordinary<font style="letter-spacing:0.05pt;"> </font>course<font style="letter-spacing:0.05pt;"> </font>of business,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>develop noninfringement<font style="letter-spacing:0.15pt;"> </font>and/or<font style="letter-spacing:0.05pt;"> </font>invalidity<font style="letter-spacing:0.1pt;"> </font>positions<font style="letter-spacing:0.1pt;"> </font>with respect<font style="letter-spacing:0.1pt;"> </font>to third-party<font style="letter-spacing:0.15pt;"> </font>patents,<font style="letter-spacing:0.05pt;"> </font>which may<font style="letter-spacing:0.05pt;"> </font>or not be ultimately adjudicated<font style="letter-spacing:0.1pt;"> </font>as successful<font style="letter-spacing:0.1pt;"> </font>by a judge<font style="letter-spacing:0.05pt;"> </font>or jury<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>such patents<font style="letter-spacing:0.05pt;"> </font>were asserted<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We may<font style="letter-spacing:0.05pt;"> </font>receive<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future,<font style="letter-spacing:0.05pt;"> </font>particularly<font style="letter-spacing:0.15pt;"> </font>as a public<font style="letter-spacing:0.05pt;"> </font>company,<font style="letter-spacing:0.05pt;"> </font>communications<font style="letter-spacing:0.15pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>holders,<font style="letter-spacing:0.05pt;"> </font>including non-practicing<font style="letter-spacing:0.15pt;"> </font>entities,<font style="letter-spacing:0.1pt;"> </font>alleging<font style="letter-spacing:0.1pt;"> </font>infringement<font style="letter-spacing:0.15pt;"> </font>of patents<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>or misappropriation of trade<font style="letter-spacing:0.05pt;"> </font>secrets,<font style="letter-spacing:0.1pt;"> </font>or offering<font style="letter-spacing:0.1pt;"> </font>licenses<font style="letter-spacing:0.1pt;"> </font>to such intellectual<font style="letter-spacing:0.15pt;"> </font>property.<font style="letter-spacing:0.05pt;"> </font>Any claims<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we assert<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>perceived infringers<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>provoke<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>to assert<font style="letter-spacing:0.1pt;"> </font>counterclaims<font style="letter-spacing:0.15pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us alleging<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we infringe<font style="letter-spacing:0.1pt;"> </font>their intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights.<font style="letter-spacing:0.05pt;"> </font>At any given<font style="letter-spacing:0.05pt;"> </font>time,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be involved<font style="letter-spacing:0.05pt;"> </font>as either<font style="letter-spacing:0.1pt;"> </font>a plaintiff<font style="letter-spacing:0.15pt;"> </font>or a defendant<font style="letter-spacing:0.05pt;"> </font>in several patent<font style="letter-spacing:0.05pt;"> </font>infringement<font style="letter-spacing:0.15pt;"> </font>actions,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>outcomes<font style="letter-spacing:0.05pt;"> </font>of which may<font style="letter-spacing:0.05pt;"> </font>not be known for<font style="letter-spacing:0.05pt;"> </font>prolonged<font style="letter-spacing:0.05pt;"> </font>periods<font style="letter-spacing:0.05pt;"> </font>of time.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The large<font style="letter-spacing:0.05pt;"> </font>number<font style="letter-spacing:0.05pt;"> </font>of patents,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>rapid<font style="letter-spacing:0.05pt;"> </font>rate<font style="letter-spacing:0.05pt;"> </font>of new patent<font style="letter-spacing:0.05pt;"> </font>applications<font style="letter-spacing:0.1pt;"> </font>and issuances,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>complexities<font style="letter-spacing:0.15pt;"> </font>of the technologies<font style="letter-spacing:0.1pt;"> </font>involved,<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>uncertainty<font style="letter-spacing:0.1pt;"> </font>of litigation<font style="letter-spacing:0.15pt;"> </font>significantly<font style="letter-spacing:0.15pt;"> </font>increase<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>risks<font style="letter-spacing:0.05pt;"> </font>related<font style="letter-spacing:0.1pt;"> </font>to any patent litigation.<font style="letter-spacing:0.15pt;"> </font>Any potential<font style="letter-spacing:0.1pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>litigation<font style="letter-spacing:0.15pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>force<font style="letter-spacing:0.05pt;"> </font>us to do one or more<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>following:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">stop</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">selling,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">making,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">using,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or exporting</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">use the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">disputed</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">intellectual</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">property;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">obtain</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a license</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">intellectual</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">property</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">owner to continue</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">selling,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">making,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">exporting,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or using products,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which license</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">require</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">substantial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">royalty</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">payments</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not be available</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on reasonable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">terms,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or at</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">all;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">incur</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">significant</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">legal</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">expenses;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">pay substantial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">damages</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or royalties</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">party</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">whose intellectual</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">property</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rights</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">we may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be found to be infringing,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">potentially</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">treble</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">damages</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">if</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">court</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">finds</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">infringement</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">was willful;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">if</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a license</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">is</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">available</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a third-party,</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">we may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">have to pay substantial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">royalties,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">upfront</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">fees</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or grant</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">cross-licenses</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to intellectual</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">property</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rights</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and services;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">pay the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">attorney</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">fees</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and costs</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of litigation</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">party</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">whose intellectual</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">property</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rights</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">we may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be found to be infringing;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">find</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">non-infringing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">substitute</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which could</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be costly</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and create</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">significant</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">delay</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">due to the need for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">FDA</font><font style="color:#231F20;letter-spacing:-0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearance;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">find</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">alternative</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">supplies</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">infringing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or processes,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which could</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be costly</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and create significant</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">delay</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">due to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">need for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">FDA</font><font style="color:#231F20;letter-spacing:-0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regulatory</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearance;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and/or</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">redesign</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">those</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or processes</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">infringe</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">any third-party</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">intellectual</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">property,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which could</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be costly,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">disruptive,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and/or</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">infeasible.</font></p></td></tr></table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">43</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU44"></a><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">From</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">time</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to time,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be subject</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to legal</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">proceedings</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">claims</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ordinary</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">course</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of business</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with respect</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to intellectual</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">property.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Even if</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">resolved</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in our favor,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">litigation</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">legal</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">proceedings</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">relating</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to intellectual</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">property</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">claims</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">cause</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us to incur</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">significant</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">expenses and could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">distract</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> technical</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and management</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">personnel</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">their</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">normal</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">responsibilities.</font><font style="letter-spacing:0.2pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">there</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be public</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">announcements</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of hearings,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">motions</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">interim</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">proceedings</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or developments,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and if</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">securities</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">analysts</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or investors</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">perceive</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">these</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">results</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to be negative,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">it</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have a material</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">adverse</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">effect</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">price</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of our common stock.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Finally,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any uncertainties</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">resulting</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">initiation</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and continuation</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of any litigation</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have a material</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">adverse</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">effect</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on our ability</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to raise</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">funds</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">necessary</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to continue</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our operations.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>any of the<font style="letter-spacing:0.05pt;"> </font>foregoing<font style="letter-spacing:0.05pt;"> </font>occurs,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>have to withdraw<font style="letter-spacing:0.05pt;"> </font>existing<font style="letter-spacing:0.1pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>or may<font style="letter-spacing:0.05pt;"> </font>be unable<font style="letter-spacing:0.05pt;"> </font>to commercialize<font style="letter-spacing:0.2pt;"> </font>one or more<font style="letter-spacing:0.05pt;"> </font>of our products,<font style="letter-spacing:0.05pt;"> </font>all<font style="letter-spacing:0.05pt;"> </font>of which could<font style="letter-spacing:0.05pt;"> </font>have a material<font style="letter-spacing:0.15pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our business, results<font style="letter-spacing:0.1pt;"> </font>of operations<font style="letter-spacing:0.1pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition.<font style="letter-spacing:0.05pt;"> </font>Any litigation<font style="letter-spacing:0.15pt;"> </font>or claim<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us, even those<font style="letter-spacing:0.05pt;"> </font>without<font style="letter-spacing:0.05pt;"> </font>merit,<font style="letter-spacing:0.1pt;"> </font>may cause<font style="letter-spacing:0.05pt;"> </font>us to incur<font style="letter-spacing:0.05pt;"> </font>substantial<font style="letter-spacing:0.1pt;"> </font>costs,<font style="letter-spacing:0.05pt;"> </font>and could<font style="letter-spacing:0.05pt;"> </font>place<font style="letter-spacing:0.05pt;"> </font>a significant<font style="letter-spacing:0.15pt;"> </font>strain<font style="letter-spacing:0.1pt;"> </font>on our financial<font style="letter-spacing:0.1pt;"> </font>resources,<font style="letter-spacing:0.1pt;"> </font>divert<font style="letter-spacing:0.05pt;"> </font>the attention<font style="letter-spacing:0.1pt;"> </font>of management<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>our core<font style="letter-spacing:0.05pt;"> </font>business<font style="letter-spacing:0.05pt;"> </font>and harm<font style="letter-spacing:0.05pt;"> </font>our reputation.<font style="letter-spacing:0.1pt;"> </font>Furthermore,<font style="letter-spacing:0.1pt;"> </font>as the<font style="letter-spacing:0.05pt;"> </font>number<font style="letter-spacing:0.05pt;"> </font>of participants<font style="letter-spacing:0.15pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>robotic<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>restoration<font style="letter-spacing:0.15pt;"> </font>surgery<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>grows, the<font style="letter-spacing:0.05pt;"> </font>possibility<font style="letter-spacing:0.1pt;"> </font>of intellectual<font style="letter-spacing:0.15pt;"> </font>property infringement<font style="letter-spacing:0.15pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us increases.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>indemnify<font style="letter-spacing:0.1pt;"> </font>our customers,<font style="letter-spacing:0.1pt;"> </font>suppliers<font style="letter-spacing:0.1pt;"> </font>and international<font style="letter-spacing:0.15pt;"> </font>distributors<font style="letter-spacing:0.15pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>relating<font style="letter-spacing:0.1pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>infringement<font style="letter-spacing:0.15pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>of third<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>relating<font style="letter-spacing:0.1pt;"> </font>to our products,<font style="letter-spacing:0.05pt;"> </font>methods,<font style="letter-spacing:0.05pt;"> </font>and/or manufacturing<font style="letter-spacing:0.15pt;"> </font>processes.<font style="letter-spacing:0.1pt;"> </font>Third<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>assert<font style="letter-spacing:0.1pt;"> </font>infringement<font style="letter-spacing:0.15pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>our customers,<font style="letter-spacing:0.1pt;"> </font>suppliers,<font style="letter-spacing:0.1pt;"> </font>or distributors.<font style="letter-spacing:0.15pt;"> </font>These claims<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>us to initiate<font style="letter-spacing:0.1pt;"> </font>or defend<font style="letter-spacing:0.05pt;"> </font>protracted<font style="letter-spacing:0.1pt;"> </font>and costly<font style="letter-spacing:0.05pt;"> </font>litigation<font style="letter-spacing:0.15pt;"> </font>on behalf<font style="letter-spacing:0.05pt;"> </font>of our customers,<font style="letter-spacing:0.1pt;"> </font>suppliers<font style="letter-spacing:0.1pt;"> </font>or distributors,<font style="letter-spacing:0.15pt;"> </font>regardless<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>merits<font style="letter-spacing:0.1pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>claims.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>any of these<font style="letter-spacing:0.05pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>succeed,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be forced<font style="letter-spacing:0.05pt;"> </font>to pay damages<font style="letter-spacing:0.05pt;"> </font>on behalf<font style="letter-spacing:0.05pt;"> </font>of our customers,<font style="letter-spacing:0.1pt;"> </font>suppliers,<font style="letter-spacing:0.1pt;"> </font>or distributors<font style="letter-spacing:0.15pt;"> </font>or may<font style="letter-spacing:0.05pt;"> </font>be required<font style="letter-spacing:0.1pt;"> </font>to obtain licenses<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>they<font style="letter-spacing:0.05pt;"> </font>use. If<font style="letter-spacing:0.05pt;"> </font>we cannot<font style="letter-spacing:0.05pt;"> </font>obtain<font style="letter-spacing:0.05pt;"> </font>all<font style="letter-spacing:0.05pt;"> </font>necessary<font style="letter-spacing:0.1pt;"> </font>licenses<font style="letter-spacing:0.1pt;"> </font>on commercially<font style="letter-spacing:0.15pt;"> </font>reasonable<font style="letter-spacing:0.1pt;"> </font>terms, our customers<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be forced<font style="letter-spacing:0.05pt;"> </font>to stop<font style="letter-spacing:0.05pt;"> </font>using<font style="letter-spacing:0.05pt;"> </font>our products,<font style="letter-spacing:0.05pt;"> </font>or our suppliers<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be forced<font style="letter-spacing:0.05pt;"> </font>to stop<font style="letter-spacing:0.05pt;"> </font>providing<font style="letter-spacing:0.05pt;"> </font>us with products.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Similarly,<font style="letter-spacing:0.1pt;"> </font>interference<font style="letter-spacing:0.15pt;"> </font>or derivation<font style="letter-spacing:0.1pt;"> </font>proceedings<font style="letter-spacing:0.1pt;"> </font>provoked<font style="letter-spacing:0.05pt;"> </font>by third<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>or brought<font style="letter-spacing:0.05pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>United<font style="letter-spacing:0.05pt;"> </font>Stated<font style="letter-spacing:0.05pt;"> </font>Patent and Trademark<font style="letter-spacing:0.1pt;"> </font>Office,<font style="letter-spacing:0.05pt;"> </font>or USPTO,<font style="letter-spacing:-0.05pt;"> </font>or any foreign<font style="letter-spacing:0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>authority<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be necessary<font style="letter-spacing:0.1pt;"> </font>to determine<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>priority<font style="letter-spacing:0.1pt;"> </font>of inventions<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>matters<font style="letter-spacing:0.1pt;"> </font>of inventorship<font style="letter-spacing:0.1pt;"> </font>with respect<font style="letter-spacing:0.1pt;"> </font>to our patents<font style="letter-spacing:0.05pt;"> </font>or patent<font style="letter-spacing:0.05pt;"> </font>applications.<font style="letter-spacing:0.1pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>also become<font style="letter-spacing:0.05pt;"> </font>involved<font style="letter-spacing:0.05pt;"> </font>in other<font style="letter-spacing:0.05pt;"> </font>proceedings,<font style="letter-spacing:0.1pt;"> </font>such as re-examination<font style="letter-spacing:0.15pt;"> </font>or opposition<font style="letter-spacing:0.05pt;"> </font>proceedings,<font style="letter-spacing:0.1pt;"> </font>before<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>USPTO<font style="letter-spacing:-0.05pt;"> </font>or its<font style="letter-spacing:0.05pt;"> </font>foreign<font style="letter-spacing:0.05pt;"> </font>counterparts<font style="letter-spacing:0.1pt;"> </font>relating<font style="letter-spacing:0.1pt;"> </font>to our intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>or the<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>of others.<font style="letter-spacing:0.05pt;"> </font>An unfavorable<font style="letter-spacing:0.1pt;"> </font>outcome<font style="letter-spacing:0.05pt;"> </font>in any such proceedings<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>us to cease<font style="letter-spacing:0.05pt;"> </font>using<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>related<font style="letter-spacing:0.1pt;"> </font>technology<font style="letter-spacing:0.05pt;"> </font>or to attempt to license<font style="letter-spacing:0.1pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>to it<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>prevailing<font style="letter-spacing:0.1pt;"> </font>party or could<font style="letter-spacing:0.05pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>us to lose<font style="letter-spacing:0.05pt;"> </font>valuable<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights.<font style="letter-spacing:0.05pt;"> </font>Our business<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be harmed<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>prevailing<font style="letter-spacing:0.1pt;"> </font>party<font style="letter-spacing:0.05pt;"> </font>does not offer<font style="letter-spacing:0.05pt;"> </font>us a license<font style="letter-spacing:0.1pt;"> </font>on commercially<font style="letter-spacing:0.15pt;"> </font>reasonable<font style="letter-spacing:0.1pt;"> </font>terms,<font style="letter-spacing:0.1pt;"> </font>if any license<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>offered<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>all.<font style="letter-spacing:0.05pt;"> </font>Litigation<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>proceedings<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>fail<font style="letter-spacing:0.05pt;"> </font>and, even if<font style="letter-spacing:0.05pt;"> </font>successful,<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in substantial<font style="letter-spacing:0.1pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>and distract<font style="letter-spacing:0.1pt;"> </font>our management<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>employees.<font style="letter-spacing:0.1pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>become<font style="letter-spacing:0.05pt;"> </font>involved<font style="letter-spacing:0.05pt;"> </font>in disputes with others<font style="letter-spacing:0.05pt;"> </font>regarding<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ownership<font style="letter-spacing:0.05pt;"> </font>of intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights.<font style="letter-spacing:0.05pt;"> </font>For example,<font style="letter-spacing:0.05pt;"> </font>we jointly<font style="letter-spacing:0.1pt;"> </font>develop<font style="letter-spacing:0.05pt;"> </font>intellectual property<font style="letter-spacing:0.05pt;"> </font>with certain<font style="letter-spacing:0.1pt;"> </font>parties,<font style="letter-spacing:0.1pt;"> </font>and disagreements<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>therefore<font style="letter-spacing:0.1pt;"> </font>arise<font style="letter-spacing:0.05pt;"> </font>as to the<font style="letter-spacing:0.05pt;"> </font>ownership<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>intellectual property<font style="letter-spacing:0.05pt;"> </font>developed<font style="letter-spacing:0.05pt;"> </font>pursuant<font style="letter-spacing:0.05pt;"> </font>to these<font style="letter-spacing:0.05pt;"> </font>relationships.<font style="letter-spacing:0.15pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>unable<font style="letter-spacing:0.05pt;"> </font>to resolve<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>disputes,<font style="letter-spacing:0.05pt;"> </font>we could<font style="letter-spacing:0.05pt;"> </font>lose valuable<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Changes in patent<font style="letter-spacing:0.05pt;"> </font>law could diminish<font style="letter-spacing:0.05pt;"> </font>the value<font style="letter-spacing:0.05pt;"> </font>of patents<font style="letter-spacing:0.05pt;"> </font>in general,<font style="letter-spacing:0.05pt;"> </font>thereby<font style="letter-spacing:0.05pt;"> </font>impairing<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to protect our existing<font style="letter-spacing:0.05pt;"> </font>and future<font style="letter-spacing:0.05pt;"> </font>products.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Recent<font style="letter-spacing:0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>reform<font style="letter-spacing:0.1pt;"> </font>legislation<font style="letter-spacing:0.15pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>increase<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>uncertainties<font style="letter-spacing:0.15pt;"> </font>and costs<font style="letter-spacing:0.05pt;"> </font>surrounding<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>prosecution<font style="letter-spacing:0.1pt;"> </font>of our patent<font style="letter-spacing:0.05pt;"> </font>applications<font style="letter-spacing:0.1pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>enforcement<font style="letter-spacing:0.1pt;"> </font>or defense<font style="letter-spacing:0.05pt;"> </font>of our issued<font style="letter-spacing:0.05pt;"> </font>patents.<font style="letter-spacing:0.05pt;"> </font>On September<font style="letter-spacing:0.1pt;"> </font>16, 2011, the<font style="letter-spacing:0.05pt;"> </font>Leahy- Smith<font style="letter-spacing:0.05pt;"> </font>America<font style="letter-spacing:0.05pt;"> </font>Invents<font style="letter-spacing:0.05pt;"> </font>Act, or the<font style="letter-spacing:0.05pt;"> </font>Leahy-Smith<font style="letter-spacing:0.1pt;"> </font>Act, was signed<font style="letter-spacing:0.05pt;"> </font>into<font style="letter-spacing:0.05pt;"> </font>law. The Leahy-Smith<font style="letter-spacing:0.1pt;"> </font>Act includes<font style="letter-spacing:0.05pt;"> </font>a number<font style="letter-spacing:0.05pt;"> </font>of significant<font style="letter-spacing:0.15pt;"> </font>changes<font style="letter-spacing:0.05pt;"> </font>to U.S.<font style="letter-spacing:-0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>law. These include<font style="letter-spacing:0.05pt;"> </font>provisions<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>way patent<font style="letter-spacing:0.05pt;"> </font>applications are<font style="letter-spacing:0.05pt;"> </font>prosecuted,<font style="letter-spacing:0.1pt;"> </font>redefine<font style="letter-spacing:0.1pt;"> </font>prior<font style="letter-spacing:0.05pt;"> </font>art,<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>litigation,<font style="letter-spacing:0.15pt;"> </font>and switched<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>system<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>a &#8220;first- to-invent&#8221;<font style="letter-spacing:0.1pt;"> </font>system<font style="letter-spacing:0.05pt;"> </font>to a &#8220;first-to-file&#8221;<font style="letter-spacing:0.25pt;"> </font>system.<font style="letter-spacing:0.05pt;"> </font>Under a &#8220;first-to-file&#8221;<font style="letter-spacing:0.25pt;"> </font>system,<font style="letter-spacing:0.05pt;"> </font>assuming<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>for patentability<font style="letter-spacing:0.15pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>met,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>first<font style="letter-spacing:0.1pt;"> </font>inventor<font style="letter-spacing:0.05pt;"> </font>to file<font style="letter-spacing:0.05pt;"> </font>a patent<font style="letter-spacing:0.05pt;"> </font>application<font style="letter-spacing:0.1pt;"> </font>generally<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be entitled<font style="letter-spacing:0.1pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>on an invention<font style="letter-spacing:0.05pt;"> </font>regardless<font style="letter-spacing:0.1pt;"> </font>of whether<font style="letter-spacing:0.05pt;"> </font>another<font style="letter-spacing:0.05pt;"> </font>inventor<font style="letter-spacing:0.05pt;"> </font>had made<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>invention<font style="letter-spacing:0.05pt;"> </font>earlier.<font style="letter-spacing:0.1pt;"> </font>The USPTO<font style="letter-spacing:-0.05pt;"> </font>recently<font style="letter-spacing:0.1pt;"> </font>developed new regulations<font style="letter-spacing:0.1pt;"> </font>and procedures<font style="letter-spacing:0.1pt;"> </font>to govern<font style="letter-spacing:0.05pt;"> </font>administration<font style="letter-spacing:0.15pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>Leahy-Smith<font style="letter-spacing:0.1pt;"> </font>Act, and many<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>substantive changes<font style="letter-spacing:0.05pt;"> </font>to patent<font style="letter-spacing:0.05pt;"> </font>law associated<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>Leahy-Smith<font style="letter-spacing:0.1pt;"> </font>Act, in particular,<font style="letter-spacing:0.15pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>first-to-file<font style="letter-spacing:0.2pt;"> </font>provisions,<font style="letter-spacing:0.1pt;"> </font>only became effective<font style="letter-spacing:0.1pt;"> </font>on March<font style="letter-spacing:0.05pt;"> </font>16, 2013. Accordingly,<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>not clear<font style="letter-spacing:0.05pt;"> </font>what, if<font style="letter-spacing:0.05pt;"> </font>any, impact<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>Leahy-Smith<font style="letter-spacing:0.1pt;"> </font>Act will<font style="letter-spacing:0.05pt;"> </font>have on the<font style="letter-spacing:0.05pt;"> </font>operation<font style="letter-spacing:0.1pt;"> </font>of our business.<font style="letter-spacing:0.05pt;"> </font>The Leahy-Smith<font style="letter-spacing:0.1pt;"> </font>Act and its<font style="letter-spacing:0.05pt;"> </font>implementation<font style="letter-spacing:0.15pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>increase<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>uncertainties<font style="letter-spacing:0.15pt;"> </font>and costs<font style="letter-spacing:0.05pt;"> </font>surrounding<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>prosecution<font style="letter-spacing:0.1pt;"> </font>of our patent<font style="letter-spacing:0.05pt;"> </font>applications<font style="letter-spacing:0.1pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>enforcement<font style="letter-spacing:0.1pt;"> </font>or defense<font style="letter-spacing:0.05pt;"> </font>of our issued<font style="letter-spacing:0.05pt;"> </font>patents, all<font style="letter-spacing:0.05pt;"> </font>of which could<font style="letter-spacing:0.05pt;"> </font>have a material<font style="letter-spacing:0.15pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our business<font style="letter-spacing:0.05pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In<font style="letter-spacing:-0.2pt;"> </font>addition,<font style="letter-spacing:-0.2pt;"> </font>patent<font style="letter-spacing:-0.2pt;"> </font>reform<font style="letter-spacing:-0.2pt;"> </font>legislation<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>pass<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>future<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>could<font style="letter-spacing:-0.2pt;"> </font>lead<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>additional<font style="letter-spacing:-0.2pt;"> </font>uncertainties<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>increased costs<font style="letter-spacing:-0.2pt;"> </font>surrounding<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>prosecution,<font style="letter-spacing:-0.2pt;"> </font>enforcement<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>defense<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>patents<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>applications.<font style="letter-spacing:-0.2pt;"> </font>Furthermore,<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>U.S. Supreme<font style="letter-spacing:-0.2pt;"> </font>Court<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>U.S.<font style="letter-spacing:-0.2pt;"> </font>Court<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>Appeals<font style="letter-spacing:-0.2pt;"> </font>for<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>Federal<font style="letter-spacing:-0.2pt;"> </font>Circuit<font style="letter-spacing:-0.2pt;"> </font>have<font style="letter-spacing:-0.2pt;"> </font>made,<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>will<font style="letter-spacing:-0.2pt;"> </font>likely<font style="letter-spacing:-0.2pt;"> </font>continue<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>make, changes<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>how<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>patent<font style="letter-spacing:-0.2pt;"> </font>laws<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>U.S.<font style="letter-spacing:-0.2pt;"> </font>are<font style="letter-spacing:-0.2pt;"> </font>interpreted.<font style="letter-spacing:-0.2pt;"> </font>For<font style="letter-spacing:-0.2pt;"> </font>example,<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>U.S.<font style="letter-spacing:-0.2pt;"> </font>Supreme<font style="letter-spacing:-0.2pt;"> </font>Court<font style="letter-spacing:-0.2pt;"> </font>has<font style="letter-spacing:-0.2pt;"> </font>ruled<font style="letter-spacing:-0.2pt;"> </font>on several<font style="letter-spacing:-0.2pt;"> </font>patent<font style="letter-spacing:-0.2pt;"> </font>cases<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>recent<font style="letter-spacing:-0.2pt;"> </font>years,<font style="letter-spacing:-0.2pt;"> </font>such<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Associatio</font><font style="font-style:italic;">n</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">fo</font><font style="font-style:italic;">r</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Molecula</font><font style="font-style:italic;">r</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Patholog</font><font style="font-style:italic;">y</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">v</font><font style="font-style:italic;">.</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Myria</font><font style="font-style:italic;">d</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Genetics</font><font style="font-style:italic;">,</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Inc</font><font style="font-style:italic;">.</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font>(Myriad I),<font style="letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">May</font><font style="font-style:italic;">o</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Collaborativ</font><font style="font-style:italic;">e</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Service</font><font style="font-style:italic;">s</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">v</font><font style="font-style:italic;">.</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Prometheu</font><font style="font-style:italic;">s</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Laboratories</font><font style="font-style:italic;">,</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Inc.</font><font style="font-style:italic;">,</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Alic</font><font style="font-style:italic;">e</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Corporatio</font><font style="font-style:italic;">n</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Pty</font><font style="font-style:italic;">.</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Ltd</font><font style="font-style:italic;">.</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">v</font><font style="font-style:italic;">.</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">CL</font><font style="font-style:italic;">S</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font><font style="font-style:italic;">Bank International</font><font style="font-style:italic;">,</font><font style="font-style:italic;letter-spacing:-0.2pt;"> </font>either<font style="letter-spacing:-0.2pt;"> </font>narrowing<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>scope<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>patent<font style="letter-spacing:-0.2pt;"> </font>protection<font style="letter-spacing:-0.2pt;"> </font>available<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>certain<font style="letter-spacing:-0.2pt;"> </font>circumstances<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>weakening<font style="letter-spacing:-0.2pt;"> </font>the rights<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>patent<font style="letter-spacing:-0.2pt;"> </font>owners<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>certain<font style="letter-spacing:-0.2pt;"> </font>situations.<font style="letter-spacing:-0.2pt;"> </font>Similarly,<font style="letter-spacing:-0.2pt;"> </font>foreign<font style="letter-spacing:-0.2pt;"> </font>courts<font style="letter-spacing:-0.2pt;"> </font>have<font style="letter-spacing:-0.2pt;"> </font>made,<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>will<font style="letter-spacing:-0.2pt;"> </font>likely<font style="letter-spacing:-0.2pt;"> </font>continue<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>make, changes<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>how<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>patent<font style="letter-spacing:-0.2pt;"> </font>laws<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>their<font style="letter-spacing:-0.2pt;"> </font>respective<font style="letter-spacing:-0.2pt;"> </font>jurisdictions<font style="letter-spacing:-0.2pt;"> </font>are<font style="letter-spacing:-0.2pt;"> </font>interpreted.<font style="letter-spacing:-0.2pt;"> </font>We<font style="letter-spacing:-0.2pt;"> </font>cannot<font style="letter-spacing:-0.2pt;"> </font>predict<font style="letter-spacing:-0.2pt;"> </font>future<font style="letter-spacing:-0.2pt;"> </font>changes<font style="letter-spacing:-0.2pt;"> </font>in the<font style="letter-spacing:-0.2pt;"> </font>interpretation<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>patent<font style="letter-spacing:-0.2pt;"> </font>laws<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>changes<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>patent<font style="letter-spacing:-0.2pt;"> </font>laws<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>might<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>enacted<font style="letter-spacing:-0.2pt;"> </font>into<font style="letter-spacing:-0.2pt;"> </font>law<font style="letter-spacing:-0.2pt;"> </font>by<font style="letter-spacing:-0.2pt;"> </font>U.S.<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>foreign legislative<font style="letter-spacing:-0.2pt;"> </font>bodies.<font style="letter-spacing:-0.2pt;"> </font>Those<font style="letter-spacing:-0.2pt;"> </font>changes<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>materially<font style="letter-spacing:-0.2pt;"> </font>affect<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>patents<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>patent<font style="letter-spacing:-0.2pt;"> </font>applications<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>ability<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>obtain additional<font style="letter-spacing:-0.2pt;"> </font>patent<font style="letter-spacing:-0.2pt;"> </font>protection<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>future.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">44</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU45"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Obtaining and maintaining</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">patent</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">protection</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">depends on compliance</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">with various</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">procedural,</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">document submission,</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">fee</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">payment</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">and other</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">requirements</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">imposed</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">by governmental</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">patent</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">agencies,</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">and our patent protection</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">could be reduce</font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">d</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or eliminated</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">for</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">non-compliance</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">with these</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">requirements.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The USPTO<font style="letter-spacing:-0.05pt;"> </font>and various<font style="letter-spacing:0.05pt;"> </font>foreign<font style="letter-spacing:0.05pt;"> </font>governmental<font style="letter-spacing:0.1pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>agencies<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>compliance<font style="letter-spacing:0.1pt;"> </font>with a number<font style="letter-spacing:0.05pt;"> </font>of procedural, documentary,<font style="letter-spacing:0.1pt;"> </font>fee<font style="letter-spacing:0.05pt;"> </font>payment,<font style="letter-spacing:0.05pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>similar<font style="letter-spacing:0.1pt;"> </font>provisions<font style="letter-spacing:0.1pt;"> </font>during<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>application<font style="letter-spacing:0.1pt;"> </font>process.<font style="letter-spacing:0.05pt;"> </font>In addition, periodic<font style="letter-spacing:0.1pt;"> </font>maintenance<font style="letter-spacing:0.1pt;"> </font>fees<font style="letter-spacing:0.05pt;"> </font>on issued<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>often<font style="letter-spacing:0.05pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>be paid<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>USPTO<font style="letter-spacing:-0.05pt;"> </font>and foreign<font style="letter-spacing:0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>agencies<font style="letter-spacing:0.05pt;"> </font>over the<font style="letter-spacing:0.05pt;"> </font>lifetime<font style="letter-spacing:0.15pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>patent.<font style="letter-spacing:0.05pt;"> </font>While<font style="letter-spacing:0.05pt;"> </font>an unintentional<font style="letter-spacing:0.1pt;"> </font>lapse<font style="letter-spacing:0.05pt;"> </font>can in many<font style="letter-spacing:0.05pt;"> </font>cases<font style="letter-spacing:0.05pt;"> </font>be cured<font style="letter-spacing:0.05pt;"> </font>by payment<font style="letter-spacing:0.05pt;"> </font>of a late<font style="letter-spacing:0.05pt;"> </font>fee<font style="letter-spacing:0.05pt;"> </font>or by other<font style="letter-spacing:0.05pt;"> </font>means<font style="letter-spacing:0.05pt;"> </font>in accordance<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>applicable<font style="letter-spacing:0.1pt;"> </font>rules,<font style="letter-spacing:0.05pt;"> </font>there<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>situations<font style="letter-spacing:0.1pt;"> </font>in which noncompliance<font style="letter-spacing:0.1pt;"> </font>can result<font style="letter-spacing:0.1pt;"> </font>in abandonment<font style="letter-spacing:0.05pt;"> </font>or lapse<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>or patent<font style="letter-spacing:0.05pt;"> </font>application,<font style="letter-spacing:0.1pt;"> </font>resulting<font style="letter-spacing:0.1pt;"> </font>in partial<font style="letter-spacing:0.1pt;"> </font>or complete<font style="letter-spacing:0.1pt;"> </font>loss<font style="letter-spacing:0.05pt;"> </font>of patent<font style="letter-spacing:0.05pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>relevant<font style="letter-spacing:0.1pt;"> </font>jurisdiction.<font style="letter-spacing:0.15pt;"> </font>Non-compliance<font style="letter-spacing:0.1pt;"> </font>events<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in abandonment<font style="letter-spacing:0.05pt;"> </font>or lapse<font style="letter-spacing:0.05pt;"> </font>of a patent<font style="letter-spacing:0.05pt;"> </font>or patent application<font style="letter-spacing:0.1pt;"> </font>include,<font style="letter-spacing:0.05pt;"> </font>but are<font style="letter-spacing:0.05pt;"> </font>not limited<font style="letter-spacing:0.1pt;"> </font>to, failure<font style="letter-spacing:0.1pt;"> </font>to respond<font style="letter-spacing:0.05pt;"> </font>to official<font style="letter-spacing:0.1pt;"> </font>actions<font style="letter-spacing:0.05pt;"> </font>within<font style="letter-spacing:0.05pt;"> </font>prescribed<font style="letter-spacing:0.1pt;"> </font>time<font style="letter-spacing:0.05pt;"> </font>limits,<font style="letter-spacing:0.1pt;"> </font>non- payment<font style="letter-spacing:0.05pt;"> </font>of fees<font style="letter-spacing:0.05pt;"> </font>and failure<font style="letter-spacing:0.1pt;"> </font>to properly<font style="letter-spacing:0.05pt;"> </font>legalize<font style="letter-spacing:0.1pt;"> </font>and submit<font style="letter-spacing:0.05pt;"> </font>formal<font style="letter-spacing:0.1pt;"> </font>documents.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we fail<font style="letter-spacing:0.05pt;"> </font>to maintain<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>patents and patent<font style="letter-spacing:0.05pt;"> </font>applications<font style="letter-spacing:0.1pt;"> </font>covering<font style="letter-spacing:0.05pt;"> </font>our products<font style="letter-spacing:0.05pt;"> </font>or procedures,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to stop<font style="letter-spacing:0.05pt;"> </font>a competitor<font style="letter-spacing:0.1pt;"> </font>from marketing<font style="letter-spacing:0.1pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>same<font style="letter-spacing:0.05pt;"> </font>as or like our own, which would have a material<font style="letter-spacing:0.15pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our business.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to adequately<font style="letter-spacing:0.05pt;"> </font>protect<font style="letter-spacing:0.05pt;"> </font>our intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>throughout the world.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Filing,<font style="letter-spacing:0.05pt;"> </font>prosecuting<font style="letter-spacing:0.1pt;"> </font>and defending<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>on our products<font style="letter-spacing:0.05pt;"> </font>in all<font style="letter-spacing:0.05pt;"> </font>countries<font style="letter-spacing:0.1pt;"> </font>throughout<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>world would be prohibitively<font style="letter-spacing:0.15pt;"> </font>expensive.<font style="letter-spacing:0.05pt;"> </font>The requirements<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>patentability<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>differ<font style="letter-spacing:0.1pt;"> </font>in certain<font style="letter-spacing:0.1pt;"> </font>countries,<font style="letter-spacing:0.1pt;"> </font>particularly developing<font style="letter-spacing:0.05pt;"> </font>countries,<font style="letter-spacing:0.1pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>breadth<font style="letter-spacing:0.05pt;"> </font>of patent<font style="letter-spacing:0.05pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>allowed<font style="letter-spacing:0.05pt;"> </font>can be inconsistent.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>laws of some foreign<font style="letter-spacing:0.05pt;"> </font>countries<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not protect<font style="letter-spacing:0.1pt;"> </font>our intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>same<font style="letter-spacing:0.05pt;"> </font>extent<font style="letter-spacing:0.05pt;"> </font>as laws in the<font style="letter-spacing:0.05pt;"> </font>U.S. Consequently,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to prevent<font style="letter-spacing:0.05pt;"> </font>third<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>practicing<font style="letter-spacing:0.1pt;"> </font>our inventions<font style="letter-spacing:0.1pt;"> </font>in all<font style="letter-spacing:0.05pt;"> </font>countries<font style="letter-spacing:0.1pt;"> </font>outside the<font style="letter-spacing:0.05pt;"> </font>U.S. Competitors<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>use our technologies<font style="letter-spacing:0.1pt;"> </font>in jurisdictions<font style="letter-spacing:0.15pt;"> </font>where we have not obtained<font style="letter-spacing:0.05pt;"> </font>patent<font style="letter-spacing:0.05pt;"> </font>protection<font style="letter-spacing:0.1pt;"> </font>to develop<font style="letter-spacing:0.05pt;"> </font>their<font style="letter-spacing:0.05pt;"> </font>own products<font style="letter-spacing:0.05pt;"> </font>and, furthermore,<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>export<font style="letter-spacing:0.05pt;"> </font>otherwise<font style="letter-spacing:0.05pt;"> </font>infringing<font style="letter-spacing:0.1pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>to territories<font style="letter-spacing:0.15pt;"> </font>in which we have patent<font style="letter-spacing:0.05pt;"> </font>protection<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be sufficient<font style="letter-spacing:0.15pt;"> </font>to terminate<font style="letter-spacing:0.15pt;"> </font>infringing<font style="letter-spacing:0.1pt;"> </font>activities.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We do not have patent<font style="letter-spacing:0.05pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>in certain<font style="letter-spacing:0.1pt;"> </font>foreign<font style="letter-spacing:0.05pt;"> </font>countries<font style="letter-spacing:0.1pt;"> </font>in which a market<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>exist.<font style="letter-spacing:0.05pt;"> </font>Moreover,<font style="letter-spacing:0.05pt;"> </font>in foreign jurisdictions<font style="letter-spacing:0.15pt;"> </font>where we do have patent<font style="letter-spacing:0.05pt;"> </font>rights,<font style="letter-spacing:0.05pt;"> </font>proceedings<font style="letter-spacing:0.1pt;"> </font>to enforce<font style="letter-spacing:0.05pt;"> </font>such rights<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in substantial<font style="letter-spacing:0.1pt;"> </font>costs and divert<font style="letter-spacing:0.05pt;"> </font>our efforts<font style="letter-spacing:0.1pt;"> </font>and attention<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>aspects<font style="letter-spacing:0.05pt;"> </font>of our business,<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>put our patents<font style="letter-spacing:0.05pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>risk<font style="letter-spacing:0.05pt;"> </font>of being invalidated<font style="letter-spacing:0.1pt;"> </font>or interpreted<font style="letter-spacing:0.15pt;"> </font>narrowly,<font style="letter-spacing:0.05pt;"> </font>and our patent<font style="letter-spacing:0.05pt;"> </font>applications<font style="letter-spacing:0.1pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>risk<font style="letter-spacing:0.05pt;"> </font>of not issuing.<font style="letter-spacing:0.05pt;"> </font>Additionally,<font style="letter-spacing:0.1pt;"> </font>such proceedings<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>provoke<font style="letter-spacing:0.05pt;"> </font>third<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>to assert<font style="letter-spacing:0.1pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us. We may<font style="letter-spacing:0.05pt;"> </font>not prevail<font style="letter-spacing:0.1pt;"> </font>in any lawsuits<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we initiate,<font style="letter-spacing:0.1pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>damages<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>remedies<font style="letter-spacing:0.1pt;"> </font>awarded,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>any, may<font style="letter-spacing:0.05pt;"> </font>not be commercially<font style="letter-spacing:0.15pt;"> </font>meaningful.<font style="letter-spacing:0.1pt;"> </font>Thus, we may not be able<font style="letter-spacing:0.05pt;"> </font>to stop<font style="letter-spacing:0.05pt;"> </font>a competitor<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>marketing<font style="letter-spacing:0.1pt;"> </font>and selling<font style="letter-spacing:0.1pt;"> </font>in foreign<font style="letter-spacing:0.05pt;"> </font>countries<font style="letter-spacing:0.1pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>same<font style="letter-spacing:0.05pt;"> </font>as or like our products,<font style="letter-spacing:0.05pt;"> </font>and our competitive<font style="letter-spacing:0.15pt;"> </font>position<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>international<font style="letter-spacing:0.15pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>would be harmed.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We depend on certain<font style="letter-spacing:0.05pt;"> </font>technologies<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are licensed<font style="letter-spacing:0.05pt;"> </font>to us. We do not control<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>technologies<font style="letter-spacing:0.1pt;"> </font>and any loss of our rights<font style="letter-spacing:0.05pt;"> </font>to them<font style="letter-spacing:0.05pt;"> </font>could prevent<font style="letter-spacing:0.05pt;"> </font>us from<font style="letter-spacing:0.05pt;"> </font>selling<font style="letter-spacing:0.05pt;"> </font>our products.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are<font style="letter-spacing:0.05pt;"> </font>dependent<font style="letter-spacing:0.05pt;"> </font>on licenses<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>HSC<font style="letter-spacing:-0.05pt;"> </font>Development<font style="letter-spacing:0.05pt;"> </font>LLC<font style="letter-spacing:-0.05pt;"> </font>and James<font style="letter-spacing:0.05pt;"> </font>A. Harris,<font style="letter-spacing:0.05pt;"> </font>M.D. for<font style="letter-spacing:0.05pt;"> </font>some<font style="letter-spacing:0.05pt;"> </font>of our key technologies.<font style="letter-spacing:0.1pt;"> </font>We do not own the<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>underlie<font style="letter-spacing:0.1pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>licenses.<font style="letter-spacing:0.1pt;"> </font>Our rights<font style="letter-spacing:0.05pt;"> </font>to use the<font style="letter-spacing:0.05pt;"> </font>technology<font style="letter-spacing:0.05pt;"> </font>we license are<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>negotiation<font style="letter-spacing:0.1pt;"> </font>of, continuation<font style="letter-spacing:0.1pt;"> </font>of and compliance<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>terms<font style="letter-spacing:0.1pt;"> </font>of those<font style="letter-spacing:0.05pt;"> </font>licenses.<font style="letter-spacing:0.1pt;"> </font>In some<font style="letter-spacing:0.05pt;"> </font>cases, we do not control<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>prosecution,<font style="letter-spacing:0.1pt;"> </font>maintenance,<font style="letter-spacing:0.1pt;"> </font>or filing<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>to which we hold licenses,<font style="letter-spacing:0.1pt;"> </font>or the enforcement<font style="letter-spacing:0.1pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>third<font style="letter-spacing:0.05pt;"> </font>parties.<font style="letter-spacing:0.1pt;"> </font>These patents<font style="letter-spacing:0.05pt;"> </font>and patent<font style="letter-spacing:0.05pt;"> </font>applications<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>not written<font style="letter-spacing:0.05pt;"> </font>by us or our attorneys,<font style="letter-spacing:0.1pt;"> </font>and we did not have control<font style="letter-spacing:0.05pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>drafting<font style="letter-spacing:0.1pt;"> </font>and prosecution.<font style="letter-spacing:0.1pt;"> </font>Our licensors<font style="letter-spacing:0.1pt;"> </font>might<font style="letter-spacing:0.05pt;"> </font>not have given the<font style="letter-spacing:0.05pt;"> </font>same<font style="letter-spacing:0.05pt;"> </font>attention<font style="letter-spacing:0.1pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>drafting<font style="letter-spacing:0.1pt;"> </font>and prosecution<font style="letter-spacing:0.1pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>and applications<font style="letter-spacing:0.1pt;"> </font>as we would have if<font style="letter-spacing:0.05pt;"> </font>we had been the<font style="letter-spacing:0.05pt;"> </font>owners of the<font style="letter-spacing:0.05pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>and applications<font style="letter-spacing:0.1pt;"> </font>and had control<font style="letter-spacing:0.05pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>drafting<font style="letter-spacing:0.1pt;"> </font>and prosecution.<font style="letter-spacing:0.1pt;"> </font>We cannot<font style="letter-spacing:0.05pt;"> </font>be certain<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>drafting<font style="letter-spacing:0.1pt;"> </font>and/or<font style="letter-spacing:0.05pt;"> </font>prosecution<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>licensed<font style="letter-spacing:0.1pt;"> </font>patents<font style="letter-spacing:0.05pt;"> </font>and patent<font style="letter-spacing:0.05pt;"> </font>applications<font style="letter-spacing:0.1pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>licensors<font style="letter-spacing:0.1pt;"> </font>have been or will<font style="letter-spacing:0.05pt;"> </font>be conducted<font style="letter-spacing:0.05pt;"> </font>in compliance<font style="letter-spacing:0.1pt;"> </font>with applicable<font style="letter-spacing:0.1pt;"> </font>laws and regulations<font style="letter-spacing:0.1pt;"> </font>or will<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in valid<font style="letter-spacing:0.05pt;"> </font>and enforceable patents<font style="letter-spacing:0.05pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>agreements<font style="letter-spacing:0.1pt;"> </font>with third<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to disagreements<font style="letter-spacing:0.1pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>contract interpretation,<font style="letter-spacing:0.1pt;"> </font>which could narrow the scope<font style="letter-spacing:0.05pt;"> </font>of our rights<font style="letter-spacing:0.05pt;"> </font>to the relevant<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>or technology or increase<font style="letter-spacing:0.05pt;"> </font>our financial<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>obligations<font style="letter-spacing:0.1pt;"> </font>to our licensors.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Certain<font style="letter-spacing:0.05pt;"> </font>provisions<font style="letter-spacing:0.1pt;"> </font>in our intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>agreements<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be susceptible<font style="letter-spacing:0.1pt;"> </font>to multiple<font style="letter-spacing:0.1pt;"> </font>interpretations.<font style="letter-spacing:0.2pt;"> </font>The resolution<font style="letter-spacing:0.1pt;"> </font>of any contract<font style="letter-spacing:0.1pt;"> </font>interpretation<font style="letter-spacing:0.15pt;"> </font>disagreement<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>arise<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>scope<font style="letter-spacing:0.05pt;"> </font>of our rights<font style="letter-spacing:0.05pt;"> </font>to the relevant<font style="letter-spacing:0.1pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>or technology or affect<font style="letter-spacing:0.1pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>obligations<font style="letter-spacing:0.1pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>relevant<font style="letter-spacing:0.1pt;"> </font>agreement, either<font style="letter-spacing:0.1pt;"> </font>of which could<font style="letter-spacing:0.05pt;"> </font>have a material<font style="letter-spacing:0.15pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our business,<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>condition,<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>of operations and prospects.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,<font style="letter-spacing:0.05pt;"> </font>while<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>our policy<font style="letter-spacing:0.05pt;"> </font>to require<font style="letter-spacing:0.1pt;"> </font>our employees<font style="letter-spacing:0.1pt;"> </font>and contractors<font style="letter-spacing:0.1pt;"> </font>who may<font style="letter-spacing:0.05pt;"> </font>be involved<font style="letter-spacing:0.05pt;"> </font>in the conception<font style="letter-spacing:0.05pt;"> </font>or development<font style="letter-spacing:0.1pt;"> </font>of intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>to execute<font style="letter-spacing:0.05pt;"> </font>agreements<font style="letter-spacing:0.1pt;"> </font>assigning<font style="letter-spacing:0.05pt;"> </font>such intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>to us, we may<font style="letter-spacing:0.05pt;"> </font>be unsuccessful<font style="letter-spacing:0.1pt;"> </font>in executing<font style="letter-spacing:0.05pt;"> </font>such an agreement<font style="letter-spacing:0.1pt;"> </font>with each<font style="letter-spacing:0.05pt;"> </font>party<font style="letter-spacing:0.05pt;"> </font>who in fact<font style="letter-spacing:0.05pt;"> </font>conceives<font style="letter-spacing:0.05pt;"> </font>or develops intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we regard<font style="letter-spacing:0.05pt;"> </font>as our own. Our assignment<font style="letter-spacing:0.1pt;"> </font>agreements<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be self-executing<font style="letter-spacing:0.15pt;"> </font>or may<font style="letter-spacing:0.05pt;"> </font>be breached,<font style="letter-spacing:0.05pt;"> </font>and we may<font style="letter-spacing:0.05pt;"> </font>be forced<font style="letter-spacing:0.05pt;"> </font>to bring<font style="letter-spacing:0.05pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>third<font style="letter-spacing:0.05pt;"> </font>parties,<font style="letter-spacing:0.1pt;"> </font>or defend<font style="letter-spacing:0.05pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>they<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>bring<font style="letter-spacing:0.05pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us, to determine<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ownership<font style="letter-spacing:0.05pt;"> </font>of what we regard<font style="letter-spacing:0.05pt;"> </font>as our intellectual<font style="letter-spacing:0.15pt;"> </font>property.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">45</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU46"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">be subject</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">to damages</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">resulting</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">from</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">claims</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">we or our employees</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">have wrongfully</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">used or disclosed</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">alleged</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">trade</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">secrets</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">of our competitors</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or are in breach of non-competition</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or non-solicitation agreements</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">with our competitors.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We could<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to claims<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we or our employees<font style="letter-spacing:0.1pt;"> </font>have inadvertently<font style="letter-spacing:0.15pt;"> </font>or otherwise<font style="letter-spacing:0.05pt;"> </font>used or disclosed<font style="letter-spacing:0.1pt;"> </font>alleged<font style="letter-spacing:0.05pt;"> </font>trade<font style="letter-spacing:0.05pt;"> </font>secrets<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>proprietary<font style="letter-spacing:0.1pt;"> </font>information<font style="letter-spacing:0.15pt;"> </font>of former<font style="letter-spacing:0.1pt;"> </font>employers<font style="letter-spacing:0.1pt;"> </font>or competitors.<font style="letter-spacing:0.15pt;"> </font>Although we have procedures<font style="letter-spacing:0.1pt;"> </font>in place<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>seek<font style="letter-spacing:0.05pt;"> </font>to prevent<font style="letter-spacing:0.05pt;"> </font>our employees<font style="letter-spacing:0.1pt;"> </font>and consultants<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>using<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property, proprietary<font style="letter-spacing:0.1pt;"> </font>information,<font style="letter-spacing:0.15pt;"> </font>know-how or trade<font style="letter-spacing:0.05pt;"> </font>secrets<font style="letter-spacing:0.1pt;"> </font>of others<font style="letter-spacing:0.05pt;"> </font>in their<font style="letter-spacing:0.05pt;"> </font>work for<font style="letter-spacing:0.05pt;"> </font>us, we may<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>be subject to claims<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we caused<font style="letter-spacing:0.05pt;"> </font>an employee<font style="letter-spacing:0.05pt;"> </font>to breach<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>terms<font style="letter-spacing:0.1pt;"> </font>of his<font style="letter-spacing:0.05pt;"> </font>or her<font style="letter-spacing:0.05pt;"> </font>non-competition<font style="letter-spacing:0.15pt;"> </font>or non-solicitation agreement,<font style="letter-spacing:0.1pt;"> </font>or that<font style="letter-spacing:0.05pt;"> </font>we or these<font style="letter-spacing:0.05pt;"> </font>individuals<font style="letter-spacing:0.1pt;"> </font>have, inadvertently<font style="letter-spacing:0.15pt;"> </font>or otherwise,<font style="letter-spacing:0.05pt;"> </font>used or disclosed<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>alleged<font style="letter-spacing:0.05pt;"> </font>trade secrets<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>proprietary<font style="letter-spacing:0.1pt;"> </font>information<font style="letter-spacing:0.15pt;"> </font>of a former<font style="letter-spacing:0.1pt;"> </font>employer<font style="letter-spacing:0.1pt;"> </font>or competitor.<font style="letter-spacing:0.1pt;"> </font>Litigation<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be necessary<font style="letter-spacing:0.1pt;"> </font>to defend<font style="letter-spacing:0.05pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>claims.<font style="letter-spacing:0.1pt;"> </font>Even if<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>successful<font style="letter-spacing:0.1pt;"> </font>in defending<font style="letter-spacing:0.05pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>claims,<font style="letter-spacing:0.1pt;"> </font>litigation<font style="letter-spacing:0.15pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in substantial<font style="letter-spacing:0.1pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>and could<font style="letter-spacing:0.05pt;"> </font>be a distraction<font style="letter-spacing:0.15pt;"> </font>to management.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>our defense<font style="letter-spacing:0.05pt;"> </font>to those<font style="letter-spacing:0.05pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>fails,<font style="letter-spacing:0.1pt;"> </font>in addition<font style="letter-spacing:0.05pt;"> </font>to paying<font style="letter-spacing:0.05pt;"> </font>monetary<font style="letter-spacing:0.1pt;"> </font>damages,<font style="letter-spacing:0.05pt;"> </font>a court<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>prohibit<font style="letter-spacing:0.1pt;"> </font>us from<font style="letter-spacing:0.05pt;"> </font>using<font style="letter-spacing:0.05pt;"> </font>technologies<font style="letter-spacing:0.1pt;"> </font>or functionalities<font style="letter-spacing:0.2pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>essential to our products,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>such technologies<font style="letter-spacing:0.1pt;"> </font>or functionalities<font style="letter-spacing:0.2pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>found to incorporate<font style="letter-spacing:0.1pt;"> </font>or be derived<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>trade secrets<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>proprietary<font style="letter-spacing:0.1pt;"> </font>information<font style="letter-spacing:0.15pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>former<font style="letter-spacing:0.1pt;"> </font>employers.<font style="letter-spacing:0.1pt;"> </font>An inability<font style="letter-spacing:0.1pt;"> </font>to incorporate<font style="letter-spacing:0.1pt;"> </font>technologies<font style="letter-spacing:0.1pt;"> </font>or functionalities<font style="letter-spacing:0.2pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>important<font style="letter-spacing:0.1pt;"> </font>or essential<font style="letter-spacing:0.1pt;"> </font>to our products<font style="letter-spacing:0.05pt;"> </font>would have a material<font style="letter-spacing:0.15pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our business and may<font style="letter-spacing:0.05pt;"> </font>prevent<font style="letter-spacing:0.05pt;"> </font>us from<font style="letter-spacing:0.05pt;"> </font>selling<font style="letter-spacing:0.1pt;"> </font>our products<font style="letter-spacing:0.05pt;"> </font>or from<font style="letter-spacing:0.05pt;"> </font>practicing<font style="letter-spacing:0.1pt;"> </font>our processes.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>we may lose<font style="letter-spacing:0.05pt;"> </font>valuable<font style="letter-spacing:0.05pt;"> </font>intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>or personnel.<font style="letter-spacing:0.05pt;"> </font>Moreover,<font style="letter-spacing:0.05pt;"> </font>any such litigation<font style="letter-spacing:0.15pt;"> </font>or the<font style="letter-spacing:0.05pt;"> </font>threat<font style="letter-spacing:0.1pt;"> </font>thereof<font style="letter-spacing:0.1pt;"> </font>may adversely<font style="letter-spacing:0.1pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to hire<font style="letter-spacing:0.05pt;"> </font>employees<font style="letter-spacing:0.1pt;"> </font>or contract<font style="letter-spacing:0.1pt;"> </font>with independent<font style="letter-spacing:0.05pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>representatives.<font style="letter-spacing:0.15pt;"> </font>A loss<font style="letter-spacing:0.05pt;"> </font>of key personnel<font style="letter-spacing:0.05pt;"> </font>or their<font style="letter-spacing:0.05pt;"> </font>work product<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>hamper<font style="letter-spacing:0.05pt;"> </font>or prevent<font style="letter-spacing:0.05pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to commercialize<font style="letter-spacing:0.2pt;"> </font>our products,<font style="letter-spacing:0.05pt;"> </font>which could have an adverse<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on our business,<font style="letter-spacing:0.05pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>of operations<font style="letter-spacing:0.1pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>our trademarks<font style="letter-spacing:0.1pt;"> </font>and trade<font style="letter-spacing:0.05pt;"> </font>names<font style="letter-spacing:0.05pt;"> </font>are not adequately<font style="letter-spacing:0.05pt;"> </font>protected,<font style="letter-spacing:0.1pt;"> </font>then we may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to build<font style="letter-spacing:0.05pt;"> </font>name recognition<font style="letter-spacing:0.05pt;"> </font>in our markets<font style="letter-spacing:0.05pt;"> </font>of interest<font style="letter-spacing:0.1pt;"> </font>and our business<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be adversely<font style="letter-spacing:0.1pt;"> </font>affected.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We hold various<font style="letter-spacing:0.05pt;"> </font>trademarks<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our products<font style="letter-spacing:0.05pt;"> </font>and services.<font style="letter-spacing:0.1pt;"> </font>Many of these<font style="letter-spacing:0.05pt;"> </font>trademarks<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>registered<font style="letter-spacing:0.1pt;"> </font>with the USPTO<font style="letter-spacing:-0.05pt;"> </font>and corresponding<font style="letter-spacing:0.1pt;"> </font>government<font style="letter-spacing:0.1pt;"> </font>agencies<font style="letter-spacing:0.05pt;"> </font>in numerous<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>countries,<font style="letter-spacing:0.1pt;"> </font>and we hold trademark applications<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>marks<font style="letter-spacing:0.05pt;"> </font>in a number<font style="letter-spacing:0.05pt;"> </font>of foreign<font style="letter-spacing:0.05pt;"> </font>countries,<font style="letter-spacing:0.1pt;"> </font>although<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>laws of many<font style="letter-spacing:0.05pt;"> </font>countries<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not protect<font style="letter-spacing:0.1pt;"> </font>our trademark<font style="letter-spacing:0.1pt;"> </font>rights<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>same<font style="letter-spacing:0.05pt;"> </font>extent<font style="letter-spacing:0.05pt;"> </font>as the<font style="letter-spacing:0.05pt;"> </font>laws of the<font style="letter-spacing:0.05pt;"> </font>U.S. Actions<font style="letter-spacing:0.05pt;"> </font>taken<font style="letter-spacing:0.05pt;"> </font>by us to establish<font style="letter-spacing:0.1pt;"> </font>and protect<font style="letter-spacing:0.1pt;"> </font>our trademarks<font style="letter-spacing:0.1pt;"> </font>might<font style="letter-spacing:0.05pt;"> </font>not prevent<font style="letter-spacing:0.05pt;"> </font>imitation<font style="letter-spacing:0.15pt;"> </font>of our products<font style="letter-spacing:0.05pt;"> </font>or services,<font style="letter-spacing:0.1pt;"> </font>infringement<font style="letter-spacing:0.15pt;"> </font>of our trademark rights<font style="letter-spacing:0.05pt;"> </font>by unauthorized<font style="letter-spacing:0.1pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>challenges<font style="letter-spacing:0.1pt;"> </font>to our ownership<font style="letter-spacing:0.05pt;"> </font>or validity<font style="letter-spacing:0.1pt;"> </font>of our trademarks.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>any of these events<font style="letter-spacing:0.05pt;"> </font>occur,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to protect<font style="letter-spacing:0.1pt;"> </font>and enforce<font style="letter-spacing:0.05pt;"> </font>our rights<font style="letter-spacing:0.05pt;"> </font>in these<font style="letter-spacing:0.05pt;"> </font>trademarks,<font style="letter-spacing:0.1pt;"> </font>which we need in order<font style="letter-spacing:0.05pt;"> </font>to build<font style="letter-spacing:0.05pt;"> </font>name<font style="letter-spacing:0.05pt;"> </font>recognition<font style="letter-spacing:0.1pt;"> </font>with potential<font style="letter-spacing:0.1pt;"> </font>partners<font style="letter-spacing:0.1pt;"> </font>or customers<font style="letter-spacing:0.1pt;"> </font>in our markets<font style="letter-spacing:0.1pt;"> </font>of interest.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>unauthorized third-parties<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>have registered<font style="letter-spacing:0.1pt;"> </font>trademarks<font style="letter-spacing:0.1pt;"> </font>similar<font style="letter-spacing:0.1pt;"> </font>and identical<font style="letter-spacing:0.1pt;"> </font>to our trademarks<font style="letter-spacing:0.1pt;"> </font>in foreign<font style="letter-spacing:0.05pt;"> </font>jurisdictions<font style="letter-spacing:0.15pt;"> </font>or may<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>file<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>registration<font style="letter-spacing:0.15pt;"> </font>of such trademarks.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>they<font style="letter-spacing:0.05pt;"> </font>succeed<font style="letter-spacing:0.05pt;"> </font>in registering<font style="letter-spacing:0.15pt;"> </font>or developing<font style="letter-spacing:0.05pt;"> </font>common law rights<font style="letter-spacing:0.05pt;"> </font>in such trademarks,<font style="letter-spacing:0.1pt;"> </font>and if<font style="letter-spacing:0.05pt;"> </font>we were not successful<font style="letter-spacing:0.1pt;"> </font>in challenging<font style="letter-spacing:0.1pt;"> </font>such third-party<font style="letter-spacing:0.15pt;"> </font>rights,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to use such trademarks<font style="letter-spacing:0.1pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>our products<font style="letter-spacing:0.05pt;"> </font>and services<font style="letter-spacing:0.1pt;"> </font>in those<font style="letter-spacing:0.05pt;"> </font>countries.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>unable<font style="letter-spacing:0.05pt;"> </font>to register our trademarks,<font style="letter-spacing:0.1pt;"> </font>enforce<font style="letter-spacing:0.05pt;"> </font>our trademarks,<font style="letter-spacing:0.1pt;"> </font>or bar<font style="letter-spacing:0.05pt;"> </font>a third-party<font style="letter-spacing:0.15pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>registering<font style="letter-spacing:0.15pt;"> </font>or using<font style="letter-spacing:0.05pt;"> </font>a trademark,<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to establish<font style="letter-spacing:0.1pt;"> </font>name<font style="letter-spacing:0.05pt;"> </font>recognition<font style="letter-spacing:0.1pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>on our trademarks<font style="letter-spacing:0.1pt;"> </font>and compete<font style="letter-spacing:0.05pt;"> </font>effectively<font style="letter-spacing:0.15pt;"> </font>in our markets<font style="letter-spacing:0.1pt;"> </font>of interest<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be adversely<font style="letter-spacing:0.1pt;"> </font>affected.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>we are unable to protect<font style="letter-spacing:0.05pt;"> </font>the confidentiality<font style="letter-spacing:0.15pt;"> </font>of our trade<font style="letter-spacing:0.05pt;"> </font>secrets,<font style="letter-spacing:0.1pt;"> </font>our business<font style="letter-spacing:0.05pt;"> </font>and competitive<font style="letter-spacing:0.15pt;"> </font>position<font style="letter-spacing:0.05pt;"> </font>may be harmed.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition<font style="letter-spacing:0.05pt;"> </font>to patent<font style="letter-spacing:0.05pt;"> </font>and trademark<font style="letter-spacing:0.1pt;"> </font>protection,<font style="letter-spacing:0.1pt;"> </font>we also<font style="letter-spacing:0.05pt;"> </font>rely<font style="letter-spacing:0.05pt;"> </font>on trade<font style="letter-spacing:0.05pt;"> </font>secrets,<font style="letter-spacing:0.1pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>unpatented<font style="letter-spacing:0.05pt;"> </font>know-how, technology<font style="letter-spacing:0.05pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>proprietary<font style="letter-spacing:0.1pt;"> </font>information,<font style="letter-spacing:0.15pt;"> </font>to maintain<font style="letter-spacing:0.1pt;"> </font>our competitive<font style="letter-spacing:0.15pt;"> </font>position.<font style="letter-spacing:0.05pt;"> </font>We seek<font style="letter-spacing:0.05pt;"> </font>to protect<font style="letter-spacing:0.1pt;"> </font>our trade secrets,<font style="letter-spacing:0.1pt;"> </font>in part,<font style="letter-spacing:0.05pt;"> </font>by entering<font style="letter-spacing:0.1pt;"> </font>into<font style="letter-spacing:0.05pt;"> </font>non-disclosure<font style="letter-spacing:0.1pt;"> </font>and confidentiality<font style="letter-spacing:0.15pt;"> </font>agreements<font style="letter-spacing:0.1pt;"> </font>with parties<font style="letter-spacing:0.1pt;"> </font>who have access<font style="letter-spacing:0.05pt;"> </font>to them,<font style="letter-spacing:0.05pt;"> </font>such as our consultants<font style="letter-spacing:0.1pt;"> </font>and vendors,<font style="letter-spacing:0.05pt;"> </font>or our former<font style="letter-spacing:0.1pt;"> </font>or current<font style="letter-spacing:0.1pt;"> </font>employees.<font style="letter-spacing:0.1pt;"> </font>We also<font style="letter-spacing:0.05pt;"> </font>enter<font style="letter-spacing:0.05pt;"> </font>into<font style="letter-spacing:0.05pt;"> </font>confidentiality and invention<font style="letter-spacing:0.05pt;"> </font>or patent<font style="letter-spacing:0.05pt;"> </font>assignment<font style="letter-spacing:0.1pt;"> </font>agreements<font style="letter-spacing:0.1pt;"> </font>with our employees<font style="letter-spacing:0.1pt;"> </font>and consultants.<font style="letter-spacing:0.1pt;"> </font>Despite<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>efforts, however, any of these<font style="letter-spacing:0.05pt;"> </font>parties<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>breach<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>agreements<font style="letter-spacing:0.1pt;"> </font>and disclose<font style="letter-spacing:0.1pt;"> </font>our trade<font style="letter-spacing:0.05pt;"> </font>secrets<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>unpatented<font style="letter-spacing:0.05pt;"> </font>or unregistered<font style="letter-spacing:0.1pt;"> </font>proprietary<font style="letter-spacing:0.1pt;"> </font>information,<font style="letter-spacing:0.15pt;"> </font>and once disclosed,<font style="letter-spacing:0.1pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>likely<font style="letter-spacing:0.05pt;"> </font>to lose<font style="letter-spacing:0.05pt;"> </font>trade<font style="letter-spacing:0.05pt;"> </font>secret<font style="letter-spacing:0.1pt;"> </font>protection.<font style="letter-spacing:0.1pt;"> </font>Monitoring unauthorized<font style="letter-spacing:0.1pt;"> </font>uses<font style="letter-spacing:0.05pt;"> </font>and disclosures<font style="letter-spacing:0.1pt;"> </font>of our intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>difficult,<font style="letter-spacing:0.15pt;"> </font>and we do not know whether<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>steps we have taken<font style="letter-spacing:0.05pt;"> </font>to protect<font style="letter-spacing:0.1pt;"> </font>our intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be effective.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to obtain adequate<font style="letter-spacing:0.05pt;"> </font>remedies<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>any such breaches.<font style="letter-spacing:0.05pt;"> </font>Enforcing<font style="letter-spacing:0.05pt;"> </font>a claim<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>a party<font style="letter-spacing:0.05pt;"> </font>illegally<font style="letter-spacing:0.1pt;"> </font>disclosed<font style="letter-spacing:0.1pt;"> </font>or misappropriated<font style="letter-spacing:0.15pt;"> </font>a trade<font style="letter-spacing:0.05pt;"> </font>secret<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>difficult,<font style="letter-spacing:0.15pt;"> </font>expensive<font style="letter-spacing:0.05pt;"> </font>and time-consuming,<font style="letter-spacing:0.15pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>outcome<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>unpredictable.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>some courts<font style="letter-spacing:0.05pt;"> </font>inside<font style="letter-spacing:0.05pt;"> </font>and outside<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>less<font style="letter-spacing:0.05pt;"> </font>willing<font style="letter-spacing:0.05pt;"> </font>or unwilling<font style="letter-spacing:0.05pt;"> </font>to enforce<font style="letter-spacing:0.05pt;"> </font>trade<font style="letter-spacing:0.05pt;"> </font>secret<font style="letter-spacing:0.1pt;"> </font>protection.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Furthermore,<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>competitors<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>independently<font style="letter-spacing:-0.2pt;"> </font>develop<font style="letter-spacing:-0.2pt;"> </font>knowledge,<font style="letter-spacing:-0.2pt;"> </font>methods<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>know-how<font style="letter-spacing:-0.2pt;"> </font>similar,<font style="letter-spacing:-0.2pt;"> </font>equivalent, or<font style="letter-spacing:-0.2pt;"> </font>superior<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>proprietary<font style="letter-spacing:-0.2pt;"> </font>technology.<font style="letter-spacing:-0.2pt;"> </font>Competitors<font style="letter-spacing:-0.2pt;"> </font>could<font style="letter-spacing:-0.2pt;"> </font>purchase<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>products<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>attempt<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>replicate<font style="letter-spacing:-0.2pt;"> </font>some<font style="letter-spacing:-0.2pt;"> </font>or all<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>competitive<font style="letter-spacing:-0.2pt;"> </font>advantages<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>derive<font style="letter-spacing:-0.2pt;"> </font>from<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>development<font style="letter-spacing:-0.2pt;"> </font>efforts,<font style="letter-spacing:-0.2pt;"> </font>willfully<font style="letter-spacing:-0.2pt;"> </font>infringe<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>intellectual property<font style="letter-spacing:-0.2pt;"> </font>rights,<font style="letter-spacing:-0.2pt;"> </font>design<font style="letter-spacing:-0.2pt;"> </font>around<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>protected<font style="letter-spacing:-0.2pt;"> </font>technology,<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>develop<font style="letter-spacing:-0.2pt;"> </font>their<font style="letter-spacing:-0.2pt;"> </font>own<font style="letter-spacing:-0.2pt;"> </font>competitive<font style="letter-spacing:-0.2pt;"> </font>technologies<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>fall outside<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>intellectual<font style="letter-spacing:-0.2pt;"> </font>property<font style="letter-spacing:-0.2pt;"> </font>rights.<font style="letter-spacing:-0.2pt;"> </font>In<font style="letter-spacing:-0.2pt;"> </font>addition,<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>key<font style="letter-spacing:-0.2pt;"> </font>employees,<font style="letter-spacing:-0.2pt;"> </font>consultants,<font style="letter-spacing:-0.2pt;"> </font>suppliers<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>other<font style="letter-spacing:-0.2pt;"> </font>individuals with<font style="letter-spacing:-0.2pt;"> </font>access<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>proprietary<font style="letter-spacing:-0.2pt;"> </font>technology<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>know-how<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>incorporate<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>technology<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>know-how<font style="letter-spacing:-0.2pt;"> </font>into projects<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>inventions<font style="letter-spacing:-0.2pt;"> </font>developed<font style="letter-spacing:-0.2pt;"> </font>independently<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>with<font style="letter-spacing:-0.2pt;"> </font>third<font style="letter-spacing:-0.2pt;"> </font>parties.<font style="letter-spacing:-0.2pt;"> </font>As<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>result,<font style="letter-spacing:-0.2pt;"> </font>disputes<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>arise<font style="letter-spacing:-0.2pt;"> </font>regarding<font style="letter-spacing:-0.2pt;"> </font>the ownership<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>proprietary<font style="letter-spacing:-0.2pt;"> </font>rights<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>such<font style="letter-spacing:-0.2pt;"> </font>technology<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>know-how,<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>any<font style="letter-spacing:-0.2pt;"> </font>such<font style="letter-spacing:-0.2pt;"> </font>dispute<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>not<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>resolved<font style="letter-spacing:-0.2pt;"> </font>in our<font style="letter-spacing:-0.2pt;"> </font>favor.<font style="letter-spacing:-0.2pt;"> </font>If<font style="letter-spacing:-0.2pt;"> </font>any<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>trade<font style="letter-spacing:-0.2pt;"> </font>secrets<font style="letter-spacing:-0.2pt;"> </font>were<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>lawfully<font style="letter-spacing:-0.2pt;"> </font>obtained<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>independently<font style="letter-spacing:-0.2pt;"> </font>developed<font style="letter-spacing:-0.2pt;"> </font>by<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>competitor,<font style="letter-spacing:-0.2pt;"> </font>we would<font style="letter-spacing:-0.2pt;"> </font>have<font style="letter-spacing:-0.2pt;"> </font>no<font style="letter-spacing:-0.2pt;"> </font>right<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>prevent<font style="letter-spacing:-0.2pt;"> </font>them,<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>those<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>whom<font style="letter-spacing:-0.2pt;"> </font>they<font style="letter-spacing:-0.2pt;"> </font>communicate<font style="letter-spacing:-0.2pt;"> </font>it,<font style="letter-spacing:-0.2pt;"> </font>from<font style="letter-spacing:-0.2pt;"> </font>using<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>technology<font style="letter-spacing:-0.2pt;"> </font>or information<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>compete<font style="letter-spacing:-0.2pt;"> </font>with<font style="letter-spacing:-0.2pt;"> </font>us<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>competitive<font style="letter-spacing:-0.2pt;"> </font>position<font style="letter-spacing:-0.2pt;"> </font>could<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>adversely<font style="letter-spacing:-0.2pt;"> </font>affected.<font style="letter-spacing:-0.2pt;"> </font>If<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>intellectual<font style="letter-spacing:-0.2pt;"> </font>property is<font style="letter-spacing:-0.2pt;"> </font>not<font style="letter-spacing:-0.2pt;"> </font>adequately<font style="letter-spacing:-0.2pt;"> </font>protected<font style="letter-spacing:-0.2pt;"> </font>so<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>protect<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>market<font style="letter-spacing:-0.2pt;"> </font>against<font style="letter-spacing:-0.2pt;"> </font>competitors&#8217;<font style="letter-spacing:-0.2pt;"> </font>products<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>methods,<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>competitive position<font style="letter-spacing:-0.2pt;"> </font>could<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>adversely<font style="letter-spacing:-0.2pt;"> </font>affected,<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>could<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>business.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">46</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU47"></a><font style="font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">to Government</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Regulation</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>and our operations<font style="letter-spacing:0.05pt;"> </font>are subject<font style="letter-spacing:0.05pt;"> </font>to extensive<font style="letter-spacing:0.1pt;"> </font>government<font style="letter-spacing:0.05pt;"> </font>regulation<font style="letter-spacing:0.05pt;"> </font>and oversight<font style="letter-spacing:0.05pt;"> </font>both in the U.S.<font style="letter-spacing:-0.05pt;"> </font>and abroad, and our failure<font style="letter-spacing:0.05pt;"> </font>to comply<font style="letter-spacing:0.05pt;"> </font>with applicable<font style="letter-spacing:0.1pt;"> </font>requirements<font style="letter-spacing:0.1pt;"> </font>could harm our business.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>and related<font style="letter-spacing:0.1pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>and services<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>regulated<font style="letter-spacing:0.1pt;"> </font>as medical<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to extensive regulation<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>and elsewhere,<font style="letter-spacing:0.05pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>and its<font style="letter-spacing:0.05pt;"> </font>foreign<font style="letter-spacing:0.05pt;"> </font>counterparts.<font style="letter-spacing:0.1pt;"> </font>The FDA<font style="letter-spacing:-0.05pt;"> </font>and foreign regulatory<font style="letter-spacing:0.1pt;"> </font>agencies<font style="letter-spacing:0.05pt;"> </font>regulate,<font style="letter-spacing:0.1pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things,<font style="letter-spacing:0.05pt;"> </font>with respect<font style="letter-spacing:0.1pt;"> </font>to medical<font style="letter-spacing:0.1pt;"> </font>devices:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">design,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">development</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and manufacturing;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">testing,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">labeling,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">content</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and language</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of instructions</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">use and storage;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trials;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">product</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">safety;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">marketing,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and distribution;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">premarket</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and approval;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">record</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">keeping</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">procedures;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">advertising</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and promotion;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">recalls</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and field</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">safety</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">corrective</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">actions;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">post-market</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">surveillance,</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">reporting</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of deaths</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or serious</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">injuries</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and malfunctions</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">if</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">they were to recur,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">could</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">lead</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to death</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or serious</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">injury;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">post-market</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">approval</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">studies;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">product</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">import</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and export.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The regulations<font style="letter-spacing:0.1pt;"> </font>to which we are<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>complex<font style="letter-spacing:0.05pt;"> </font>and have tended<font style="letter-spacing:0.05pt;"> </font>to become<font style="letter-spacing:0.05pt;"> </font>more<font style="letter-spacing:0.05pt;"> </font>stringent<font style="letter-spacing:0.1pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>time. Regulatory<font style="letter-spacing:0.05pt;"> </font>changes<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in restrictions<font style="letter-spacing:0.15pt;"> </font>on our ability<font style="letter-spacing:0.1pt;"> </font>to carry<font style="letter-spacing:0.05pt;"> </font>on or expand our operations,<font style="letter-spacing:0.1pt;"> </font>higher<font style="letter-spacing:0.05pt;"> </font>than anticipated<font style="letter-spacing:0.1pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>or lower<font style="letter-spacing:0.05pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>anticipated<font style="letter-spacing:0.1pt;"> </font>sales.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In the<font style="letter-spacing:0.05pt;"> </font>U.S., before<font style="letter-spacing:0.05pt;"> </font>we can market<font style="letter-spacing:0.1pt;"> </font>a new medical<font style="letter-spacing:0.1pt;"> </font>device,<font style="letter-spacing:0.05pt;"> </font>or a new use of, new claim<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>or significant modification<font style="letter-spacing:0.15pt;"> </font>to an existing<font style="letter-spacing:0.1pt;"> </font>product,<font style="letter-spacing:0.05pt;"> </font>we must<font style="letter-spacing:0.05pt;"> </font>first<font style="letter-spacing:0.1pt;"> </font>receive<font style="letter-spacing:0.1pt;"> </font>either<font style="letter-spacing:0.1pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>Section<font style="letter-spacing:0.05pt;"> </font>510(k)<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>FDCA<font style="letter-spacing:-0.05pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>of a PMA application<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA,<font style="letter-spacing:-0.05pt;"> </font>unless<font style="letter-spacing:0.05pt;"> </font>an exemption<font style="letter-spacing:0.1pt;"> </font>applies.<font style="letter-spacing:0.05pt;"> </font>In the<font style="letter-spacing:0.05pt;"> </font>510(k)<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>process, before<font style="letter-spacing:0.05pt;"> </font>a device<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be marketed,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>determine<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>a proposed<font style="letter-spacing:0.05pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>&#8220;substantially<font style="letter-spacing:0.15pt;"> </font>equivalent&#8221;<font style="letter-spacing:0.1pt;"> </font>to a legally-marketed<font style="letter-spacing:0.2pt;"> </font>&#8220;predicate&#8221;<font style="letter-spacing:0.1pt;"> </font>device,<font style="letter-spacing:0.05pt;"> </font>which includes<font style="letter-spacing:0.05pt;"> </font>a device<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>has been previously<font style="letter-spacing:0.1pt;"> </font>cleared<font style="letter-spacing:0.1pt;"> </font>through<font style="letter-spacing:0.05pt;"> </font>the 510(k)<font style="letter-spacing:0.05pt;"> </font>process,<font style="letter-spacing:0.05pt;"> </font>a device<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>was legally<font style="letter-spacing:0.1pt;"> </font>marketed<font style="letter-spacing:0.1pt;"> </font>prior<font style="letter-spacing:0.05pt;"> </font>to May 28, 1976 (preamendments<font style="letter-spacing:0.15pt;"> </font>device),<font style="letter-spacing:0.05pt;"> </font>a device<font style="letter-spacing:0.05pt;"> </font>that was originally<font style="letter-spacing:0.1pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>pursuant<font style="letter-spacing:0.05pt;"> </font>to an approved<font style="letter-spacing:0.05pt;"> </font>premarket<font style="letter-spacing:0.1pt;"> </font>approval,<font style="letter-spacing:0.05pt;"> </font>or PMA, application<font style="letter-spacing:0.1pt;"> </font>and later downclassified,<font style="letter-spacing:0.1pt;"> </font>or a 510(k)-exempt<font style="letter-spacing:0.1pt;"> </font>device.<font style="letter-spacing:0.05pt;"> </font>To be &#8220;substantially<font style="letter-spacing:0.15pt;"> </font>equivalent,&#8221;<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>proposed<font style="letter-spacing:0.05pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>have the same<font style="letter-spacing:0.05pt;"> </font>intended<font style="letter-spacing:0.05pt;"> </font>use as the<font style="letter-spacing:0.05pt;"> </font>predicate<font style="letter-spacing:0.1pt;"> </font>device,<font style="letter-spacing:0.05pt;"> </font>and either<font style="letter-spacing:0.1pt;"> </font>have the<font style="letter-spacing:0.05pt;"> </font>same<font style="letter-spacing:0.05pt;"> </font>technological<font style="letter-spacing:0.1pt;"> </font>characteristics<font style="letter-spacing:0.2pt;"> </font>as the<font style="letter-spacing:0.05pt;"> </font>predicate device<font style="letter-spacing:0.05pt;"> </font>or have different<font style="letter-spacing:0.1pt;"> </font>technological<font style="letter-spacing:0.1pt;"> </font>characteristics<font style="letter-spacing:0.2pt;"> </font>and not raise<font style="letter-spacing:0.05pt;"> </font>different<font style="letter-spacing:0.1pt;"> </font>questions<font style="letter-spacing:0.05pt;"> </font>of safety<font style="letter-spacing:0.05pt;"> </font>or effectiveness than<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>predicate<font style="letter-spacing:0.1pt;"> </font>device.<font style="letter-spacing:0.05pt;"> </font>Clinical<font style="letter-spacing:0.1pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>sometimes<font style="letter-spacing:0.1pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>to support<font style="letter-spacing:0.05pt;"> </font>substantial<font style="letter-spacing:0.1pt;"> </font>equivalence.<font style="letter-spacing:0.1pt;"> </font>In the<font style="letter-spacing:0.05pt;"> </font>PMA process,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>determine<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>a proposed<font style="letter-spacing:0.05pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>safe<font style="letter-spacing:0.05pt;"> </font>and effective<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>its<font style="letter-spacing:0.05pt;"> </font>intended<font style="letter-spacing:0.05pt;"> </font>use based,<font style="letter-spacing:0.05pt;"> </font>in part, on extensive<font style="letter-spacing:0.1pt;"> </font>data,<font style="letter-spacing:0.05pt;"> </font>including,<font style="letter-spacing:0.05pt;"> </font>but not limited<font style="letter-spacing:0.1pt;"> </font>to, technical,<font style="letter-spacing:0.1pt;"> </font>pre-clinical,<font style="letter-spacing:0.15pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trial,<font style="letter-spacing:0.1pt;"> </font>manufacturing<font style="letter-spacing:0.15pt;"> </font>and labeling data.<font style="letter-spacing:0.05pt;"> </font>The PMA process<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>typically<font style="letter-spacing:0.1pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>deemed<font style="letter-spacing:0.05pt;"> </font>to pose the<font style="letter-spacing:0.05pt;"> </font>greatest<font style="letter-spacing:0.1pt;"> </font>risk,<font style="letter-spacing:0.05pt;"> </font>such as life- sustaining,<font style="letter-spacing:0.1pt;"> </font>life-supporting<font style="letter-spacing:0.15pt;"> </font>or implantable<font style="letter-spacing:0.15pt;"> </font>devices.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Modifications<font style="letter-spacing:0.15pt;"> </font>to products<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>approved<font style="letter-spacing:0.05pt;"> </font>through<font style="letter-spacing:0.05pt;"> </font>a PMA application<font style="letter-spacing:0.1pt;"> </font>generally<font style="letter-spacing:0.1pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>approval. Similarly,<font style="letter-spacing:0.1pt;"> </font>certain<font style="letter-spacing:0.1pt;"> </font>modifications<font style="letter-spacing:0.15pt;"> </font>made<font style="letter-spacing:0.05pt;"> </font>to products<font style="letter-spacing:0.05pt;"> </font>cleared<font style="letter-spacing:0.1pt;"> </font>through<font style="letter-spacing:0.05pt;"> </font>a 510(k)<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>a new 510(k)<font style="letter-spacing:0.05pt;"> </font>clearance.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Both the<font style="letter-spacing:0.05pt;"> </font>PMA approval<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>510(k)<font style="letter-spacing:0.05pt;">-clearance</font><font style="letter-spacing:0.1pt;"> </font>process<font style="letter-spacing:0.05pt;"> </font>can be expensive,<font style="letter-spacing:0.05pt;"> </font>lengthy<font style="letter-spacing:0.05pt;"> </font>and uncertain.<font style="letter-spacing:0.1pt;"> </font>The FDA&#8217;s<font style="color:#000000;"> </font>510(k)<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>process<font style="letter-spacing:0.05pt;"> </font>usually<font style="letter-spacing:0.05pt;"> </font>takes<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>three<font style="letter-spacing:0.05pt;"> </font>to 12 months but can last<font style="letter-spacing:0.05pt;"> </font>longer.<font style="letter-spacing:0.05pt;"> </font>The process<font style="letter-spacing:0.05pt;"> </font>of obtaining<font style="letter-spacing:0.05pt;"> </font>a PMA is<font style="letter-spacing:0.05pt;"> </font>much<font style="letter-spacing:0.05pt;"> </font>more<font style="letter-spacing:0.05pt;"> </font>costly<font style="letter-spacing:0.05pt;"> </font>and uncertain<font style="letter-spacing:0.1pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>510(k)<font style="letter-spacing:0.05pt;">-clearance</font><font style="letter-spacing:0.1pt;"> </font>process<font style="letter-spacing:0.05pt;"> </font>and generally<font style="letter-spacing:0.1pt;"> </font>takes<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>one to three years,<font style="letter-spacing:0.05pt;"> </font>or even longer,<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>time<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>application<font style="letter-spacing:0.1pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>filed<font style="letter-spacing:0.05pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>FDA.<font style="letter-spacing:-0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>a PMA generally<font style="letter-spacing:0.1pt;"> </font>requires, and the<font style="letter-spacing:0.05pt;"> </font>510(k)<font style="letter-spacing:0.05pt;">-clearance</font><font style="letter-spacing:0.1pt;"> </font>process<font style="letter-spacing:0.05pt;"> </font>sometimes<font style="letter-spacing:0.1pt;"> </font>requires,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>performance<font style="letter-spacing:0.1pt;"> </font>of one or more<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials.<font style="letter-spacing:0.1pt;"> </font>Despite<font style="letter-spacing:0.05pt;"> </font>the time,<font style="letter-spacing:0.05pt;"> </font>effort<font style="letter-spacing:0.1pt;"> </font>and cost,<font style="letter-spacing:0.05pt;"> </font>we cannot<font style="letter-spacing:0.05pt;"> </font>assure<font style="letter-spacing:0.05pt;"> </font>you that<font style="letter-spacing:0.05pt;"> </font>any particular<font style="letter-spacing:0.15pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be approved<font style="letter-spacing:0.05pt;"> </font>or cleared<font style="letter-spacing:0.1pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>FDA. Any delay<font style="letter-spacing:0.05pt;"> </font>or failure<font style="letter-spacing:0.1pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>necessary<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>approvals<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our business.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">47</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU48"></a><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">U.S., we have obtained</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">510(k)</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">premarket</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clearance</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">FDA</font><font style="letter-spacing:-0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to market</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">for harvesting</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">hair</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">follicles</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">from</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">scalp</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in men</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">diagnosed</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with AGA</font><font style="letter-spacing:-0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">who </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have black</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or brown straight</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">hair.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">An element</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of our strategy</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">is</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to continue</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to add new functionalities</font><font style="letter-spacing:0.2pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and enhance</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">existing</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">functionalities</font><font style="letter-spacing:0.2pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">System.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We expect</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">certain</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">modifications</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">make</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">require</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">new 510(k)</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">clearanc</font><font style="letter-spacing:0.1pt;">e</font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">; however, future</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">modifications</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be subject</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">substantially</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">more</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">costly,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">time-consuming and uncertain</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">PMA process.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">FDA</font><font style="letter-spacing:-0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">requires</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">us to go through</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a lengthier,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">more</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">rigorous</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">examination</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">for future</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">products</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or modifications</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to existing</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">products</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">than</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">we had expected,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">product</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">introductions</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or modifications</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be delayed</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or canceled,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">which could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">cause</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our sales</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to decline.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The FDA<font style="letter-spacing:-0.05pt;"> </font>can delay,<font style="letter-spacing:0.05pt;"> </font>limit<font style="letter-spacing:0.1pt;"> </font>or deny clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>of a device<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>many<font style="letter-spacing:0.05pt;"> </font>reasons,<font style="letter-spacing:0.05pt;"> </font>including:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">we may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not be able</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to demonstrate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">FDA&#8217;s satisfaction</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">product</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or modification</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">is substantially</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">equivalent</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">proposed</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">predicate</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">device</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or safe</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and effective</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">its</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">intended</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">use;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">data</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our pre-clinical</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">studies</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">trials</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be insufficient</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to support</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or approval,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">where required;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">manufacturing</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">process</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or facilities</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">we use may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not meet</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">applicable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">requirements.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The FDA&#8217;s and other<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>authorities&#8217;<font style="letter-spacing:0.15pt;"> </font>policies<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>change,<font style="letter-spacing:0.05pt;"> </font>and additional<font style="letter-spacing:0.1pt;"> </font>government<font style="letter-spacing:0.1pt;"> </font>regulations<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be enacted<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>prevent,<font style="letter-spacing:0.05pt;"> </font>limit<font style="letter-spacing:0.1pt;"> </font>or delay<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>approval<font style="letter-spacing:0.05pt;"> </font>of our products.<font style="letter-spacing:0.05pt;"> </font>For example,<font style="letter-spacing:0.05pt;"> </font>in December<font style="letter-spacing:0.05pt;"> </font>2016, the<font style="letter-spacing:0.05pt;"> </font>21st<font style="letter-spacing:0.05pt;"> </font>Century<font style="letter-spacing:0.05pt;"> </font>Cures Act, or Cures Act, was signed<font style="letter-spacing:0.05pt;"> </font>into<font style="letter-spacing:0.05pt;"> </font>law. The Cures Act, among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things,<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>intended<font style="letter-spacing:0.05pt;"> </font>to modernize<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>regulation<font style="letter-spacing:0.1pt;"> </font>of medical<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>and spur<font style="letter-spacing:0.05pt;"> </font>innovation,<font style="letter-spacing:0.05pt;"> </font>but its<font style="letter-spacing:0.05pt;"> </font>ultimate<font style="letter-spacing:0.1pt;"> </font>implementation<font style="letter-spacing:0.15pt;"> </font>remains unclear.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>slow or unable<font style="letter-spacing:0.05pt;"> </font>to adapt<font style="letter-spacing:0.05pt;"> </font>to changes<font style="letter-spacing:0.05pt;"> </font>in existing<font style="letter-spacing:0.1pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>or the<font style="letter-spacing:0.05pt;"> </font>adoption<font style="letter-spacing:0.05pt;"> </font>of new requirements<font style="letter-spacing:0.15pt;"> </font>or policies,<font style="letter-spacing:0.1pt;"> </font>or if<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>not able<font style="letter-spacing:0.05pt;"> </font>to maintain<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>compliance,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>fail<font style="letter-spacing:0.05pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>any marketing<font style="letter-spacing:0.1pt;"> </font>clearances<font style="letter-spacing:0.1pt;"> </font>or approvals,<font style="letter-spacing:0.05pt;"> </font>lose<font style="letter-spacing:0.05pt;"> </font>any marketing<font style="letter-spacing:0.1pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>have obtained,<font style="letter-spacing:0.05pt;"> </font>and we may<font style="letter-spacing:0.05pt;"> </font>not achieve<font style="letter-spacing:0.05pt;"> </font>or sustain<font style="letter-spacing:0.05pt;"> </font>profitability.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We<font style="letter-spacing:-0.2pt;"> </font>also<font style="letter-spacing:-0.2pt;"> </font>cannot<font style="letter-spacing:-0.2pt;"> </font>predict<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>likelihood,<font style="letter-spacing:-0.2pt;"> </font>nature<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>extent<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>government<font style="letter-spacing:-0.2pt;"> </font>regulation<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>arise<font style="letter-spacing:-0.2pt;"> </font>from<font style="letter-spacing:-0.2pt;"> </font>future legislation<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>administrative<font style="letter-spacing:-0.2pt;"> </font>action,<font style="letter-spacing:-0.2pt;"> </font>either<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>U.S.<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>abroad.<font style="letter-spacing:-0.2pt;"> </font>For<font style="letter-spacing:-0.2pt;"> </font>example,<font style="letter-spacing:-0.2pt;"> </font>certain<font style="letter-spacing:-0.2pt;"> </font>policies<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>Trump administration<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>impact<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>business<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>industry.<font style="letter-spacing:-0.2pt;"> </font>Namely,<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>Trump<font style="letter-spacing:-0.2pt;"> </font>administration<font style="letter-spacing:-0.2pt;"> </font>has<font style="letter-spacing:-0.2pt;"> </font>taken<font style="letter-spacing:-0.2pt;"> </font>several executive<font style="letter-spacing:-0.2pt;"> </font>actions,<font style="letter-spacing:-0.2pt;"> </font>including<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>issuance<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>several<font style="letter-spacing:-0.2pt;"> </font>Executive<font style="letter-spacing:-0.2pt;"> </font>Orders,<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>could<font style="letter-spacing:-0.2pt;"> </font>impose<font style="letter-spacing:-0.2pt;"> </font>significant<font style="letter-spacing:-0.2pt;"> </font>burdens on,<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>otherwise<font style="letter-spacing:-0.2pt;"> </font>materially<font style="letter-spacing:-0.2pt;"> </font>delay,<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>FDA&#8217;s<font style="letter-spacing:-0.2pt;"> </font>ability<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>engage<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>routine<font style="letter-spacing:-0.2pt;"> </font>regulatory<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>oversight<font style="letter-spacing:-0.2pt;"> </font>activities<font style="letter-spacing:-0.2pt;"> </font>such<font style="letter-spacing:-0.2pt;"> </font>as implementing<font style="letter-spacing:-0.2pt;"> </font>statutes<font style="letter-spacing:-0.2pt;"> </font>through<font style="letter-spacing:-0.2pt;"> </font>rulemaking,<font style="letter-spacing:-0.2pt;"> </font>issuance<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>guidance,<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>review<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>approval<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>marketing applications.<font style="letter-spacing:-0.2pt;"> </font>Notably,<font style="letter-spacing:-0.2pt;"> </font>on<font style="letter-spacing:-0.2pt;"> </font>January<font style="letter-spacing:-0.2pt;"> </font>30,<font style="letter-spacing:-0.2pt;"> </font>2017,<font style="letter-spacing:-0.2pt;"> </font>President<font style="letter-spacing:-0.2pt;"> </font>Trump<font style="letter-spacing:-0.2pt;"> </font>issued<font style="letter-spacing:-0.2pt;"> </font>an<font style="letter-spacing:-0.2pt;"> </font>Executive<font style="letter-spacing:-0.2pt;"> </font>Order,<font style="letter-spacing:-0.2pt;"> </font>applicable<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>all<font style="letter-spacing:-0.2pt;"> </font>executive agencies<font style="letter-spacing:-0.2pt;"> </font>including<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>FDA,<font style="letter-spacing:-0.2pt;"> </font>requiring<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>for<font style="letter-spacing:-0.2pt;"> </font>each<font style="letter-spacing:-0.2pt;"> </font>notice<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>proposed<font style="letter-spacing:-0.2pt;"> </font>rulemaking<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>final<font style="letter-spacing:-0.2pt;"> </font>regulation<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>issued<font style="letter-spacing:-0.2pt;"> </font>in fiscal<font style="letter-spacing:-0.2pt;"> </font>year<font style="letter-spacing:-0.2pt;"> </font>2017,<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>agency<font style="letter-spacing:-0.2pt;"> </font>must<font style="letter-spacing:-0.2pt;"> </font>identify<font style="letter-spacing:-0.2pt;"> </font>at<font style="letter-spacing:-0.2pt;"> </font>least<font style="letter-spacing:-0.2pt;"> </font>two<font style="letter-spacing:-0.2pt;"> </font>existing<font style="letter-spacing:-0.2pt;"> </font>regulations<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>repealed,<font style="letter-spacing:-0.2pt;"> </font>unless<font style="letter-spacing:-0.2pt;"> </font>prohibited<font style="letter-spacing:-0.2pt;"> </font>by<font style="letter-spacing:-0.2pt;"> </font>law. These<font style="letter-spacing:-0.2pt;"> </font>requirements<font style="letter-spacing:-0.2pt;"> </font>are<font style="letter-spacing:-0.2pt;"> </font>referred<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>&#8220;two-for-one&#8221;<font style="letter-spacing:-0.2pt;"> </font>provisions.<font style="letter-spacing:-0.2pt;"> </font>This<font style="letter-spacing:-0.2pt;"> </font>Executive<font style="letter-spacing:-0.2pt;"> </font>Order<font style="letter-spacing:-0.2pt;"> </font>includes<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>budget neutrality<font style="letter-spacing:-0.2pt;"> </font>provision<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>requires<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>total<font style="letter-spacing:-0.2pt;"> </font>incremental<font style="letter-spacing:-0.2pt;"> </font>cost<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>all<font style="letter-spacing:-0.2pt;"> </font>new<font style="letter-spacing:-0.2pt;"> </font>regulations<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>2017<font style="letter-spacing:-0.2pt;"> </font>fiscal<font style="letter-spacing:-0.2pt;"> </font>year,<font style="letter-spacing:-0.2pt;"> </font>including repealed<font style="letter-spacing:-0.2pt;"> </font>regulations,<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>no<font style="letter-spacing:-0.2pt;"> </font>greater<font style="letter-spacing:-0.2pt;"> </font>than<font style="letter-spacing:-0.2pt;"> </font>zero,<font style="letter-spacing:-0.2pt;"> </font>except<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>limited<font style="letter-spacing:-0.2pt;"> </font>circumstances.<font style="letter-spacing:-0.2pt;"> </font>For<font style="letter-spacing:-0.2pt;"> </font>fiscal<font style="letter-spacing:-0.2pt;"> </font>years<font style="letter-spacing:-0.2pt;"> </font>2018<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>beyond, the<font style="letter-spacing:-0.2pt;"> </font>Executive<font style="letter-spacing:-0.2pt;"> </font>Order<font style="letter-spacing:-0.2pt;"> </font>requires<font style="letter-spacing:-0.2pt;"> </font>agencies<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>identify<font style="letter-spacing:-0.2pt;"> </font>regulations<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>offset<font style="letter-spacing:-0.2pt;"> </font>any<font style="letter-spacing:-0.2pt;"> </font>incremental<font style="letter-spacing:-0.2pt;"> </font>cost<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>new<font style="letter-spacing:-0.2pt;"> </font>regulation<font style="letter-spacing:-0.2pt;"> </font>and approximate<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>total<font style="letter-spacing:-0.2pt;"> </font>costs<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>savings<font style="letter-spacing:-0.2pt;"> </font>associated<font style="letter-spacing:-0.2pt;"> </font>with<font style="letter-spacing:-0.2pt;"> </font>each<font style="letter-spacing:-0.2pt;"> </font>new<font style="letter-spacing:-0.2pt;"> </font>regulation<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>repealed<font style="letter-spacing:-0.2pt;"> </font>regulation.<font style="letter-spacing:-0.2pt;"> </font>In<font style="letter-spacing:-0.2pt;"> </font>interim guidance<font style="letter-spacing:-0.2pt;"> </font>issued<font style="letter-spacing:-0.2pt;"> </font>by<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>Office<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>Information<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>Regulatory<font style="letter-spacing:-0.2pt;"> </font>Affairs<font style="letter-spacing:-0.2pt;"> </font>within<font style="letter-spacing:-0.2pt;"> </font>OMB<font style="letter-spacing:-0.2pt;"> </font>on<font style="letter-spacing:-0.2pt;"> </font>February<font style="letter-spacing:-0.2pt;"> </font>2,<font style="letter-spacing:-0.2pt;"> </font>2017,<font style="letter-spacing:-0.2pt;"> </font>the administration<font style="letter-spacing:-0.2pt;"> </font>indicates<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>&#8220;two-for-one&#8221;<font style="letter-spacing:-0.2pt;"> </font>provisions<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>apply<font style="letter-spacing:-0.2pt;"> </font>not<font style="letter-spacing:-0.2pt;"> </font>only<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>agency<font style="letter-spacing:-0.2pt;"> </font>regulations,<font style="letter-spacing:-0.2pt;"> </font>but<font style="letter-spacing:-0.2pt;"> </font>also<font style="letter-spacing:-0.2pt;"> </font>to significant<font style="letter-spacing:-0.2pt;"> </font>agency<font style="letter-spacing:-0.2pt;"> </font>guidance<font style="letter-spacing:-0.2pt;"> </font>documents.<font style="letter-spacing:-0.2pt;"> </font>In<font style="letter-spacing:-0.2pt;"> </font>addition,<font style="letter-spacing:-0.2pt;"> </font>on<font style="letter-spacing:-0.2pt;"> </font>February<font style="letter-spacing:-0.2pt;"> </font>24,<font style="letter-spacing:-0.2pt;"> </font>2017,<font style="letter-spacing:-0.2pt;"> </font>President<font style="letter-spacing:-0.2pt;"> </font>Trump<font style="letter-spacing:-0.2pt;"> </font>issued<font style="letter-spacing:-0.2pt;"> </font>an<font style="letter-spacing:-0.2pt;"> </font>executive order<font style="letter-spacing:-0.2pt;"> </font>directing<font style="letter-spacing:-0.2pt;"> </font>each<font style="letter-spacing:-0.2pt;"> </font>affected<font style="letter-spacing:-0.2pt;"> </font>agency<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>designate<font style="letter-spacing:-0.2pt;"> </font>an<font style="letter-spacing:-0.2pt;"> </font>agency<font style="letter-spacing:-0.2pt;"> </font>official<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>a<font style="letter-spacing:-0.2pt;"> </font>&#8220;Regulatory<font style="letter-spacing:-0.2pt;"> </font>Reform<font style="letter-spacing:-0.2pt;"> </font>Officer&#8221;<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>establish a<font style="letter-spacing:-0.2pt;"> </font>&#8220;Regulatory<font style="letter-spacing:-0.2pt;"> </font>Reform<font style="letter-spacing:-0.2pt;"> </font>Task<font style="letter-spacing:-0.2pt;"> </font>Force&#8221;<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>implement<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>two-for-one<font style="letter-spacing:-0.2pt;"> </font>provisions<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>other<font style="letter-spacing:-0.2pt;"> </font>previously<font style="letter-spacing:-0.2pt;"> </font>issued<font style="letter-spacing:-0.2pt;"> </font>executive orders<font style="letter-spacing:-0.2pt;"> </font>relating<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>review<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>federal<font style="letter-spacing:-0.2pt;"> </font>regulations,<font style="letter-spacing:-0.2pt;"> </font>however<font style="letter-spacing:-0.2pt;"> </font>it<font style="letter-spacing:-0.2pt;"> </font>is<font style="letter-spacing:-0.2pt;"> </font>difficult<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>predict<font style="letter-spacing:-0.2pt;"> </font>how<font style="letter-spacing:-0.2pt;"> </font>these<font style="letter-spacing:-0.2pt;"> </font>requirements<font style="letter-spacing:-0.2pt;"> </font>will<font style="letter-spacing:-0.2pt;"> </font>be implemented,<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>extent<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>which<font style="letter-spacing:-0.2pt;"> </font>they<font style="letter-spacing:-0.2pt;"> </font>will<font style="letter-spacing:-0.2pt;"> </font>impact<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>FDA&#8217;s<font style="letter-spacing:-0.2pt;"> </font>ability<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>exercise<font style="letter-spacing:-0.2pt;"> </font>its<font style="letter-spacing:-0.2pt;"> </font>regulatory<font style="letter-spacing:-0.2pt;"> </font>authority.<font style="letter-spacing:-0.2pt;"> </font>If<font style="letter-spacing:-0.2pt;"> </font>these executive<font style="letter-spacing:-0.2pt;"> </font>actions<font style="letter-spacing:-0.2pt;"> </font>impose<font style="letter-spacing:-0.2pt;"> </font>constraints<font style="letter-spacing:-0.2pt;"> </font>on<font style="letter-spacing:-0.2pt;"> </font>FDA&#8217;s<font style="letter-spacing:-0.2pt;"> </font>ability<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>engage<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>oversight<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>implementation<font style="letter-spacing:-0.2pt;"> </font>activities<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the normal<font style="letter-spacing:-0.2pt;"> </font>course,<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>business<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>negatively<font style="letter-spacing:-0.2pt;"> </font>impacted.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Even after<font style="letter-spacing:0.1pt;"> </font>we have obtained<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>proper<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>a product,<font style="letter-spacing:0.05pt;"> </font>we have ongoing responsibilities<font style="letter-spacing:0.2pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>regulations.<font style="letter-spacing:0.1pt;"> </font>The failure<font style="letter-spacing:0.1pt;"> </font>to comply<font style="letter-spacing:0.05pt;"> </font>with applicable<font style="letter-spacing:0.1pt;"> </font>regulations<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>jeopardize<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to sell<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>and result<font style="letter-spacing:0.1pt;"> </font>in enforcement<font style="letter-spacing:0.1pt;"> </font>actions<font style="letter-spacing:0.05pt;"> </font>such as:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">warning</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">letters;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">fines;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">injunctions;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">civil</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">penalties;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">termination</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of distribution;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">recalls</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or seizures</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of products;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">delays</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">introduction</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">into</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">market;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><a name="_AEIOULastRenderedPageBreakAEIOU49"></a><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#231F20;font-family:Times New Roman;">total</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or partial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">suspension</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of production;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">refusal</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to grant</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">future</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearances</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or approvals;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">withdrawals</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or suspensions</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of current</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearances</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or approvals,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">resulting</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in prohibitions</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on sales</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our product</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or products;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">in the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">most</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">serious</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">cases,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">criminal</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">penalties.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any of these<font style="letter-spacing:0.05pt;"> </font>sanctions<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in higher<font style="letter-spacing:0.05pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>anticipated<font style="letter-spacing:0.1pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>or lower<font style="letter-spacing:0.05pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>anticipated<font style="letter-spacing:0.1pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>and harm<font style="letter-spacing:0.05pt;"> </font>our reputation,<font style="letter-spacing:0.1pt;"> </font>business,<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>condition<font style="letter-spacing:0.05pt;"> </font>and results<font style="letter-spacing:0.1pt;"> </font>of operations.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We are subject<font style="letter-spacing:0.05pt;"> </font>to extensive<font style="letter-spacing:0.1pt;"> </font>governmental<font style="letter-spacing:0.1pt;"> </font>regulation<font style="letter-spacing:0.05pt;"> </font>in foreign<font style="letter-spacing:0.05pt;"> </font>jurisdictions,<font style="letter-spacing:0.1pt;"> </font>such as Europe, and our failure to comply<font style="letter-spacing:0.05pt;"> </font>with applicable<font style="letter-spacing:0.1pt;"> </font>requirements<font style="letter-spacing:0.1pt;"> </font>could cause our business<font style="letter-spacing:0.05pt;"> </font>to suffer.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We must<font style="letter-spacing:0.05pt;"> </font>maintain<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>approval<font style="letter-spacing:0.05pt;"> </font>in foreign<font style="letter-spacing:0.05pt;"> </font>jurisdictions<font style="letter-spacing:0.15pt;"> </font>in which we plan<font style="letter-spacing:0.05pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>and sell<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In the<font style="letter-spacing:0.05pt;"> </font>European<font style="letter-spacing:0.05pt;"> </font>Economic<font style="letter-spacing:0.05pt;"> </font>Area or EEA,<font style="letter-spacing:-0.05pt;"> </font>manufacturers<font style="letter-spacing:0.15pt;"> </font>of medical<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>need to comply<font style="letter-spacing:0.05pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>Essential Requirements<font style="letter-spacing:0.1pt;"> </font>laid<font style="letter-spacing:0.05pt;"> </font>down in Annex II<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>EU<font style="letter-spacing:-0.05pt;"> </font>Medical<font style="letter-spacing:0.1pt;"> </font>Devices<font style="letter-spacing:0.05pt;"> </font>Directive<font style="letter-spacing:0.1pt;"> </font>(Council<font style="letter-spacing:0.05pt;"> </font>Directive<font style="letter-spacing:0.1pt;"> </font>93/42/EEC). Compliance<font style="letter-spacing:0.05pt;"> </font>with these<font style="letter-spacing:0.05pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>a prerequisite<font style="letter-spacing:0.15pt;"> </font>to be able<font style="letter-spacing:0.05pt;"> </font>to affix<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>CE<font style="letter-spacing:-0.05pt;"> </font>mark<font style="letter-spacing:0.05pt;"> </font>to medical<font style="letter-spacing:0.1pt;"> </font>devices,<font style="letter-spacing:0.05pt;"> </font>without which they<font style="letter-spacing:0.05pt;"> </font>cannot<font style="letter-spacing:0.05pt;"> </font>be marketed<font style="letter-spacing:0.1pt;"> </font>or sold<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>EEA.<font style="letter-spacing:-0.05pt;"> </font>To demonstrate<font style="letter-spacing:0.1pt;"> </font>compliance<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>Essential<font style="letter-spacing:0.1pt;"> </font>Requirements and obtain<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>right<font style="letter-spacing:0.05pt;"> </font>to affix<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>CE<font style="letter-spacing:-0.05pt;"> </font>Mark,<font style="letter-spacing:0.05pt;"> </font>manufacturers<font style="letter-spacing:0.15pt;"> </font>of medical<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>undergo<font style="letter-spacing:0.05pt;"> </font>a conformity assessment<font style="letter-spacing:0.1pt;"> </font>procedure,<font style="letter-spacing:0.05pt;"> </font>which varies<font style="letter-spacing:0.05pt;"> </font>according<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>type<font style="letter-spacing:0.05pt;"> </font>of medical<font style="letter-spacing:0.1pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>and its<font style="letter-spacing:0.05pt;"> </font>classification.<font style="letter-spacing:0.2pt;"> </font>Except<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>low risk<font style="letter-spacing:0.05pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>(Class<font style="letter-spacing:0.05pt;"> </font>I with no measuring<font style="letter-spacing:0.1pt;"> </font>function<font style="letter-spacing:0.05pt;"> </font>and which are<font style="letter-spacing:0.05pt;"> </font>not sterile),<font style="letter-spacing:0.15pt;"> </font>where the<font style="letter-spacing:0.05pt;"> </font>manufacturer<font style="letter-spacing:0.15pt;"> </font>can issue<font style="letter-spacing:0.05pt;"> </font>an EC<font style="letter-spacing:-0.05pt;"> </font>Declaration<font style="letter-spacing:0.1pt;"> </font>of Conformity<font style="letter-spacing:0.1pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>on a self-assessment<font style="letter-spacing:0.2pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>conformity<font style="letter-spacing:0.1pt;"> </font>of its<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>with the Essential<font style="letter-spacing:0.1pt;"> </font>Requirements,<font style="letter-spacing:0.1pt;"> </font>a conformity<font style="letter-spacing:0.1pt;"> </font>assessment<font style="letter-spacing:0.1pt;"> </font>procedure<font style="letter-spacing:0.05pt;"> </font>requires<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>intervention<font style="letter-spacing:0.1pt;"> </font>of a Notified<font style="letter-spacing:0.05pt;"> </font>Body, which is<font style="letter-spacing:0.05pt;"> </font>an organization<font style="letter-spacing:0.1pt;"> </font>designated<font style="letter-spacing:0.1pt;"> </font>by a competent<font style="letter-spacing:0.1pt;"> </font>authority<font style="letter-spacing:0.1pt;"> </font>of an EEA<font style="letter-spacing:-0.05pt;"> </font>country<font style="letter-spacing:0.05pt;"> </font>to conduct<font style="letter-spacing:0.05pt;"> </font>conformity<font style="letter-spacing:0.1pt;"> </font>assessments. Depending on the<font style="letter-spacing:0.05pt;"> </font>relevant<font style="letter-spacing:0.1pt;"> </font>conformity<font style="letter-spacing:0.1pt;"> </font>assessment<font style="letter-spacing:0.1pt;"> </font>procedure,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>Notified<font style="letter-spacing:0.05pt;"> </font>Body would audit<font style="letter-spacing:0.05pt;"> </font>and examine<font style="letter-spacing:0.05pt;"> </font>the Technical<font style="letter-spacing:0.05pt;"> </font>File<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>quality<font style="letter-spacing:0.05pt;"> </font>system<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>manufacture,<font style="letter-spacing:0.1pt;"> </font>design<font style="letter-spacing:0.05pt;"> </font>and final<font style="letter-spacing:0.05pt;"> </font>inspection<font style="letter-spacing:0.1pt;"> </font>of our devices.<font style="letter-spacing:0.05pt;"> </font>The Notified<font style="letter-spacing:0.05pt;"> </font>Body issues<font style="letter-spacing:0.05pt;"> </font>a CE<font style="letter-spacing:-0.05pt;"> </font>Certificate<font style="letter-spacing:0.15pt;"> </font>of Conformity<font style="letter-spacing:0.1pt;"> </font>following<font style="letter-spacing:0.05pt;"> </font>successful<font style="letter-spacing:0.1pt;"> </font>completion<font style="letter-spacing:0.1pt;"> </font>of a conformity<font style="letter-spacing:0.1pt;"> </font>assessment procedure<font style="letter-spacing:0.05pt;"> </font>conducted<font style="letter-spacing:0.05pt;"> </font>in relation<font style="letter-spacing:0.1pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>and its<font style="letter-spacing:0.05pt;"> </font>manufacturer<font style="letter-spacing:0.15pt;"> </font>and their<font style="letter-spacing:0.05pt;"> </font>conformity<font style="letter-spacing:0.1pt;"> </font>with the Essential<font style="letter-spacing:0.1pt;"> </font>Requirements.<font style="letter-spacing:0.1pt;"> </font>This Certificate<font style="letter-spacing:0.15pt;"> </font>entitles<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>manufacturer<font style="letter-spacing:0.15pt;"> </font>to affix<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>CE<font style="letter-spacing:-0.05pt;"> </font>mark<font style="letter-spacing:0.05pt;"> </font>to its<font style="letter-spacing:0.05pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>devices after<font style="letter-spacing:0.1pt;"> </font>having<font style="letter-spacing:0.05pt;"> </font>prepared<font style="letter-spacing:0.05pt;"> </font>and signed<font style="letter-spacing:0.05pt;"> </font>a related<font style="letter-spacing:0.1pt;"> </font>EC<font style="letter-spacing:-0.05pt;"> </font>Declaration<font style="letter-spacing:0.1pt;"> </font>of Conformity.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As a rule,<font style="letter-spacing:0.05pt;"> </font>demonstration<font style="letter-spacing:0.15pt;"> </font>of conformity<font style="letter-spacing:0.1pt;"> </font>of medical<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>and their<font style="letter-spacing:0.05pt;"> </font>manufacturers<font style="letter-spacing:0.15pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>Essential Requirements<font style="letter-spacing:0.1pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>be based,<font style="letter-spacing:0.05pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things,<font style="letter-spacing:0.05pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>evaluation<font style="letter-spacing:0.1pt;"> </font>of clinical<font style="letter-spacing:0.1pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>supporting<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>safety<font style="letter-spacing:0.05pt;"> </font>and performance<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>during<font style="letter-spacing:0.05pt;"> </font>normal<font style="letter-spacing:0.05pt;"> </font>conditions<font style="letter-spacing:0.1pt;"> </font>of use. Specifically,<font style="letter-spacing:0.15pt;"> </font>a manufacturer<font style="letter-spacing:0.15pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>demonstrate<font style="letter-spacing:0.1pt;"> </font>that the<font style="letter-spacing:0.05pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>achieves<font style="letter-spacing:0.05pt;"> </font>its<font style="letter-spacing:0.05pt;"> </font>intended<font style="letter-spacing:0.05pt;"> </font>performance<font style="letter-spacing:0.1pt;"> </font>during<font style="letter-spacing:0.05pt;"> </font>normal<font style="letter-spacing:0.05pt;"> </font>conditions<font style="letter-spacing:0.1pt;"> </font>of use and that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>known and foreseeable risks,<font style="letter-spacing:0.05pt;"> </font>and any adverse<font style="letter-spacing:0.05pt;"> </font>events,<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>minimized<font style="letter-spacing:0.1pt;"> </font>and acceptable<font style="letter-spacing:0.1pt;"> </font>when weighed against<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>benefits<font style="letter-spacing:0.1pt;"> </font>of its<font style="letter-spacing:0.05pt;"> </font>intended performance,<font style="letter-spacing:0.1pt;"> </font>and that<font style="letter-spacing:0.05pt;"> </font>any claims<font style="letter-spacing:0.1pt;"> </font>made<font style="letter-spacing:0.05pt;"> </font>about<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>performance<font style="letter-spacing:0.1pt;"> </font>and safety<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>(e.g.,<font style="letter-spacing:0.05pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>labeling<font style="letter-spacing:0.1pt;"> </font>and instructions<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>use)<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>supported<font style="letter-spacing:0.05pt;"> </font>by suitable<font style="letter-spacing:0.1pt;"> </font>evidence.<font style="letter-spacing:0.05pt;"> </font>This assessment<font style="letter-spacing:0.1pt;"> </font>must<font style="letter-spacing:0.05pt;"> </font>be based<font style="letter-spacing:0.05pt;"> </font>on clinical<font style="letter-spacing:0.1pt;"> </font>data,<font style="letter-spacing:0.05pt;"> </font>which can be obtained<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>(1)<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>studies<font style="letter-spacing:0.05pt;"> </font>conducted<font style="letter-spacing:0.05pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>being<font style="letter-spacing:0.05pt;"> </font>assessed,<font style="letter-spacing:0.05pt;"> </font>(2)<font style="letter-spacing:0.05pt;"> </font>scientific<font style="letter-spacing:0.15pt;"> </font>literature<font style="letter-spacing:0.15pt;"> </font>from similar<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>whose equivalence<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>assessed<font style="letter-spacing:0.05pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>can be demonstrated<font style="letter-spacing:0.1pt;"> </font>or (3)<font style="letter-spacing:0.05pt;"> </font>both clinical<font style="letter-spacing:0.1pt;"> </font>studies<font style="letter-spacing:0.05pt;"> </font>and scientific<font style="letter-spacing:0.15pt;"> </font>literature.<font style="letter-spacing:0.15pt;"> </font>With<font style="letter-spacing:0.05pt;"> </font>respect<font style="letter-spacing:0.1pt;"> </font>to active<font style="letter-spacing:0.05pt;"> </font>implantable<font style="letter-spacing:0.15pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>or Class<font style="letter-spacing:0.05pt;"> </font>III<font style="letter-spacing:0.05pt;"> </font>devices,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>manufacturer must<font style="letter-spacing:0.05pt;"> </font>conduct<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>studies<font style="letter-spacing:0.05pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>data,<font style="letter-spacing:0.05pt;"> </font>unless<font style="letter-spacing:0.05pt;"> </font>reliance<font style="letter-spacing:0.1pt;"> </font>on existing<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>from equivalent<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>can be justified.<font style="letter-spacing:0.1pt;"> </font>The conduct<font style="letter-spacing:0.05pt;"> </font>of clinical<font style="letter-spacing:0.1pt;"> </font>studies<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>EEA<font style="letter-spacing:-0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>governed<font style="letter-spacing:0.05pt;"> </font>by detailed<font style="letter-spacing:0.1pt;"> </font>regulatory obligations.<font style="letter-spacing:0.1pt;"> </font>These may<font style="letter-spacing:0.05pt;"> </font>include<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>requirement<font style="letter-spacing:0.15pt;"> </font>of prior<font style="letter-spacing:0.05pt;"> </font>authorization<font style="letter-spacing:0.15pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>competent<font style="letter-spacing:0.1pt;"> </font>authorities<font style="letter-spacing:0.15pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>country in which the<font style="letter-spacing:0.05pt;"> </font>study<font style="letter-spacing:0.05pt;"> </font>takes<font style="letter-spacing:0.05pt;"> </font>place<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>requirement<font style="letter-spacing:0.15pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>a positive<font style="letter-spacing:0.1pt;"> </font>opinion<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>a competent<font style="letter-spacing:0.1pt;"> </font>Ethics Committee.<font style="letter-spacing:0.1pt;"> </font>This process<font style="letter-spacing:0.05pt;"> </font>can be expensive<font style="letter-spacing:0.05pt;"> </font>and time-consuming.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On April<font style="letter-spacing:0.05pt;"> </font>5, 2017, the<font style="letter-spacing:0.05pt;"> </font>European<font style="letter-spacing:0.05pt;"> </font>Parliament<font style="letter-spacing:0.1pt;"> </font>passed<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>Medical<font style="letter-spacing:0.1pt;"> </font>Devices<font style="letter-spacing:0.05pt;"> </font>Regulation,<font style="letter-spacing:0.05pt;"> </font>which repeals<font style="letter-spacing:0.1pt;"> </font>and replaces the<font style="letter-spacing:0.05pt;"> </font>EU<font style="letter-spacing:-0.05pt;"> </font>Medical<font style="letter-spacing:0.1pt;"> </font>Devices<font style="letter-spacing:0.05pt;"> </font>Directive.<font style="letter-spacing:0.1pt;"> </font>Unlike<font style="letter-spacing:0.05pt;"> </font>directives,<font style="letter-spacing:0.1pt;"> </font>which must<font style="letter-spacing:0.05pt;"> </font>be implemented<font style="letter-spacing:0.15pt;"> </font>into<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>national<font style="letter-spacing:0.1pt;"> </font>laws of the EEA<font style="letter-spacing:-0.05pt;"> </font>member<font style="letter-spacing:0.1pt;"> </font>States,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>regulations<font style="letter-spacing:0.1pt;"> </font>would be directly<font style="letter-spacing:0.1pt;"> </font>applicable,<font style="letter-spacing:0.1pt;"> </font>i.e.,<font style="letter-spacing:0.05pt;"> </font>without<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>need for<font style="letter-spacing:0.05pt;"> </font>adoption<font style="letter-spacing:0.05pt;"> </font>of EEA member<font style="letter-spacing:0.1pt;"> </font>State<font style="letter-spacing:0.05pt;"> </font>laws implementing<font style="letter-spacing:0.15pt;"> </font>them,<font style="letter-spacing:0.05pt;"> </font>in all<font style="letter-spacing:0.05pt;"> </font>EEA<font style="letter-spacing:-0.05pt;"> </font>member<font style="letter-spacing:0.1pt;"> </font>States<font style="letter-spacing:0.05pt;"> </font>and are<font style="letter-spacing:0.05pt;"> </font>intended<font style="letter-spacing:0.05pt;"> </font>to eliminate<font style="letter-spacing:0.15pt;"> </font>current differences<font style="letter-spacing:0.15pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>regulation<font style="letter-spacing:0.1pt;"> </font>of medical<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>EEA<font style="letter-spacing:-0.05pt;"> </font>member<font style="letter-spacing:0.1pt;"> </font>States.<font style="letter-spacing:0.05pt;"> </font>The Medical<font style="letter-spacing:0.1pt;"> </font>Devices<font style="letter-spacing:0.05pt;"> </font>Regulation, among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things,<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>intended<font style="letter-spacing:0.05pt;"> </font>to establish<font style="letter-spacing:0.1pt;"> </font>a uniform,<font style="letter-spacing:0.1pt;"> </font>transparent,<font style="letter-spacing:0.1pt;"> </font>predictable<font style="letter-spacing:0.1pt;"> </font>and sustainable<font style="letter-spacing:0.1pt;"> </font>regulatory framework<font style="letter-spacing:0.1pt;"> </font>across<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>EEA<font style="letter-spacing:-0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>and in vitro<font style="letter-spacing:0.05pt;"> </font>diagnostic<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>and ensure<font style="letter-spacing:0.05pt;"> </font>a high level<font style="letter-spacing:0.05pt;"> </font>of safety and health<font style="letter-spacing:0.05pt;"> </font>while<font style="letter-spacing:0.05pt;"> </font>supporting<font style="letter-spacing:0.05pt;"> </font>innovation.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Medical<font style="letter-spacing:0.1pt;"> </font>Devices<font style="letter-spacing:0.05pt;"> </font>Regulation<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>however only become<font style="letter-spacing:0.05pt;"> </font>applicable<font style="letter-spacing:0.1pt;"> </font>three<font style="letter-spacing:0.05pt;"> </font>years<font style="letter-spacing:0.05pt;"> </font>after<font style="letter-spacing:0.1pt;"> </font>publication.<font style="letter-spacing:0.1pt;"> </font>Once applicable,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>new regulations<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">strengthen</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rules</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on placing</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">devices</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">market</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and reinforce</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">surveillance</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">once they</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">are available;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">establish</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">explicit</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">provisions</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on manufacturers&#8217;</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">responsibilities</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">follow-up</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">quality, performance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and safety</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of devices</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">placed</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">market;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><a name="_AEIOULastRenderedPageBreakAEIOU50"></a><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#231F20;font-family:Times New Roman;">improve</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">traceability</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of medical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">devices</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">throughout</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">supply</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">chain</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">end-user</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or patient through</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a unique</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">identification</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">number;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">set</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">up a central</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">database</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to provide</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">patients,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">healthcare</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">professionals</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">public</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with comprehensive</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">information</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on products</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">available</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">EU; and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">strengthen</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rules</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">assessment</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of certain</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">high-risk</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">devices,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such as implants,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">have to undergo</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">an additional</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">check</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by experts</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">before</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">they</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">are</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">placed</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">market.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">These modifications<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>have an impact<font style="letter-spacing:0.1pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>way we conduct<font style="letter-spacing:0.05pt;"> </font>our business<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>EEA.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_cp_text_1_7"></a><a name="_cp_text_1_8"></a>We are subject to governmental regulation and other legal obligations, particularly related to privacy, data protection and information security. Our actual or perceived failure to comply with such obligations could harm our business. </p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_1_9"></a><a name="_cp_text_1_12"></a>We are subject to diverse laws and regulations relating to data privacy and security, including, in the United States, the federal Heal<a name="_cp_text_1_9"></a>th Insurance Portability and Accountability Act of 1996, or HIPAA, and, in the European Union (EU) and shortly in the European Economic Area (EEA), Regulation 2016/679, known as the General Data Protection Regulation, or GDPR. New global privacy rules are being enacted and existing ones are being updated and strengthened<a name="_cp_text_1_12"></a>. Complying with these numerous, complex and often changing regulations is expensive and difficult, and failure to comply with any privacy laws or data security laws or any security incident or breach involving the misappropriation, loss or other unauthorized use or disclosure of sensitive or confidential patient or consumer information, whether by us, one of our business associates or another third-party, could have a material adverse effect on our business, reputation, financial condition and results of operations, including but not limited to: material fines and penalties; damages; litigation; consent orders; and injunctive relief. </p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_1_24"></a><a name="_cp_text_1_28"></a><a name="_cp_text_1_30"></a><a name="_cp_text_1_32"></a><a name="_cp_text_1_33"></a><a name="_cp_text_1_35"></a><a name="_cp_text_1_37"></a><a name="_cp_text_1_39"></a><a name="_cp_text_1_41"></a>Furthermore, these rules are constantly changing; for exam<a name="_cp_text_1_24"></a>ple, the GDPR came into effect in May this year reforming the European regime. The GDPR implements more stringent operational requirements than its predecessor legislation. For example, the GDPR requires us to make more detailed disclosures to data subjects, requires disclosure of the legal basis on which we can process personal data, makes it harder for us to obtain valid consent for processing, provides more robust rights for data subjects, introduces mandatory data breach notification through the EU, imp<a name="_cp_text_1_28"></a>oses additional obligations on <a name="_cp_text_1_30"></a>us when contracting <a name="_cp_text_1_32"></a>with service providers and requires us to adopt appropriate privacy governance including policies, procedures, training<a name="_cp_text_1_33"></a> and data audit<a name="_cp_text_1_35"></a>. If we do not comply with our obligations under the GDPR, we could be <a name="_cp_text_1_37"></a>exposed to fines of up to the higher of <a name="_cp_text_1_39"></a>20,000,000 Euros or up to 4% of our <a name="_cp_text_1_41"></a>total worldwide annual turnover in the event of a significant breach. In addition, we may be the subject of litigation and/or adverse publicity, which could have material adverse effect on our reputation and business.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_cp_text_1_197"></a><a name="_cp_text_1_199"></a><a name="_cp_text_1_201"></a><a name="_cp_text_1_203"></a><a name="_cp_text_1_204"></a><a name="_cp_text_1_209"></a><a name="_cp_text_1_211"></a><a name="_cp_text_1_213"></a><a name="_cp_text_1_215"></a>We are also subject to evolving European laws on data export and electronic marketing. The rules on data export will apply when we transfer personal data to group companies or third parties outside of the EEA. For example, in 2015, the <a name="_cp_text_1_199"></a>Court of Justice of the EU <a name="_cp_text_1_201"></a>ruled that the U.S.-EU <a name="_cp_text_1_203"></a>Safe Harbor framework, one compliance method by which companies could transfer personal data regarding citizens of the EU <a name="_cp_text_1_204"></a>to the United States, was invalid and could no longer be relied up<a name="_cp_text_1_209"></a>on. The U.S.-EU Safe Harbor framework was replaced with the U.S.-EU Privacy Shield framework, which is now under review and there is currently litigation challenging another EU mechanism for adequate data transfers, the standard contractual clauses. It is uncertain whether the Privacy Shield framework and/or the standard contractual clauses will be similarly invalidated by the European courts<a name="_cp_text_1_211"></a>. These changes may require us <a name="_cp_text_1_213"></a>to find alternative bases for the compliant transfer of personal data from the EEA to <a name="_cp_text_1_215"></a>the U.S and we are monitoring developments in this area. The EU is also in the process of replacing the e-Privacy Directive with a new set of rules taking the form of a regulation, which will be directly implemented in the laws of each European member state, without the need for further enactment. The current draft of the e-Privacy Regulation retains strict op-in for electronic marketing and the penalties for contravention have significantly increased with fining powers to the same levels as GDPR (i.e. the greater of 20,000,000 Euros or 4% of total global annual revenue).</p>
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<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU51"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Modifications</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">to the ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">and any future</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">products</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">receive</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">510(k)</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">clearances</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">require</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">new 510(k)</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">clearances</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or PMA approvals,</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">and if</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">we make</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">such modifications</font><font style="letter-spacing:0.15pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">without </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">seeking</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">new clearances</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or approvals,</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">the FDA</font><font style="letter-spacing:-0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">require</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">us to cease</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">marketing</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or recall</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">the modified</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">products</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">until</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">clearances</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or approvals</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">are obtained.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>has received<font style="letter-spacing:0.1pt;"> </font>510(k)<font style="letter-spacing:0.05pt;"> </font>clearances<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA.<font style="letter-spacing:-0.05pt;"> </font>Any modification<font style="letter-spacing:0.15pt;"> </font>to a 510(k)-cleared<font style="letter-spacing:0.15pt;"> </font>device that<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>significantly<font style="letter-spacing:0.15pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>its<font style="letter-spacing:0.05pt;"> </font>safety<font style="letter-spacing:0.05pt;"> </font>or effectiveness,<font style="letter-spacing:0.15pt;"> </font>or that<font style="letter-spacing:0.05pt;"> </font>would constitute<font style="letter-spacing:0.1pt;"> </font>a major<font style="letter-spacing:0.05pt;"> </font>change<font style="letter-spacing:0.05pt;"> </font>in its<font style="letter-spacing:0.05pt;"> </font>intended use, design<font style="letter-spacing:0.05pt;"> </font>or manufacture,<font style="letter-spacing:0.1pt;"> </font>requires<font style="letter-spacing:0.1pt;"> </font>a new 510(k)<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or, possibly,<font style="letter-spacing:0.05pt;"> </font>approval<font style="letter-spacing:0.05pt;"> </font>of a PMA. The FDA<font style="letter-spacing:-0.05pt;"> </font>requires every<font style="letter-spacing:0.05pt;"> </font>manufacturer<font style="letter-spacing:0.15pt;"> </font>to make<font style="letter-spacing:0.05pt;"> </font>this<font style="letter-spacing:0.05pt;"> </font>determination<font style="letter-spacing:0.15pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>first<font style="letter-spacing:0.1pt;"> </font>instance,<font style="letter-spacing:0.1pt;"> </font>but the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>review<font style="letter-spacing:0.05pt;"> </font>any manufacturer&#8217;s decision.<font style="letter-spacing:0.05pt;"> </font>The FDA<font style="letter-spacing:-0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not agree<font style="letter-spacing:0.05pt;"> </font>with our decisions<font style="letter-spacing:0.1pt;"> </font>regarding<font style="letter-spacing:0.1pt;"> </font>whether<font style="letter-spacing:0.05pt;"> </font>new clearances<font style="letter-spacing:0.1pt;"> </font>or approvals<font style="letter-spacing:0.05pt;"> </font>are necessary.<font style="letter-spacing:0.1pt;"> </font>We have made<font style="letter-spacing:0.05pt;"> </font>modifications<font style="letter-spacing:0.15pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>past<font style="letter-spacing:0.05pt;"> </font>and have determined<font style="letter-spacing:0.1pt;"> </font>based<font style="letter-spacing:0.05pt;"> </font>on our review<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>applicable<font style="letter-spacing:0.1pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>regulations<font style="letter-spacing:0.1pt;"> </font>and guidance<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>in certain<font style="letter-spacing:0.1pt;"> </font>instances<font style="letter-spacing:0.1pt;"> </font>new 510(k)<font style="letter-spacing:0.05pt;"> </font>clearances<font style="letter-spacing:0.1pt;"> </font>or PMA approvals<font style="letter-spacing:0.05pt;"> </font>were not required.<font style="letter-spacing:0.1pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>make<font style="letter-spacing:0.05pt;"> </font>similar<font style="letter-spacing:0.1pt;"> </font>modifications<font style="letter-spacing:0.15pt;"> </font>or add additional<font style="letter-spacing:0.1pt;"> </font>functionalities<font style="letter-spacing:0.2pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future that<font style="letter-spacing:0.05pt;"> </font>we believe<font style="letter-spacing:0.05pt;"> </font>do not require<font style="letter-spacing:0.1pt;"> </font>a new 510(k)<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>of a PMA. The FDA<font style="letter-spacing:-0.05pt;"> </font>has issued<font style="letter-spacing:0.05pt;"> </font>a guidance document<font style="letter-spacing:0.05pt;"> </font>intended<font style="letter-spacing:0.05pt;"> </font>to assist<font style="letter-spacing:0.1pt;"> </font>manufacturers<font style="letter-spacing:0.15pt;"> </font>in determining<font style="letter-spacing:0.1pt;"> </font>whether<font style="letter-spacing:0.05pt;"> </font>modifications<font style="letter-spacing:0.15pt;"> </font>to cleared<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>the submission<font style="letter-spacing:0.1pt;"> </font>of a new 510(k),<font style="letter-spacing:0.05pt;"> </font>and such guidance<font style="letter-spacing:0.05pt;"> </font>has come<font style="letter-spacing:0.05pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>scrutiny<font style="letter-spacing:0.1pt;"> </font>in recent<font style="letter-spacing:0.05pt;"> </font>years,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>practical<font style="letter-spacing:0.1pt;"> </font>impact<font style="letter-spacing:0.1pt;"> </font>of which is<font style="letter-spacing:0.05pt;"> </font>unclear.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>disagrees<font style="letter-spacing:0.1pt;"> </font>with our determination<font style="letter-spacing:0.15pt;"> </font>and requires<font style="letter-spacing:0.1pt;"> </font>us to submit<font style="letter-spacing:0.05pt;"> </font>new 510(k)<font style="letter-spacing:0.05pt;"> </font>notifications or PMA applications<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>modifications<font style="letter-spacing:0.15pt;"> </font>to our previously<font style="letter-spacing:0.1pt;"> </font>cleared<font style="letter-spacing:0.1pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>which we have concluded<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>new clearances<font style="letter-spacing:0.1pt;"> </font>or approvals<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>unnecessary,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be required<font style="letter-spacing:0.1pt;"> </font>to cease<font style="letter-spacing:0.05pt;"> </font>marketing<font style="letter-spacing:0.1pt;"> </font>or to recall<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>modified<font style="letter-spacing:0.1pt;"> </font>product until<font style="letter-spacing:0.05pt;"> </font>we obtain<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval,<font style="letter-spacing:0.05pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>us to redesign<font style="letter-spacing:0.05pt;"> </font>our products,<font style="letter-spacing:0.05pt;"> </font>conduct<font style="letter-spacing:0.05pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>to support<font style="letter-spacing:0.05pt;"> </font>any modifications,<font style="letter-spacing:0.15pt;"> </font>and pay significant<font style="letter-spacing:0.15pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>fines<font style="letter-spacing:0.05pt;"> </font>or penalties.<font style="letter-spacing:0.1pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not approve<font style="letter-spacing:0.05pt;"> </font>or clear<font style="letter-spacing:0.05pt;"> </font>our products<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>indications<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>necessary<font style="letter-spacing:0.1pt;"> </font>or desirable<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>successful<font style="letter-spacing:0.1pt;"> </font>commercialization or could<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>clinical<font style="letter-spacing:0.1pt;"> </font>trials<font style="letter-spacing:0.1pt;"> </font>to support<font style="letter-spacing:0.05pt;"> </font>any modifications.<font style="letter-spacing:0.15pt;"> </font>Any delay<font style="letter-spacing:0.05pt;"> </font>or failure<font style="letter-spacing:0.1pt;"> </font>in obtaining<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>clearances or approvals<font style="letter-spacing:0.05pt;"> </font>would adversely<font style="letter-spacing:0.1pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to introduce<font style="letter-spacing:0.1pt;"> </font>new or enhanced<font style="letter-spacing:0.05pt;"> </font>products<font style="letter-spacing:0.05pt;"> </font>in a timely<font style="letter-spacing:0.1pt;"> </font>manner,<font style="letter-spacing:0.05pt;"> </font>which in turn<font style="letter-spacing:0.05pt;"> </font>would harm<font style="letter-spacing:0.05pt;"> </font>our future<font style="letter-spacing:0.05pt;"> </font>growth. Any of these<font style="letter-spacing:0.05pt;"> </font>actions<font style="letter-spacing:0.05pt;"> </font>would harm<font style="letter-spacing:0.05pt;"> </font>our operating<font style="letter-spacing:0.1pt;"> </font>results.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We are subject<font style="letter-spacing:0.05pt;"> </font>to restrictions<font style="letter-spacing:0.15pt;"> </font>on the indications<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>which we are permitted<font style="letter-spacing:0.1pt;"> </font>to market<font style="letter-spacing:0.05pt;"> </font>our products,<font style="letter-spacing:0.05pt;"> </font>and any violation<font style="letter-spacing:0.1pt;"> </font>of those<font style="letter-spacing:0.05pt;"> </font>restrictions,<font style="letter-spacing:0.15pt;"> </font>or marketing<font style="letter-spacing:0.05pt;"> </font>of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>off-label<font style="letter-spacing:0.1pt;"> </font>uses, could subject<font style="letter-spacing:0.05pt;"> </font>us to regulatory<font style="letter-spacing:0.05pt;"> </font>enforcement<font style="letter-spacing:0.1pt;"> </font>action.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The FDA&#8217;s 510(k)<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>specifies<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>cleared<font style="letter-spacing:0.1pt;"> </font>indication<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>use of the<font style="letter-spacing:0.05pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>is disse<font style="letter-spacing:0.05pt;">c</font>ting<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>follicles<font style="letter-spacing:0.15pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>scalp<font style="letter-spacing:0.05pt;"> </font>in men<font style="letter-spacing:0.05pt;"> </font>diagnosed<font style="letter-spacing:0.05pt;"> </font>with AGA<font style="letter-spacing:-0.05pt;"> </font>who have black<font style="letter-spacing:0.05pt;"> </font>or brown straight<font style="letter-spacing:0.1pt;"> </font>hair.<font style="letter-spacing:0.05pt;"> </font>The ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>intended<font style="letter-spacing:0.05pt;"> </font>to assist<font style="letter-spacing:0.1pt;"> </font>physicians<font style="letter-spacing:0.1pt;"> </font>in identifying<font style="letter-spacing:0.1pt;"> </font>and extracting<font style="letter-spacing:0.1pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>follicular<font style="letter-spacing:0.15pt;"> </font>units<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>scalp during<font style="letter-spacing:0.05pt;"> </font>hair<font style="letter-spacing:0.05pt;"> </font>transplantation.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We train<font style="letter-spacing:0.05pt;"> </font>our marketing<font style="letter-spacing:0.1pt;"> </font>and direct<font style="letter-spacing:0.1pt;"> </font>sales<font style="letter-spacing:0.05pt;"> </font>force<font style="letter-spacing:0.05pt;"> </font>to not promote<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>uses<font style="letter-spacing:0.05pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>FDA- cleared<font style="letter-spacing:0.1pt;"> </font>indications<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>use, known as &#8220;off-label<font style="letter-spacing:0.15pt;"> </font>uses.&#8221;<font style="letter-spacing:0.05pt;"> </font>We cannot,<font style="letter-spacing:0.05pt;"> </font>however, prevent<font style="letter-spacing:0.05pt;"> </font>a physician<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>using<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>off-label<font style="letter-spacing:0.1pt;"> </font>when, in the<font style="letter-spacing:0.05pt;"> </font>physician&#8217;s<font style="letter-spacing:0.1pt;"> </font>independent<font style="letter-spacing:0.05pt;"> </font>professional<font style="letter-spacing:0.1pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>judgment,<font style="letter-spacing:0.05pt;"> </font>he or she deems it<font style="letter-spacing:0.05pt;"> </font>appropriate.<font style="letter-spacing:0.1pt;"> </font>There<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be increased<font style="letter-spacing:0.1pt;"> </font>risk<font style="letter-spacing:0.05pt;"> </font>of injury<font style="letter-spacing:0.05pt;"> </font>to patients<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>physicians<font style="letter-spacing:0.1pt;"> </font>attempt<font style="letter-spacing:0.1pt;"> </font>to use the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System off-label.<font style="letter-spacing:0.1pt;"> </font>Furthermore,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>use of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>indications<font style="letter-spacing:0.1pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>those<font style="letter-spacing:0.05pt;"> </font>cleared<font style="letter-spacing:0.1pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>or approved<font style="letter-spacing:0.05pt;"> </font>by any foreign<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>body may<font style="letter-spacing:0.05pt;"> </font>not effectively<font style="letter-spacing:0.15pt;"> </font>treat<font style="letter-spacing:0.1pt;"> </font>such conditions,<font style="letter-spacing:0.1pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our reputation<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>marketplace<font style="letter-spacing:0.15pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>physicians<font style="letter-spacing:0.1pt;"> </font>and patients.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>or any foreign<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>body determines<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>our promotional<font style="letter-spacing:0.1pt;"> </font>materials<font style="letter-spacing:0.15pt;"> </font>or training<font style="letter-spacing:0.1pt;"> </font>constitute promotion<font style="letter-spacing:0.1pt;"> </font>of an off-label<font style="letter-spacing:0.1pt;"> </font>use, it<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>request<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we modify<font style="letter-spacing:0.05pt;"> </font>our training<font style="letter-spacing:0.1pt;"> </font>or promotional<font style="letter-spacing:0.1pt;"> </font>materials<font style="letter-spacing:0.15pt;"> </font>or subject<font style="letter-spacing:0.05pt;"> </font>us to regulatory<font style="letter-spacing:0.1pt;"> </font>or enforcement<font style="letter-spacing:0.1pt;"> </font>actions,<font style="letter-spacing:0.05pt;"> </font>including,<font style="letter-spacing:0.05pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>issuance<font style="letter-spacing:0.05pt;"> </font>or imposition<font style="letter-spacing:0.1pt;"> </font>of an untitled letter,<font style="letter-spacing:0.1pt;"> </font>a warning<font style="letter-spacing:0.05pt;"> </font>letter,<font style="letter-spacing:0.1pt;"> </font>injunction,<font style="letter-spacing:0.1pt;"> </font>seizure,<font style="letter-spacing:0.1pt;"> </font>refusal<font style="letter-spacing:0.1pt;"> </font>to issue<font style="letter-spacing:0.05pt;"> </font>new 510(k)s<font style="letter-spacing:0.05pt;"> </font>or PMAs, withdrawal<font style="letter-spacing:0.05pt;"> </font>of existing<font style="letter-spacing:0.1pt;"> </font>510(k)s or PMAs, refusal<font style="letter-spacing:0.1pt;"> </font>to grant<font style="letter-spacing:0.05pt;"> </font>export<font style="letter-spacing:0.05pt;"> </font>approvals,<font style="letter-spacing:0.05pt;"> </font>and civil<font style="letter-spacing:0.05pt;"> </font>fines<font style="letter-spacing:0.05pt;"> </font>or criminal<font style="letter-spacing:0.1pt;"> </font>penalties.<font style="letter-spacing:0.1pt;"> </font>It<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>possible<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>other federal,<font style="letter-spacing:0.1pt;"> </font>state<font style="letter-spacing:0.05pt;"> </font>or foreign<font style="letter-spacing:0.05pt;"> </font>enforcement<font style="letter-spacing:0.1pt;"> </font>authorities<font style="letter-spacing:0.15pt;"> </font>might<font style="letter-spacing:0.05pt;"> </font>take<font style="letter-spacing:0.05pt;"> </font>action<font style="letter-spacing:0.05pt;"> </font>under<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>authority,<font style="letter-spacing:0.1pt;"> </font>such as false claims<font style="letter-spacing:0.1pt;"> </font>laws, if<font style="letter-spacing:0.05pt;"> </font>they<font style="letter-spacing:0.05pt;"> </font>consider<font style="letter-spacing:0.05pt;"> </font>our business<font style="letter-spacing:0.05pt;"> </font>activities<font style="letter-spacing:0.15pt;"> </font>to constitute<font style="letter-spacing:0.1pt;"> </font>promotion<font style="letter-spacing:0.1pt;"> </font>of an off-label<font style="letter-spacing:0.1pt;"> </font>use, which could result<font style="letter-spacing:0.1pt;"> </font>in significant<font style="letter-spacing:0.15pt;"> </font>penalties,<font style="letter-spacing:0.1pt;"> </font>including,<font style="letter-spacing:0.05pt;"> </font>but not limited<font style="letter-spacing:0.1pt;"> </font>to, criminal,<font style="letter-spacing:0.1pt;"> </font>civil<font style="letter-spacing:0.05pt;"> </font>and administrative<font style="letter-spacing:0.2pt;"> </font>penalties,<font style="letter-spacing:0.1pt;"> </font>damages, fines,<font style="letter-spacing:0.05pt;"> </font>disgorgement,<font style="letter-spacing:0.1pt;"> </font>exclusion<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>participation<font style="letter-spacing:0.15pt;"> </font>in government<font style="letter-spacing:0.1pt;"> </font>healthcare<font style="letter-spacing:0.1pt;"> </font>programs<font style="letter-spacing:0.1pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>curtailment<font style="letter-spacing:0.15pt;"> </font>of our operations.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">The ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>cause or contribute<font style="letter-spacing:0.05pt;"> </font>to adverse<font style="letter-spacing:0.05pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>events<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we are required<font style="letter-spacing:0.05pt;"> </font>to report<font style="letter-spacing:0.05pt;"> </font>to the FDA,<font style="letter-spacing:-0.05pt;"> </font>and if<font style="letter-spacing:0.05pt;"> </font>we fail<font style="letter-spacing:0.05pt;"> </font>to do so, we would be subject<font style="letter-spacing:0.05pt;"> </font>to sanctions<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>could harm our reputation,<font style="letter-spacing:0.05pt;"> </font>business, financial<font style="letter-spacing:0.05pt;"> </font>condition<font style="letter-spacing:0.05pt;"> </font>and results<font style="letter-spacing:0.05pt;"> </font>of operations.<font style="letter-spacing:0.05pt;"> </font>The discovery<font style="letter-spacing:0.1pt;"> </font>of serious<font style="letter-spacing:0.05pt;"> </font>safety<font style="letter-spacing:0.05pt;"> </font>issues<font style="letter-spacing:0.05pt;"> </font>with the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System, or a recall<font style="letter-spacing:0.05pt;"> </font>of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>either<font style="letter-spacing:0.05pt;"> </font>voluntarily<font style="letter-spacing:0.1pt;"> </font>or at the direction<font style="letter-spacing:0.1pt;"> </font>of the FDA<font style="letter-spacing:-0.05pt;"> </font>or another governmental authority,<font style="letter-spacing:0.05pt;"> </font>could have a negative<font style="letter-spacing:0.05pt;"> </font>impact<font style="letter-spacing:0.05pt;"> </font>on us.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>FDA&#8217;s medical<font style="letter-spacing:0.1pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>reporting<font style="letter-spacing:0.1pt;"> </font>regulations<font style="letter-spacing:0.1pt;"> </font>and similar<font style="letter-spacing:0.1pt;"> </font>foreign<font style="letter-spacing:0.05pt;"> </font>regulations.<font style="letter-spacing:0.1pt;"> </font>The FDA&#8217;s medical<font style="letter-spacing:0.1pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>reporting<font style="letter-spacing:0.1pt;"> </font>regulations<font style="letter-spacing:0.1pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>us to report<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>when we receive<font style="letter-spacing:0.1pt;"> </font>or become<font style="letter-spacing:0.05pt;"> </font>aware<font style="letter-spacing:0.05pt;"> </font>of information<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>reasonably<font style="letter-spacing:0.1pt;"> </font>suggests<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>have caused<font style="letter-spacing:0.05pt;"> </font>or contributed<font style="letter-spacing:0.1pt;"> </font>to a death<font style="letter-spacing:0.05pt;"> </font>or serious<font style="letter-spacing:0.05pt;"> </font>injury<font style="letter-spacing:0.05pt;"> </font>or malfunctioned<font style="letter-spacing:0.15pt;"> </font>in a way that,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>malfunction<font style="letter-spacing:0.1pt;"> </font>were to recur,<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>or contribute<font style="letter-spacing:0.1pt;"> </font>to a death<font style="letter-spacing:0.05pt;"> </font>or serious<font style="letter-spacing:0.05pt;"> </font>injury.<font style="letter-spacing:0.05pt;"> </font>The timing<font style="letter-spacing:0.1pt;"> </font>of our obligation<font style="letter-spacing:0.1pt;"> </font>to report<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>triggered<font style="letter-spacing:0.1pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>date<font style="letter-spacing:0.05pt;"> </font>we become<font style="letter-spacing:0.05pt;"> </font>aware<font style="letter-spacing:0.05pt;"> </font>of the adverse<font style="letter-spacing:0.05pt;"> </font>event<font style="letter-spacing:0.05pt;"> </font>as well<font style="letter-spacing:0.05pt;"> </font>as the<font style="letter-spacing:0.05pt;"> </font>nature<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>event.<font style="letter-spacing:0.05pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>fail<font style="letter-spacing:0.05pt;"> </font>to report<font style="letter-spacing:0.05pt;"> </font>adverse<font style="letter-spacing:0.05pt;"> </font>events<font style="letter-spacing:0.05pt;"> </font>of which we become<font style="letter-spacing:0.05pt;"> </font>aware within<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>prescribed<font style="letter-spacing:0.1pt;"> </font>timeframe.<font style="letter-spacing:0.15pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>fail<font style="letter-spacing:0.05pt;"> </font>to recognize<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we have become<font style="letter-spacing:0.05pt;"> </font>aware<font style="letter-spacing:0.05pt;"> </font>of a reportable adverse<font style="letter-spacing:0.05pt;"> </font>event,<font style="letter-spacing:0.05pt;"> </font>especially<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>not reported<font style="letter-spacing:0.1pt;"> </font>to us as an adverse<font style="letter-spacing:0.05pt;"> </font>event<font style="letter-spacing:0.05pt;"> </font>or if<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>an adverse<font style="letter-spacing:0.05pt;"> </font>event<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>is unexpected<font style="letter-spacing:0.05pt;"> </font>or removed<font style="letter-spacing:0.05pt;"> </font>in time<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>use of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we fail<font style="letter-spacing:0.05pt;"> </font>to comply<font style="letter-spacing:0.05pt;"> </font>with our reporting obligations,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>act,<font style="letter-spacing:0.05pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>warning<font style="letter-spacing:0.05pt;"> </font>letters,<font style="letter-spacing:0.1pt;"> </font>untitled<font style="letter-spacing:0.1pt;"> </font>letters,<font style="letter-spacing:0.1pt;"> </font>administrative<font style="letter-spacing:0.2pt;"> </font>actions,<font style="letter-spacing:0.05pt;"> </font>criminal prosecution,<font style="letter-spacing:0.1pt;"> </font>imposition<font style="letter-spacing:0.1pt;"> </font>of civil<font style="letter-spacing:0.05pt;"> </font>monetary<font style="letter-spacing:0.1pt;"> </font>penalties,<font style="letter-spacing:0.1pt;"> </font>revocation<font style="letter-spacing:0.1pt;"> </font>of our device<font style="letter-spacing:0.05pt;"> </font>clearance,<font style="letter-spacing:0.1pt;"> </font>seizure<font style="letter-spacing:0.1pt;"> </font>of our products<font style="letter-spacing:0.05pt;"> </font>or delay<font style="letter-spacing:0.05pt;"> </font>in clearance<font style="letter-spacing:0.1pt;"> </font>of future<font style="letter-spacing:0.05pt;"> </font>products.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">51</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU52"></a><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The FDA</font><font style="letter-spacing:-0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and foreign</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">regulatory</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">bodies</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">have the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">authority</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to require</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">recall</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of commercialized</font><font style="letter-spacing:0.2pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">products</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in the event</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of material</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">deficiencies</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or defects</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in design</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or manufacture</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of a product</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or if</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a product</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">poses an unacceptable</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">risk</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to health.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The FDA&#8217;s authority</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to require</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a recall</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">must</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be based</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">on a finding</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">there</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">is reasonable</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">probability</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">device</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">cause</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">serious</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">injury</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or death.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We may</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">also</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">choose</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to voluntarily recall</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">a </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">product</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">if</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">any material</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">deficiency</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">is</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">found. A government-mandated</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or voluntary</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">recall</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">by us could occur</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">because of an unacceptable</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">risk</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to health,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">component</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">failures,</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">malfunctions,</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">manufacturing</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">defects, labeling</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or design</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">deficiencies,</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">packaging</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">defects</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">deficiencies</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or failures</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to comply</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">with applicable regulations.</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We cannot</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">assure</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">you that</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">product</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">defects</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">or other</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">errors</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">will</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">not occur</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">in the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">future.</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Recalls involving</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">the</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">ARTAS</font><font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">System</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">could</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">be particularly</font><font style="letter-spacing:0.15pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">harmful</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">to our business,</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">financial</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">condition</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">and results</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">of operations</font><font style="letter-spacing:0.1pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">because</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">it</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">is</font><font style="letter-spacing:0.05pt;"> </font><font style="color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">our only product.</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Companies<font style="letter-spacing:-0.2pt;"> </font>are<font style="letter-spacing:-0.2pt;"> </font>required<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>maintain<font style="letter-spacing:-0.2pt;"> </font>certain<font style="letter-spacing:-0.2pt;"> </font>records<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>recalls<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>corrections,<font style="letter-spacing:-0.2pt;"> </font>even<font style="letter-spacing:-0.2pt;"> </font>if<font style="letter-spacing:-0.2pt;"> </font>they<font style="letter-spacing:-0.2pt;"> </font>are<font style="letter-spacing:-0.2pt;"> </font>not<font style="letter-spacing:-0.2pt;"> </font>reportable<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>the FDA.<font style="letter-spacing:-0.2pt;"> </font>We<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>initiate<font style="letter-spacing:-0.2pt;"> </font>voluntary<font style="letter-spacing:-0.2pt;"> </font>withdrawals<font style="letter-spacing:-0.2pt;"> </font>or<font style="letter-spacing:-0.2pt;"> </font>corrections<font style="letter-spacing:-0.2pt;"> </font>for<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.2pt;"> </font>System<font style="letter-spacing:-0.2pt;"> </font>in<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>future<font style="letter-spacing:-0.2pt;"> </font>that<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>determine do<font style="letter-spacing:-0.2pt;"> </font>not<font style="letter-spacing:-0.2pt;"> </font>require<font style="letter-spacing:-0.2pt;"> </font>notification<font style="letter-spacing:-0.2pt;"> </font>of<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>FDA.<font style="letter-spacing:-0.2pt;"> </font>If<font style="letter-spacing:-0.2pt;"> </font>the<font style="letter-spacing:-0.2pt;"> </font>FDA<font style="letter-spacing:-0.2pt;"> </font>disagrees<font style="letter-spacing:-0.2pt;"> </font>with<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>determinations,<font style="letter-spacing:-0.2pt;"> </font>it<font style="letter-spacing:-0.2pt;"> </font>could<font style="letter-spacing:-0.2pt;"> </font>require<font style="letter-spacing:-0.2pt;"> </font>us<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>report those<font style="letter-spacing:-0.2pt;"> </font>actions<font style="letter-spacing:-0.2pt;"> </font>as<font style="letter-spacing:-0.2pt;"> </font>recalls<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>we<font style="letter-spacing:-0.2pt;"> </font>may<font style="letter-spacing:-0.2pt;"> </font>be<font style="letter-spacing:-0.2pt;"> </font>subject<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>enforcement<font style="letter-spacing:-0.2pt;"> </font>action.<font style="letter-spacing:-0.2pt;"> </font>A<font style="letter-spacing:-0.2pt;"> </font>future<font style="letter-spacing:-0.2pt;"> </font>recall<font style="letter-spacing:-0.2pt;"> </font>announcement<font style="letter-spacing:-0.2pt;"> </font>could<font style="letter-spacing:-0.2pt;"> </font>harm<font style="letter-spacing:-0.2pt;"> </font>our reputation<font style="letter-spacing:-0.2pt;"> </font>with<font style="letter-spacing:-0.2pt;"> </font>customers,<font style="letter-spacing:-0.2pt;"> </font>potentially<font style="letter-spacing:-0.2pt;"> </font>lead<font style="letter-spacing:-0.2pt;"> </font>to<font style="letter-spacing:-0.2pt;"> </font>product<font style="letter-spacing:-0.2pt;"> </font>liability<font style="letter-spacing:-0.2pt;"> </font>claims<font style="letter-spacing:-0.2pt;"> </font>against<font style="letter-spacing:-0.2pt;"> </font>us<font style="letter-spacing:-0.2pt;"> </font>and<font style="letter-spacing:-0.2pt;"> </font>negatively<font style="letter-spacing:-0.2pt;"> </font>affect<font style="letter-spacing:-0.2pt;"> </font>our<font style="letter-spacing:-0.2pt;"> </font>sales.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>we or our distributors<font style="letter-spacing:0.1pt;"> </font>do not obtain<font style="letter-spacing:0.05pt;"> </font>and maintain<font style="letter-spacing:0.05pt;"> </font>international<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.05pt;"> </font>registrations<font style="letter-spacing:0.1pt;"> </font>or approvals<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to market<font style="letter-spacing:0.05pt;"> </font>and sell<font style="letter-spacing:0.05pt;"> </font>the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>of the U.S.<font style="letter-spacing:-0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be diminished.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sale<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to foreign<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>vary<font style="letter-spacing:0.05pt;"> </font>widely<font style="letter-spacing:0.05pt;"> </font>from country<font style="letter-spacing:0.05pt;"> </font>to country.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>regulates<font style="letter-spacing:0.1pt;"> </font>exports<font style="letter-spacing:0.05pt;"> </font>of medical<font style="letter-spacing:0.1pt;"> </font>devices<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>U.S. While<font style="letter-spacing:0.05pt;"> </font>the regulations<font style="letter-spacing:0.1pt;"> </font>of some<font style="letter-spacing:0.05pt;"> </font>countries<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not impose<font style="letter-spacing:0.05pt;"> </font>barriers<font style="letter-spacing:0.1pt;"> </font>to marketing<font style="letter-spacing:0.1pt;"> </font>and selling<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>or only require<font style="letter-spacing:0.1pt;"> </font>notification,<font style="letter-spacing:0.15pt;"> </font>others<font style="letter-spacing:0.05pt;"> </font>require<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we or our distributors<font style="letter-spacing:0.15pt;"> </font>obtain<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>approval<font style="letter-spacing:0.05pt;"> </font>of a specified<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>body. Complying<font style="letter-spacing:0.05pt;"> </font>with foreign<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>requirements,<font style="letter-spacing:0.15pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>obtaining<font style="letter-spacing:0.05pt;"> </font>registrations<font style="letter-spacing:0.15pt;"> </font>or approvals,<font style="letter-spacing:0.05pt;"> </font>can be expensive<font style="letter-spacing:0.05pt;"> </font>and time-consuming,<font style="letter-spacing:0.15pt;"> </font>and we cannot<font style="letter-spacing:0.05pt;"> </font>be certain<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we or our distributors<font style="letter-spacing:0.15pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>receive<font style="letter-spacing:0.1pt;"> </font>regulatory approvals<font style="letter-spacing:0.05pt;"> </font>in each<font style="letter-spacing:0.05pt;"> </font>country<font style="letter-spacing:0.05pt;"> </font>in which we plan<font style="letter-spacing:0.05pt;"> </font>to market<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>or that<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to do so on a timely<font style="letter-spacing:0.1pt;"> </font>basis.<font style="letter-spacing:0.05pt;"> </font>The time<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>to obtain<font style="letter-spacing:0.05pt;"> </font>registrations<font style="letter-spacing:0.15pt;"> </font>or approvals,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>by other<font style="letter-spacing:0.05pt;"> </font>countries,<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be longer than<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>clearance,<font style="letter-spacing:0.1pt;"> </font>and requirements<font style="letter-spacing:0.15pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>such registrations,<font style="letter-spacing:0.15pt;"> </font>clearances,<font style="letter-spacing:0.1pt;"> </font>or approvals<font style="letter-spacing:0.05pt;"> </font>may significantly<font style="letter-spacing:0.15pt;"> </font>differ<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>requirements.<font style="letter-spacing:0.15pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we modify<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System,<font style="letter-spacing:0.05pt;"> </font>we or our distributors<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>need to apply<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>approvals<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>authorizations<font style="letter-spacing:0.15pt;"> </font>before<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>permitted<font style="letter-spacing:0.1pt;"> </font>to sell<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>modified product.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>not continue<font style="letter-spacing:0.05pt;"> </font>to meet<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>quality<font style="letter-spacing:0.05pt;"> </font>and safety<font style="letter-spacing:0.05pt;"> </font>standards<font style="letter-spacing:0.1pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>to maintain<font style="letter-spacing:0.1pt;"> </font>the authorizations<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we or our distributors<font style="letter-spacing:0.15pt;"> </font>have received.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we or our distributors<font style="letter-spacing:0.15pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>unable<font style="letter-spacing:0.05pt;"> </font>to maintain<font style="letter-spacing:0.1pt;"> </font>our authorizations<font style="letter-spacing:0.15pt;"> </font>in a particular<font style="letter-spacing:0.15pt;"> </font>country,<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>no longer<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to sell<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>applicable<font style="letter-spacing:0.1pt;"> </font>product<font style="letter-spacing:0.05pt;"> </font>in that<font style="letter-spacing:0.05pt;"> </font>country, which could<font style="letter-spacing:0.05pt;"> </font>harm<font style="letter-spacing:0.05pt;"> </font>our business.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Regulatory<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>does not ensure<font style="letter-spacing:0.05pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>by regulatory<font style="letter-spacing:0.1pt;"> </font>authorities<font style="letter-spacing:0.15pt;"> </font>in other<font style="letter-spacing:0.05pt;"> </font>countries,<font style="letter-spacing:0.1pt;"> </font>and clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>by one or more<font style="letter-spacing:0.05pt;"> </font>foreign<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>authorities<font style="letter-spacing:0.15pt;"> </font>does not ensure clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>by regulatory<font style="letter-spacing:0.1pt;"> </font>authorities<font style="letter-spacing:0.15pt;"> </font>in other<font style="letter-spacing:0.05pt;"> </font>foreign<font style="letter-spacing:0.05pt;"> </font>countries<font style="letter-spacing:0.1pt;"> </font>or by the<font style="letter-spacing:0.05pt;"> </font>FDA.<font style="letter-spacing:-0.05pt;"> </font>However, a failure<font style="letter-spacing:0.1pt;"> </font>or delay<font style="letter-spacing:0.05pt;"> </font>in obtaining<font style="letter-spacing:0.05pt;"> </font>regulatory<font style="letter-spacing:0.1pt;"> </font>clearance<font style="letter-spacing:0.1pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>in one country<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>have a negative<font style="letter-spacing:0.05pt;"> </font>effect<font style="letter-spacing:0.1pt;"> </font>on the<font style="letter-spacing:0.05pt;"> </font>regulatory process<font style="letter-spacing:0.05pt;"> </font>in others.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We must<font style="letter-spacing:0.05pt;"> </font>manufacture<font style="letter-spacing:0.05pt;"> </font>our products<font style="letter-spacing:0.05pt;"> </font>in accordance<font style="letter-spacing:0.05pt;"> </font>with federal<font style="letter-spacing:0.05pt;"> </font>and state<font style="letter-spacing:0.05pt;"> </font>regulations,<font style="letter-spacing:0.05pt;"> </font>and we could be forced to recall<font style="letter-spacing:0.05pt;"> </font>our installed<font style="letter-spacing:0.1pt;"> </font>systems<font style="letter-spacing:0.1pt;"> </font>or terminate<font style="letter-spacing:0.1pt;"> </font>production<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>we fail<font style="letter-spacing:0.05pt;"> </font>to comply<font style="letter-spacing:0.05pt;"> </font>with these<font style="letter-spacing:0.05pt;"> </font>regulations.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The methods used in, and the facilities used for, the manufacture of the ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System and related products must comply with the FDA&#8217;s Quality System Regulation, or QSR, which is a complex regulatory scheme that covers the procedures and documentation of the design, testing, production, process controls, quality assurance, labeling, packaging, handling, storage, distribution, installation, servicing and shipping of medical devices. Furthermore, we are required to verify that our suppliers maintain facilities, procedures and operations that comply with our quality and applicable regulatory requirements. The FDA enforces the QSR through periodic announced or unannounced inspections of medical device manufacturing facilities, which may include the facilities of subcontractors. The ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font> System is also subject to similar state regulations and various laws and regulations of foreign countries governing manufacturing.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We cannot<font style="letter-spacing:0.05pt;"> </font>guarantee<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we or any subcontractors<font style="letter-spacing:0.15pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>take<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>necessary<font style="letter-spacing:0.1pt;"> </font>steps<font style="letter-spacing:0.05pt;"> </font>to comply<font style="letter-spacing:0.05pt;"> </font>with applicable regulations,<font style="letter-spacing:0.1pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>delays<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>delivery<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>failure<font style="letter-spacing:0.1pt;"> </font>to comply<font style="letter-spacing:0.05pt;"> </font>with applicable<font style="letter-spacing:0.1pt;"> </font>FDA<font style="letter-spacing:-0.05pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>or later<font style="letter-spacing:0.1pt;"> </font>discovery<font style="letter-spacing:0.05pt;"> </font>of previously<font style="letter-spacing:0.1pt;"> </font>unknown problems<font style="letter-spacing:0.1pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>or manufacturing<font style="letter-spacing:0.15pt;"> </font>processes<font style="letter-spacing:0.1pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>result<font style="letter-spacing:0.1pt;"> </font>in, among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">warning</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">letters</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or untitled</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">letters;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">fines,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">injunctions</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or civil</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">penalties;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">suspension</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or withdrawal</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of approvals</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or clearances;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">seizures</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or recalls</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our products;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">total</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or partial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">suspension</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of production</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or distribution;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><a name="_AEIOULastRenderedPageBreakAEIOU53"></a><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#231F20;font-family:Times New Roman;">administrative</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or judicially</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">imposed</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">sanctions;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">FDA&#8217;s refusal</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to grant</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">pending</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or future</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">clearances</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or approvals</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our products;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">clinical</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">holds;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">refusal</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to permit</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">import</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or export</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our products;</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">criminal</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">prosecution</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to us or our employees.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;letter-spacing:-0.2pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Any of these actions could significantly and negatively impact supply of our products. If any of these events occurs, our reputation could be harmed, we could be exposed to product liability claims and we could lose customers and suffer reduced revenue and increased costs.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We may<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to various<font style="letter-spacing:0.05pt;"> </font>federal<font style="letter-spacing:0.05pt;"> </font>and state<font style="letter-spacing:0.05pt;"> </font>laws pertaining<font style="letter-spacing:0.05pt;"> </font>to healthcare<font style="letter-spacing:0.05pt;"> </font>fraud and abuse, and any violations<font style="letter-spacing:0.1pt;"> </font>by us of such laws could result<font style="letter-spacing:0.05pt;"> </font>in fines<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>penalties.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">While<font style="letter-spacing:0.05pt;"> </font>procedures<font style="letter-spacing:0.1pt;"> </font>utilizing<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>ARTAS<font style="color:#000000;letter-spacing:0.15pt;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="letter-spacing:-0.1pt;"> </font>System<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>not currently<font style="letter-spacing:0.1pt;"> </font>covered<font style="letter-spacing:0.05pt;"> </font>or reimbursed<font style="letter-spacing:0.1pt;"> </font>by any third-party<font style="letter-spacing:0.15pt;"> </font>payor, our commercial,<font style="letter-spacing:0.15pt;"> </font>research<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>relationships<font style="letter-spacing:0.15pt;"> </font>with healthcare<font style="letter-spacing:0.1pt;"> </font>providers<font style="letter-spacing:0.1pt;"> </font>and others<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to various<font style="letter-spacing:0.05pt;"> </font>federal<font style="letter-spacing:0.1pt;"> </font>and state<font style="letter-spacing:0.05pt;"> </font>laws intended<font style="letter-spacing:0.05pt;"> </font>to prevent<font style="letter-spacing:0.05pt;"> </font>healthcare<font style="letter-spacing:0.1pt;"> </font>fraud<font style="letter-spacing:0.05pt;"> </font>and abuse.<font style="letter-spacing:0.05pt;"> </font>Such laws include<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>federal Anti-Kickback<font style="letter-spacing:0.05pt;"> </font>Statute<font style="letter-spacing:0.05pt;"> </font>and similar<font style="letter-spacing:0.1pt;"> </font>laws that<font style="letter-spacing:0.05pt;"> </font>apply<font style="letter-spacing:0.05pt;"> </font>to state<font style="letter-spacing:0.05pt;"> </font>healthcare<font style="letter-spacing:0.1pt;"> </font>programs,<font style="letter-spacing:0.1pt;"> </font>private<font style="letter-spacing:0.1pt;"> </font>payors<font style="letter-spacing:0.05pt;"> </font>and self-pay patients;<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>federal<font style="letter-spacing:0.1pt;"> </font>civil<font style="letter-spacing:0.05pt;"> </font>and criminal<font style="letter-spacing:0.1pt;"> </font>false<font style="letter-spacing:0.05pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>laws, such as the<font style="letter-spacing:0.05pt;"> </font>civil<font style="letter-spacing:0.05pt;"> </font>False<font style="letter-spacing:0.05pt;"> </font>Claims<font style="letter-spacing:0.05pt;"> </font>Act, and civil monetary<font style="letter-spacing:0.1pt;"> </font>penalties<font style="letter-spacing:0.1pt;"> </font>laws;<font style="letter-spacing:0.05pt;"> </font>state<font style="letter-spacing:0.05pt;"> </font>and federal<font style="letter-spacing:0.1pt;"> </font>data<font style="letter-spacing:0.05pt;"> </font>privacy<font style="letter-spacing:0.05pt;"> </font>and security<font style="letter-spacing:0.1pt;"> </font>laws and regulations;<font style="letter-spacing:0.15pt;"> </font>state<font style="letter-spacing:0.05pt;"> </font>and federal physician<font style="letter-spacing:0.05pt;"> </font>payment<font style="letter-spacing:0.05pt;"> </font>transparency<font style="letter-spacing:0.1pt;"> </font>laws;<font style="letter-spacing:0.05pt;"> </font>and state<font style="letter-spacing:0.05pt;"> </font>and federal<font style="letter-spacing:0.1pt;"> </font>consumer<font style="letter-spacing:0.05pt;"> </font>protection<font style="letter-spacing:0.1pt;"> </font>and unfair<font style="letter-spacing:0.05pt;"> </font>competition<font style="letter-spacing:0.1pt;"> </font>laws. Further,<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>laws may<font style="letter-spacing:0.05pt;"> </font>impact<font style="letter-spacing:0.1pt;"> </font>any sales,<font style="letter-spacing:0.05pt;"> </font>marketing<font style="letter-spacing:0.1pt;"> </font>and education<font style="letter-spacing:0.05pt;"> </font>programs<font style="letter-spacing:0.1pt;"> </font>we currently<font style="letter-spacing:0.1pt;"> </font>have or may<font style="letter-spacing:0.05pt;"> </font>develop in the<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>way we implement<font style="letter-spacing:0.1pt;"> </font>any of those<font style="letter-spacing:0.05pt;"> </font>programs.<font style="letter-spacing:0.1pt;"> </font>Penalties<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>violations<font style="letter-spacing:0.1pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>laws can include<font style="letter-spacing:0.05pt;"> </font>exclusion<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>federal<font style="letter-spacing:0.1pt;"> </font>healthcare<font style="letter-spacing:0.1pt;"> </font>programs<font style="letter-spacing:0.1pt;"> </font>and substantial<font style="letter-spacing:0.1pt;"> </font>civil<font style="letter-spacing:0.05pt;"> </font>and criminal<font style="letter-spacing:0.1pt;"> </font>penalties.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Recently<font style="letter-spacing:0.05pt;"> </font>enacted<font style="letter-spacing:0.05pt;"> </font>and future<font style="letter-spacing:0.05pt;"> </font>legislation<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>increase<font style="letter-spacing:0.05pt;"> </font>the difficulty<font style="letter-spacing:0.15pt;"> </font>and cost<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>us to sell<font style="letter-spacing:0.05pt;"> </font>our products.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In the<font style="letter-spacing:0.05pt;"> </font>U.S.<font style="letter-spacing:-0.05pt;"> </font>and some<font style="letter-spacing:0.05pt;"> </font>non-U.S. jurisdictions,<font style="letter-spacing:0.15pt;"> </font>there<font style="letter-spacing:0.05pt;"> </font>have been, and we expect<font style="letter-spacing:0.05pt;"> </font>there<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>continue<font style="letter-spacing:0.05pt;"> </font>to be, several legislative<font style="letter-spacing:0.15pt;"> </font>and regulatory<font style="letter-spacing:0.1pt;"> </font>changes<font style="letter-spacing:0.05pt;"> </font>and proposed<font style="letter-spacing:0.05pt;"> </font>changes<font style="letter-spacing:0.05pt;"> </font>regarding<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>healthcare<font style="letter-spacing:0.1pt;"> </font>system<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>could,<font style="letter-spacing:0.05pt;"> </font>among other<font style="letter-spacing:0.05pt;"> </font>things,<font style="letter-spacing:0.05pt;"> </font>restrict<font style="letter-spacing:0.15pt;"> </font>or regulate<font style="letter-spacing:0.1pt;"> </font>post-approval<font style="letter-spacing:0.1pt;"> </font>activities<font style="letter-spacing:0.15pt;"> </font>and affect<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to profitably<font style="letter-spacing:0.1pt;"> </font>sell<font style="letter-spacing:0.05pt;"> </font>our products.<font style="letter-spacing:0.05pt;"> </font>For example,<font style="letter-spacing:0.05pt;"> </font>in March<font style="letter-spacing:0.05pt;"> </font>2010, the<font style="letter-spacing:0.05pt;"> </font>Patient<font style="letter-spacing:0.05pt;"> </font>Protection<font style="letter-spacing:0.1pt;"> </font>and Affordable<font style="letter-spacing:0.1pt;"> </font>Care Act, as amended<font style="letter-spacing:0.05pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>Health<font style="letter-spacing:0.05pt;"> </font>Care and Education<font style="letter-spacing:0.05pt;"> </font>Reconciliation<font style="letter-spacing:0.1pt;"> </font>Act, collectively<font style="letter-spacing:0.15pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>Affordable<font style="letter-spacing:0.1pt;"> </font>Care Act, was enacted.<font style="letter-spacing:0.05pt;"> </font>The Affordable<font style="letter-spacing:0.1pt;"> </font>Care Act, imposed,<font style="letter-spacing:0.05pt;"> </font>among<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>things,<font style="letter-spacing:0.05pt;"> </font>an annual<font style="letter-spacing:0.05pt;"> </font>excise<font style="letter-spacing:0.05pt;"> </font>tax<font style="letter-spacing:0.05pt;"> </font>of 2.3% on any entity<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>manufactures<font style="letter-spacing:0.15pt;"> </font>or imports<font style="letter-spacing:0.1pt;"> </font>medical devices<font style="letter-spacing:0.05pt;"> </font>offered<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>sale<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>U.S.,<font style="letter-spacing:-0.05pt;"> </font>which, due to subsequent<font style="letter-spacing:0.05pt;"> </font>legislative<font style="letter-spacing:0.15pt;"> </font>amendments,<font style="letter-spacing:0.1pt;"> </font>has been suspended<font style="letter-spacing:0.05pt;"> </font>from January<font style="letter-spacing:0.05pt;"> </font>1, 2016 to December<font style="letter-spacing:0.05pt;"> </font>31, 2017, and, absent<font style="letter-spacing:0.05pt;"> </font>further<font style="letter-spacing:0.1pt;"> </font>legislative<font style="letter-spacing:0.15pt;"> </font>action,<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>be reinstated<font style="letter-spacing:0.1pt;"> </font>starting<font style="letter-spacing:0.1pt;"> </font>January<font style="letter-spacing:0.05pt;"> </font>1, 2018. It<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>uncertain<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>extent<font style="letter-spacing:0.05pt;"> </font>to which any challenges,<font style="letter-spacing:0.1pt;"> </font>amendments<font style="letter-spacing:0.1pt;"> </font>and attempts<font style="letter-spacing:0.1pt;"> </font>to repeal<font style="letter-spacing:0.05pt;"> </font>and replace<font style="letter-spacing:0.1pt;"> </font>the Affordable<font style="letter-spacing:0.1pt;"> </font>Care Act in the<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>impact<font style="letter-spacing:0.1pt;"> </font>our business<font style="letter-spacing:0.05pt;"> </font>or financial<font style="letter-spacing:0.1pt;"> </font>condition.<font style="letter-spacing:0.05pt;"> </font>We expect<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>Affordable Care Act, as well<font style="letter-spacing:0.05pt;"> </font>as other<font style="letter-spacing:0.05pt;"> </font>healthcare<font style="letter-spacing:0.1pt;"> </font>reform<font style="letter-spacing:0.1pt;"> </font>measures<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be adopted<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future,<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>potentially<font style="letter-spacing:0.1pt;"> </font>increase our costs<font style="letter-spacing:0.05pt;"> </font>to sell<font style="letter-spacing:0.05pt;"> </font>our product<font style="letter-spacing:0.05pt;"> </font>and decrease<font style="letter-spacing:0.1pt;"> </font>our profitability.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#000000;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Recent U.S. tax legislation and future changes to applicable U.S. or foreign tax laws and regulations may have a material adverse effect on our business, financial condition and results of operations.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are subject to income and other taxes in the U.S. and foreign jurisdictions. Changes in laws and policy relating to taxes or trade may have an adverse effect on our business, financial condition and results of operations. For example, the U.S. government recently enacted significant tax reform, and certain provisions of the new law may adversely affect us. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a more generally territorial system, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. The legislation is unclear in many respects and could be subject to potential amendments and technical corrections and will be subject to interpretations and implementing regulations by the Treasury and Internal Revenue Service, any of which could mitigate or increase certain adverse effects of the legislation. In addition, it is unclear how these U.S. federal income tax changes will affect state and local taxation. Generally, future changes in applicable U.S. or foreign tax laws and regulations, or their interpretation and application could have an adverse effect on our business, financial conditions and results of operations.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">53</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU54"></a><font style="font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Risks Related</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">to Our Common Stock</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our stock<font style="letter-spacing:0.05pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be volatile,<font style="letter-spacing:0.1pt;"> </font>and you may<font style="letter-spacing:0.05pt;"> </font>not be able<font style="letter-spacing:0.05pt;"> </font>to resell<font style="letter-spacing:0.1pt;"> </font>shares<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>at or above the price<font style="letter-spacing:0.05pt;"> </font>you paid.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The market<font style="letter-spacing:0.1pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be highly<font style="letter-spacing:0.05pt;"> </font>volatile<font style="letter-spacing:0.1pt;"> </font>and could<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to wide fluctuations<font style="letter-spacing:0.15pt;"> </font>in response<font style="letter-spacing:0.05pt;"> </font>to various<font style="letter-spacing:0.05pt;"> </font>factors,<font style="letter-spacing:0.1pt;"> </font>some<font style="letter-spacing:0.05pt;"> </font>of which are<font style="letter-spacing:0.05pt;"> </font>beyond our control.<font style="letter-spacing:0.05pt;"> </font>These factors<font style="letter-spacing:0.1pt;"> </font>include those<font style="letter-spacing:0.05pt;"> </font>discussed<font style="letter-spacing:0.05pt;"> </font>in this<font style="letter-spacing:0.05pt;"> </font>&#8220;Risk Factors&#8221;<font style="letter-spacing:0.05pt;"> </font>section<font style="letter-spacing:0.05pt;"> </font>and others<font style="letter-spacing:0.05pt;"> </font>such as:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">continued</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">growth in demand</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and ARTAS</font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">procedures;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our commercialization,</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and manufacturing</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">prospects;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">continuing</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">productivity</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and effectiveness</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our commercial</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">infrastructure</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and salesforce;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our financial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">performance;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our intentions</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and our ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to establish</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">collaborations</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and/or</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">partnerships;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';letter-spacing:-0.2pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';letter-spacing:-0.2pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;letter-spacing:-0.2pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the timing or likelihood of regulatory filings and approvals for the ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;font-family:Times New Roman;"> System for expanded indications and functionality;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our commercialization,</font><font style="color:#231F20;letter-spacing:0.2pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">marketing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and manufacturing</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">capabilities;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our expectations</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regarding</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">potential</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">market</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">size</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">size</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">patient</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">populations</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">effective</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">pricing</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">services</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and procedures;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">implementation</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our business</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">model</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and strategic</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">plans</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our business</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and technology;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">scope</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of protection</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">we can establish</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and maintain</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">intellectual</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">property</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rights</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">covering the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ARTAS</font><font style="letter-spacing:0.15pt;font-family:Times New Roman;"><sup style="font-size:85%; vertical-align:top">&#174;</sup></font><font style="color:#231F20;letter-spacing:-0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">System,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">along</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with any product</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">enhancements;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">estimates</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our expenses,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">future</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">revenue,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">capital</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">requirements,</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our needs</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">additional</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">financing</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and our ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to obtain</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">additional</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">capital;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">our financial</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">performance;</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">developments</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and projections</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">relating</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to our competitors</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and our industry,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">competing therapies</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and procedures.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>markets<font style="letter-spacing:0.1pt;"> </font>in general,<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>markets<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>medical<font style="letter-spacing:0.1pt;"> </font>device<font style="letter-spacing:0.05pt;"> </font>and aesthetic<font style="letter-spacing:0.1pt;"> </font>stocks<font style="letter-spacing:0.05pt;"> </font>in particular, have experienced<font style="letter-spacing:0.1pt;"> </font>extreme<font style="letter-spacing:0.1pt;"> </font>volatility<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>have been unrelated<font style="letter-spacing:0.1pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>operating<font style="letter-spacing:0.1pt;"> </font>performance<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>issuer. These broad<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>fluctuations<font style="letter-spacing:0.15pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>adversely<font style="letter-spacing:0.1pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>or liquidity<font style="letter-spacing:0.1pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock.<font style="letter-spacing:0.05pt;"> </font>In the past,<font style="letter-spacing:0.05pt;"> </font>when the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>of a stock<font style="letter-spacing:0.05pt;"> </font>has been volatile,<font style="letter-spacing:0.1pt;"> </font>holders<font style="letter-spacing:0.05pt;"> </font>of that<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>have sometimes<font style="letter-spacing:0.1pt;"> </font>instituted<font style="letter-spacing:0.1pt;"> </font>securities class<font style="letter-spacing:0.05pt;"> </font>action<font style="letter-spacing:0.05pt;"> </font>litigation<font style="letter-spacing:0.15pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>issuer.<font style="letter-spacing:0.05pt;"> </font><font style="color:#000000;">Recently, several securities class action complaints have been filed against us, certain of our current and former executive officers and directors, certain of our investors and certain underwriters in our initial public offering. These complaints allege violations of Sections 11, 12(a)(2) and 15 of the Securities Act due to allegedly false and misleading statements made in connection with our initial public offering. While we believe that these lawsuits are without merit and we intend to vigorously defend against these claims, we could incur substantial costs in defending these lawsuits and the attention of our management could be diverted from the operation of our business. Further, if more of our stockholders were to bring additional lawsuits on similar or unrelated grounds, we could incur substantial costs defending these additional lawsuits and the attention of our management would be further diverted from the operation of our business.</font></p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">An<font style="letter-spacing:-0.05pt;"> </font>active<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not be maintained.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Prior<font style="letter-spacing:0.05pt;"> </font>to our initial public<font style="letter-spacing:0.05pt;"> </font>offering,<font style="letter-spacing:0.1pt;"> </font>there had been no public<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>shares<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.1pt;">. Our stock only recently began trading on The Nasdaq Global Market, but we can provide no assurance that we will be able to maintain an active trading market on The Nasdaq Global Market or any other exchange in the future. If an active market for our common stock does not develop or is not maintained, it may be difficult for our stockholders to sell shares without depressing the market price for the shares or at all. </font>An inactive<font style="letter-spacing:0.1pt;"> </font>market may<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>impair<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to raise<font style="letter-spacing:0.05pt;"> </font>capital<font style="letter-spacing:0.1pt;"> </font>by selling<font style="letter-spacing:0.1pt;"> </font>shares<font style="letter-spacing:0.05pt;"> </font>and may<font style="letter-spacing:0.05pt;"> </font>impair<font style="letter-spacing:0.1pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to acquire<font style="letter-spacing:0.05pt;"> </font>other businesses,<font style="letter-spacing:0.1pt;"> </font>applications,<font style="letter-spacing:0.1pt;"> </font>or technologies<font style="letter-spacing:0.1pt;"> </font>using<font style="letter-spacing:0.05pt;"> </font>our shares<font style="letter-spacing:0.05pt;"> </font>as consideration.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>securities<font style="letter-spacing:0.1pt;"> </font>or industry<font style="letter-spacing:0.05pt;"> </font>analysts<font style="letter-spacing:0.05pt;"> </font>issue<font style="letter-spacing:0.05pt;"> </font>an adverse<font style="letter-spacing:0.05pt;"> </font>or misleading<font style="letter-spacing:0.1pt;"> </font>opinion regarding<font style="letter-spacing:0.05pt;"> </font>our stock,<font style="letter-spacing:0.05pt;"> </font>our stock<font style="letter-spacing:0.05pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>and trading<font style="letter-spacing:0.05pt;"> </font>volume<font style="letter-spacing:0.05pt;"> </font>could decline.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The trading<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>is influenced<font style="letter-spacing:0.1pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>research<font style="letter-spacing:0.1pt;"> </font>and reports<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>industry<font style="letter-spacing:0.05pt;"> </font>or securities<font style="letter-spacing:0.15pt;"> </font>analysts<font style="letter-spacing:0.1pt;"> </font>publish<font style="letter-spacing:0.05pt;"> </font>about<font style="letter-spacing:0.05pt;"> </font>us or our business.<font style="letter-spacing:0.05pt;"> </font>We currently have very limited research<font style="letter-spacing:0.1pt;"> </font>coverage<font style="letter-spacing:0.05pt;"> </font>by securities<font style="letter-spacing:0.15pt;"> </font>and industry<font style="letter-spacing:0.05pt;"> </font>analysts.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>no additional securities<font style="letter-spacing:0.15pt;"> </font>or industry<font style="letter-spacing:0.05pt;"> </font>analysts<font style="letter-spacing:0.1pt;"> </font>commence<font style="letter-spacing:0.1pt;"> </font>coverage<font style="letter-spacing:0.05pt;"> </font>of us, the<font style="letter-spacing:0.05pt;"> </font>market price or trading volume<font style="letter-spacing:0.05pt;"> </font>of<font style="letter-spacing:0.05pt;"> </font>our stock<font style="letter-spacing:0.05pt;"> </font>could be negatively<font style="letter-spacing:0.1pt;"> </font>impacted.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>any of the<font style="letter-spacing:0.05pt;"> </font>analysts<font style="letter-spacing:0.1pt;"> </font>who cover<font style="letter-spacing:0.05pt;"> </font>us issue<font style="letter-spacing:0.05pt;"> </font>an adverse<font style="letter-spacing:0.05pt;"> </font>or misleading<font style="letter-spacing:0.1pt;"> </font>opinion<font style="letter-spacing:0.05pt;"> </font>regarding<font style="letter-spacing:0.1pt;"> </font>us, our business<font style="letter-spacing:0.05pt;"> </font>model,<font style="letter-spacing:0.05pt;"> </font>our intellectual<font style="letter-spacing:0.15pt;"> </font>property<font style="letter-spacing:0.05pt;"> </font>or our stock<font style="letter-spacing:0.05pt;"> </font>performance,<font style="letter-spacing:0.1pt;"> </font>or if<font style="letter-spacing:0.05pt;"> </font>our operating<font style="letter-spacing:0.1pt;"> </font>results<font style="letter-spacing:0.1pt;"> </font>fail<font style="letter-spacing:0.05pt;"> </font>to meet<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>expectations<font style="letter-spacing:0.1pt;"> </font>of analysts, our stock<font style="letter-spacing:0.05pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>would likely<font style="letter-spacing:0.05pt;"> </font>decline.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>one or more<font style="letter-spacing:0.05pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>analysts<font style="letter-spacing:0.1pt;"> </font>cease<font style="letter-spacing:0.05pt;"> </font>coverage<font style="letter-spacing:0.05pt;"> </font>of us or fail<font style="letter-spacing:0.05pt;"> </font>to publish reports<font style="letter-spacing:0.1pt;"> </font>on us regularly,<font style="letter-spacing:0.1pt;"> </font>we could<font style="letter-spacing:0.05pt;"> </font>lose<font style="letter-spacing:0.05pt;"> </font>visibility<font style="letter-spacing:0.15pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>financial<font style="letter-spacing:0.1pt;"> </font>markets,<font style="letter-spacing:0.1pt;"> </font>which in turn<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>cause<font style="letter-spacing:0.05pt;"> </font>our stock<font style="letter-spacing:0.05pt;"> </font>price or trading<font style="letter-spacing:0.05pt;"> </font>volume<font style="letter-spacing:0.05pt;"> </font>to decline.</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">54</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU55"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We are an &#8220;emerging</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">growth company&#8221;</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">and because of the reduced</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">disclosure</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">and governance requirements</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">applicable</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">to emerging</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">growth companies,</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">our common</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">stock</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">may</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">be less</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">attractive</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">to investors.</font></p>
<p style="margin-top:6pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are<font style="letter-spacing:0.05pt;"> </font>an &#8220;emerging<font style="letter-spacing:0.1pt;"> </font>growth company,&#8221;<font style="letter-spacing:0.05pt;"> </font>as defined<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>JOBS<font style="letter-spacing:-0.05pt;"> </font>Act, and we intend<font style="letter-spacing:0.05pt;"> </font>to take<font style="letter-spacing:0.05pt;"> </font>advantage<font style="letter-spacing:0.05pt;"> </font>of certain exemptions<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>various<font style="letter-spacing:0.05pt;"> </font>reporting<font style="letter-spacing:0.1pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>applicable<font style="letter-spacing:0.1pt;"> </font>to other<font style="letter-spacing:0.05pt;"> </font>public<font style="letter-spacing:0.05pt;"> </font>companies<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>not emerging<font style="letter-spacing:0.1pt;"> </font>growth companies<font style="letter-spacing:0.1pt;"> </font>including,<font style="letter-spacing:0.05pt;"> </font>but not limited<font style="letter-spacing:0.1pt;"> </font>to, not being<font style="letter-spacing:0.05pt;"> </font>required<font style="letter-spacing:0.1pt;"> </font>to comply<font style="letter-spacing:0.05pt;"> </font>with the<font style="letter-spacing:0.05pt;"> </font>auditor attestation<font style="letter-spacing:0.15pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>of Section<font style="letter-spacing:0.05pt;"> </font>404, reduced<font style="letter-spacing:0.05pt;"> </font>disclosure<font style="letter-spacing:0.1pt;"> </font>obligations<font style="letter-spacing:0.1pt;"> </font>regarding<font style="letter-spacing:0.1pt;"> </font>executive<font style="letter-spacing:0.1pt;"> </font>compensation<font style="letter-spacing:0.1pt;"> </font>in our periodic<font style="letter-spacing:0.1pt;"> </font>reports<font style="letter-spacing:0.1pt;"> </font>and proxy statements,<font style="letter-spacing:0.15pt;"> </font>and exemptions<font style="letter-spacing:0.1pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>requirements<font style="letter-spacing:0.15pt;"> </font>of holding<font style="letter-spacing:0.05pt;"> </font>a nonbinding<font style="letter-spacing:0.05pt;"> </font>advisory vote<font style="letter-spacing:0.05pt;"> </font>on executive<font style="letter-spacing:0.1pt;"> </font>compensation,<font style="letter-spacing:0.1pt;"> </font>stockholder<font style="letter-spacing:0.1pt;"> </font>approval<font style="letter-spacing:0.05pt;"> </font>of any golden<font style="letter-spacing:0.05pt;"> </font>parachute<font style="letter-spacing:0.1pt;"> </font>payments<font style="letter-spacing:0.05pt;"> </font>not previously approved<font style="letter-spacing:0.05pt;"> </font>and delayed<font style="letter-spacing:0.05pt;"> </font>adoption<font style="letter-spacing:0.05pt;"> </font>of new or revised<font style="letter-spacing:0.05pt;"> </font>accounting<font style="letter-spacing:0.05pt;"> </font>standards<font style="letter-spacing:0.1pt;"> </font>issued<font style="letter-spacing:0.05pt;"> </font>subsequent<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>enactment<font style="letter-spacing:0.1pt;"> </font>of the JOBS<font style="letter-spacing:-0.05pt;"> </font>Act until<font style="letter-spacing:0.05pt;"> </font>such time<font style="letter-spacing:0.05pt;"> </font>as those<font style="letter-spacing:0.05pt;"> </font>standards<font style="letter-spacing:0.1pt;"> </font>apply<font style="letter-spacing:0.05pt;"> </font>to private<font style="letter-spacing:0.1pt;"> </font>companies.<font style="letter-spacing:0.1pt;"> </font>We cannot<font style="letter-spacing:0.05pt;"> </font>predict<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>investors<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>find our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>less<font style="letter-spacing:0.05pt;"> </font>attractive<font style="letter-spacing:0.15pt;"> </font>because<font style="letter-spacing:0.05pt;"> </font>we will<font style="letter-spacing:0.05pt;"> </font>rely<font style="letter-spacing:0.05pt;"> </font>on these<font style="letter-spacing:0.05pt;"> </font>exemptions.<font style="letter-spacing:0.1pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>some<font style="letter-spacing:0.05pt;"> </font>investors<font style="letter-spacing:0.1pt;"> </font>find<font style="letter-spacing:0.05pt;"> </font>our common stock<font style="letter-spacing:0.05pt;"> </font>less<font style="letter-spacing:0.05pt;"> </font>attractive<font style="letter-spacing:0.15pt;"> </font>as a result,<font style="letter-spacing:0.1pt;"> </font>there<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be a less<font style="letter-spacing:0.05pt;"> </font>active<font style="letter-spacing:0.05pt;"> </font>trading<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>and our stock price<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be more<font style="letter-spacing:0.05pt;"> </font>volatile.<font style="letter-spacing:0.1pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>take<font style="letter-spacing:0.05pt;"> </font>advantage<font style="letter-spacing:0.05pt;"> </font>of these<font style="letter-spacing:0.05pt;"> </font>reporting<font style="letter-spacing:0.1pt;"> </font>exemptions<font style="letter-spacing:0.1pt;"> </font>until<font style="letter-spacing:0.05pt;"> </font>we are<font style="letter-spacing:0.05pt;"> </font>no longer<font style="letter-spacing:0.05pt;"> </font>an emerging<font style="letter-spacing:0.1pt;"> </font>growth company.<font style="letter-spacing:0.05pt;"> </font>We will<font style="letter-spacing:0.05pt;"> </font>remain<font style="letter-spacing:0.1pt;"> </font>an emerging<font style="letter-spacing:0.1pt;"> </font>growth company<font style="letter-spacing:0.05pt;"> </font>until<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>earlier<font style="letter-spacing:0.1pt;"> </font>of (1)<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>last<font style="letter-spacing:0.05pt;"> </font>day of the<font style="letter-spacing:0.05pt;"> </font>fiscal<font style="letter-spacing:0.1pt;"> </font>year<font style="letter-spacing:0.05pt;"> </font>(a)<font style="letter-spacing:0.05pt;"> </font>following<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>fifth<font style="letter-spacing:0.1pt;"> </font>anniversary<font style="letter-spacing:0.1pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>completion<font style="letter-spacing:0.1pt;"> </font>of our initial public offering,<font style="letter-spacing:0.1pt;"> </font>(b)<font style="letter-spacing:0.05pt;"> </font>in which we have total annual<font style="letter-spacing:0.05pt;"> </font>gross<font style="letter-spacing:0.05pt;"> </font>revenue<font style="letter-spacing:0.05pt;"> </font>of at<font style="letter-spacing:0.05pt;"> </font>least<font style="letter-spacing:0.05pt;"> </font>$1.07 billion,<font style="letter-spacing:0.1pt;"> </font>or (c)<font style="letter-spacing:0.05pt;"> </font>in which we are<font style="letter-spacing:0.05pt;"> </font>deemed<font style="letter-spacing:0.05pt;"> </font>to be a large<font style="letter-spacing:0.05pt;"> </font>accelerated<font style="letter-spacing:0.15pt;"> </font>filer,<font style="letter-spacing:0.1pt;"> </font>which means<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>held<font style="letter-spacing:0.05pt;"> </font>by non-affiliates<font style="letter-spacing:0.2pt;"> </font>exceeds<font style="letter-spacing:0.05pt;"> </font>$700.0 million<font style="letter-spacing:0.1pt;"> </font>as of the<font style="letter-spacing:0.05pt;"> </font>prior September 30th, and (2)<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>date<font style="letter-spacing:0.05pt;"> </font>on which we have issued<font style="letter-spacing:0.05pt;"> </font>more<font style="letter-spacing:0.05pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>$1.0 billion<font style="letter-spacing:0.1pt;"> </font>in non-convertible<font style="letter-spacing:0.15pt;"> </font>debt<font style="letter-spacing:0.05pt;"> </font>during<font style="letter-spacing:0.05pt;"> </font>the prior<font style="letter-spacing:0.05pt;"> </font>three-year<font style="letter-spacing:0.1pt;"> </font>period.</p>
<p style="margin-top:18pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">If<font style="letter-spacing:0.05pt;"> </font>we sell<font style="letter-spacing:0.05pt;"> </font>shares<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>in future<font style="letter-spacing:0.05pt;"> </font>financings,<font style="letter-spacing:0.05pt;"> </font>stockholders<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>experience<font style="letter-spacing:0.05pt;"> </font>immediate<font style="letter-spacing:0.1pt;"> </font>dilution and, as a result,<font style="letter-spacing:0.05pt;"> </font>our stock<font style="letter-spacing:0.05pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>decline.</p>
<p style="margin-top:6pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We may<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>time<font style="letter-spacing:0.05pt;"> </font>to time<font style="letter-spacing:0.05pt;"> </font>issue<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>shares<font style="letter-spacing:0.05pt;"> </font>of common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>a discount<font style="letter-spacing:0.05pt;"> </font>from<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>current<font style="letter-spacing:0.1pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock.<font style="letter-spacing:0.05pt;"> </font>As a result,<font style="letter-spacing:0.1pt;"> </font>our stockholders<font style="letter-spacing:0.1pt;"> </font>would experience<font style="letter-spacing:0.1pt;"> </font>immediate<font style="letter-spacing:0.15pt;"> </font>dilution<font style="letter-spacing:0.1pt;"> </font>upon the<font style="letter-spacing:0.05pt;"> </font>purchase<font style="letter-spacing:0.05pt;"> </font>of any shares<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>sold<font style="letter-spacing:0.05pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>such discount.<font style="letter-spacing:0.05pt;"> </font>In addition,<font style="letter-spacing:0.05pt;"> </font>as opportunities<font style="letter-spacing:0.1pt;"> </font>present<font style="letter-spacing:0.05pt;"> </font>themselves,<font style="letter-spacing:0.1pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>enter into<font style="letter-spacing:0.05pt;"> </font>financing<font style="letter-spacing:0.1pt;"> </font>or similar<font style="letter-spacing:0.1pt;"> </font>arrangements<font style="letter-spacing:0.15pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future,<font style="letter-spacing:0.05pt;"> </font>including<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>issuance<font style="letter-spacing:0.05pt;"> </font>of debt<font style="letter-spacing:0.05pt;"> </font>securities,<font style="letter-spacing:0.15pt;"> </font>preferred<font style="letter-spacing:0.1pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>or common<font style="letter-spacing:0.05pt;"> </font>stock.<font style="letter-spacing:0.05pt;"> </font>If<font style="letter-spacing:0.05pt;"> </font>we issue<font style="letter-spacing:0.05pt;"> </font>common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>or securities<font style="letter-spacing:0.15pt;"> </font>convertible<font style="letter-spacing:0.1pt;"> </font>into<font style="letter-spacing:0.05pt;"> </font>common<font style="letter-spacing:0.05pt;"> </font>stock,<font style="letter-spacing:0.05pt;"> </font>our common<font style="letter-spacing:0.05pt;"> </font>stockholders would experience<font style="letter-spacing:0.1pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>dilution<font style="letter-spacing:0.1pt;"> </font>and, as a result,<font style="letter-spacing:0.1pt;"> </font>our stock<font style="letter-spacing:0.05pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>decline.</p>
<p style="margin-top:18pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our principal<font style="letter-spacing:0.05pt;"> </font>stockholders<font style="letter-spacing:0.1pt;"> </font>and management<font style="letter-spacing:0.05pt;"> </font>own<font style="letter-spacing:-0.05pt;"> </font>a significant<font style="letter-spacing:0.1pt;"> </font>percentage<font style="letter-spacing:0.05pt;"> </font>of our stock<font style="letter-spacing:0.05pt;"> </font>and will<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to exert<font style="letter-spacing:0.05pt;"> </font>significant<font style="letter-spacing:0.1pt;"> </font>control<font style="letter-spacing:0.05pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>matters<font style="letter-spacing:0.1pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to stockholder<font style="letter-spacing:0.05pt;"> </font>approval.</p>
<p style="margin-top:6pt;line-height:10pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Based on the number of shares outstanding as of June 30, 2018, as adjusted for the consummation of our initial public offering in October 2017, our executive<font style="letter-spacing:0.1pt;"> </font>officers,<font style="letter-spacing:0.1pt;"> </font>directors,<font style="letter-spacing:0.1pt;"> </font>holders<font style="letter-spacing:0.05pt;"> </font>of 5% or more<font style="letter-spacing:0.05pt;"> </font>of our capital stock<font style="letter-spacing:0.05pt;"> </font>and their<font style="letter-spacing:0.05pt;"> </font>respective<font style="letter-spacing:0.1pt;"> </font>affiliates<font style="letter-spacing:0.15pt;"> </font>beneficially<font style="letter-spacing:0.15pt;"> </font>owned approximately<font style="letter-spacing:0.15pt;"> </font>37.8% of our voting<font style="letter-spacing:0.05pt;"> </font>stock. These<font style="letter-spacing:0.05pt;"> </font>stockholders<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>have the<font style="letter-spacing:0.05pt;"> </font>ability<font style="letter-spacing:0.1pt;"> </font>to influence<font style="letter-spacing:0.1pt;"> </font>us through<font style="letter-spacing:0.05pt;"> </font>this<font style="letter-spacing:0.05pt;"> </font>ownership position.<font style="letter-spacing:0.05pt;"> </font>These stockholders<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to determine<font style="letter-spacing:0.1pt;"> </font>all<font style="letter-spacing:0.05pt;"> </font>matters<font style="letter-spacing:0.1pt;"> </font>requiring<font style="letter-spacing:0.1pt;"> </font>stockholder<font style="letter-spacing:0.1pt;"> </font>approval.<font style="letter-spacing:0.05pt;"> </font>For example, these<font style="letter-spacing:0.05pt;"> </font>stockholders<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be able<font style="letter-spacing:0.05pt;"> </font>to control<font style="letter-spacing:0.05pt;"> </font>elections<font style="letter-spacing:0.1pt;"> </font>of directors,<font style="letter-spacing:0.1pt;"> </font>amendments<font style="letter-spacing:0.1pt;"> </font>of our organizational<font style="letter-spacing:0.15pt;"> </font>documents,<font style="letter-spacing:0.05pt;"> </font>or approval<font style="letter-spacing:0.05pt;"> </font>of any merger,<font style="letter-spacing:0.1pt;"> </font>sale<font style="letter-spacing:0.05pt;"> </font>of assets,<font style="letter-spacing:0.05pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>major<font style="letter-spacing:0.05pt;"> </font>corporate<font style="letter-spacing:0.1pt;"> </font>transaction.<font style="letter-spacing:0.1pt;"> </font>This may<font style="letter-spacing:0.05pt;"> </font>prevent<font style="letter-spacing:0.05pt;"> </font>or discourage unsolicited<font style="letter-spacing:0.1pt;"> </font>acquisition<font style="letter-spacing:0.1pt;"> </font>proposals<font style="letter-spacing:0.05pt;"> </font>or offers<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>you may<font style="letter-spacing:0.05pt;"> </font>feel<font style="letter-spacing:0.05pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>in your best<font style="letter-spacing:0.05pt;"> </font>interest<font style="letter-spacing:0.1pt;"> </font>as one of our stockholders.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our ability<font style="letter-spacing:0.1pt;"> </font>to use our net operating<font style="letter-spacing:0.05pt;"> </font>loss<font style="letter-spacing:0.05pt;"> </font>carryforwards<font style="letter-spacing:0.05pt;"> </font>and certain<font style="letter-spacing:0.05pt;"> </font>other<font style="letter-spacing:0.05pt;"> </font>tax attributes<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be limited.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We have incurred<font style="letter-spacing:0.1pt;"> </font>substantial<font style="letter-spacing:0.1pt;"> </font>losses<font style="letter-spacing:0.05pt;"> </font>during<font style="letter-spacing:0.05pt;"> </font>our history<font style="letter-spacing:0.05pt;"> </font>and do not expect<font style="letter-spacing:0.05pt;"> </font>to become<font style="letter-spacing:0.05pt;"> </font>profitable<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>near<font style="letter-spacing:0.05pt;"> </font>future, and we may<font style="letter-spacing:0.05pt;"> </font>never<font style="letter-spacing:0.05pt;"> </font>achieve<font style="letter-spacing:0.05pt;"> </font>profitability.<font style="letter-spacing:0.15pt;"> </font>To the<font style="letter-spacing:0.05pt;"> </font>extent<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we continue<font style="letter-spacing:0.05pt;"> </font>to generate<font style="letter-spacing:0.1pt;"> </font>taxable<font style="letter-spacing:0.05pt;"> </font>losses,<font style="letter-spacing:0.05pt;"> </font>unused losses will<font style="letter-spacing:0.05pt;"> </font>carry<font style="letter-spacing:0.05pt;"> </font>forward<font style="letter-spacing:0.05pt;"> </font>to offset<font style="letter-spacing:0.1pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>taxable<font style="letter-spacing:0.05pt;"> </font>income,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>any, until<font style="letter-spacing:0.05pt;"> </font>such unused losses<font style="letter-spacing:0.05pt;"> </font>expire.<font style="letter-spacing:0.05pt;"> </font>Under Sections<font style="letter-spacing:0.05pt;"> </font>382 and 383 of the<font style="letter-spacing:0.05pt;"> </font>Internal<font style="letter-spacing:0.1pt;"> </font>Revenue Code of 1986, as amended,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>a corporation<font style="letter-spacing:0.1pt;"> </font>undergoes<font style="letter-spacing:0.05pt;"> </font>an &#8220;ownership<font style="letter-spacing:0.05pt;"> </font>change,&#8221; generally<font style="letter-spacing:0.1pt;"> </font>defined<font style="letter-spacing:0.05pt;"> </font>as a greater<font style="letter-spacing:0.1pt;"> </font>than<font style="letter-spacing:0.05pt;"> </font>50 percentage<font style="letter-spacing:0.1pt;"> </font>point<font style="letter-spacing:0.05pt;"> </font>change<font style="letter-spacing:0.05pt;"> </font>(by value)<font style="letter-spacing:0.05pt;"> </font>in its<font style="letter-spacing:0.05pt;"> </font>equity<font style="letter-spacing:0.05pt;"> </font>ownership<font style="letter-spacing:0.05pt;"> </font>by certain stockholders<font style="letter-spacing:0.1pt;"> </font>over<font style="letter-spacing:0.05pt;"> </font>a three-year<font style="letter-spacing:0.1pt;"> </font>period,<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>corporation&#8217;s<font style="letter-spacing:0.15pt;"> </font>ability<font style="letter-spacing:0.1pt;"> </font>to use its<font style="letter-spacing:0.05pt;"> </font>pre-change<font style="letter-spacing:0.1pt;"> </font>net<font style="letter-spacing:0.05pt;"> </font>operating<font style="letter-spacing:0.1pt;"> </font>loss carryforwards,<font style="letter-spacing:0.1pt;"> </font>or NOLs,<font style="letter-spacing:-0.05pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>pre-change<font style="letter-spacing:0.1pt;"> </font>tax<font style="letter-spacing:0.05pt;"> </font>attributes<font style="letter-spacing:0.15pt;"> </font>(such<font style="letter-spacing:0.05pt;"> </font>as research<font style="letter-spacing:0.1pt;"> </font>and development<font style="letter-spacing:0.1pt;"> </font>tax<font style="letter-spacing:0.05pt;"> </font>credits)<font style="letter-spacing:0.1pt;"> </font>to offset<font style="letter-spacing:0.1pt;"> </font>its<font style="letter-spacing:0.05pt;"> </font>post-change<font style="letter-spacing:0.1pt;"> </font>income<font style="letter-spacing:0.05pt;"> </font>or taxes<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>be limited.<font style="letter-spacing:0.1pt;"> </font>We may<font style="letter-spacing:0.05pt;"> </font>have experienced<font style="letter-spacing:0.1pt;"> </font>ownership<font style="letter-spacing:0.05pt;"> </font>changes<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>past and may<font style="letter-spacing:0.05pt;"> </font>experience<font style="letter-spacing:0.1pt;"> </font>ownership<font style="letter-spacing:0.05pt;"> </font>changes<font style="letter-spacing:0.05pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>future<font style="letter-spacing:0.05pt;"> </font>and/or<font style="letter-spacing:0.05pt;"> </font>subsequent<font style="letter-spacing:0.05pt;"> </font>shifts<font style="letter-spacing:0.1pt;"> </font>in our stock<font style="letter-spacing:0.05pt;"> </font>ownership<font style="letter-spacing:0.05pt;"> </font>(some<font style="letter-spacing:0.05pt;"> </font>of which shifts<font style="letter-spacing:0.1pt;"> </font>are<font style="letter-spacing:0.05pt;"> </font>outside<font style="letter-spacing:0.05pt;"> </font>our control).<font style="letter-spacing:0.1pt;"> </font>As a result,<font style="letter-spacing:0.1pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>we earn<font style="letter-spacing:0.05pt;"> </font>net<font style="letter-spacing:0.05pt;"> </font>taxable<font style="letter-spacing:0.05pt;"> </font>income,<font style="letter-spacing:0.05pt;"> </font>our ability<font style="letter-spacing:0.1pt;"> </font>to use our pre-change<font style="letter-spacing:0.1pt;"> </font>NOLs<font style="letter-spacing:-0.05pt;"> </font>to offset<font style="letter-spacing:0.1pt;"> </font>such taxable<font style="letter-spacing:0.05pt;"> </font>income<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>be subject<font style="letter-spacing:0.05pt;"> </font>to limitations.<font style="letter-spacing:0.15pt;"> </font>Similar provisions<font style="letter-spacing:0.1pt;"> </font>of state<font style="letter-spacing:0.05pt;"> </font>tax<font style="letter-spacing:0.05pt;"> </font>law may<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>apply.<font style="letter-spacing:0.05pt;"> </font>As a result,<font style="letter-spacing:0.1pt;"> </font>even if<font style="letter-spacing:0.05pt;"> </font>we attain<font style="letter-spacing:0.1pt;"> </font>profitability,<font style="letter-spacing:0.15pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>be unable<font style="letter-spacing:0.05pt;"> </font>to use a material<font style="letter-spacing:0.15pt;"> </font>portion<font style="letter-spacing:0.05pt;"> </font>of our NOLs<font style="letter-spacing:-0.05pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>tax<font style="letter-spacing:0.05pt;"> </font>attributes.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Provisions<font style="letter-spacing:0.05pt;"> </font>in our charter<font style="letter-spacing:0.05pt;"> </font>documents<font style="letter-spacing:0.05pt;"> </font>and under Delaware law could discourage<font style="letter-spacing:0.05pt;"> </font>a takeover<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>stockholders may<font style="letter-spacing:0.05pt;"> </font>consider<font style="letter-spacing:0.05pt;"> </font>favorable<font style="letter-spacing:0.05pt;"> </font>and may<font style="letter-spacing:0.05pt;"> </font>lead<font style="letter-spacing:0.05pt;"> </font>to entrenchment<font style="letter-spacing:0.05pt;"> </font>of management.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our amended<font style="letter-spacing:0.05pt;"> </font>and restated<font style="letter-spacing:0.1pt;"> </font>certificate<font style="letter-spacing:0.15pt;"> </font>of incorporation<font style="letter-spacing:0.1pt;"> </font>and amended<font style="letter-spacing:0.05pt;"> </font>and restated<font style="letter-spacing:0.1pt;"> </font>bylaws contain<font style="letter-spacing:0.05pt;"> </font>provisions<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>could<font style="letter-spacing:0.05pt;"> </font>delay<font style="letter-spacing:0.05pt;"> </font>or prevent changes<font style="letter-spacing:0.05pt;"> </font>in control<font style="letter-spacing:0.05pt;"> </font>or changes<font style="letter-spacing:0.05pt;"> </font>in our management<font style="letter-spacing:0.1pt;"> </font>without<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>consent<font style="letter-spacing:0.05pt;"> </font>of our board<font style="letter-spacing:0.05pt;"> </font>of directors.<font style="letter-spacing:0.1pt;"> </font>These provisions will<font style="letter-spacing:0.05pt;"> </font>include<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>following:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">a classified</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">board</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with three-year</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">staggered</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">terms,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">delay</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of stockholders</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to change</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">membership</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of a majority</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our board</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">no cumulative</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">voting</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">election</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which limits</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of minority</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">stockholders</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to elect</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">director</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">candidates;</font></p></td></tr></table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">55</a></p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><a name="_AEIOULastRenderedPageBreakAEIOU56"></a><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"></font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">exclusive</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">right</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our board</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to elect</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a director</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to fill</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a vacancy</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">created</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">expansion of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">board</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">resignation,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">death</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or removal</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of a director,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which prevents</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">stockholders from</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">being</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">able</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to fill</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">vacancies</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on our board</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our board</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to authorize</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">issuance</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of shares</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of preferred</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">stock</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and to determine</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">price</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">terms</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of those</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">shares,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">preferences</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and voting</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rights,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">without stockholder</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">approval,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which could</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be used to significantly</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">dilute</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ownership</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of a hostile</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">acquirer;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our board</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to alter</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our bylaws without</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">obtaining</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">stockholder</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">approval;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">required</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">approval</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of at</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">least</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">66 2/3%</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">shares</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">entitled</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to vote</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">at</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">an election</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to adopt,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">amend</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or repeal</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our bylaws or repeal</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">provisions</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our amended</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and restated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">certificate</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of incorporation</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">regarding</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">election</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and removal</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">a prohibition</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">on stockholder</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">action</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by written</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">consent,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which forces</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">stockholder</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">action</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to be taken</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">at an annual</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or special</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">meeting</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our stockholders;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">requirement</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a special</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">meeting</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of stockholders</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">be called</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">only by the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">chairman</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">board of directors,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">chief</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">executive</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">officer,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">president</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">board</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">which may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">delay</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the ability</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of our stockholders</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to force</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">consideration</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of a proposal</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or to act,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">including</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">removal of directors;</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';letter-spacing:-0.2pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';letter-spacing:-0.2pt;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;letter-spacing:-0.2pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">advance notice procedures that stockholders must comply with in order to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders&#8217; meeting, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer&#8217;s own slate of directors or otherwise attempting to obtain control of us.</font></p></td></tr></table></div>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,<font style="letter-spacing:0.05pt;"> </font>these<font style="letter-spacing:0.05pt;"> </font>provisions<font style="letter-spacing:0.1pt;"> </font>would apply<font style="letter-spacing:0.05pt;"> </font>even if<font style="letter-spacing:0.05pt;"> </font>we were to receive<font style="letter-spacing:0.1pt;"> </font>an offer<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>some<font style="letter-spacing:0.05pt;"> </font>stockholders<font style="letter-spacing:0.1pt;"> </font>may consider<font style="letter-spacing:0.05pt;"> </font>beneficial.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are<font style="letter-spacing:0.05pt;"> </font>also<font style="letter-spacing:0.05pt;"> </font>subject<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>anti-takeover<font style="letter-spacing:0.15pt;"> </font>provisions<font style="letter-spacing:0.1pt;"> </font>contained<font style="letter-spacing:0.05pt;"> </font>in Section<font style="letter-spacing:0.05pt;"> </font>203 of the<font style="letter-spacing:0.05pt;"> </font>Delaware<font style="letter-spacing:0.05pt;"> </font>General Corporation<font style="letter-spacing:0.05pt;"> </font>Law. Under Section<font style="letter-spacing:0.05pt;"> </font>203, a corporation<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>not, in general,<font style="letter-spacing:0.05pt;"> </font>engage<font style="letter-spacing:0.05pt;"> </font>in a business<font style="letter-spacing:0.05pt;"> </font>combination<font style="letter-spacing:0.1pt;"> </font>with any holder<font style="letter-spacing:0.05pt;"> </font>of 15% or more<font style="letter-spacing:0.05pt;"> </font>of its<font style="letter-spacing:0.05pt;"> </font>capital<font style="letter-spacing:0.1pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>unless<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>holder<font style="letter-spacing:0.05pt;"> </font>has held<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>three<font style="letter-spacing:0.05pt;"> </font>years<font style="letter-spacing:0.05pt;"> </font>or, among<font style="letter-spacing:0.05pt;"> </font>other exceptions,<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>board<font style="letter-spacing:0.05pt;"> </font>of directors<font style="letter-spacing:0.1pt;"> </font>has approved<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>transaction.<font style="letter-spacing:0.1pt;"> </font></p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Claims<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>indemnification<font style="letter-spacing:0.15pt;"> </font>by our directors<font style="letter-spacing:0.1pt;"> </font>and officers<font style="letter-spacing:0.1pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>reduce<font style="letter-spacing:0.05pt;"> </font>our available<font style="letter-spacing:0.1pt;"> </font>funds to satisfy<font style="letter-spacing:0.1pt;"> </font>successful third-party<font style="letter-spacing:0.1pt;"> </font>claims<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us and may<font style="letter-spacing:0.05pt;"> </font>reduce<font style="letter-spacing:0.05pt;"> </font>the amount of money<font style="letter-spacing:0.05pt;"> </font>available<font style="letter-spacing:0.1pt;"> </font>to us.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our amended<font style="letter-spacing:0.05pt;"> </font>and restated<font style="letter-spacing:0.1pt;"> </font>certificate<font style="letter-spacing:0.15pt;"> </font>of incorporation<font style="letter-spacing:0.1pt;"> </font>and amended<font style="letter-spacing:0.05pt;"> </font>and restated<font style="letter-spacing:0.1pt;"> </font>bylaws provide<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>we will indemnify<font style="letter-spacing:0.1pt;"> </font>our directors<font style="letter-spacing:0.1pt;"> </font>and officers,<font style="letter-spacing:0.1pt;"> </font>in each<font style="letter-spacing:0.05pt;"> </font>case<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>fullest<font style="letter-spacing:0.1pt;"> </font>extent<font style="letter-spacing:0.05pt;"> </font>permitted<font style="letter-spacing:0.1pt;"> </font>by Delaware<font style="letter-spacing:0.05pt;"> </font>law.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition,<font style="letter-spacing:0.05pt;"> </font>as permitted<font style="letter-spacing:0.1pt;"> </font>by Section<font style="letter-spacing:0.05pt;"> </font>145 of the<font style="letter-spacing:0.05pt;"> </font>Delaware<font style="letter-spacing:0.05pt;"> </font>General<font style="letter-spacing:0.05pt;"> </font>Corporation<font style="letter-spacing:0.05pt;"> </font>Law, our amended<font style="letter-spacing:0.05pt;"> </font>and restated bylaws and our indemnification<font style="letter-spacing:0.15pt;"> </font>agreements that<font style="letter-spacing:0.05pt;"> </font>we have entered<font style="letter-spacing:0.05pt;"> </font>into<font style="letter-spacing:0.05pt;"> </font>with our directors<font style="letter-spacing:0.1pt;"> </font>and officers<font style="letter-spacing:0.1pt;"> </font>provide<font style="letter-spacing:0.05pt;"> </font>that:</p>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">we will</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">indemnify</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our directors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and officers</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">serving</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">us in those</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">capacities</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or for</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">serving</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">other business</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">enterprises</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">at</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our request,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">fullest</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">extent</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">permitted</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by Delaware</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">law. Delaware</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">law provides</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a corporation</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">indemnify</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such person</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">if</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such person</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">acted</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in good faith</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and in a manner</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such person</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">reasonably</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">believed</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to be in or not opposed to the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">best</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">interests</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">registrant and, with respect</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to any criminal</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">proceeding,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">had no reasonable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">cause</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to believe</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such person&#8217;s</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">conduct was unlawful;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">we may,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in our discretion,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">indemnify</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">employees</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and agents</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in those</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">circumstances</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">where indemnification</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">is</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">permitted</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by applicable</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">law;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">we are</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">required</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to advance</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">expenses,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">as incurred,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to our directors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and officers</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in connection</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with defending</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a proceeding,</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">except</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such directors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or officers</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">shall</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">undertake</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to repay</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such advances</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">if it</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">is</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">ultimately</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">determined</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such person</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">is</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not entitled</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to indemnification;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">we will</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not be obligated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">pursuant</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to our amended</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and restated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">bylaws to indemnify</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a person</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with respect</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to proceedings</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">initiated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by that</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">person</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">against</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">us or our other</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">indemnitees,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">except</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with respect to proceedings</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">authorized</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">by our board</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">of directors</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">or brought</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to enforce</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">a right</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to indemnification;</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">the</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">rights</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">conferred</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">in our amended</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and restated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">bylaws are</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not exclusive,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and we are</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">authorized</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to enter</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">into</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">indemnification</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">agreements</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">with our directors,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">officers,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">employees</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and agents</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and to obtain insurance</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to indemnify</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">such persons;</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and</font></p></td></tr></table></div>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;">&nbsp;</p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="color:#000000;font-family:'Times New Roman';font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#x2022;</font></p></td>
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<p style="margin-top:6pt;margin-bottom:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:'Times New Roman';font-size:10pt;"><font style="color:#231F20;font-family:Times New Roman;">we may</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">not retroactively</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">amend</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our amended</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and restated</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">bylaw provisions</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to reduce</font><font style="color:#231F20;letter-spacing:0.05pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">our indemnification</font><font style="color:#231F20;letter-spacing:0.15pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">obligations</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">to directors,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">officers,</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">employees</font><font style="color:#231F20;letter-spacing:0.1pt;font-family:Times New Roman;"> </font><font style="color:#231F20;font-family:Times New Roman;">and agents.</font></p></td></tr></table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">56</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;"><a name="_AEIOULastRenderedPageBreakAEIOU57"></a><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Our certificate</font><font style="letter-spacing:0.15pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">of incorporation</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">provides</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">that</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">the Court </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">of Chancery of the State</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">of Delaware will</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">be the exclusive</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">forum</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">for</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">substantially</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">all</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">disputes</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">between us and our stockholders,</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">which could limit</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">our stockholders&#8217;</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">ability</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">to obtain</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">a favorable</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">judicial</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">forum</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">for</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">disputes</font><font style="letter-spacing:0.05pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">with us or our directors,</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">officers</font><font style="letter-spacing:0.1pt;"> </font><font style="font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">or employees.</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our amended and restated certificate<font style="letter-spacing:0.15pt;"> </font>of incorporation<font style="letter-spacing:0.1pt;"> </font>provides<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>Court of Chancery<font style="letter-spacing:0.05pt;"> </font>of the<font style="letter-spacing:0.05pt;"> </font>State<font style="letter-spacing:0.05pt;"> </font>of Delaware<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>exclusive forum<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>any derivative<font style="letter-spacing:0.1pt;"> </font>action<font style="letter-spacing:0.05pt;"> </font>or proceeding<font style="letter-spacing:0.05pt;"> </font>brought<font style="letter-spacing:0.05pt;"> </font>on our behalf,<font style="letter-spacing:0.05pt;"> </font>any action<font style="letter-spacing:0.05pt;"> </font>asserting<font style="letter-spacing:0.1pt;"> </font>a breach<font style="letter-spacing:0.05pt;"> </font>of fiduciary duty, any action<font style="letter-spacing:0.05pt;"> </font>asserting<font style="letter-spacing:0.1pt;"> </font>a claim<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us arising<font style="letter-spacing:0.1pt;"> </font>pursuant<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>Delaware<font style="letter-spacing:0.05pt;"> </font>General<font style="letter-spacing:0.05pt;"> </font>Corporation<font style="letter-spacing:0.05pt;"> </font>Law, our certificate<font style="letter-spacing:0.15pt;"> </font>of incorporation<font style="letter-spacing:0.1pt;"> </font>or our bylaws, any action<font style="letter-spacing:0.05pt;"> </font>to interpret,<font style="letter-spacing:0.1pt;"> </font>apply,<font style="letter-spacing:0.05pt;"> </font>enforce,<font style="letter-spacing:0.05pt;"> </font>or determine<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>validity<font style="letter-spacing:0.1pt;"> </font>of our certificate<font style="letter-spacing:0.15pt;"> </font>of incorporation<font style="letter-spacing:0.1pt;"> </font>or bylaws, or any action<font style="letter-spacing:0.05pt;"> </font>asserting<font style="letter-spacing:0.1pt;"> </font>a claim<font style="letter-spacing:0.1pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us that<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>governed<font style="letter-spacing:0.05pt;"> </font>by the<font style="letter-spacing:0.05pt;"> </font>internal affairs<font style="letter-spacing:0.1pt;"> </font>doctrine.<font style="letter-spacing:0.1pt;"> </font>The choice<font style="letter-spacing:0.05pt;"> </font>of forum<font style="letter-spacing:0.05pt;"> </font>provision<font style="letter-spacing:0.05pt;"> </font>may<font style="letter-spacing:0.05pt;"> </font>limit<font style="letter-spacing:0.1pt;"> </font>a stockholder&#8217;s<font style="letter-spacing:0.1pt;"> </font>ability<font style="letter-spacing:0.1pt;"> </font>to bring<font style="letter-spacing:0.05pt;"> </font>a claim<font style="letter-spacing:0.1pt;"> </font>in a judicial forum<font style="letter-spacing:0.05pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>it<font style="letter-spacing:0.05pt;"> </font>finds<font style="letter-spacing:0.05pt;"> </font>favorable<font style="letter-spacing:0.1pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>disputes<font style="letter-spacing:0.05pt;"> </font>with us or our directors,<font style="letter-spacing:0.1pt;"> </font>officers<font style="letter-spacing:0.1pt;"> </font>or other<font style="letter-spacing:0.05pt;"> </font>employees,<font style="letter-spacing:0.1pt;"> </font>which may discourage<font style="letter-spacing:0.1pt;"> </font>such lawsuits<font style="letter-spacing:0.05pt;"> </font>against<font style="letter-spacing:0.05pt;"> </font>us and our directors,<font style="letter-spacing:0.1pt;"> </font>officers<font style="letter-spacing:0.1pt;"> </font>and other<font style="letter-spacing:0.05pt;"> </font>employees.<font style="letter-spacing:0.1pt;"> </font>Alternatively,<font style="letter-spacing:0.15pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>a court<font style="letter-spacing:0.05pt;"> </font>were to find<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>choice<font style="letter-spacing:0.05pt;"> </font>of forum<font style="letter-spacing:0.05pt;"> </font>provision<font style="letter-spacing:0.05pt;"> </font>contained<font style="letter-spacing:0.05pt;"> </font>in our certificate<font style="letter-spacing:0.15pt;"> </font>of incorporation<font style="letter-spacing:0.1pt;"> </font>to be inapplicable<font style="letter-spacing:0.1pt;"> </font>or unenforceable<font style="letter-spacing:0.1pt;"> </font>in an action,<font style="letter-spacing:0.05pt;"> </font>we may<font style="letter-spacing:0.05pt;"> </font>incur<font style="letter-spacing:0.05pt;"> </font>additional<font style="letter-spacing:0.1pt;"> </font>costs<font style="letter-spacing:0.05pt;"> </font>associated<font style="letter-spacing:0.1pt;"> </font>with resolving<font style="letter-spacing:0.1pt;"> </font>such action<font style="letter-spacing:0.05pt;"> </font>in other jurisdictions,<font style="letter-spacing:0.15pt;"> </font>which could<font style="letter-spacing:0.05pt;"> </font>adversely<font style="letter-spacing:0.1pt;"> </font>affect<font style="letter-spacing:0.1pt;"> </font>our business<font style="letter-spacing:0.05pt;"> </font>and financial<font style="letter-spacing:0.1pt;"> </font>condition.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">We do not intend<font style="letter-spacing:0.05pt;"> </font>to pay dividends<font style="letter-spacing:0.05pt;"> </font>on our common<font style="letter-spacing:0.05pt;"> </font>stock,<font style="letter-spacing:0.05pt;"> </font>and, consequently,<font style="letter-spacing:0.05pt;"> </font>our stockholders&#8217; ability<font style="letter-spacing:0.1pt;"> </font>to achieve<font style="letter-spacing:0.05pt;"> </font>a return<font style="letter-spacing:0.05pt;"> </font>on their investment<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>depend on appreciation<font style="letter-spacing:0.1pt;"> </font>in the price<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock.</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We do not intend<font style="letter-spacing:0.05pt;"> </font>to pay any cash<font style="letter-spacing:0.05pt;"> </font>dividends<font style="letter-spacing:0.05pt;"> </font>on our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>foreseeable<font style="letter-spacing:0.1pt;"> </font>future.<font style="letter-spacing:0.05pt;"> </font>We intend<font style="letter-spacing:0.05pt;"> </font>to invest our future<font style="letter-spacing:0.05pt;"> </font>earnings,<font style="letter-spacing:0.05pt;"> </font>if<font style="letter-spacing:0.05pt;"> </font>any, to fund our growth. Furthermore,<font style="letter-spacing:0.1pt;"> </font>pursuant<font style="letter-spacing:0.05pt;"> </font>to the<font style="letter-spacing:0.05pt;"> </font>loan<font style="letter-spacing:0.05pt;"> </font>and the<font style="letter-spacing:0.05pt;"> </font>security<font style="letter-spacing:0.1pt;"> </font>agreement between<font style="letter-spacing:0.05pt;"> </font>us and Solar, we are<font style="letter-spacing:0.05pt;"> </font>not permitted<font style="letter-spacing:0.1pt;"> </font>to pay cash<font style="letter-spacing:0.05pt;"> </font>dividends<font style="letter-spacing:0.05pt;"> </font>more than $150,000 in aggregate<font style="letter-spacing:0.1pt;"> </font>per<font style="letter-spacing:0.05pt;"> </font>fiscal year<font style="letter-spacing:0.05pt;"> </font>without<font style="letter-spacing:0.05pt;"> </font>its<font style="letter-spacing:0.05pt;"> </font>prior<font style="letter-spacing:0.05pt;"> </font>written<font style="letter-spacing:0.05pt;"> </font>consent.<font style="letter-spacing:0.05pt;"> </font>Therefore,<font style="letter-spacing:0.1pt;"> </font>our stockholders are<font style="letter-spacing:0.05pt;"> </font>not likely<font style="letter-spacing:0.05pt;"> </font>to receive<font style="letter-spacing:0.1pt;"> </font>any dividends<font style="letter-spacing:0.05pt;"> </font>on their common stock<font style="letter-spacing:0.05pt;"> </font>for<font style="letter-spacing:0.05pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>foreseeable<font style="letter-spacing:0.1pt;"> </font>future.<font style="letter-spacing:0.05pt;"> </font>Since<font style="letter-spacing:0.05pt;"> </font>we do not intend<font style="letter-spacing:0.05pt;"> </font>to pay dividends,<font style="letter-spacing:0.05pt;"> </font>our stockholders&#8217; ability<font style="letter-spacing:0.1pt;"> </font>to receive<font style="letter-spacing:0.1pt;"> </font>a return<font style="letter-spacing:0.05pt;"> </font>on their investment<font style="letter-spacing:0.1pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>depend on any future<font style="letter-spacing:0.05pt;"> </font>appreciation<font style="letter-spacing:0.1pt;"> </font>in the<font style="letter-spacing:0.05pt;"> </font>market<font style="letter-spacing:0.1pt;"> </font>value<font style="letter-spacing:0.05pt;"> </font>of our common<font style="letter-spacing:0.05pt;"> </font>stock.<font style="letter-spacing:0.05pt;"> </font>There<font style="letter-spacing:0.05pt;"> </font>is<font style="letter-spacing:0.05pt;"> </font>no guarantee<font style="letter-spacing:0.1pt;"> </font>that<font style="letter-spacing:0.05pt;"> </font>our common<font style="letter-spacing:0.05pt;"> </font>stock<font style="letter-spacing:0.05pt;"> </font>will<font style="letter-spacing:0.05pt;"> </font>appreciate<font style="letter-spacing:0.1pt;"> </font>or even maintain<font style="letter-spacing:0.1pt;"> </font>the<font style="letter-spacing:0.05pt;"> </font>price<font style="letter-spacing:0.05pt;"> </font>at<font style="letter-spacing:0.05pt;"> </font>which our stockholders<font style="letter-spacing:0.05pt;"> </font>have purchased it.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_2_UNREGISTERED_SALES_EQUITY_SECURIT"></a><a name="ITEM_2_UNREGISTERED_SALES_EQUITY_SECURIT"></a>ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Unregistered Sales of Equity Securities</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">There were no unregistered securities issued and sold during the quarter ended June 30, 2018.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Use of Proceeds</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On October 11, 2017, the Company&#8217;s Registration Statement on Form S-1 (File No. 333-220303) relating to the IPO of its common stock was declared effective by the SEC. Pursuant to such Registration Statement, the Company completed its initial public offering of 3,897,910 shares of its common stock (inclusive of 322,910 shares of common stock from the subsequent exercise of the over-allotment option granted to the underwriters) at a price of $7.00 per share for aggregate cash proceeds of approximately $22.1 million after deducting offering costs and commissions of $5.2 million. There has been no material change in the expected use of the net proceeds from our IPO, as described in our final prospectus dated October 11, 2017 and filed with the SEC on October 13, 2017 pursuant to Rule 424(b) under the Securities Act of 1933, as amended.</p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">There has been no material change in the expected use of the net proceeds from our initial public offering as described in our final prospectus filed with the SEC on October 13, 2017 pursuant to Rule 424(b).</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-style:italic;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;">Issuer Purchases of Equity Securities </p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_3_DEFAULTS_UPON_SENIOR_SECURITIES"></a>ITEM 3. DEFAULTS <a name="ITEM_3_DEFAULTS_UPON_SENIOR_SECURITIES"></a>UPON SENIOR SECURITIES</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_4_MINE_SAFETY_DISCLOSURES"></a><a name="ITEM_4_MINE_SAFETY_DISCLOSURES"></a>ITEM 4. MINE SAFETY DISCLOSURES</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Not Applicable.</p>
<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_5_OR_INFORMATION"></a><a name="ITEM_5_OR_INFORMATION"></a>ITEM 5. OTHER INFORMATION</p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">None.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">57</a></p>
<hr style="page-break-after:always;width:100%;">
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="II_Item6"></a><a name="_AEIOULastRenderedPageBreakAEIOU58"></a><a name="ITEM_6_EXHIBITS"></a><font style="font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="ITEM_6_EXHIBITS"></a>ITEM 6. </font><font style="font-weight:bold;color:#231F20;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">EXHIBITS</font></p>
<p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#231F20;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">See the Exhibit Index following the signature page to this Quarterly Report on Form 10-Q for a list of exhibits filed or furnished with this report, which Exhibit Index is incorporated herein by reference.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Number</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;;font-size:8pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Number</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;;font-size:8pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Filed</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Herewith</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160;&#160;&#160;3.1</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="http://www.sec.gov/Archives/edgar/data/1409269/000119312517311810/d448597dex31.htm"><font style="text-decoration:underline;">Amended and Restated Certificate of Incorporation</font></a></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8-K</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10-17-17</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3.1</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160;&#160;&#160;3.2</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="http://www.sec.gov/Archives/edgar/data/1409269/000119312517311810/d448597dex32.htm"><font style="text-decoration:underline;">Amended and Restated Bylaws</font></a></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8-K</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10-17-17</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3.2</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160;&#160;&#160;4.1</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.42%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Reference is made to exhibits <a href="http://www.sec.gov/Archives/edgar/data/1409269/000119312517311810/d448597dex31.htm"><font style="text-decoration:underline;">3.1</font></a> through <a href="http://www.sec.gov/Archives/edgar/data/1409269/000119312517311810/d448597dex31.htm"><a href="http://www.sec.gov/Archives/edgar/data/1409269/000119312517311810/d448597dex32.htm"><font style="text-decoration:underline;">3.2</font></a>.</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#160;&#160;&#160;&#160;4.2</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="http://www.sec.gov/Archives/edgar/data/1409269/000119312517286792/d412930dex42.htm"><font style="text-decoration:underline;">Form of Common Stock Certificate</font></a></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">S-1/A</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">9-18-17</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">4.2</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">&#160;&#160;10.1</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">&#8224;</font><font style="color:#000000;"> </font><a href="http://www.sec.gov/Archives/edgar/data/1409269/000119312518164235/d586285dex101.htm"><font style="text-decoration:underline;color:#000000;">Loan and Security Agreement dated May 10, 2018</font></a></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:6.55pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">8-K</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:6.1pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">5-15-18</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:4.5pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">10.1</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">&#160;&#160;31.1</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.42%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="hair-ex311_8.htm"><font style="text-decoration:underline;">Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></a></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
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<tr>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">&#160;&#160;31.2</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.42%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="hair-ex312_7.htm"><font style="text-decoration:underline;">Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></a></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
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<tr>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">&#160;&#160;32.1*</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="hair-ex321_9.htm"><font style="text-decoration:underline;">Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</font></a></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
<td valign="top"  BGCOLOR="#FFFFFF" style="width:8.94%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
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<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.12%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">&#160;&#160;32.2*</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:46.42%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><a href="hair-ex322_6.htm"><font style="text-decoration:underline;">Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</font></a></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">X</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">101.INS</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">XBRL Instance Document</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">101.SCH</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">XBRL Taxonomy Extension Schema Document</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<tr>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">101.CAL</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">XBRL Taxonomy Extension Calculation Linkbase Document</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">101.DEF</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">XBRL Taxonomy Extension Definition Linkbase Document</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">101.LAB</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">XBRL Taxonomy Extension Label Linkbase Document</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;">101.PRE</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">XBRL Taxonomy Extension Presentation Linkbase Document</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
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<p style="border-bottom:Solid 0.75pt;padding-bottom:1pt;margin-bottom:0pt;margin-top:0pt;margin-right:86.67%;text-indent:0%;font-size:6pt;">&nbsp;</p>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
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<td valign="top" style="width:4.54%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">*</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;">The certification attached as Exhibit 32.1 and Exhibit 32.2 that accompanies this Quarterly Report on Form 10-Q is not deemed filed with the SEC and is not to be incorporated by reference into any filing of Restoration Robotics, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing.</p></td></tr></table></div>
<div align="left">
<table border="0" cellspacing="0" cellpadding="0"  style="border-collapse:collapse; width:100%;">
<tr>
<td valign="top" style="width:4.54%;white-space:nowrap">
<p style="margin-bottom:0pt;margin-top:0pt;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><font style="Background-color:#FFFFFF;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&#8224;</font></p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;color:#000000;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;font-family:Times New Roman;font-size:10pt;"><font style="Background-color:#FFFFFF;">Portions of this exhibit (indicated by asterisks) are omitted pursuant to a request for confidential treatment that will be filed separately with the Securities and Exchange Commission.</font></p></td></tr></table></div>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">58</a></p>
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"><a name="Signatures"></a><a name="_AEIOULastRenderedPageBreakAEIOU59"></a><font style="font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">SIGNATURES</font></p>
<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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.</p>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Company Name</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
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<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:52.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Date: July 30, 2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:4.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:3.32%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">By:</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.02%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">/s/&#160;RYAN RHODES</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:52.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:4.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:3.32%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.02%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Ryan Rhodes</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:52.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:4.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:3.32%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.02%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">President, Chief Executive Officer</p></td>
</tr>
<tr>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:52.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:4.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:3.32%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.02%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:52.22%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Date: July 30, 2018</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:4.44%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="top"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:3.32%; border-bottom:solid 0.75pt transparent;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">By:</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.02%; border-bottom:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">/s/ MARK L. HAIR</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:52.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:4.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="middle"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:3.32%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.02%; border-top:solid 0.75pt #000000;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Mark L. Hair</p></td>
</tr>
<tr>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:52.22%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:4.44%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:3.32%;">
<p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">&nbsp;</p></td>
<td valign="bottom"  BGCOLOR="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:40.02%;">
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">Chief Financial Officer</p></td>
</tr>
</table></div>
<p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;">&nbsp;</p>
<p style="text-align:center;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">59</a></p></body>
</html>
{"company-data": {"conformed-name": "Restoration Robotics, Inc.", "cik": "0001409269", "assigned-sic": "3841", "irs-number": "061681204", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "001-38238", "film-number": "18976086"}, "business-address": {"street1": "128 BAYTECH DRIVE", "city": "SAN JOSE", "state": "CA", "zip": "95134", "phone": "408-883-6888"}, "mail-address": {"street1": "128 BAYTECH DRIVE", "city": "SAN JOSE", "state": "CA", "zip": "95134"}, "former-company": {"former-conformed-name": "Restoration Robotics Inc", "date-changed": "20070808"}}
hair-10q_20180630.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
June 30, 2018
OR
☐
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: 001-38238
Restoration Robotics,
Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware
06-1681204
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
128 Baytech Drive
San Jose, CA
95134
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (408) 883-6888
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 (§ 232.405 of this chapter) 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, 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
☐
Non-accelerated filer
☒
(Do not check if a smaller reporting company)
Smaller reporting company
☐
Emerging growth 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
☒
As of July 23, 2018, the registrant had 29,167,612 shares of common stock, $0.0001 par value per share, outstanding.
Table of Contents
Page
Part I.
Financial Information
2
Item 1.
Condensed Consolidated Financial Statements (unaudited)
2
Condensed Consolidated Balance Sheets
2
Condensed Consolidated Statements of Operations
3
Condensed Consolidated
Statements
of Comprehensive
Loss
4
Condensed Consolidated Statement of Stockholders' Equity
5
Condensed Consolidated Statements of Cash Flows
6
Notes to the Condensed Consolidated Financial Statements
7
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
17
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
25
Item 4.
Controls and Procedures
25
PART II.
OTHER INFORMATION
26
Item 1.
Legal Proceedings
26
Item 1A.
Risk Factors
26
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
57
Item 3.
Defaults Upon Senior Securities
57
Item 4.
Mine Safety Disclosures
57
Item 5.
Other Information
57
Item 6.
Exhibits
58
Signatures
59
Exhibit Index
i
PART
I
ITEM 1.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
RESTORATION
ROBOTICS,
INC.
Condensed
Consolidated
Balance Sheets
(Unaudited)
(in
thousands, except
share and per share data)
June 30,
December 31,
2018
2017
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
16,861
$
23,545
Accounts receivable, net of allowance of $499 and $229 as of June 30, 2018 and December 31, 2017, respectively
6,157
3,864
Inventory
2,974
2,761
Prepaid expenses and other current assets
1,393
1,562
Total current assets
27,385
31,732
Property and equipment, net
1,455
1,138
Restricted cash
100
100
Other assets
100
—
TOTAL ASSETS
$
29,040
$
32,970
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$
3,014
$
2,044
Accrued compensation
1,800
1,630
Other accrued liabilities
2,266
1,125
Deferred revenue
1,500
1,517
Current portion of long-term debt, net of discount of $270 as of December 31, 2017
—
7,730
Total current liabilities
8,580
14,046
Other long-term liabilities
629
459
Long-term debt, net of discount of $1,602 and $29 as of June 30, 2018 and December 31, 2017
19,228
5,271
TOTAL LIABILITIES
28,437
19,776
Commitments and Contingencies (Note 6)
Convertible preferred stock, $0.0001 par value; 236,154,444 shares authorized and no shares issued and outstanding as of June 30, 2018 and December 31, 2017
—
—
STOCKHOLDERS' EQUITY:
Common stock, $0.0001 par value; 350,490,000 shares authorized as of June 30, 2018 and December 31, 2017; 29,137,695 and 28,940,282 shares issued and outstanding as of June 30, 2018 and December 31, 2017
3
3
Additional paid-in capital
178,799
177,757
Accumulated other comprehensive loss
(37
)
(79
)
Accumulated deficit
(178,162
)
(164,487
)
TOTAL STOCKHOLDERS' EQUITY
603
13,194
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
29,040
$
32,970
The accompanying notes are an integral part of these condensed consolidated financial statements.
2
RESTORATION
ROBOTICS,
INC.
Condensed Consolidated
Statements
of Operations
(Unaudited)
(in
thousands, except
share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2018
2017
2018
2017
Revenue
$
5,475
$
5,789
$
10,480
$
11,264
Cost of revenue
2,514
3,487
5,699
6,578
Gross profit
2,961
2,302
4,781
4,686
Operating expenses:
Sales and marketing
4,365
3,338
8,749
7,304
Research and development
2,153
1,925
4,278
3,841
General and administrative
1,617
1,484
3,968
2,410
Total operating expenses
8,135
6,747
16,995
13,555
Loss from operations
(5,174
)
(4,445
)
(12,214
)
(8,869
)
Other expense, net:
Interest expense
(500
)
(529
)
(858
)
(1,115
)
Other expense, net
(559
)
(25
)
(579
)
(174
)
Total other expense, net
(1,059
)
(554
)
(1,437
)
(1,289
)
Net loss before provision for income taxes
(6,233
)
(4,999
)
(13,651
)
(10,158
)
Provision for income taxes
11
8
24
24
Net loss attributable to common stockholders
$
(6,244
)
$
(5,007
)
$
(13,675
)
$
(10,182
)
Net loss per share attributable to common stockholders, basic and diluted
$
(0.21
)
$
(3.09
)
$
(0.47
)
$
(6.29
)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
29,080,414
1,618,581
29,038,730
1,619,172
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
RESTORATION
ROBOTICS,
INC.
Condensed Consolidated
Statements
of Comprehensive
Loss
(Unaudited)
(in
thousands, except
share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2018
2017
2018
2017
Net loss
$
(6,244
)
$
(5,007
)
$
(13,675
)
$
(10,182
)
Other comprehensive income (loss):
Cumulative translation adjustment
38
11
42
(48
)
Comprehensive loss
$
(6,206
)
$
(4,996
)
$
(13,633
)
$
(10,230
)
The accompanying notes are an integral part of these condensed consolidated financial statements.
4
RESTORATION
ROBOTICS,
INC.
Condensed Consolidated
Statement
of
Stockholders'
Equity
(Unaudited)
(in
thousands, except
share and per share data)
Common Stock
Additional
Paid-in
Accumulated
Other
Comprehensive
Accumulated
Total
Stockholders'
Shares
Amount
Capital
Income (Loss)
Deficit
Equity
Balance — December 31, 2017
28,940,282
$
3
$
177,757
$
(79
)
$
(164,487
)
$
13,194
Issuance of common stock pursuant to stock option exercises of vested options
197,413
—
386
—
—
386
Stock-based compensation
—
—
252
—
—
252
Issuance of common stock warrants pursuant to debt financing
—
—
404
—
—
404
Other comprehensive gain
—
—
—
42
—
42
Net loss
—
—
—
—
(13,675
)
(13,675
)
Balance — June 30, 2018
29,137,695
$
3
$
178,799
$
(37
)
$
(178,162
)
$
603
The accompanying
notes
are an integral
part
of these
condensed
consolidated
financial
statements.
5
RESTORATION
ROBOTICS,
INC.
Condensed Consolidated
Statements
of Cash Flows
(Unaudited)
(in
thousands, except share and per share data)
Six Months Ended
June 30,
2018
2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(13,675
)
$
(10,182
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
271
313
Amortization of debt issuance costs
170
311
Non-cash loss on extinguishment of debt
178
—
Stock-based compensation
252
231
Changes in fair value of preferred stock warrant liabilities
—
193
Provision for bad debt
270
—
Provision for excess and obsolete inventory
108
—
Changes in operating assets and liabilities:
Accounts receivable
(2,563
)
(870
)
Inventory
(321
)
637
Prepaid expenses and other assets
69
(247
)
Accounts payable
1,010
799
Accrued and other liabilities
1,251
256
Deferred revenue
211
77
Net cash used in operating activities
(12,769
)
(8,482
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property and equipment
—
12
Purchases of property and equipment
(627
)
(155
)
Net cash used in investing activities
(627
)
(143
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of Series C convertible preferred stock, net
—
10,225
Proceeds from exercised stock options
386
9
Proceeds from long-term debt, net
19,584
—
Principal payments on long-term debt
(13,300
)
(4,000
)
Net cash provided by financing activities
6,670
6,234
Effect of exchange rate changes on cash, cash equivalents and restricted cash
42
(49
)
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(6,684
)
(2,440
)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period
23,645
11,906
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period
$
16,961
$
9,466
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes
$
—
$
4
Interest paid during the period
$
561
$
434
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Purchase of property and equipment included in accounts payable
$
18
$
—
Discounts and issuance costs in connection with long-term debt
$
1,246
$
—
Issuance of warrants in connection with long-term debt
$
404
$
—
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
RESTORATION
ROBOTICS,
INC.
Notes to
Condensed Consolidated Financial Statements
(Unaudited)
(in
thousands, except
share and per share data)
1. Nature of Operations
Restoration Robotics, Inc. is a medical technology company incorporated in the state of Delaware on November 22, 2002 and headquartered in San Jose, California. The Company develops an image-guided robotic system that enables follicular unit extraction (FUE) for use in the field of hair transplantation and markets the ARTAS
®
Robotic System in the United States and other countries.  In these notes to the unaudited condensed consolidated financial statements, the "Company," "Restoration Robotics," "we," "us," and "our" refers to Restoration Robotics, Inc. and its subsidiaries on a consolidated basis.
Initial Public Offering
On October 11, 2017, the Company's Registration Statement on Form S-1 (File No. 333-220303) relating to the initial public offering (IPO) of its common stock was declared effective by the Securities and Exchange Commission (SEC). Pursuant to such Registration Statement, the Company completed its IPO of 3,897,910 shares of its common stock (inclusive of 322,910 shares of common stock from the subsequent exercise of the over-allotment option granted to the underwriters) at a price of $7.00 per share for aggregate cash proceeds of approximately $22,114, after deducting underwriting discounts and commissions, and offering costs of $5,171.
Immediately prior to the closing of the IPO, all outstanding shares of convertible preferred stock converted into 22,671,601 shares of common stock and all the outstanding convertible preferred stock warrants converted into common stock warrants resulting in the reclassification of our preferred stock warrant liabilities to additional paid-in capital. In addition, the principal and accrued interest on the outstanding Convertible Notes converted into 718,184 shares of common stock. The IPO closed on October 16, 2017.
Reverse Stock Split
On September 15, 2017, the Company effected a 1-for-10 reverse stock split of its common stock. Upon the effectiveness of the reverse stock split, (i) every 10 shares of outstanding common stock were combined into one share of common stock, (ii) the number of shares of common stock for which each outstanding option to purchase common stock is exercisable was proportionately decreased on a 1-for-10 basis, (iii) the exercise price of each outstanding option to purchase common stock was proportionally increased on a l-for-10 basis, and (iv) the conversion ratio for each share of outstanding preferred stock which is convertible into our common stock was proportionately reduced on a 1-for-10 basis. All of the outstanding common stock share numbers (including shares of common stock into which our outstanding convertible preferred stock shares are convertible), share prices, exercise prices and per share amounts have been adjusted in these consolidated statements, on a retroactive basis, to reflect this l-for-10 reverse stock split for all periods presented. The par value per share and the authorized number of shares of common stock and convertible preferred stock were not adjusted because of the reverse stock split.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liquidity
These condensed consolidated financial statements are prepared on a going concern basis that contemplates the realization of assets and extinguishment of liabilities in the normal course of business. The Company has incurred net operating losses and negative cash flows from operations since inception. As of June 30, 2018, and December 31, 2017, the Company has an accumulated deficit of $178,162 and $164,487 and, as of such dates, and through the date of this filing, does not have sufficient capital to fund its planned operations. Because of the Company's recurring losses from operations and negative cash flows, the Company's independent registered public accounting firm included an explanatory paragraph in its report on the Company's consolidated financial statements as of, and for the year ended, December 31, 2017 that such factors raise substantial doubt about the Company's ability to continue as a going concern. To continue its operations, the Company must achieve profitable operations and/or obtain additional financing. Until the Company generates revenue at a level to support its cost structure, the Company expects to continue to incur substantial operating losses and net cash outflows. The Company may never become profitable and even if it does attain profitable operations, it may not be able to sustain profitability or positive cash flows on a recurring basis.
7
The Company will need to raise further capital in the future to service its debt or fund its operations until the time it can s
ustain positive cash flows. There can be no assurance that the Company will be successful in raising additional capital or that such capital, if available, will be on terms that are acceptable to the Company. If the Company is unable to raise sufficient ad
ditional capital, it may be compelled to reduce the scope of its operations and planned capital expenditures or sell certain assets, including intellectual property assets.
The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business, and, as such, the condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.
Basis of Presentation
The condensed consolidated balance sheet as of June 30, 2018, the condensed consolidated statements of operations and condensed consolidated statements of comprehensive loss for the three and six months ended June 30, 2018 and 2017 and the condensed consolidated statements of cash flows for the six months ended June 30, 2018 and 2017 and the condensed consolidated statement of stockholders' equity for the six months ended June 30, 2018 are unaudited. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) and in the opinion of management, reflect all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company's condensed consolidated financial statements included in this report. The condensed consolidated financial data disclosed in these notes to the condensed consolidated financial statements related to the three- and six-month periods are also unaudited. The condensed consolidated results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018, or for any other future annual or interim period. The consolidated balance sheet as of December 31, 2017 included herein was derived from the audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements included in its Annual Report filed on Form 10-K for the year ended December 31, 2017, with the SEC on March 5, 2018.
Principles of Consolidation
The
accompanying condensed
c
o
n
s
o
l
i
d
a
t
e
d
f
i
n
a
n
c
i
a
l
s
ta
t
e
m
e
n
ts
i
n
c
l
u
de
t
he
acco
u
nts
of
Restoration Robotics, Inc.
and its wholly owned subsidiaries, which are organized in the United States, United Kingdom, Spain, Hong Kong and South Korea.
A
l
l significant
i
nt
e
rc
o
m
p
a
n
y a
cc
o
u
nts
a
n
d
t
r
a
n
s
a
c
t
i
o
ns
h
a
v
e
b
e
e
n
e
l
i
m
i
n
a
ted
i
n
c
o
n
s
o
l
i
d
a
t
i
o
n
.
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to revenue recognition, the fair value of common stock, and the recoverability of the Company's net deferred tax assets and related valuation allowance. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates.
Reclassification
Accrued compensation, which were previously included in other accrued liabilities in the prior year's condensed consolidated balance sheet have been reclassified to conform to the current period's presentation. The reclassification had no impact on the previously reported consolidated financial statements for the year ended December 31, 2017.
8
Concentration of Customers
For the three and six months ended June 30, 2018, no customers accounted for more than 10% of the Company's revenue. For the three and six months ended June 30, 2017, no customers accounted for more than 10% of the Company's revenue. As of June 30, 2018, no customers accounted for more than 10% of the Company's accounts receivable. As of December 31, 2017, two customers accounted for 10% and 11% of the Company's accounts receivable.
JOBS Act Accounting Election
The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued after the enactment of the JOBS Act until those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it is (i) no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.
Recently Issued Accounting Standards Not Yet Adopted
In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014‑09,
Revenue from Contracts with Customers
(Topic 606), as amended by ASU No. 2015-14, ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-12, and ASU No. 2016-20, collectively, ASU 2014-09. ASU 2014-09 establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers in an amount that reflects the expected consideration received in exchange for those goods or services and provides guidance on the recognition of costs related to obtaining and fulfilling customer contracts. For public entities, this standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. For all other entities, this standard is effective for annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted. ASU 2014‑09 may be adopted either retrospectively to each prior period presented (full retrospective method) or with the cumulative effect recognized as of the date of initial application (modified retrospective method). The Company expects to adopt this standard effective January 1, 2019 using the modified retrospective adoption method. The Company's preliminary assessment of areas to be impacted by the new standard identified possible impact to the deferral of costs to obtain a contract, which are primarily commission expense directly incurred because of sales of products and related support, and the allocation of revenue between products and support and maintenance for certain arrangements. While the Company continues to assess the potential impact of the new standard, including the areas described above, it has not yet quantified the impact the new standard may have on its consolidated financial statements.
In February 2016, the FASB issued ASU No. 2016‑02,
Leases (Topic 842)
, or ASU 2016‑02, which requires lessees to record most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. Under ASU 2016‑02, a lessee would recognize a lease liability for the obligation to make lease payments and a right‑to‑use asset for the right to use the underlying asset for the lease term. For public entities, this standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. For all other entities, this standard is effective for annual reporting periods beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the standard and its impact on the condensed consolidated financial statements. However, the Company does expect an increase in its consolidated assets and liabilities upon adoption of this standard.
3. NET LOSS PER SHARE
Net Loss Per Share
Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, convertible preferred stock, preferred stock warrants and stock options are common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.
9
The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:
As of June 30,
2018
2017
Options to purchase common stock
1,963,117
1,939,894
Convertible preferred stock
—
22,671,601
Warrants for preferred stock
—
385,126
Warrants for common stock
468,181
—
Total potential dilutive shares
2,431,298
24,996,621
4. FAIR
VALUE
MEASUREMENTS
Cash and cash
equivalents,
restricted
cash,
accounts
receivable,
accounts
payable,
and accrued
liabilities approximate
fair
market
value
because
of the
short-term
nature
of those
instruments.
The Company's lease obligation, term loan and Convertible Notes have fair values that approximate their carrying value.
U.S.
GAAP
establishes
a framework
for
measuring
fair
value
and a fair
value
hierarchy
based
on the
inputs used to measure
fair
value.
This framework
maximizes
the
use of observable
inputs
and minimizes
the
use of unobservable
inputs
by requiring
that
the
observable
inputs
be used when available.
Fair
value
is
defined as 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.
It
applies
to both items
recognized
and reported
at
fair value
in the
condensed consolidated
financial
statements
and items
disclosed
at
fair
value
in the
notes
to the
condensed consolidated
financial
statements.
Observable
inputs
are
inputs
that
market
participants
would use in pricing
the
asset
or liability
based
on market
data
obtained
from
independent
sources.
Unobservable
inputs
reflect
assumptions
that
market participants
would use in pricing
the
asset
or liability
based
on the
best
information
available
in the circumstances.
The hierarchy
is
broken
down into
three
levels
based
on the
transparency
of inputs
as follows:
Level
1
- Quoted prices
are
available
in active
markets
for
identical
assets
or liabilities
as of the
report date.
A quoted
price
for
an identical
asset
or liability
in an active
market
provides
the
most
reliable
fair value
measurement
because
it
is
directly
observable
to the
market.
Level
2
- Pricing
inputs
are
other
than
quoted
prices
in active
markets,
which are
either
directly
or indirectly
observable
as of the
report
date.
The nature
of these
securities
includes
investments
for
which quoted
prices
are
available
but traded
less
frequently
and investments
that
are
fair
valued
using
other securities,
the
parameters
of which can be directly
observed.
Level
3
- Securities
that
have little
to no pricing
observability
as of the
report
date.
These securities
are measured
using
management's
best
estimate
of fair
value,
where the
inputs
into
the
determination
of fair value
are
not observable
and require
significant
management
judgment
or estimation.
A financial
instrument's
level
within
the
fair
value
hierarchy
is
based
on the
lowest
level
of any input
that
is significant
to the
fair
value
measurement.
However, the
determination
of what constitutes
"observable" requires
significant
judgment
by the
Company. The categorization
of a financial
instrument
within
the hierarchy
is
based
upon the
pricing
transparency
of the
instrument
and does not necessarily
correspond
to the
Company's
perceived
risk
of that
instrument.
The following
tables
summarize
the
levels
of fair
value
measurements
of the
Company's
cash
equivalents:
Fair Value Measurements as of June 30, 2018
Quoted Prices
in Active
Markets
using Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Assets
Cash Equivalents:
Money market account
$
14,695
$
—
$
—
$
14,695
Restricted cash:
Money market account
100
—
—
100
Total assets
$
14,795
$
—
$
—
$
14,795
10
Fair Value Measurements as of December 31, 2017
Quoted Prices
in Active
Markets
using Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Assets
Cash Equivalents: (1)
Money market account
$
18,728
$
—
$
—
$
18,728
Restricted cash:
Money market account
100
—
—
100
Total assets
$
18,828
$
—
$
—
$
18,828
(1) The Company incorrectly overstated its cash equivalents by $4,817 in its annual report on Form 10-K for the year ended December 31, 2017. Cash equivalents were $18,728, while cash was $4,817. The error in disclosure had no impact on previously reported cash and cash equivalents in the consolidated balance sheet as of December 31, 2017 or consolidated statement of operations for the year ended December 31, 2017.
5. BALANCE
SHEET COMPONENTS
Inventory
Inventory
consists
of the
following:
June 30,
December 31,
2018
2017
Finished goods
$
2,685
$
2,761
Raw materials
289
—
Total inventory
$
2,974
$
2,761
Property
and Equipment,
Net
Property
and equipment,
net
consist
of the
following:
June 30,
December 31,
2018
2017
Equipment
$
2,935
$
2,929
Computer hardware and software
1,115
721
Leasehold improvements
874
869
Furniture and fixtures
453
270
Total property and equipment
5,377
4,789
Less: Accumulated depreciation and amortization
(3,922
)
(3,651
)
Total property and equipment, net
$
1,455
$
1,138
Depreciation and amortization expense was $139 and $271 for three and six months ended June 30, 2018. Depreciation and amortization expense was $171 and $313 for the three and six months ended June 30, 2017.
6. COMMITMENTS
AND
CONTINGENCIES
Operating
Leases
The Company has various operating leases including 23,000 square feet of office space in San Jose, California, which expires in April 2022.
11
Aggregate future minimum lease payments required under the Company's operating leases as of June 30, 2018 are as fol
lows:
Years Ending December 31,
2018 (remaining 6 months)
$
253
2019
518
2020
534
2021
550
2022
188
Thereafter
—
Total future minimum lease payments
$
2,043
Total rent expense was $135 and $238 for three and six months ended June 30, 2018. Total rent expense was $102 and $207 for the three and six months ended June 30, 2017.
Commitments
The Company has two master agreements and a component pricing agreement with Evolve Manufacturing Technologies, Inc. (Evolve) for the supply of the ARTAS
®
System and consumable products. The terms of these master agreements are substantially similar. The master agreement for the sale of ARTAS
®
Systems was effective beginning on April 1, 2016 and the master agreement for the sale of kits used with the ARTAS System was effective beginning on March 1, 2016. Both agreements are effective for an initial term of two years and will continue to automatically renew for additional twelve-month periods, subject to either party's right to terminate the agreement upon 180 days advance notice during the initial term, if our quarterly forecasted demand falls below 75% of our historical forecasted demand for the same period in the previous year or upon 120 days' advance notice after the initial term. Under the agreements, the Company has future purchase commitments up to $1,200 as of June 30, 2018.
In March 2018, the Company received U.S. FDA 510(k) clearance to expand the ARTAS
®
System technology to include an implantation functionality, referred to as ARTAS
®
iX. Based on manufacturing changes associated with the ARTAS
®
iX System, the Company determined that certain components procured or expected to be procured by Evolve, will be in excess of expected demand or usage. Although the Company will be taking steps to minimize the adverse impact on the Company's business, based on information available as of June 30, 2018, the Company's management recorded a loss contingency accrual of $715 which is reported in "Cost of revenue" in the condensed consolidated statements of operations for the six-months ended June 30, 2018 and included in "Other accrued liabilities" on the condensed consolidated balance sheets as of June 30, 2018.
Licensing
Agreements
In July 2006, the Company entered into a license agreement with Rassman Licensing, LLC (Rassman) for non-exclusive, royalty bearing, non-transferable, perpetual, world-wide rights for use on approved fields relating to robotically controlled hair removal and implantation procedures. In consideration for this license, the Company paid Rassman a one-time payment of $1,000. The agreement terminates on May 9, 2020. In February 2012, the Company amended its license agreement with Rassman. In exchange for a one-time $400 payment to Rassman, the Company now has a fully paid royalty-free perpetual license to a patent subject to this license agreement.
In July 2006, the Company entered into a license agreement with HSC Development, LLC for exclusive non-transferable, royalty-free worldwide rights for use in approved fields relating to a computer-controlled system in which a device is carried on a mechanized arm for extraction or implantation of a follicular unit without manual manipulation. In consideration for this license, the Company paid HSC Development, LLC a one-time payment of $25 and issued 2,500 shares of the Company's common stock. The agreement terminates on July 27, 2024.
7.
LONG-TERM
DEBT
Loan and Security Agreement
In
May 2018, the Company entered into a Loan and Security Agreement (the "Solar Agreement") with Solar Capital Ltd. ("Solar") and certain other lenders thereunder (together with Solar, the "Lenders"), and Solar, as the Collateral Agent. The Solar Agreement consists of a four-year term loan for an aggregate principal amount of $20,000 (the "Borrowings"), for working capital, to fund the Company's general business requirements and to repay indebtedness of the Company to Oxford Finance LLC (the "Oxford Agreement"). The Company used $10,085 of the loan proceeds to repay the outstanding principal of $8,667,
12
a final payment fee of $1,300 plus accrued interest and prepayment fees of $118 under the Oxford Agreement. The Borrowings under the Solar Agreement bear interest through maturity at a rate equal
to the U.S. Dollar LIBOR rate plus 7.95% per annum (the "Interest Rate").
The outstanding balance on the loan was $20,000 and accrued interest totaled $196 as of June 30, 2018. The interest rate was 9.95% at June 30, 2018.
Pursuant to the terms of the Solar Agreement, the Company shall make interest only payments until December 1, 2019 (the "Interest Only Period"). The Interest Only Period may be extended up to three additional months, if the Company achieves certain revenue and capital fundraising thresholds. Following cessation of the Interest Only Period, the Company shall make equal monthly payments on the outstanding principal balance of the Borrowings and any unpaid and accrued interest such that the Borrowings shall be fully repaid on May 1, 2022.
In addition, pursuant to the Solar Agreement, the Company issued the Lenders warrants (the "Warrants") to purchase an aggregate of 161,725 shares of the Company's common stock, $0.0001 par value per share, at an exercise price of $3.71 per share. The Warrants were immediately exercisable upon issuance, and excluding certain mergers or acquisitions, will expire on the ten-year anniversary of the date of issuance. The fair value of the Warrants issued was determined to be $404 using a Black-Scholes valuation model with the following assumptions: common stock price at issuance of $3.71 per share; exercise price of $3.71; risk-free interest rate of 2.97% based upon observed risk-free interest rates; expected volatility of 55.50% based on the Company's implied volatility; expected term of ten years, which is the contractual life of the Warrants; and a dividend yield of 0%. The fair value of the Warrants was recorded as a debt discount within notes payable and an increase to additional paid-in capital on the Company's balance sheet. The debt discount is being amortized as interest expense over the term of the Solar Agreement, using the effective interest method.
The third-party transaction costs (not paid directly to the lenders) related to the debt of $404 are being accounted for as a debt discount and classified within notes payable on the Company's balance sheet and amortized as interest expense over the term of the loan using the effective interest method.
Unamortized debt discounts related to the Oxford Agreement and all fees paid directly to Solar and Oxford totaling $505 in connection with the debt financing in May 2018 were written off to "Other expense, net" in the consolidated statement of operations.
The obligations under the Solar Agreement are secured by a lien on substantially all of the Company's property, excluding intellectual property. The Solar Agreement contains certain affirmative covenants, negative covenants and events of default, including, covenants and restrictions that among other things, require the Company and its subsidiary to satisfy certain financial covenants including covenants requiring the Company to satisfy certain revenue and liquidity thresholds, and restricts the ability of the Company and its subsidiary's ability to, incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales or sale and leaseback transactions, and declare dividends or redeem or repurchase capital stock. A failure to comply with these covenants could permit the Lenders under the Solar Agreement to declare the Borrowings, together with accrued but unpaid interest and certain Prepayment Fees, to be immediately due and payable. As of June 30, 2018, the Company was in compliance with all covenants under the Solar Agreement.
The Company is also required to make mandatory prepayments of the Borrowings, subject to specified exceptions, upon defaulting on any payments of principal or interest on the Borrowings, the occurrence of certain specified defaults of the covenants in the Solar Agreement, the occurrence of a material adverse change in the business, operations or conditions of the Company and specified other events (each, an "Event of Default"). Upon the occurrence and continuation of an Event of Default, the Borrowings shall accrue at the Interest Rate plus 4.0%.
If all or any of the Borrowings are prepaid or required to be prepaid under the Solar Agreement, then the Company shall pay, in addition to such prepayment, a prepayment premium (the "Prepayment Premium") equal to (i) with respect to any such prepayment paid on or prior to May 1, 2019, 3.0% of the principal amount of the Borrowings being prepaid, (ii) with respect to any prepayments paid after May 1, 2019 but on or prior to May 1, 2020, 2.0% of the principal amount of the Borrowings being prepaid and (iii) with respect to any prepayments paid after May 1, 2020 but on or prior to May 1, 2021, 1.0% of the principal amount of the Borrowings being prepaid. Notwithstanding the foregoing, if the Lenders each participate in a refinancing of the Borrowings, then the Prepayment Premium shall be 0%.
13
The scheduled principal payments on the outstanding borrowings as of June 30, 2018 are as follows:
As of
June 30, 2018
2018 (remaining 6 months)
$
—
2019
667
2020
8,000
2021
8,000
2022
4,163
Total
20,830
Less debt discount
(1,602
)
Non-current portion
$
19,228
8
. COMMON STOCK RESERVED
FOR ISSUANCE
The Company is
required
to reserve
and keep available
out of its
authorized
but unissued
shares
of common stock
a number
of shares
sufficient
to affect
the
conversion
of all
outstanding
shares
of convertible
preferred stock,
of which, there are none,
plus
options
granted
and available
for
grant
under
the
incentive
plans.
June 30,
December 31,
2018
2017
Outstanding common stock warrants
468,181
306,456
Outstanding and issued stock options
1,963,117
1,930,752
Shares reserved for future option grants
1
2,944,225
2,162,037
Total common stock reserved for issuance
5,375,523
4,399,245
(1)
The Company incorrectly understated its shares reserved for future option grants by 1,890,547 in its annual report on Form 10-K for the year ended December 31, 2017. The Company disclosed 271,490 shares reserved for future option grants at December 31, 2017, instead of 2,162,037 shares reserved for future option grants (as shown in the table above). The error in disclosure had no impact on previously reported consolidated financial statements as of and for the year ended December 31, 2017.
9. STOCK OPTION PLAN
2005 and 2015 Plan
The Company granted incentive stock options ("ISOs") and non-statutory stock options ("NSOs") pursuant to its 2005 Stock Option Plan (the "2005 Plan") until the Board of Directors approved the 2015 Stock Option Plan (the "2015 Plan"), and all remaining shares available for future award under the 2005 Plan were transferred to the 2015 Plan and the 2005 Plan was terminated. The Company granted ISOs and NSOs pursuant to its 2015 Plan until the 2017 Equity Incentive Plan (the 2017 Plan) was approved by the Board of Directors and became effective on October 11, 2017. As a result of the 2017 Plan becoming effective, all remaining shares available for future award under the 2015 Plan were transferred to the 2017 Plan, the 2015 Plan was terminated, and no further grants will be made under the Company's 2005 Plan and the 2015 Plan. Any outstanding stock awards granted under the 2005 Plan and the 2015 Plan will remain outstanding, subject to the terms of the Company's 2005 Plan and 2015 Plan and the applicable stock award agreements, until such outstanding stock awards that are stock options are exercised or until they terminate or expire by their terms, or until such stock awards are fully settled, terminated or forfeited.
2017 Plan
The Company's 2017 Plan provides for the grant of ISOs, NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other forms of equity compensation to employees, directors and consultants. In addition, the Company's 2017 Plan provides for the grant of performance cash awards to employees, directors and consultants.
14
The Compan
y recognized
stock-based
compensation
expense
for
its
employees
and non-employees
in the accompanying
consolidated
statements
of operations
as follows:
Three Months Ended
Six Months Ended
June 30,
June 30,
2018
2017
2018
2017
Cost of revenue
$
4
$
—
$
8
$
5
Sales and marketing
24
20
46
35
Research and development
13
30
28
51
General and administrative
86
75
170
140
Total stock-based compensation
$
127
$
125
$
252
$
231
Determination
of Fair Value
The estimated
grant-date
fair
value
of all
of the
Company's
stock-based
awards
was calculated
using
the Black-Scholes-Merton
option
pricing
model,
based
on the
following
assumptions:
Three Months Ended
Six Months Ended
June 30,
June 30,
2018
2017
2018
2017
Expected term (years)
5.37
4.95 - 7.50
5.37 - 6.10
4.95 - 7.50
Risk-free interest rate
2.82%
1.77 - 2.13%
2.40 - 2.82%
1.77 - 2.13%
Expected volatility
53.72%
51.62 - 53.58%
53.72 - 55.49%
51.62 - 53.58%
Dividend yield
0%
0%
0%
0%
The following table summarizes stock option activity under the Company's stock option plan:
Weighted-
Weighted-
Average
Average
Remaining
Aggregate
Number of
Exercise Price
Contractual
Intrinsic
Shares
per Share
Term
Value
Outstanding — December 31, 2017
1,930,752
$
1.90
7.9
$
5,322
Options granted
384,340
4.45
Options exercised
(197,413
)
1.96
Options cancelled
(154,562
)
1.99
Outstanding — June 30, 2018
1,963,117
$
2.38
7.9
$
2,800
Vested and expected to vest — June 30, 2018
1,932,990
$
2.34
7.9
$
2,682
Exercisable — June 30, 2018
1,014,692
$
1.80
7.1
$
1,705
The weighted-average grant date fair value of options granted was $2.38 per share for six months ended June 30, 2018.
The total intrinsic value of options exercised was $812.0 and $0 for six months ended June 30, 2018 and 2017, respectively.
Unamortized stock-based compensation was $1,322 as of June 30, 2018, which is expected to be recognized over a weighted-average period of approximately 3.75 years.
10. INCOME TAXES
The Company generated a loss for the three and six months ended June 30, 2018 and incurred $11 and $24 of tax expense for the three and six months ended June 30, 2018, respectively. The Company's effective tax rate is (0.18)% and (0.18)% for income tax for the three and six months ended June 30, 2018 and the Company expects that its effective tax rate for the full year 2018 will be (0.20)%. Based on available evidence, including cumulative losses since inception and expected future losses, the Company has determined that it is more likely than not that the Company's U.S. federal, U.S. state and Korea deferred tax assets will not be realized and therefore a valuation allowance has been provided on these net deferred tax assets.
15
The Company has substantial net operating loss
carry forwards available to offset future taxable income for U.S. federal and state income tax purposes. The Company's ability to utilize its net operating losses may be limited due to changes in its ownership as defined by Section 382 of the Internal Rev
enue Code (the Code). Under the provisions of Sections 382 and 383 of the Code, a change of control, as defined in the Code, may impose an annual limitation on the amount of the Company's net operating loss and tax credit carryforwards, and other tax attri
butes that can be used to reduce future tax liabilities.
The Company files tax returns for U.S. federal and state tax returns along with tax returns in the United Kingdom, Hong Kong, Spain and South Korea. The Company is not currently subject to any income tax examinations. Since the Company's inception, the Company had incurred losses from its U.S. operations, which generally allows all tax years to remain open.
Beginning in first quarter of 2018, the Company is subject to new provisions of the tax law, including provisions related to Global Low Taxed Intangible Income (GILTI), Foreign Derived Intangible Income deductions (FDII), and other changes. However, due to the Company's losses and full valuation allowance in the U.S., these were determined to have no material impact to the Estimated Annual Effective Tax Rate due to the full Valuation Allowance in the U.S.
Uncertain Tax Positions
Effective January 1, 2009, the Company adopted ASC 740-10, which requires that the Company recognize the financial statement effects of a tax position when it becomes more likely than not, based upon the technical merits, that the position will be sustained upon examination. The gross amount of unrecognized tax benefits as of June 30, 2018 is approximately $1,400 and related to the reserve on R&D credits, none of which will affect the effective tax rate if recognized due to the valuation allowance. The Company does not expect any material changes in the next 12 months in unrecognized tax benefits.
The Company recognizes interest and/or penalties related to uncertain tax positions. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected in the period that such determination is made. The interest and penalties are recognized as other expense and not tax expense. The Company currently has no interest and penalties related to uncertain tax positions.
11. SEGMENT AND GEOGRAPHIC INFORMATION
The Company has determined that it operates in a single operating segment and has one reportable segment, as its Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The Company does not assess the performance of individual product line on measures of profit or loss, or asset-based metrics. Therefore, the information below is presented only for revenues by geography.
The following
table
reflects
revenue
by geographic
area
by customer
location:
Three Months Ended
Six Months Ended
June 30,
June 30,
2018
2017
2018
2017
United States
$
2,601
$
2,269
$
4,856
$
4,813
Europe and Middle East
988
1,574
1,961
3,127
Asia Pacific
1,556
1,154
2,660
2,319
Rest of World
330
792
1,003
1,005
Total revenue
$
5,475
$
5,789
$
10,480
$
11,264
As of June 30, 2018, and December 31, 2017, all long-lived assets were located within the United States.
16
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q and with our audited financial statements and notes thereto in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission ("SEC") and other filings we have made with the SEC.
This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are often identified by the use of words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," or "continue," and similar expressions or variations. These statements are based on the beliefs and assumptions of our management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified herein, and those discussed in the section titled "Risk Factors," set forth in Part II, Item 1A of this Form 10-Q and in our other SEC filings, including the Prospectus. You should review the risk factors for a more complete understanding of the risks associated with an investment in our securities. We disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q. Our fiscal year end is December 31, and references throughout this Quarterly Report on Form 10-Q to a given fiscal year are to the twelve months ended on that date.
Overview
We are a medical technology company developing and commercializing a robotic device, the ARTAS
®
System, which assists physicians in performing many of the repetitive tasks that are a part of a follicular unit extraction, or FUE surgery, a type of hair restoration procedure. We believe the ARTAS
®
System is the first and only physician assisted robotic system that can identify and dissect hair follicular units directly from the scalp, create recipient implant sites and robotically implant the hair follicles into the implant sites. In addition to the ARTAS
®
System, we also offer the ARTAS Hair Studio application, an interactive three-dimensional patient consultation tool that enables a physician to create a simulated hair transplant model for use in patient consultations. We received clearance from the U.S. Food and Drug Administration, or FDA, in April 2011 to market the ARTAS
®
System in the U.S., and we have sold the ARTAS
®
System into 37 other countries. In March 2018, we received 510(k) clearance from the FDA to expand the ARTAS
®
technology to include implantation. In the third quarter of 2018, we commercially launched the next generation ARTAS
®
system, called ARTAS
®
iX system, which incorporates the implantation functionality as well as other functionalities. As of June 30, 2018, the ARTAS
®
System and ARTAS Hair Studio application are protected by over 80 patents in the U.S. and over 110 international patents.
On October 11, 2017, our Registration Statement on Form S-1 (File No. 333-220303) relating to our initial public offering ("IPO") of its common stock was declared effective by the SEC. Pursuant to such Registration Statement, we sold an aggregate of 3,897,910 shares of its common stock (inclusive of 322,910 shares of common stock from the subsequent exercise of the over-allotment option granted to the underwriters) at a price of $7.00 per share for aggregate cash proceeds of approximately $22.1 million after deducting offering costs and commissions of $5.2 million.
On May 10, 2018, we entered into a Loan and Security Agreement (the "Solar Agreement") with Solar Capital Ltd. ("Solar")
and certain other Lenders thereunder (together with Solar, the "Lenders").  Pursuant to the terms of the Solar Agreement, we borrowed $20.0 million with an interest rate at U.S. Dollar LIBOR plus 7.95% per annum (the "Borrowings"). All amounts borrowed under the Solar Agreement are secured by liens over all personal property of the Company, excluding intellectual property. Monthly payments on any amounts drawn shall consist of the interest only payments for the first 18 months, followed by payments of principal and accrued interest monthly thereafter until the four-year anniversary of the date of the Solar Agreement. In connection with the Solar Agreement, we granted the Lenders warrants to purchase
an aggregate of 161,725 shares of our common stock exercisable at a price of $3.71 per share.
We used approximately $10.1 million of the net proceeds to repay the entire outstanding principal balance and accrued interest under our existing loan agreement with Oxford Finance, LLC and terminated our loan agreement with Oxford.
We have funded our operations to date primarily from the issuance and sale of our common stock in our IPO, private placements of our equity securities and, to a lesser extent, through debt financings, exercises of our common stock warrants and payments from our customers. As of June 30, 2018, we had cash and cash equivalents of $16.9 million.
17
Factors Affecting our Results of Operations
We believe there are several important factors that have impacted, and that we expect will impact, our results of operations.
Adoption of the ARTAS
®
System
The growth of our business depends on our ability to gain broader acceptance of the ARTAS
®
System and, in particular, ARTAS
®
iX, as well as the ARTAS procedure by successfully marketing and distributing the ARTAS
®
System and the ARTAS procedure. If we are unable to successfully commercialize our ARTAS
®
System and the ARTAS procedure, we may not be able to generate sufficient revenue to achieve or sustain profitability. In the near term, we expect we will continue to operate at a loss and we anticipate we will finance our operations principally through offerings of our capital stock and by incurring debt. If we are unable to raise adequate additional capital, we will be unable to maintain our commercialization efforts and our revenue could decline.
Significant Investment in our Sales and Marketing
The Company has a new leadership team, made certain strategic changes to and investments in our U.S. sales and global marketing organizations, which included terminating certain personnel and hiring new personnel and realigning our reporting and leadership structure in the sales organization. For example, throughout 2018 we are increasing the size of our U.S. sales force by hiring sales professionals with experience selling capital equipment and equipment to physicians in the aesthetic market. In addition, we are investing significantly in our sales and marketing efforts related to the launch of the ARTAS
®
iX System. Strategically, we have been focused on our branding and have consolidated our regional marketing teams to standardize our messaging and focus of our marketing spending with an aim to be more efficient and cost-effective. As a result, we have
seen a reduction in and improved efficiency of our marketing spending.
While we increased revenue in 2017 because of increased unit sales, these sales initiatives have also increased our sales and marketing expenses. Furthermore, we anticipate as we continue to advance the commercialization of the ARTAS
®
iX System, our sales and marketing expenses will continue to increase.
Revenue Composition and Trends
The following
table
reflects
revenue
by category
:
Three Months Ended
Six Months Ended
June 30,
June 30,
2018
2017
2018
2017
Systems
$
2,526
$
3,568
$
4,531
$
6,448
Procedure-based
2,397
1,743
4,870
3,834
Service related fees
552
478
1,079
982
Total revenue
$
5,475
$
5,789
$
10,480
$
11,264
We derive our revenue from the sale and service of ARTAS
®
Systems and procedure-based fees.
•
Revenue from systems for the three and six months ended June 30, 2018 decreased as compared to the same period in
2017 due to a decrease in the number of ARTAS
®
Systems sold.
We believe the decrease in system revenue was due, in part, to customers delaying purchases until the ARTAS iX System is available, as well as our ongoing implementation of our new sales strategy, which has not taken full effect given the recent key hires within the Company, including our new Vice President of Sales who joined in February 2018, and the weaker than expected performance in the EMEA region.
•
Revenue from procedure-based fees increased for the three and six months ended June 30, 2018 as compared to the same period in 2017. While revenue from procedure-based fees increased between these periods, the total number of procedures performed by our customers on their patients did not increase proportionally to our revenue from procedure base fees due to the timing of when we sold the procedures to our customers versus when procedures are utilized by our customers after their purchase.
•
Service-related fees increased slightly for the three and six months ended June 30, 2018 as compared to the same period in 2017.
18
Historically, the majority of our revenue and our revenue growth has been generated through system sales. While we would expect our proc
edure-based fees to continue to increase as our installed base of ARTAS
®
Systems grows worldwide, the total number of procedures has not
followed
the increase in our installed base
of systems sold. In particular,
the number of procedures performed
on a qua
rterly basis
varies
from quarter-to-quarter
and has not increased with the installed base
. While procedure-based
revenue
increased
,
on a percentage basis,
more than the installed base of ARTAS
®
Systems during the aforementioned periods, we believe that revenue from procedure-based fees may not grow proportionally as compared to the increase in our installed base and that it could vary from quarter-to-quarter due to a number factors, including:
•
physician uptake causing a slow ramp-up to utilizing the ARTAS
®
System, which is particularly evident with physicians who are new to hair restoration procedures or physicians who do not operate a solely hair restoration focused practice who are commonly the profile we are targeting;
•
capacity limitations with the current installed base of ARTAS
®
Systems, which can result in procedure-based fees not growing as quickly as system sales, as high performing practitioners are limited in the number of procedures that can be performed in any given period;
•
limited or no utilization of the ARTAS
®
System after purchase because of a change in physician preference or practice; and
•
the concentration of ARTAS procedures being performed on a limited number of ARTAS
®
Systems leading to volatility between periods if particular high-volume practitioners perform a smaller number of procedures in a given period.
In order to increase the number of procedures performed per ARTAS
®
System, and in turn increase revenue from procedure-based fees, we have, in connection with the leadership and sales and marketing changes, initiated programs to assist certain physicians in marketing efforts, patient education and practice optimization to increase utilization of the ARTAS
®
System. If these efforts are successful, we anticipate that the growth in procedure-based fees will increase and that quarterly fluctuations in the number of total procedures performed will be reduced.
Revenue from Markets Outside the U.S.
Since launching the ARTAS
®
System in 2011, we have obtained clearance to sell our products in over 60 countries. In June 2012, we obtained our CE mark to sell our product into the European Economic Area, or EEA. We have sold into 37 countries and sell directly into the U.S., Korea, Hong Kong, Singapore, Spain, Poland, Benelux, Scandinavia,
Portugal, the Netherlands
and through distributors in the other countries. We obtained clearance to sell in China in September 2016. However, we have not obtained any regulatory approvals or clearances outside of the U.S. for our implantation functionality.
Revenue from markets outside of the U.S accounted for 54% of our total revenue in the first six months of 2018, compared to 57% from the same period in 2017. Although we will continue to invest resources outside of the U.S., we anticipate that the strategic shift in our sales strategy towards the U.S. market will impact the revenue mix between the U.S. and non-U.S. markets. In particular, in connection with our newly launched ARTAS
®
iX System, which is only cleared for sale in the U.S., our marketing efforts are highly focused on the U.S.
The ARTAS
®
System unit sales declined in the first six months of 2018 relative to the first six months of 2017 because of decreased unit sales in the U.S., Euro
pe and Middle East and Asia Pacific regions, partially offset by increased procedure-based fees in these regions.
While we believe our newly launched ARTAS
®
iX System, which incorporates a robotic implantation functionality, could have a positive effect on system sales in the U.S., it may have a negative effect on system sales outside the U.S. as the robotic implantation functionality is only approved in the U.S. and potential non-U.S. customers of the ARTAS
®
iX System may delay purchases of ARTAS
®
systems until the implantation functionality is available in their market.
We expect our operating expenses to increase because of increased sales and marketing activity to promote penetration in markets outside the U.S. where we already sell the ARTAS
®
System and geographic expansion into new markets.
Factors Affecting Comparability
We anticipate that our quarterly results of operations may fluctuate for the foreseeable future due to several factors, including the performance of our direct sales force and international distributors, the launch of our implantation functionality and the ARTAS
®
iX System, and unanticipated interruptions and expenses related to our operations. In addition, due to the long lead time to finalize ARTAS
®
System unit sales with our physician customers, and the significant impact each unit sale has on a period's revenue due to the price of each unit, our quarterly revenue may not be comparable from one period to another.
19
Furthermore, our industry is characterized by seasonally lower
demand during the third calendar quarter of the year, when both physicians and prospective patients take summer vacations. A detailed discussion of these and other factors that impact our business is provided in the "Risk Factors" section in this Quarterly
Report on Form 10-Q.
Results of Operations
Three and Six Months Ended June 30, 2018 and 2017:
Three Months Ended
Six Months Ended
June 30,
Change
June 30,
Change
2018
2017
$
%
2018
2017
$
%
(dollars in thousands)
Revenue
$
5,475
$
5,789
$
(314
)
(5
)%
$
10,480
$
11,264
$
(784
)
(7
)%
Cost of revenue
2,514
3,487
(973
)
(28
)
5,699
6,578
(879
)
(13
)
Gross profit
2,961
2,302
659
29
4,781
4,686
95
2
Gross margin
54
%
40
%
46
%
42
%
Operating expenses:
Sales and marketing
4,365
3,338
1,027
31
8,749
7,304
1,445
20
Research and development
2,153
1,925
228
12
4,278
3,841
437
11
General and administrative
1,617
1,484
133
9
3,968
2,410
1,558
65
Total operating expenses
8,135
6,747
1,388
21
16,995
13,555
3,440
25
Loss from operations
(5,174
)
(4,445
)
(729
)
16
(12,214
)
(8,869
)
(3,345
)
38
Other expense, net:
Interest expense
(500
)
(529
)
29
(5
)
(858
)
(1,115
)
257
(23
)
Other expense, net
(559
)
(25
)
(534
)
2,136
(579
)
(174
)
(405
)
233
Total other expense, net
(1,059
)
(554
)
(505
)
91
(1,437
)
(1,289
)
(148
)
11
Net loss before provision for income taxes
(6,233
)
(4,999
)
(1,234
)
25
(13,651
)
(10,158
)
(3,493
)
34
Provision for income taxes
11
8
3
38
24
24
—
0
Net loss
$
(6,244
)
$
(5,007
)
$
(1,237
)
25
%
$
(13,675
)
$
(10,182
)
$
(3,493
)
34
%
Revenue, Net.
Revenue decreased 5% and 7%, for the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The overall decrease in revenue was primarily due to a decline in volume of system sales for the three and six months ended June 30, 2018, as compared to the same periods in 2017. We placed 11 and 19 systems in the three and six months ended June 30, 2018, respectively, as compared to 14 and 27 systems in the three and six months ended June 30, 2017, respectively. The revenue decrease was partially offset by an increase of $0.7 million and $1.1 million from procedures-based fees and service-related fees (on a combined basis) for the three and six months ended June 30, 2018, respectively, as compared to same periods in 2017. The increase in procedures-based fees and service-related fees was a result of an increased number of ARTAS procedures purchased by our customers and, to a lesser extent, post-warranty maintenance contracts during the period.
Gross Margin
. Gross margin typically fluctuates with product mix, selling prices, material costs and revenue level. Gross margin for the three and six months ended June 30, 2018 increased by 14 percentage points and four percentage points, respectively, compared to the same periods in 2017. The increase for the three and six months ended June 30,2018 was primarily driven by decreased product costs due to certain efficiencies and higher percentage of revenue from procedure-based fees which generally have a higher gross margin than sales of our ARTAS
®
Systems. For the six months ended June 30, 2018, the increase was partially offset by a charge related to a loss contingency accrual of $0.7 million, which was reported in cost of revenue. The charge was related to certain excess inventory components procured for our ARTAS
®
System by our third-party manufacturer, which we determined would be in excess of expected demand due to manufacturing changes associated with the ARTAS
®
System as a result of the approval of the implantation functionality.
We initially anticipate higher manufacturing, warranty, and service costs associated with the ARTAS iX System which will result in a lower gross margin moving forward.
Sales and Marketing
. Sales and marketing expenses increased 31% and 20%, for the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The increase was
primarily
due to the growth in employee headcount to support our overall sales and marketing activities, including the ongoing commercialization efforts for the ARTAS
®
System and ARTAS
®
iX System and the timing of expenditures for certain tradeshows in first six months of 2018, which historically were held later in the calendar year.
20
Research and Development
. Research and development expense increased 12% and 11%, f
or the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The increase was primarily due to incremental outside services and consulting costs associated with the development of the ARTAS
®
iX System, which was comm
ercially launched in July 2018.
General and Administrative
. General and administrative expenses increased 9% and 65%, for the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The increase was primarily the result of an increase in professional service costs, consisting of accounting, consulting, legal and other professional fees incurred in connection with our status as a public company following our IPO in October 2017.
Interest expense
. Interest expense decreased 5% and 23% for the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The decrease in interest expense was related to a reduction in the principal balance of our outstanding long-term-debt obligations as we repaid a portion of the principal on our outstanding credit facility with Oxford prior to repaying the entire outstanding principal balance following the financing of our loan with Solar in May 2018.
Other expense, Net
. Other expense, net increased by $0.5 million and $0.4 million for the three and six months ended June 30, 2018, respectively, compared to the same periods in 2017. The increase was primarily due to (i) unamortized debt issuance and debt discounts written off by us and (ii) fees paid directly to Oxford and Solar in connection with the extinguishment of the Oxford loan and the entry into the new Solar loan as mentioned above.
Provision for income tax:
Our effective tax rate is (.18%) for income tax for the three and six months ended June 30, 2018 and we expect that our effective tax rate for the full year 2018 will be (.20%). Based on available evidence, including cumulative losses since inception and expected future losses, we have determined that it is more likely than not that our U.S. federal, U.S. state and Korea deferred tax assets will not be realized and therefore a valuation allowance has been provided on the U.S. federal, U.S. state and Korea net deferred tax assets.
In general, if we experience a greater than 50% aggregate change in ownership over a three-year period, utilization of our pre-change net operating loss, or NOL, and credit carryforwards are subject to an annual limitation under Sections 382 and 383 of the U.S. Internal Revenue Code, or the Code. Generally, U.S. states maintain similar laws or regulations as Sections 382 and 383 of the Code. The annual limitation generally is determined by multiplying the value of our stock at the time of such ownership change (subject to certain adjustments) by the applicable long-term tax-exempt rate. Such limitations may result in expiration of a portion of the NOL or tax credit carryforwards before utilization.
We file tax returns for U.S. federal and state taxes along with tax returns in the United Kingdom, Hong Kong, Spain and South Korea. We are not currently subject to any income tax examinations. Since our inception, we have incurred losses from our U.S. operations, which generally allows all tax years to remain open.
We recognize the financial statement effects of a tax position when it becomes more likely than not, based upon the technical merits, that the position will be sustained upon examination. We do not expect any material changes in the next 12 months in unrecognized tax benefits.
We recognize interest and/or penalties related to uncertain tax positions. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected in the period that such determination is made. The interest and penalties are recognized as other expense and not tax expense. We currently have no interest and penalties related to uncertain tax positions.
Liquidity and Capital Resources
To date, we have incurred significant net losses and negative cash flows from operations. Our net loss was $6.2 million and $5.0 million for the three months ended June 30, 2018 and 2017, respectively, and $13.7 million and $10.2 million for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, we had an accumulated deficit of $178.2 million. As of June 30, 2018, and December 31, 2017, we had cash and cash equivalents of $16.9 million and $23.5 million, respectively. As of the filing date of this Quarterly Report, we believe our current cash and cash equivalents will not be sufficient to fund our operations for the next twelve months. These factors raise substantial doubt about our ability to continue as a going concern.
In connection with our IPO, we sold an aggregate of 3,897,910 shares of our common stock (inclusive of 322,910 shares of common stock from the exercise of the over-allotment option granted to the underwriters) at a price of $7.00 per share and we received aggregate cash proceeds of approximately $22.1 million,
net of underwriting discounts and commissions, and offering costs.
21
Debt Obligations
In May 2018, we entered into the Solar Agreement. The Solar Agreement consists of a four-year term loan for an aggregate principal amount of $20.0 million, for working capital, to fund our general business requirements and to repay our indebtedness under the Oxford Agreement. We used $10.1 million of the loan proceeds to repay the outstanding principal of $8.7 million, a final payment fee of $1.3 million plus accrued interest and prepayment fees of $0.1 million under the Oxford Agreement. The Borrowings under the Solar Agreement bear interest through maturity at a rate equal to the U.S. Dollar LIBOR rate plus 7.95% per annum. The outstanding balance on the Solar Agreement was $20.0 million as of June 30, 2018. The Solar Agreement contains various covenants. As of June 30, 2018, we were in compliance with all required covenants.
Capital Resources
We have financed our operations principally through the issuance and sale of our common stock in our IPO, private placements of our capital stock, and to a lesser extent, secured debt financing and payments from customers. We believe that our existing cash and cash equivalents and cash expected to be generated from sales of our products will not be sufficient to fund our planned operations through the next 12 months. However, we will need additional capital to fund our future operations and we intend to obtain such capital through the sale of additional shares of capital stock or related securities. To the extent that we raise additional capital through future equity financings, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing common stockholders. If we raise additional funds through the issuance of debt securities, these securities could contain covenants that would restrict our operations. Further, there can be no assurance that we will be able to raise additional funds on favorable terms, or at all. Our failure to raise additional capital would have a negative impact on our financial condition and our ability to execute our business plan.
We have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use all our available capital resources sooner than we expect. Because of the numerous risks and uncertainties associated with the ongoing commercialization of the ARTAS
®
System, we are unable to estimate the exact amount of our operating capital requirements. Our future funding requirements will depend on many factors, including, but not limited to:
•
the revenue we generate from our operations;
•
the scope and timing
of our investment
in our commercial
infrastructure
and sales
-
force;
•
the costs
of commercialization
activities
including
product
sales,
marketing,
manufacturing
and distribution;
•
the degree
and rate
of market
acceptance
of the ARTAS
®
System
and the ARTAS
procedure;
•
the costs
of filing,
prosecuting,
defending
and enforcing
any patent
claims
and other
intellectual property
rights;
•
our need to implement
additional
infrastructure
and internal
systems;
•
the research
and development
activities
we
intend
to undertake
in order
to expand the approved indications
of use for the ARTAS
®
System;
•
the emergence
of competing
technologies
or other
adverse
market
developments;
•
any product
liability
or other
lawsuits
related
to our products;
•
the expenses
needed to attract
and retain
skilled
personnel;
•
the costs
associated
with being a public
company;
and
•
the costs
associated
with maintaining
subsidiaries
in foreign
jurisdictions.
We cannot assure that we will ever be profitable or generate positive cash flow from operating activities.
22
Cash flows
The following table summarizes our cash flows for the periods indicated:
Six Months Ended
June 30,
2018
2017
(dollars in thousands)
Cash used in operating activities
$
(12,769
)
$
(8,482
)
Cash used in investing activities
(627
)
(143
)
Cash provided by financing activities
6,670
6,234
Effect of exchange rate changes on cash, cash equivalents and restricted cash
42
(49
)
Net decrease in cash, cash equivalents and restricted cash
$
(6,684
)
$
(2,440
)
Cash Flows from Operating Activities
For the six months ended June 30, 2018, cash used in operating activities of $12.8 million was attributable to a net loss of $13.7 million and a decrease from operating assets and liabilities of $0.3 million, partially offset by $1.2 million in non-cash charges. The non-cash charges consisted primarily of provision for bad debt of $0.3 million, depreciation and amortization of $0.3 million, amortization of debt issuance costs of $0.2 million, stock-based compensation of $0.3 million and provision for excess and obsolete inventory of $0.1 million. The net change in operating assets and liabilities was primarily attributable to an increase in accounts payable and accrued other liabilities of $2.3 million, which was offset by an increase in accounts receivable of $2.6 million due to the timing of collections from customers in the second quarter of 2018.
For the six months ended June 30, 2017, cash used in operating activities of $8.5 million was attributable to a net loss of $10.2 million, partially offset by $1.0 million in non-cash charges and a net change in operating assets and liabilities of $0.7 million. The non-cash charges consisted primarily of amortization of debt issuance costs of $0.3 million, depreciation and amortization of $0.3 million, $0.2 million related to a change in fair value of preferred stock warrants, and stock-based compensation of $0.2 million. The net change in operating assets and liabilities was primarily attributable to a decrease in inventory of $0.6 million due to the sale of inventory in excess of purchases and an overall increase of $1.1 million in accounts payable and accrued and other liabilities due to growth in operations and the timing of receipt and payment of vendor invoices, partially offset by an increase of $0.9 million in accounts receivable and an increase of $0.2 million in prepaid expenses and other assets.
Cash Flows from Investing Activities
For the six months ended June 30, 2018 and 2017, cash used in investing activities related to purchases of property and equipment.
Cash Flows from Financing Activities
For the six months ended June 30, 2018, cash provided by financing activities was $6.7 million, consisting of net proceeds from our Solar loan of $19.6 million and $0.4 million of stock option exercises, which was offset by $13.3 million for the retirement of our Oxford loan.
For the six months ended June 30, 2017,
c
ash provided by financing activities was $6.2 million, consisting of net proceeds from the issuance of our Series C convertible preferred stock of $10.2 million, partially offset by $4.0 million in principal payments on our Oxford loan.
23
Contractual Obligations and Other Commitments
The following table summarizes our contractual obligations as of June 30, 2018, which represent material expected or contractually committed future obligations.
Payments Due by Period
Less than
More than
1 Year
1 to 3 Years
3 to 5 Years
5 Years
Total
(dollars in thousands)
Debt obligations, including interest
(1)
$
1,005
$
12,226
$
13,008
$
—
$
26,239
Operating leases
253
1,052
738
—
2,043
Total contractual obligations
$
1,258
$
13,278
$
13,746
$
—
$
28,282
(1)
Represents our loan with Solar and our anticipated repayment schedule for the loan. Pursuant to our loan agreement with Oxford, the loan will mature in May 2022. The loan with Solar accrues interest at prime plus 7.9% per annum. The outstanding principal balance on the Solar loan was $20.8 million as of June 30, 2018, which includes a final payment of $0.8 million to Solar on the maturity of the loan.
In addition to the contractual obligations listed in the table above, in March 2018, we received U.S. FDA 510(k) clearance to expand the ARTAS
®
System technology to include an implantation functionality. Based on manufacturing changes associated with the ARTAS
®
System, we determined that certain components procured or expected to be procured by Evolve Manufacturing Technologies, Inc., our single third-party manufacturer, who assemble the ARTAS
®
Systems, will be in excess of expected demand or usage. As a result, we recorded a loss contingency accrual of $0.7 million, which is reported in "Cost of revenue" in the condensed consolidated statements of operations for the six-months ended June 30, 2018 and included in "Other accrued liabilities" on the condensed consolidated balance sheets as of June 30, 2018.
Off-Balance Sheet Arrangements
We do not currently engage in off-balance sheet financing arrangements. In addition, we do not have any interest in entities referred to as variable interest entities, which includes special purpose entities and other structure finance entities.
Critical Accounting Policies and Estimates
Our unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. Preparation of these statements requires management to make judgments and estimates. Some accounting policies have a significant impact on amounts reported in these financial statements. A summary of significant accounting policies and a description of accounting policies that are considered critical may be found in our 2017 Annual Report on Form 10-K for the year ended December 31, 2017, in the Notes to the Consolidated Financial Statements (Note 1) and the Critical Accounting Policies and Estimates section in Management's Discussion and Analysis of Financial Condition and Results of Operations. There have been no changes in these significant accounting policies during the three months ended June 30, 2018.
JOBS Act Accounting Election
We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued after the enactment of the JOBS Act until those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.
Recent Accounting Pronouncements
See Note 2 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted as of the date of this Quarterly Report on Form 10-Q.
24
ITEM 3. QUANTITATIVE AND QUALITATI
VE DISCLOSURES ABOUT MARKET RISK.
We are
exposed
to market
risks
in the
ordinary
course
of our business.
These risks
primarily
relate
to interest
rate and currency
exchange
rate
fluctuations.
Interest
Rate Risk
Our cash
and cash
equivalents
are
held
in cash
deposits
and money
market
funds.
Due to the
short-term
nature
of these
instruments,
we do not believe
that
we have any material
exposure
to changes
in the
fair
value
of our investment
portfolio
because of changes
in interest
rates.
Declines
in interest
rates,
however, would reduce
our future
interest
income.
We are
exposed
to interest
rate
risk
related
to our debt
obligations
which are
subject
to variable
interest
rates.
As of June 30, 2018, a 100-basis
point
increase
in interest
rates
on our debt
subject
to variable
interest
rate fluctuations
would increase
our interest
expense
$0.1 million
annually.
Foreign Currency Risk
Our sales
contracts
are
primarily
denominated
in U.S.
dollars
and, therefore,
substantially
all
of our revenue
is not subject
to foreign
currency
risk.
However, a strengthening
of the
U.S.
Dollar
could
increase
the
real
cost
of our products
to our customers
outside
of the
U.S.,
which could
adversely
affect
our financial
condition
and operating
results.
In addition,
a portion
of our operating
expenses
are
incurred
outside
the
U.S.
and are denominated
in foreign
currencies
and are
subject
to fluctuations
due to changes
in foreign
currency
exchange rates,
particularly
changes
in the
British
Pound Sterling,
Euro, Hong Kong Dollar,
and South Korean Won. Additionally,
fluctuations
in foreign
currency
exchange
rates
may
cause
us to recognize
transaction
gains
and losses
in our statement
of operations.
A 10% increase
or decrease
in current
exchange
rates
would not have a material
effect
on our financial
results.
To date,
foreign
currency
transaction
gains
and losses
have not been material
to our consolidated
financial
statements,
and we have not engaged
in any foreign
currency
hedging transactions.
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of disclosure controls and procedures.
Our management, with the participation and supervision of our Chief Executive Officer and our Chief Financial Officer, have evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in internal control over financial reporting.
Our Chief Executive Officer and Chief Financial Officer did not identify any changes in our internal control over financial reporting in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act during the quarter ended June 30, 2018, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Inherent limitation on the effectiveness of internal control.
The effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, in designing and evaluating the disclosure controls and procedures, management recognizes that any system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable, not absolute assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business but cannot assure you that such improvements will be sufficient to provide us with effective internal control over financial reporting.
25
PART II OTHER
INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On May 23, 2018 a putative shareholder class action complaint was filed in Superior Court of the State of California, County of San Mateo, captioned Wong v. Restoration Robotics, Inc., et al., No. 18CIV02609. On June 21, 2018 and June 28, 2018, two putative class action complaints were filed in the United States District Court for the Northern District of California, captioned Guerrini v. Restoration Robotics, Inc., et al., No. 5:18-cv-03712-EJD and Yzeiraj v. Restoration Robotics, Inc., et al., No. 5:18-cv-03883-BLF, respectively. The Wong and Guerrini complaints name us as defendants, and certain of our current and former executive officers and directors, certain of our venture capital investors and the underwriters in our IPO. The Yzeiraj complaint names us as defendants and certain of our current and former executive officers and directors. The Wong complaint asserts claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, or the Securities Act. The Guerrini and Yzeiraj complaints assert claims under Sections 11 and 15 of the Securities Act. The complaints all allege, among other things, that our Registration Statement filed with the SEC on September 1, 2017 and the Prospectus filed with the SEC on October 13, 2017 in connection with our IPO were inaccurate and misleading, contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and omitted to state material facts required to be stated therein. The complaints seek unspecified money damages, other equitable relief and attorneys' fees and costs.
We believe that these lawsuits are without merit and we intend to vigorously defend against these claims.
Further, we may from time to time continue to be involved in various legal proceedings of a character normally incident to the ordinary course of our business, which we do not deem to be material to our business and results of operations.
ITEM 1A. RISK FACTORS
Our operations and financial results are subject to various risk and uncertainties, including those
described
below, any of which could
adversely
affect
our business,
results
of operations,
financial
condition
and prospects.
In such an event,
the
market
price
of our common
stock
could
decline,
and you may lose
all
or part
of your investment.
Additional
risks
and uncertainties
not presently
known to us or that
we currently
deem immaterial
may also
impair
our business
operations. You should carefully consider the risk described below and the other information in this Quarterly Report on Form 10-Q, including our unaudited condensed consolidated financial statements and the related notes thereto, and "Management's Discussion and Analysis of Financial Condition and Results of Operations."
Risks Related
to Our Business
We have limited
commercial
history
and we have incurred
significant
losses
since
our inception.
We anticipate that
we will
continue
to incur losses
for
the foreseeable
future,
which, together
with our limited
operating history,
makes
it
difficult
to assess
our future
viabilit
y
.
We have a limited
commercial
history
and have focused
primarily
on research
and development,
product
design and engineering,
establishing
supply
and manufacturing
relationships,
seeking
regulatory
clearances
and approvals
to market
the
ARTAS
®
System and ARTAS
®
iX System,
and selling
and marketing.
We have incurred
losses
in each
year
since
our inception
in 2002. Our net
losses were approximately $13.7 million for the six months ended June 30, 2018 and $17.8 million for the year ended December 31, 2017.
As of June 30, 2018, we had an accumulated
deficit
of $178.2 million.
We will
continue
to incur
significant
expenses
for
the foreseeable
future
as we expand our sales
and marketing,
research
and development,
and clinical
and regulatory activities.
We may
never
generate
sufficient
revenue
to achieve
or sustain
profitability.
Even if
we do achieve profitability,
we may
not be able
to sustain
or increase
profitability.
Furthermore,
because
of our limited operating
history
and because
the
market
for
aesthetic
products
is
rapidly
evolving,
we have limited
insight
into the
trends
or competitive
products
that
may
emerge
and affect
our business.
Before
investing,
you should consider
an investment
in our common
stock
considering the
risks,
uncertainties,
and difficulties
frequently encountered
by early-stage
medical
technology
companies
in rapidly
evolving
markets
such as ours.
We may
not be able
to successfully
address
any or all
of these
risks,
and the
failure
to adequately
do so could
cause
our business,
results
of operations,
and financial
condition
to suffer.
We may
not be able
to correctly
estimate
or control
our future
operating
expenses,
which could lead
to cash shortfalls.
Our operating
expenses
may
fluctuate
significantly
in the
future
because of a variety
of factors,
many
of which are
outside
of our control.
These factors
include:
•
the
cost
of growing our ongoing commercialization
and sales
and marketing
activities;
•
the
costs
of manufacturing
and maintaining
sufficient
inventories
of our products
to meet
anticipated demand and inventory write-offs related to obsolete products or components;
26
•
the
costs
of enhancing
the
existing
functionality
and development
of new functionalities
for
the ARTAS
®
System
s
and ARTAS
®
iX System
;
•
the
costs
of preparing,
filing,
prosecuting,
defending,
and enforcing
patent
claims
and other
patent related
costs,
including
litigation
costs
and the
results
of such litigation;
•
the variability of ARTAS procedures being performed between periods if particular high-volume practitioners perform a smaller number of procedures in a given period as a result of the concentration of procedures performed by certain practitioners;
•
any product
liability
or other
lawsuits
and the
costs
associated
with defending them
or the
results
of such lawsuits;
•
the
costs
associated
with conducting
business
and maintaining
subsidiaries
in foreign
jurisdictions;
•
the
costs
to attract
and retain
personnel
with the
skills
required
for
effective
operations;
and
•
the
costs
associated
with being
a public
company.
Our budgeted
expense
levels
are
based
in part
on our expectations
concerning
future
revenue
from
ARTAS
®
Systems
sales,
servicing
and procedure
-based
fees.
We may
be unable
to reduce
our expenditures
in a timely manner
to compensate
for
any unexpected
shortfalls
in revenue.
Accordingly,
a significant
shortfall
in market acceptance
or demand
for
the
ARTAS
®
Systems
and procedures
could
have an immediate
and material
adverse impact
on our business
and financial
condition.
It
is
difficult
to forecast
our future
performance
and our financial
results
may
fluctuate
unpredictably.
Our limited
commercial
history
and the
rapid
evolution
of the
markets
for
medical
technologies
and aesthetic products
make
it
difficult
for
us to predict
our future
performance.
Several factors,
many
of which are outside
of our control,
may
contribute
to fluctuations
in our financial
results,
such as:
•
physician
demand
for
the
ARTAS
®
System
and procedure
usage
may
vary
from
quarter
to quarter;
•
delays in purchasing ARTAS
®
Systems in advance of the availability of implantation functionality, including, in particular, purchasing delays in international markets as we await regulatory clearance for the implantation function;
•
the
inability
of physicians
to obtain
the
necessary
financing
to purchase
the
ARTAS
®
System;
•
changes
in the
length
of our sales
process
for
the
ARTAS
®
System;
•
performance of new functionalities and system updates, such as the robotic implantation functionality in the new ARTAS iX System;
•
performance
of our international
distributors;
•
positive
or negative
media
coverage
of the
ARTAS
®
System,
the
procedures
or products
of our competitors,
or our industry
generally;
•
our ability
to maintain
our current,
or obtain
further,
regulatory
clearances
or approvals such as the regulatory clearances and approvals necessary to market the ARTAS
®
iX System outside the U.S.;
•
delays
in, or failure
of, product
and component
deliveries
by our third-party
manufacturers
or suppliers;
•
seasonal
or other
variations
in patient
demand
for
aesthetic
procedures;
•
introduction
of new aesthetic
procedures
or products
that
compete
with the
ARTAS
®
Systems;
•
changes
in accounting
rules
that
may
cause
restatement
of our consolidated
financial
statements
or have other
adverse
effects;
and
•
adverse
changes
in the
economy
that
reduce
patient
demand
for
elective
aesthetic
procedures.
The long sales
cycl
e
, low unit volume
for
sales
of the ARTAS
®
Systems
and the historic
seasonality
of our industry,
each may
contribute
to substantial
fluctuations
in our operating
results
and stock
price
and make
it difficult
to compare
our results
of operations
to prior
periods
and predict
future
financial
results.
We sell
a relatively
small
number
of ARTAS
®
Systems
at
a relatively
high price,
with each
sale
of an ARTAS
®
System
typically
involving
a significant
amount
of time.
Because
of the
relatively
small
number
of ARTAS
®
Systems
we expect
to sell
in any period,
each
sale
of the
ARTAS
®
System
could
represent
a significant
percentage of our revenue
for
a particular
period.
Furthermore,
due to the
significant
amount
of time
it
can take
to finalize
the
sale
of an ARTAS
®
System,
it
is
likely
that
a sale
could
be recognized
in a
27
subsequent
period
which could have a material
effect
on our results
from
quarter
to quarter
and increase
the
volatility
of quarterly
results.
In addition,
our industry
is
characterized
by seasonally
lower
demand
during
the
third
quarter
of the
calendar
year, generally
when both physicians
and prospective
patients
take
summer
vacation.
As a result
of these
factor
s
, future
fluctuations
in quarterly
results
could
cause
our revenue
and cash
flows
to be below analyst
and investor expectations,
which could
cause
decline
in our stock
price.
Due to future
fluctuations
in revenue
and costs,
as
well as other
potential
fluctuations,
you should
not rely
upon our operating
results
in any particular
period
as an indication
of future
performance.
If
we do not sell
ARTAS
®
Systems
as anticipated,
our operating
results
will
vary significantly
from
our
expectations.
In addition,
selling
the
ARTAS
®
System
requires
significant
marketing
effort and expenditure
in advance
of the
receipt
of revenue
and our efforts
may
not result
in a sale.
Our recurring
losses
from
operations
and negative
cash flows
have raised
substantial
doubt regarding
our ability
to continue
as a going concern.
Our independent
registered
public
accounting
firm
included
an explanatory paragraph
in its
report
on our consolidated
financial
statements
as of, and for
the
year
ended, December
31, 2017 that our recurring losses from operations and negative cash flows raise substantial doubt about our ability to continue as a going concern. Our ability
to continue
as a going concern
will
require
us to obtain
additional
financing
to fund our operations.
As of the filing date of this Quarterly Report, we believe our current cash and cash equivalents will not be sufficient to fund our operations for the next twelve months.
The perception
of our ability
to continue
as a going concern
may
make
it
more
difficult
for
us to obtain
financing for
the
continuation
of our operations
and could
result
in the
loss
of confidence
by investors,
suppliers
and employees.
We will
require
substantial
additional
financing
to achieve
our goals,
and a failure
to obtain
this
necessary capital
when
needed on acceptable
terms,
or at all,
could force
us to delay,
limit,
reduce
or terminate
our product
development,
commercialization
and other
operations
or efforts.
Since
our inception,
we have invested
a significant
portion
of our efforts
and financial
resources
in research
and development
and sales
and marketing
activities.
Research
and development,
clinical
trials,
product
engineering, ongoing product
upgrades
and other
enhancements
such as software-updates
for
the
ARTAS
®
Systems
and seeking regulatory
clearances
and approvals
to market
future
products will
require
substantial
funds
to complete.
As of June 30, 2018, we had capital resources
consisting
of cash
and cash
equivalents
of $16.9 million.
In connection with our IPO, we raised an additional $22.1 million of proceeds, net of underwriting discounts and commissions, and offering expenses.
We believe
that
we will
continue
to expend substantial
resources
for
the
foreseeable
future
in connection
with the
ongoing commercializing
of the
ARTAS
®
System,
increasing
our sales
and marketing
efforts,
and continuing
research
and development
and product enhancements
activities.
We believe
our existing
cash
and cash
equivalents and cash expected to be generated from the sale of our products will not be sufficient for us to fund our planned operations for
the
next
twelve
months.
Therefore, we will need additional capital to fund our future operations. In addition, our operating
plans
may
change as a result
of many
factors
some of which may be
unknown to us, and we may
need to seek
additional
funds
sooner
than
planned, through
public
or private
equity
or debt
financings
or other
sources,
such as strategic
collaborations.
Such financing
may
result
in dilution
to stockholders,
imposition
of burdensome
debt
covenants
and repayment obligations,
the
licensing
of rights
to our technology
or other
restrictions
that
may
affect
our business.
In addition,
we may
seek
additional
capital
due to favorable
market
conditions
or strategic
considerations
even if
we believe
we have sufficient
funds
for
our current
or future
operating
plans.
Additional
funds
may
not be available
when we need them,
on terms
that
are
acceptable
to us, or at
all.
If adequate
funds
are
not available
to us on a timely
basis,
we may
be required
to:
•
delay
or curtail
our efforts
to develop
enhancements
to the
ARTAS
®
System,
including
any clinical
trials that
may
be required
to market
such enhancements;
•
delay
or curtail
our plans
to increase
and expand our sales
and marketing
efforts;
or
•
delay
or curtail
our plans
to enhance
our customer
support
and marketing
activities.
We are
restricted
by covenants
in the Solar Agreement. These covenants
restrict,
among
other
things,
our ability
to incur
additional
debt
without
Solar's
consent,
which may limit
our ability
to obtain
additional
funds. In addition, the Solar Agreement contains certain minimum liquidity and minimum revenue covenants, which, if we fail to maintain or achieve, will result in a default under the agreement and the requirement for us to repay all outstanding principal amounts and accrued interest repay all amounts outstanding
28
We are dependent
upon the success
of the ARTAS
®
System,
which has a limited
commercial
history.
If
we are unsuccessful
in developing
the market
for
robotic
hair restoration
or the market
acceptance
for
the ARTAS
®
System
fails
to grow significantly,
our business
and future
prospects
will
be harmed.
We commenced
commercial
sales
of the
ARTAS
®
System
for
hair
follicle
dissection
in the
U.S.
in 2011 and expect
that
the
revenue
we generate
from
both system
sales
and servicing
as well
as recurring
procedure-based fees
will
account
for
all
of our revenue
for
the
foreseeable
future.
Accordingly,
our success
depends
on the acceptance
among
physicians
and patients
of the
ARTAS
®
System
as the
preferred
system
for
performing
hair restoration
surger
y
. Acceptance
of the
ARTAS
®
System
by physicians
is
significantly
dependent
on our ability
to convince
physicians
of the
benefits
of the
ARTAS
®
System
to their
practices
and, accordingly,
develop
the
market for
robotic-assisted
hair
restoration
surgery.
Acceptance
of the
ARTAS
procedure
by patients
is
equally important
as patient
demand
will
influence
physicians
to offer
the
ARTAS
procedure,
and
the
degree
of market
acceptance
of the
ARTAS
®
System
by physicians
and patients
is
unproven.
We believe
that
market acceptance
of the
ARTAS
®
System
will
depend on many
factors,
including:
•
the
perceived
advantages
or disadvantages
of the
ARTAS
®
System
compared
to other
hair
restoration products
and treatments;
•
the
safety
and efficacy
of the
ARTAS
®
System
relative
to other
hair
restoration
products
and treatments;
•
the
price
of the
ARTAS
®
System
relative
to other
hair
restoration
products
and treatments;
•
our success
in expanding
our sales
and marketing
organization;
•
the
effectiveness
of our marketing,
advertising,
and commercialization
initiatives;
•
our success
in adding
new functionalities
to the
ARTAS
®
System
and enhancing
existing
functions;
and
•
our ability
to obtain
regulatory
clearance
to market
the
ARTAS
®
System
for
additional
treatment indications
in the
U.S.
Further, the ARTAS
®
iX System, which was launched in June 2018, includes our recently approved robotic implantation functionality. As this functionality is new, it is possible that it could include defaults, "bugs" or present other technical issues which could prompt potential physician customers to delay their purchase of the ARTAS iX System or could prompt physicians that have purchased the ARTAS iX System to either return or not utilize the system.
We cannot
assure
you that
the
ARTAS
®
System
will
achieve
broad
market
acceptance
among
physicians
and patients.
Because
we expect
to derive
substantially
all
of our revenue
for
the
foreseeable
future
from
ARTAS
®
System
sales,
servicing
and procedure
-based
fees,
any failure
of this
product
to satisfy
physician
or patient demand
or to achieve
meaningful
market
acceptance
will
harm
our business
and future
prospects.
If
there
is
not sufficient
patient
demand for
ARTAS
procedures,
our financial
results
and future
prospects
will be harmed.
The ARTAS
procedure
is
an elective
aesthetic
procedure,
the
cost
of which must
be borne
by the
patient,
and is not covered
by or reimbursable
through
government
or private
health
insurance.
The decision
to undergo
the ARTAS
procedure
is
thus
driven
by patient
demand,
which may
be influenced
by a number
of factors,
such as:
•
the
success
of our sales
and marketing
programs;
•
the
extent
to which our physician
customers
recommend
the
ARTAS
®
System
to their
patients;
•
our success
in attracting
consumers
who have not previously
undergone
hair
restoration
treatment;
•
the
extent
to which the
ARTAS
procedure
satisfies
patient
expectations;
•
our ability
to properly
train
our physician
customers
in the
use of the
ARTAS
®
System
so that
their patients
do not experience
excessive
discomfort
during
treatment
or adverse
side
effects;
•
the
cost,
safety,
and effectiveness
of the
ARTAS
®
System
versus
other
aesthetic
treatments;
•
consumer
sentiment
about
the
benefits
and risks
of aesthetic
procedures
generally
and the
ARTAS
®
System
in particular;
•
the
success
of any direct-to-consumer
marketing
efforts
we may
initiate;
and
•
general
consumer
confidence,
which may
be impacted
by economic
and political
conditions
outside
of our control.
Our financial
performance
will
be materially
harmed
in the
event
we cannot
generate
significant
patient
demand for
procedures
performed
with the
ARTAS
®
System.
29
Our success
depends in
part
upon patient
satisfaction
with the effectiveness
of the ARTAS
®
System.
In order
to generate
repeat
and referral
business,
patients
must
be satisfied
with the
effectiveness
of the
ARTAS
®
System.
If
the
ARTAS
®
System
procedure
is
not done correctly,
and or the
patient
suffers
from
complications
and other
adverse
effects,
the
patient
may
not be satisfied
with the
benefits
of the
ARTAS
®
System.
Furthermore,
if the
transplanted
hair
follicles
do not grow or survive
the
transplant,
the
patient
will
likely
not view the
procedure as having
a satisfactory
outcome.
If
patients
are
not satisfied
with the
aesthetic
benefits
of the
ARTAS
®
System or feel
that
it
is
too expensive
for
the
results
obtained,
our reputation
and future
sales
will
suffer.
Our success
depends on growing physician
adoption
and use of the ARTAS
®
System.
Our ability
to increase
the
number
of physicians
willing
to make
a significant
capital
expenditure
to purchase
the ARTAS
®
System,
and make
it
a significant
part
of their
practices,
depends
on the
success
of our sales
and marketing
programs.
We must
be able
to demonstrate
that
the
cost
of the
ARTAS
®
System
and the
revenue
that
a physician
can derive
from
performing
ARTAS
procedures
are
compelling
when compared
to the
costs
and revenue
associated
with alternative
aesthetic
treatments
the
physician
can offer.
In addition,
we believe
our marketing
programs,
including
clinical
and practice
development
support,
will
be critical
to increasing
utilization and awareness
of the
ARTAS
®
System,
but these
programs
require
physician
commitment
and involvement
to succeed.
If
we are
unable
to increase
physician
adoption
and use of the
ARTAS
®
System,
our financial performance
will
be adversely
affected.
Our inability
to effectively
compete
with competitive
hair restoration
treatments
or procedures
may
prevent
us from
achieving
significant
market
penetration
or improving
our operating
results.
The medical
technology
and aesthetic
product
markets
are
highly
competitive
and dynamic,
and are
characterized by rapid
and substantial
technological
development
and product
innovations.
We designed
the
ARTAS
®
System
to assist
physicians
in performing
follicular
unit
extraction
surgery.
Demand for
the
ARTAS
®
System
and ARTAS procedures
could
be limited
by other
products
and technologies.
Competition
to address
hair
loss
comes
from various
sources,
including:
•
therapeutic
options
including
Rogaine, which is
applied
topically,
and Propecia,
which is
ingested,
both of which have been approved
by the
FDA;
•
non-surgical
options,
such as wigs, hair-loss
concealer
sprays
and similar
products;
and
•
other
surgical
alternatives,
including
hair
transplantation
surgery
using
the
strip
surgery
method
or using
hand-held
devices.
Surgical
alternatives
to the
ARTAS
®
System
may
be able
to compete
more
effectively
than
the
ARTAS
procedure in established
practices
with trained
staff
and workflows
built
around
performing
these
surgical
alternatives. Practices
experienced
in offering
strip
surgery
or follicular
unit
extractions
using
hand-held
devices
may
be reluctant
to incorporate or convert
their
practices
to offer
ARTAS
procedures
due to the
effort
involved
to make such changes.
Many options
may
be able
to provide
satisfactory
results
for
male
hair
loss, generally
at
a lower
cost
to the patient
than
the
ARTAS
®
System.
As a result,
if
patients
choose
these
competitive
alternatives,
our results
of operation
could
be adversely
affected.
We also face competition from other aesthetic devices that physicians may consider adding to their practice in lieu of building a hair restoration practice, for instance CoolSculpting, which is utilized for body contouring or cosmetic fat reduction. As a result, if physicians choose these competitive products over building a hair restoration practice with the ARTAS
®
System, our results of operation could be adversely affected.
Some of our competitors
have a broad
range
of product
offerings,
large
direct
sales
forces,
and long-term customer
relationships
with our target
physicians,
which could
inhibit
our market
penetration
efforts.
Our potential
physician
customers
also
may
need to recoup
the
cost
of expensive
products
that
they
have already purchased
from
our competitors,
and thus
they
may
decide
to delay
purchasing,
or not to purchase,
the
ARTAS
®
System.
Many of our competitors
are
large,
experienced
companies
that
have substantially
greater
resources
and brand recognition
than
we do. Competition
could
result
in price-cutting,
reduced
profit
margins,
and limited
market share,
any of which would harm
our business,
financial
condition,
and results
of operations.
30
We may
not be able
to establish
or strengthen
our brand.
We believe
that
establishing
and strengthening
the
Restoration
Robotics
and ARTAS
brand
is
critical
to achieving
widespread
acceptance
of the
ARTAS
®
System,
particularly
because
of the
highly
competitive
nature
of the
market
for
aesthetic
treatments
and procedures
to address
male
hair
loss. Promoting
and positioning
our brand
will
depend largely
on the
success
of our marketing
efforts
and our ability
to provide
physicians
with a reliable
product
to assist
them
in performing
hair
restoration
surger
y
. Given the
established
nature
of our competitors,
and our limited
commercialization
in the
U.S., it
is
likely
that
our future
marketing
efforts
will require
us to incur
significant
additional
expenses.
These brand
promotion
activities
may
not yield
increased sales
and, even if
they
do, any sales
increases
may
not offset
the
expenses
we incur
to promote
our brand.
If
we fail
to successfully
promote
and maintain
our brand,
or if
we incur
substantial
expenses
in an unsuccessful attempt
to promote
and maintain
our brand,
the
ARTAS
®
System
may
not be accepted
by physicians,
which would adversely
affect
our business,
results
of operations
and financial
condition.
We have limited
experience
with our direct
sales
and marketing
force
and any failure
to build
and manage our direct
sales
and marketing
force
effectively
could have a material
adverse
effect
on our business.
We rely on a direct sales force to sell the ARTAS
®
System in the U.S. and certain markets outside the U.S. In order to meet our anticipated sales objectives, we expect to grow our direct sales and marketing organization significantly over the next several years and intend to opportunistically build a direct sales and marketing force in certain international markets where we do not have a direct sales force. There are significant risks involved in building and managing our sales and marketing organization, including risks related to our ability to:
•
hire
qualified
individuals
as needed;
•
generate
sufficient
leads
within
our target
physician
group for
our sales
force;
•
provide
adequate
training
for
the
effective
sale
and marketing
of the
ARTAS
®
System;
•
retain
and motivate
our direct
sales
and marketing
professionals;
and
•
effectively
oversee
geographically
dispersed
sales
and marketing
teams.
Our failure
to adequately
address
these
risks
could
have a material
adverse
effect
on our ability
to increase
sales and use of the
ARTAS
®
System,
which would cause
our revenue
to be lower
than
expected
and harm
our results of operations.
To market
and sell
the ARTAS
®
System
in certain
markets
outside
of the U.S., we depend on third-party distributors.
We depend on third-party
distributors
to sell,
market,
and service
the
ARTAS
®
Systems
in certain
markets
outside of the
U.S.
and to train
our physician
customers
in such markets.
Furthermore,
we may
need to engage
additional third-party
distributors
to expand into
new markets
outside
of the
U.S.
where we do not have a direct
sales
force. We are
subject
to a number
of risks
associated
with our dependence
on these
third-parties,
including:
•
the
lack
of day-to-day
control
over
the
activities
of third-party
distributors;
•
third-party
distributors
may
not commit
the
necessary
resources
to market,
sell,
train,
support
and service
our systems
to the
level
of our expectations;
•
third-party
distributors
may
emphasize
the
sale
of third-party
products
over
our products;
•
third-party
distributors
may
not be as selective
as we would be in choosing
physicians
to purchase
the ARTAS
®
System
or as effective
in training
physicians
in marketing
and patient
selection;
•
third-party
distributors
may
violate
applicable
laws and regulations
which may
expose
us to potential liability
or limit
our ability
to sell
products
in certain
markets
•
third-party
distributors
may
terminate
their
arrangements
with us on limited,
or no, notice
or may change
the
terms
of these
arrangements
in a manner
unfavorable
to us;
and
•
disagreements
with our distributors
that
could
require
or result
in costly
and time-consuming
litigation or arbitration
which we could
be required
to conduct
in jurisdictions
with which we are
not familiar.
If
we fail
to establish
and maintain
satisfactory
relationships
with our third-party
distributors,
our revenue
and market
share
may
not grow as anticipated,
and we could
be subject
to unexpected
costs
which would harm
our results
of operations
and financial
condition.
31
To successfully
market
a
nd sell
the ARTAS
®
System
in markets
outside
of the U.S., we must
address
many international
business
risks
with which we have limited
experience.
Sales
in markets
outside
of the
U.S.
accounted
for
approximately
58% of our revenue
for
the
year
ended December
31, 2017 and 54% and 57% of our revenue
for
the six
months
ended June 30, 2018 and 2017, respectively. We believe
that
a significant
percentage
of our business
will
continue
to come
from
sales
in markets
outside
of the
U.S.
through increased
penetration
in countries
where we market
and sell
the
ARTAS
®
System,
and with expansion
into
new international
markets.
However, international
sales
are
subject
to a number
of risks,
including:
•
difficulties
in staffing
and managing
our international
operations;
•
increased
competition
as a result
of more
products
and procedures
receiving
regulatory
approval
or otherwise
free
to market
in international
markets;
•
longer
accounts
receivable
payment
cycles
and difficulties
in collecting
accounts
receivable;
•
reduced
or varied
protection
for
intellectual
property
rights
in some
countries;
•
export
restrictions,
trade
regulations,
and foreign
tax
laws;
•
fluctuations
in currency
exchange
rates;
•
foreign
certification
and regulatory
clearance
or approval
requirements, including receiving regulatory approval and clearance for the robotic implantation functionality included in our ARTAS
®
iX System;
•
difficulties
in developing
effective
marketing
campaigns
in unfamiliar
foreign
countries;
•
customs
clearance
and shipping
delays;
•
political,
social,
and economic
instability
abroad,
terrorist
attacks,
and security
concerns
in general;
•
preference
for
locally
produced
products;
•
potentially
adverse
tax
consequences,
including
the
complexities
of foreign
value-added
tax
systems, tax
inefficiencies
related
to our corporate
structure,
and restrictions
on the
repatriation
of earnings;
•
the
burdens
of complying
with a wide variety
of foreign
laws and different
legal
standards;
and
•
increased
financial
accounting
and reporting
burdens
and complexities.
If
one or more
of these
risks
were realized,
our results
of operations
and financial
condition
could
be adversely affected.
We expect that our revenue from international markets may decrease in the near term as we have received regulatory approval or clearance for the implantation function outside of the U.S., which may result in purchasing delays in international markets as customers await the availability of that function. In addition, the number of ARTAS
®
systems previously sold to distributors that have not yet been placed with an end user has increased in recent periods, which, in combination with the launch of ARTAS
®
iX, System may further exaggerate delays in international system sales.
While
traditional
hair transplantation
surgery
has been available
for
many years,
the ARTAS
®
System
has only been commercially
available
since
2011. As a result,
we have a limited
track
record
compared
to traditional hair transplantation
surgery
and the safety
and efficacy
of the ARTAS
®
System
is
not yet
supported
by long-term
clinical
data, which could limit
sales,
and the ARTAS
®
System
could prove
to be less
safe
or effective
than initially
thought.
The ARTAS
®
System
that
we market
in the
U.S.
is
regulated
as a medical
device
by the
U.S.
Food and Drug Administration,
or the
FDA,
and has received
premarket
clearance
under
Section
510(k)
of the
U.S.
Federal Food, Drug and Cosmetic
Act, or FDCA.
In the
510(k)
clearance
process,
before
a device
may
be marketed,
the FDA
must
determine
that
a proposed
device
is
"substantially
equivalent"
to a legally-marketed
"predicate" device,
which includes
a device
that
has been previously
cleared
through
the
510(k)
process,
a device
that
was legally
marketed
prior
to May 28, 1976 (pre-amendments
device),
a device
that
was originally
on the
U.S.
market pursuant
to an approved
premarket
approval,
or PMA, application
and later
down-classified,
or a 510(k)-exempt device.
This process
is
typically
shorter
and generally
requires
the
submission
of less
supporting
documentation than
the
FDA's PMA process
and does not always
require
long-term
clinical
studies.
Hair
transplantation
surgery
has been a treatment
option
for
hair
restoration
for
many
years,
while
we only began commercializing
the
ARTAS
®
System
in 2011. Consequently,
we lack
the
breadth
of published
long-term
clinical data
supporting
the
safety
and efficacy
of the
ARTAS
®
System
and the
benefits
it
offers
that
might
have been generated
in connection
with other
hair
restoration
techniques.
As a result,
physicians
may
be slow to adopt
the ARTAS
®
System,
we may
not have comparative
data
that
our competitors
have or are
32
generating,
and we may
be subject
to greater
regulatory
and product
liability
risks.
Furthermore,
future
patient
studies
or clinical
experience may
indicate
that
treatment
with the
ARTAS
®
System
does not improve
patient
outcomes
compared
to other
hair restoration
techniques.
Such results
would slow the
adoption
of the
ARTAS
®
System
by physicians,
would significantly
reduce
our ability
to achieve
expected
sales
and could
prevent
us from
achieving
and maintaining profitability.
We have limited
complication
or patient
success
rate
data
with respect
to treatment
using
the
ARTAS
®
System.
If future
patient
studies
or clinical
testing
do not support
our belief
that
our system
offers
a more
advantageous treatment
for
hair
restoration,
market
acceptance
of the
ARTAS
®
System
could
fail
to increase
or could
decrease and our business
could
be harmed.
Moreover,
if
future
results
and experience
indicate
that
our implant
products cause
unexpected
or serious
complications
or other
unforeseen
negative
effects,
we could
be subject
to mandatory
product
recalls,
suspension
or withdrawal
of FDA
or other
governmental
clearance
or approval
or, CE Certificates
of Conformity,
significant
legal
liability
or harm
to our business
reputation.
Furthermore,
if
patients that
receive
traditional
hair
transplantation
surgery,
such as strip
surgery,
were to experience
unexpected
or serious
complications
or other
unforeseen
effects,
the
market
for
the
ARTAS
®
System
may
be adversely
affected, even if
such effects
are
not applicable
to the
ARTAS
®
System.
If
we choose
to, or are
required
to, conduct
additional
studies,
such studies
or experience
could,
slow the
market adoption
of the
ARTAS
®
System
by physicians,
significantly
reduce
our ability
to achieve
expected
revenue
and prevent
us from
becoming
profitable.
We were the subject of purported class action lawsuits, and additional litigation may be brought against us in the future.
In May 2018, a number of purported stockholder class action complaints were filed against us, the members of our board of directors (and affiliated venture funds), as well as certain of our current and former officers and the underwriters in our IPO. The complaints all allege, among other things, that our Registration Statement filed with the SEC on September 1, 2017 and the Prospectus filed with the SEC on October 13, 2017 in connection with our IPO were inaccurate and misleading, contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and omitted to state material facts required to be stated therein. The complaints seek unspecified money damages, other equitable relief and attorneys' fees and costs. While we believe these claims to be without merit, we cannot assure you that additional claims alleging the same or similar facts will not be filed. Any litigation could result in substantial costs and a diversion of management's attention and resources.
We rely
on a single
third-party
manufacturer
for
the manufacturing
of the ARTAS
®
System.
Evolve Manufacturing
Technologies,
Inc.,
or Evolve, assembles
the
ARTAS
®
System,
and produces
reusable procedure
kits,
disposable
procedure
kits,
upgrade
kits
and spare
kits
used with the
ARTAS
®
System.
If
the operations
of Evolve are
interrupted
or if
it
is
unable
or unwilling
to meet
our delivery
requirements
due to capacity
limitations
or other
constraints,
we may
be limited
in our ability
to fulfill
new customer
orders,
to provide
kits
required
for
use with existing
ARTAS
®
Systems
and to repair
equipment
at
current
customer
sites. Any change
to another
contract
manufacturer
would likely
entail
significant
delay,
require
us to devote substantial
time
and resources,
and could
involve
a period
in which our products
could
not be produced
in a timely
or consistently
high-quality
manner,
any of which could
harm
our reputation
and results
of operations.
We have two master
agreements
and a component pricing agreement
with Evolve for
the
supply
of the
ARTAS
®
System
and consumable
products, including
reusable
procedure
kits,
disposable
procedure
kits,
upgrade
kits
and spare
kits
used with the
ARTAS
®
System,
pursuant
to both of which we make
purchases
on a purchase
order
basis.
The terms
of these
master agreements
are
substantially
similar.
The master
agreement
for
the
sale
of ARTAS
®
Systems
was effective beginning
on April
1, 2016 and the
master
agreement
for
the
sale
of kits
used with the
ARTAS
®
System
was effective
beginning
on March
1, 2016. Both agreements
are
effective
for
an initial
term
of two years
and will continue
to automatically
renew for
additional
twelve
-month
periods,
subject
to either
party's
right
to terminate the
agreement
upon 180 days advance
notice
during
the
initial
term
if
our quarterly
forecasted
demand
falls below 75% of our historical
forecasted
demand
for
the
same
period
in the
previous
year
or upon 120 days' advance
notice
after
the
initial
term.
We have an agreement
with Evolve for
the
pricing
of certain
components
at certain
quantities,
which requires
a minimum
purchase
from
us. Otherwise,
without
this
agreement,
Evolve is
not required
and may
not be able
or willing,
to meet
our future
requirements
at
current
prices,
or at
all.
We recently amended
this
agreement
to extend
the
maturity
date
until
August 2018.
Additionally,
while
we do have agreements
with some
of our component
suppliers,
many
of our component suppliers
contract
directly
with Evolve and we have limited
control
over
the
components
they
supply
or the timeliness
by which they
supply
them.
Evolve may
be unable
to acquire
components
at
the
quantities
and prices at
which we need them.
33
In addition,
our reliance
on Evolve involves
a number of
other
risks,
including,
among
other
things,
that:
•
our products
may
not be manufactured
in accordance
with agreed
upon specifications
or in compliance with regulatory
requirements,
or its
manufacturing
facilities
may
not be able
to maintain
compliance with regulatory
requirements,
which could
negatively
affect
the
safety
or efficacy
of our products, cause
delays
in shipments
of our products,
or require
us to recall
products
previously
delivered
to customers;
•
we may
not be able
to timely
respond
to unanticipated
changes
in customer
orders,
and if
orders
do not match
forecasts,
we may
have excess
or inadequate
inventory
of materials
and components;
•
we may
be subject
to price
fluctuations
when a supply
contract
is
renegotiated
or if
our existing contract
is
not renewed;
•
Evolve may
wish to discontinue
manufacturing
and supplying
products
to us for
risk
management reasons;
and
•
Evolve may
encounter
financial
or other
hardships
unrelated
to our demand
for
products,
which could inhibit
its
ability
to fulfill
our orders
and meet
our requirements.
If
any of these
risks
materialize,
it
could
significantly
increase
our costs,
our ability
to generate
net
sales
would be impaired,
market
acceptance
of our products
could
be adversely
affected,
and customers
may
instead
purchase or use our competitors'
products,
which could
have a materially
adverse
effect
on our business,
financial condition
and results
of operations.
Furthermore,
if
we are
required
to change
the
manufacturer
of a critical
component
of the
ARTAS
®
System,
we will
be required
to verify
that
the
new manufacturer
maintains
facilities,
procedures
and operations
that
comply with our quality
and applicable
regulatory
requirements,
which could
further
impede
our ability
to manufacture the
ARTAS
®
System
in a timely
manner.
Transitioning
to a new supplier
could
be time-consuming
and expensive, may
result
in interruptions
in our operations
and product
delivery,
could
affect
the
performance
specifications
of the
ARTAS
®
System
or could
require
that
we modify
the
design
of those
systems.
If
the
change
in manufacturer results
in a significant
change
to any product,
a new 510(k)
clearance
from
the
FDA
or similar
international regulatory
authorization
may
be necessary
before
we implement
the
change,
which could
cause
substantial delays.
The occurrence
of any of these
events
could
harm
our ability
to meet
the
demand
for
our products
in a timely
or cost-effective
manne
r
.
We cannot
assure
you that
we will
be able
to secure
alternative
equipment
and materials
and utilize
such equipment
and materials
without
experiencing
interruptions
in our workflow. If
we should
encounter
delays
or difficulties
in securing,
reconfiguring
or revalidating
the
equipment
and components
we require
for
the
ARTAS
®
System,
our reputation,
business,
financial
condition
and results
of operations
could
be negatively
impacted.
If Evolve
is
unable to manufacture
the ARTAS
®
System
in high-quality
commercial
quantities
successfully
and consistently
to meet
demand, our growth will
be limited.
To manufacture
our ARTAS
®
System
in the
quantities
that
we believe
will
be required
to meet
anticipated
market demand,
Evolve will
need to increase
manufacturing
capacity,
which will
involve
significant
challenges.
In addition,
the
development
of commercial-scale
manufacturing
capabilities
will
require
us and Evolve to invest substantial
additional
funds
and hire
and retain
the
technical
personnel
who have the
necessary
manufacturing experience.
Neither
we nor our third-party
manufacturer
may
successfully
complete
any required
increase
to existing
manufacturing
processes
in a timely
manner,
or at
all.
If
Evolve is
unable
to produce
the
ARTAS
®
System,
reusable
procedure
kits,
disposable
procedure
kits,
upgrade kits
and spare
kits
in sufficient
quantities
to meet
anticipated
customer
demand,
our revenue,
business,
and financial
prospects
would be harmed.
The limited
experience
Evolve has in producing
larger
quantities
of the ARTAS
®
System
and kits
may
also
result
in quality
issues,
and possibly
result
in product
recalls.
Manufacturing delays
related
to quality
control
could
harm
our reputation and decrease
our revenue.
Any recall
could
be expensive
and generate
negative
publicity,
which could
impair
our ability
to market
the
ARTAS
®
System
and procedures
and further
affect
our results
of operations.
If we are unable to manufacture our next generation ARTAS
®
System, called the ARTAS
®
iX System in high-quality commercial quantities successfully and consistently to meet demand, our growth will be limited, and our reputation could be harmed.
To manufacture our ARTAS
®
iX System in the quantities that we believe will be required to meet anticipated market demand, we will need to develop and maintain sufficient manufacturing capacity, which will involve significant challenges. Historically, we have not manufactured any of our other products (e.g. ARTAS
®
System) in-house or without the contract manufacturer involvement. We have not determined whether our ARTAS
®
iX System will be solely manufactured by us or by a third-party manufacturer. The development of commercial-scale manufacturing capabilities will require us or our contract manufacturer for ARTAS
®
iX System to invest substantial additional funds and hire and retain the technical personnel who have the necessary manufacturing experience. Neither we nor our third-party manufacturer may successfully complete any required increase to existing manufacturing processes in a timely manner, or at all.
34
If we or our contract manufacturer are unable to produce the ARTAS
®
iX System, reusable procedure kits, disposable procedure ki
ts, upgrade kits and spare kits in sufficient quantities to meet anticipated customer demand, our revenue, business, financial prospects, and reputation would be harmed. The limited experience we or our third-party manufacturer in producing the ARTAS
®
iX S
ystem and kits may also result in quality issues, and possibly result in product recalls. Manufacturing delays related to quality control could harm our reputation and decrease our revenue. Any recall could be expensive and generate negative publicity, whi
ch could impair our ability to market the ARTAS
®
iX System and procedures and further affect our results of operations.
Evolve's
manufacturing
operations
are dependent
upon third-party
suppliers
and, in some
cases,
sole suppliers,
for
the majority
of our components,
subassemblies
and materials,
making
us vulnerable
to supply shortages
and price
fluctuations,
which could harm our business.
Evolve relies
on several
sole
source
suppliers,
including
Stäubli
Corporation,
FLIR Integrated
Imaging
Solutions Inc.
and Preproduction
Plastics
Inc.,
for
certain
components
of the
ARTAS
®
System,
reusable
procedure
kits, disposable
procedure
kits,
upgrade
kits,
and spare
kits.
These sole
suppliers,
and any of our other
suppliers,
may be unwilling
or unable
to supply
components
of these
systems
to Evolve reliably
and at
the
levels
we anticipate or are
required
by the
market.
For us to be successful,
our third-party
manufacturer
and its
suppliers
must
be able to provide
products
and components
in substantial
quantities,
in compliance
with regulatory
requirements,
in accordance
with agreed
upon specifications,
at
acceptable
costs
and on a timely
basis.
An interruption
in our commercial
operations
could
occur
if
we or Evolve encounter
delays
or difficulties
in securing
these
components, and if
we cannot
then
obtain
an acceptable
substitute.
If
we are
required
to transition
to new third-party
suppliers for
certain
components
of the
ARTAS
®
System,
we believe
that
there
are
only a few such suppliers
that
can supply
the
necessary
components.
A supply
interruption,
price
fluctuation
or an increase
in demand beyond our current
suppliers'
capabilities
could
harm
Evolve's
ability
to manufacture
the
ARTAS
®
System
until new sources
of supply
are
identified
and qualified.
In addition,
the
use of components
or materials
furnished
by these
alternative
suppliers
could
require
us to alter
our operations.
Our reliance
on these
suppliers
subjects
us to a number of risks
that
could
harm
our reputation,
business,
and financial
condition,
including,
among
other
things:
•
interruption
of supply
resulting
from
modifications
to or discontinuation
of a supplier's
operations;
•
delays
in product
shipments
resulting
from
uncorrected
defects,
reliability
issues,
or a supplier's variation
in a component;
•
a lack
of long-term
supply
arrangements
for
key components
with our suppliers;
•
inability
to obtain
adequate
supply
in a timely
manner,
or to obtain
adequate
supply
on commercially reasonable
terms;
•
difficulty
and cost
associated
with locating
and qualifying
alternative
suppliers
for
our components
in a timely
manner;
•
production
delays
related
to the
evaluation
and testing
of products
from
alternative
suppliers,
and corresponding
regulatory
qualifications;
•
delay
in delivery
due to our suppliers
prioritizing
other
customer
orders
over
ours;
•
damage
to our reputation
caused
by defective
components
produced
by our suppliers;
•
increased
cost
of our warranty
program
due to product
repair
or replacement
based
upon defects
in components
produced
by our suppliers;
and
•
fluctuation
in delivery
by our suppliers
due to changes
in demand
from
us or their
other
customers.
Where
practicable,
we are
seeking,
or intending
to seek, second-source
manufacturers
for
certain
of our components.
However, we cannot
provide
assurance
that
we will
be successful
in establishing
second-source manufacturers
or that
the
second-source
manufacturers
will
be able
to satisfy
commercial
demand
for
the ARTAS
®
System.
If
any of these
risks
materialize,
costs
could
significantly
increase
and our ability
to meet
demand
for
our products
could
be impacted.
If
we are
unable
to satisfy
commercial
demand
for
the
ARTAS
®
System
in a timely manner,
our ability
to generate
revenue
would be impaired
and market
acceptance
of our products
could
be adversely
affected.
We forecast
sales
to determine
requirements
for
components
and materials
used in the ARTAS
®
System, reusable
procedure
kits,
disposable
procedure
kits,
upgrade kits
and spare
kits
and if
our forecasts
are incorrect,
we may
experience
delays
in shipments
or increased
inventory
costs.
We keep limited
finished
products
on hand. To manage
our operations,
we forecast
anticipated
product
orders and material
requirements
to predict
our inventory
needs
and enter
purchase
orders
based on these requirements.
Several
components
of the
ARTAS
®
System
require
significant
order
lead
time.
Our limited historical
commercial
experience
and anticipated
growth may
not provide
us with enough data
to consistently and accurately
predict
future
demand.
If
our business
expands
and our demand
for
35
components
and materials increases
beyond our estimates,
our manufacturers
and suppliers
may
be unable
to meet
our demand.
In addition, if
we underestimate
our component
and material
requirements,
we may
have inadequate
inventory,
which could interrupt,
delay,
or prevent
delivery
of the
ARTAS
®
System
and related
products
to our customers.
In contrast,
if we overestimate
our requirements,
we may
have excess
inventory,
which would increase
use of our working capital.
Any of
these
occurrences
would negatively
affect
our financial
condition
and the
level
of satisfaction
our physician
customers
have with our business.
Even though the ARTAS
®
System
is
marketed
to physicians,
there
exists
a potential
for
misuse
by the operator of the ARTAS
®
System
by physicians,
non-physicians
or individuals
who
are not sufficiently
trained,
which could harm our reputation
and our business.
We and our independent
distributors
market
and sell
the
ARTAS
®
System
to physicians.
Under state
law in the U.S., our physician
customers
can generally
allow
nurse
practitioners,
technicians,
and other
non-physicians
to perform
the
ARTAS
procedures
under
their
direct
supervision.
Similarly,
in markets
outside
of the
U.S., physicians
can allow
non-physicians
to perform
the
ARTAS
procedures
under
their
supervision.
Although we and our distributors
provide
training
on the
use of the
ARTAS
®
System,
we do not supervise
the
procedures performed
with the
ARTAS
®
System,
nor can we be assured
that
direct
physician
supervision
of procedures
occurs according
to our recommendations.
The potential
misuse
of the
ARTAS
®
System
by physicians
and non- physicians
may
result
in adverse
treatment
outcomes,
which could
harm
our reputation
and expose
us to costly product
liability
litigation.
We and our distributors
offer
product
training
sessions,
but neither
we nor our distributors
require
purchasers
or operators
of our products
to attend
training
sessions.
The lack
of required
training
for
operators
of our product and the
use of our products
by non-physicians
may
result
in product
misuse
and adverse
treatment
outcomes, which could
harm
our reputation
and expose
us to costly
product
liability
litigation.
Product liability
suits
could be brought against
us for
defective
design,
labeling,
material,
or workmanship, or misuse
of the ARTAS
®
System,
and could result
in expensive
and time-consuming
litigation,
payment
of substantial
damages,
an increase
in our insurance
rates
and substantial
harm to our reputation.
If
the
ARTAS
®
System
is
defectively
designed,
manufactured,
or labeled,
contains
defective
components,
or is misused,
we may
become
subject
to substantial
and costly
litigation
by our physician
customers
or their
patients. Misuse
of the
ARTAS
®
System
or failure
to adhere
to operating
guidelines
can cause
skin
damage
and underlying tissue
damage
and, if
our operating
guidelines
are
found to be inadequate,
we may
be subject
to liability. Furthermore,
if
a patient
is
injured
in an unexpected
manner
or suffers
unanticipated
adverse
events
after undergoing
the
ARTAS
procedure,
even if
the
procedure
was performed
in accordance
with our operating guidelines,
we may
be subject
to product
liability
claims.
Claims
could
also
be asserted
under
state
consumer protection
acts.
If
we cannot
successfully
defend
ourselves
against
product
liability
claims,
we may
incur substantial
liabilities.
Even successful
defense
would require
significant
financial
and management
resources. Regardless
of the
merits
or eventual
outcome,
liability
claims
may
result
in:
•
decreased
demand
for
the
ARTAS
®
System
or any future
products;
•
damage
to our reputation;
•
withdrawal
of clinical
trial
participants;
•
costs
to defend
the
related
litigation;
•
a diversion
of management's
time
and our resources;
•
substantial
monetary
awards
to physician
customers,
patients
or clinical
trial
participants;
•
regulatory
investigations,
product
recalls,
withdrawals
or labeling,
marketing
or promotional restrictions;
•
loss
of revenue;
and
•
the
inability
to commercialize
any future
products.
Our inability
to obtain
and maintain
sufficient
product
liability
insurance
at
an acceptable
cost
and scope
of coverage
to protect
against
potential
product
liability
claims
could
inhibit
commercialization
of the
ARTAS
®
System.
As of June 30, 2018, we carry
product
liability
insurance
in the
amount
of $4.0 million
in the
aggregate.
Although we maintain
such insurance,
any claim
that
may
be brought
against
us could
result
in a court
judgment
or settlement
in an amount
that
is
not covered,
in whole or in part,
by our insurance
or that
is
more than the
limits
of our insurance
coverage.
Our insurance
policies
also
have various
exclusions
and deductibles,
and we may
be subject to a product
liability
claim
for
which we have no coverage.
We will
have to pay any amounts
awarded
by a court or negotiated
in a settlement
that
exceed
our coverage
limitations
or that
are
not covered
by our insurance,
and
we may
not have, or be able
to obtain,
sufficient
funds
to pay such amounts.
Moreover,
in the
future,
we may
not be able
to maintain
insurance
coverage
at
a reasonable
cost
or in sufficient
amounts
to protect
us against
losses.
36
Our ability
to market
the ARTAS
®
System
in the U.S.
is
limited
to hair follicle
dissection
in males
that
have black
or
brown straight
hair, and if
we want to expand our marketing
claims,
we will
need to obtain
additional FDA
clearances
or approvals,
which may
not be granted.
We have FDA
clearance
to market
the
ARTAS
®
System
in the
U.S.
for
dissecting
hair
follicles
only from
the
scalp in men
diagnosed
with androgenic
alopecia,
or AGA,
also
referred
to as male
pattern
baldness,
who have black
or brown straight
hair.
This clearance
restricts
our ability
to market
or advertise
the
ARTAS
®
System
treatment
for women or men
who do not have black
or brown straight
hair,
which could
limit
physician
and patient
adoption
of the
ARTAS
®
System.
Developing
and promoting
new treatment
indications
and protocols
for
the ARTAS
®
System
are
elements
of our growth strategy,
but we cannot
predict
when or if
we will
receive
the
clearances
required
to so implement
those
elements.
In addition,
we may
be required
to conduct
additional
clinical
trials
or studies
to support
our applications,
which may
be time-consuming
and expensive,
and may
produce
results
that
do not result
in FDA
clearances.
If
we do not obtain additional
FDA
clearances,
our ability
to promote
the
ARTAS
®
System
in the
U.S.
may
be limited.
Because
we anticipate
that
sales
in the
U.S.
will
continue
to be a significant
portion
of our business
for
the
foreseeable
future, ongoing restrictions
on our ability
to market
the
ARTAS
®
System
in the
U.S.
could
harm
our business
and limit our revenue
growth.
The clinical
trial
process
required
to obtain
regulatory
clearances
or approvals
is
lengthy
and expensive
with uncertain
outcomes and could result
in delays
in new product
introductions.
In order
to obtain
510(k)
clearance
for
the
ARTAS
®
System,
we were required
to conduct
a clinical
trial,
and we expect
to conduct
clinical
trials
in support
of marketing
authorization
for
future
products
and product enhancements.
Conducting
clinical
trials
is
a complex
and expensive
process,
can take
many
years,
and outcomes are
inherently
uncertain.
We may
suffer
significant
setbacks
in clinical
trials,
even after
earlier
clinical
trials showed promising
results,
and failure
can occur
at
any time
during
the
clinical
trial
process.
Any of our products may
malfunction
or may
produce
undesirable
adverse
effects
that
could
cause
us or regulatory
authorities
to interrupt,
delay
or halt
clinical
trials.
We, the
FDA,
or another
regulatory
authority
may
suspend
or terminate clinical
trials
at
any time
to avoid
exposing
trial
participants
to unacceptable
health
risks.
Successful
results
of pre-clinical
studies
are
not necessarily
indicative
of future
clinical
trial
results,
and predecessor
clinical
trial
results
may
not be replicated
in subsequent
clinical
trials.
Additionally,
the
FDA
may disagree
with our interpretation
of the
data
from
our pre-clinical
studies
and clinical
trials,
or may
find
the clinical
trial
design,
conduct
or results
inadequate
to prove
safety
or efficacy,
and may
require
us to pursue additional
pre-clinical
studies
or clinical
trials,
which could
further
delay
the
clearance
or approval
of our products.
The data
we collect
from
our pre-clinical
studies
and clinical
trials
may
not be sufficient
to support FDA
clearance
or approval,
and if
we are
unable
to demonstrate
the
safety
and efficacy
of our future
products
in our clinical
trials,
we will
be unable
to obtain
regulatory
clearance
or approval
to market
our products.
In addition,
we may
estimate
and publicly
announce
the
anticipated
timing
of the
accomplishment
of various clinical,
regulatory
and other
product
development
goals,
which are
often
referred
to as milestones.
These milestones
could
include
the
obtainment
of the
right
to affix
the
CE
Mark
in the
European
Union; the
submission to the
FDA
of an investigational
device
exemption,
or IDE, application
to commence
a pivotal
clinical
trial
for
a new product;
the
enrollment
of patients
in clinical
trials;
the
release
of data
from
clinical
trials;
and other
clinical and regulatory
events.
The actual
timing
of these
milestones
could
vary
dramatically
compared
to our estimates, in some
cases
for
reasons
beyond our control.
We cannot
assure
you that
we will
meet
our projected
milestones and if
we do not meet
these
milestones
as publicly
announced,
the
commercialization
of our products
may
be delayed
and, as a result,
our stock
price
may
decline.
Delays
in the
commencement
or completion
of clinical
testing
could
significantly
affect
our product
development costs.
We do not know whether
planned
clinical
trials
will
begin
on time,
need to be redesigned,
enroll
an adequate
number
of patients
in a timely
manner
or be completed
on schedule,
if
at
all.
The commencement
and completion
of clinical
trials
can be delayed
or terminated
for
a number of reasons,
including
delays
or failures related
to:
•
the
FDA
or comparable
foreign
regulatory
authorities
disagreeing
as to the
design
or implementation
of our clinical
studies;
•
obtaining
regulatory
approval
to commence
a clinical
trial;
•
reaching
agreement
on acceptable
terms
with prospective
clinical
research
organizations,
or CROs,
and trial
sites,
the
terms
of which can be subject
to extensive
negotiation
and may
vary
significantly
among different
CROs
and trial
sites;
•
manufacturing
sufficient
quantities
of a product
for
use in clinical
trials;
•
obtaining
institutional
review
board,
or IRB, or ethics
committees
approval
to conduct
a clinical
trial
at each
prospective
site;
•
recruiting
and enrolling
patients
and maintaining
their
participation
in clinical
trials;
37
•
having
clinical
sites
observe
trial
protocol
or continue
to participate
in a trial;
•
addressing
any patient
safety
concerns
that
arise
during
the
course
of a clinical
trial;
•
addressing
any conflicts
with new or existing
laws or regulations;
and
•
adding
a sufficient
number
of clinical
trial
sites.
Patient
enrollment
in clinical
trials
and completion
of patient
follow-up
depend on many
factors,
including
the size
of the
patient
population,
the
nature
of the
trial
protocol,
the
proximity
of patients
to clinical
sites,
the eligibility
criteria
for
the
clinical
trial,
patient
compliance,
competing
clinical
trials
and clinicians'
and patients' perceptions
as to the
potential
advantages
of the
product
being
studied
in relation
to other
available
therapies, including
any new treatments
that
may
be cleared
or approved
for
the
indications
we are
investigating.
For example,
patients
may
be discouraged
from
enrolling
in our clinical
trials
if
the
trial
protocol
requires
them
to undergo
extensive
post-treatment
procedures
or follow-up
to assess
the
safety
and efficacy
of a product,
or they may
be persuaded
to participate
in contemporaneous
clinical
trials
of a competitor's
product.
In addition,
patients participating
in our clinical
trials
may
drop out before
completion
of the
trial
or suffer
adverse
medical
events unrelated
to our products.
Delays
in patient
enrollment
or failure
of patients
to continue
to participate
in a clinical trial
may
delay
commencement
or completion
of the
clinical
trial,
cause
an increase
in the
costs
of the
clinical trial
and delays,
or result
in the
failure
of the
clinical
trial.
We could
also
encounter
delays
if
the
FDA
concluded
that
our financial
relationships
with our principal investigators
resulted
in a perceived
or actual
conflict
of interest
that
may
have affected
the
interpretation
of a study,
the
integrity
of the
data
generated
at
the
applicable
clinical
trial
site
or the
utility
of the
clinical
trial
itself. Principal
investigators
for
our clinical
trials
may
serve
as scientific
advisors
or consultants
to us from
time
to time
and receive
cash
compensation
and/or
stock
options
in connection
with such services.
If
these
relationships and any related
compensation
to or ownership
interest
by the
clinical
investigator
carrying
out the
study
result
in perceived
or actual
conflicts
of interest,
or the
FDA
concludes
that
the
financial
relationship
may
have affected interpretation
of the
study,
the
integrity
of the
data
generated
at
the
applicable
clinical
trial
site
may
be questioned
and the
utility
of the
clinical
trial
itself
may
be jeopardized,
which could
result
in the
delay
or rejection
of our marketing
application
by the
FDA.
Any such delay
or rejection
could
prevent
us from commercializing
any of our products
in development.
Furthermore,
clinical
trials
may
also
be delayed
because of ambiguous
or negative
interim
results.
In addition, a clinical
trial
may
be suspended
or terminated
by us, the
FDA,
the
IRB overseeing
the
clinical
trial
at
issue,
the Data Safety
Monitoring
Board for
such trial,
any of our clinical
trial
sites
with respect
to that
site,
or other regulatory
authorities
due to several factors,
including:
•
failure
to conduct
the
clinical
trial
in accordance
with applicable
regulatory
requirements
or our clinical protocols;
•
inspection
of the
clinical
trial
operations
or trial
sites
by the
FDA
or other
regulatory
authorities resulting
in the
imposition
of a clinical
hold;
•
inability
of a clinical
investigator
or clinical
trial
site
to continue
to participate
in the
clinical
trial;
•
unforeseen
safety
issues
or adverse
side
effects;
•
failure
to demonstrate
a benefit
from
using
the
product;
and
•
lack
of adequate
funding
to continue
the
clinical
trial.
Additionally,
changes
in regulatory
requirements
and guidance
may
occur
and we may
need to amend
clinical trial
protocols
to reflect
these
changes.
Amendments
may
require
us to resubmit
our clinical
trial
protocols
to IRBs for
reexamination,
which may
impact
the
costs,
timing
or successful
completion
of a clinical
trial.
If
we experience
delays
in completion
of, or if
we terminate,
any of our clinical
trials,
the
commercial
prospects
for
our products
may
be harmed
and our ability
to generate
product
revenue
from
these
products
will
be delayed
or not realized
at
all.
In addition,
any delays
in completing
our clinical
trials
will
increase
our costs,
slow down our product
development
and approval
process
and jeopardize
our ability
to commence
product
sales
and generate revenue.
Any of these
occurrences
may
significantly
harm
our business,
financial
condition
and prospects significantly.
In addition,
many
of the
factors
that
cause,
or lead
to, a delay
in the
commencement
or completion of a clinical
trial
may
also
ultimately
lead
to the
denial
of regulatory
approval
of the
subject
product.
38
Our business
could be adversely
affected
if
we are unable to extend
the
cleared
uses of the ARTAS
®
System
or successfully
pursue the development,
regulatory
clearance
or approval
and commercialization
of future products.
Our only product
is
the
ARTAS
®
System
for
hair
follicle
dissectio
n
, which has been cleared
for
use in the
U.S. only for
dissecting
hair
follicles
from
the
scalp
in men
diagnosed
with AGA
who have black
or brown straight hair, recipient
site
making
for the follicle transplantation sites and robotic implantation in which hair follicles are robotically transplanted, which recently has been approved for commercial marketing in the U.S.
Our business
could
be adversely
affected
if
we are
unable
to extend
the
cleared
uses
of the
ARTAS
®
System
or successfully
pursue
the
development,
regulatory
clearance
or approval
and commercialization
of future
products. In the
future,
we may
also
become
dependent
on other
products
that
we may
develop
or acquire.
The clinical
and commercial
success
of our products
will
depend on several factors,
including
the
following:
•
the
ability
to raise
any additional
required
capital
on acceptable
terms,
or at
all;
•
timely
completion
of our nonclinical
studies
and clinical
trials,
which may
be significantly
slower
or cost
more
than
we anticipate
and will
depend substantially
upon the
performance
of third-party contractors;
•
whether
we are
required
by the
FDA
or similar
foreign
regulatory
agencies
to conduct
additional clinical
trials
or other
studies
beyond those
planned
to support
the
clearance
or approval
and commercialization
of any future
indications
or products;
•
our ability
to demonstrate
to the
satisfaction
of the
FDA
and similar
foreign
regulatory
authorities
the safety,
efficacy
and acceptable
risk
to benefit
profile
of any future
indications
or products;
•
the
prevalence,
duration
and severity
of potential
side
effects
or other
safety
issues
experienced
with our future
approved
products,
if
any;
•
the
timely
receipt
of necessary
marketing
approvals
or clearances
from
the
FDA
and foreign
regulatory authorities;
•
achieving
and maintaining,
and, where applicable,
ensuring
that
our third-party
contractors
achieve
and maintain,
compliance
with our contractual
obligations
and with all
regulatory
requirements
applicable to any future
products
or additional
approved
indication
s
, if
any;
•
acceptance
by physicians
and patients
of the
benefits,
safety
and efficacy
of any future
products,
if approved
or cleared,
including
relative
to alternative
and competing
treatments;
•
our ability
to establish
and enforce
intellectual
property
rights
in and to our products
or any future indications
or products;
and
•
our ability
to avoid
third-party
patent
interference,
intellectual
property
challenges
or intellectual property
infringement
claims.
Even if
regulatory
approvals
or clearances
are
obtained,
we may
never
be able
to successfully
commercialize
any future
indications
or products.
Accordingly,
we cannot
provide
assurances
that
we will
be able
to generate sufficient
revenue
through
the
sale
of any future
products
to continue
our business.
Our loan and security agreement
contains
restrictions
that
limit
our flexibility
in operating
our business.
In May 2018, we entered
into
a loan
and security
agreement
with Solar Capital Ltd. and other lenders. We borrowed
$20.0 million
under
the
loan and security agreement
with Solar, the Solar Agreement. The Solar Agreement also
contains
various
covenants
that
limit
our ability
to engage
in specified
types
of transactions.
Subject
to limited
exceptions,
these
covenants
limit
our abilit
y
, without
Solar's
consent,
to, among
other
things:
•
sell,
lease,
transfer,
exclusively
license
or dispose
of our assets;
•
create,
incur,
assume
or permit
to exist
additional
indebtedness
or liens, which may limit our ability to raise additional capital;
•
make
restricted
payments,
including
paying
dividends
on, repurchasing
or making
distributions
with respect
to our capital
stock;
•
pay any cash
dividend
or make
any other
cash
distribution
or payment
in respect
of our capital
stock
more than $150,000 in aggregate
per
calendar
year;
•
make
specified
investments
(including
loans
and advances);
•
make
changes
to certain
key personnel
including
our President
and Chief
Executive
Officer;
39
•
merge,
consolidate
or liquidate;
and
•
enter
into
certain
transactions
with our affiliates.
In addition, the Solar Agreement contains certain covenants that require us to achieve certain revenue and liquidity thresholds. These covenants under the agreement require us to meet certain minimum liquidity and minimum revenue covenants, which, if we fail to maintain or achieve, will result in a default and require us to repay all outstanding principal amounts and accrued interest repay all amounts outstanding. In the event of a default, if we are unable to repay all outstanding amounts Solar
may foreclose
on the
collateral
granted
to it
to collateralize
such indebtedness and will significantly affect our ability to operate our business.
We will
need to increase
the size
of our organization,
and we may
experience
difficulties
in managing growth.
As of June 30, 2018, we had 105 employees,
with 47 employees
in sales
and marketing,
18 employees
in customer
support,
24 employees
in research
and development,
including
clinical,
regulatory
and certain
quality control
functions,
four
employees
in manufacturing
operations
and 12 employees
in general
management
and administration.
We will
need to continue
to expand our sales,
marketing,
managerial,
operational,
finance
and administrative
resources
for
the
ongoing commercialization
of the
ARTAS
®
System and continue
our development
activities
of any future
products.
Our existing
management,
personnel,
systems
and facilities
may
not be adequate
to support
our future
growth. Our need to effectively
execute
our growth strategy
requires
that
we:
•
identify,
recruit,
retain,
incentivize
and integrate
additional
employees,
including
sales
personnel;
•
manage
our internal
development
and operational
efforts
effectively
while
carrying
out our contractual obligations
to third
parties;
and
•
continue
to improve
our operational,
financial
and management
controls,
reports
systems
and procedures.
If
we fail
to attract
and retain
senior
management
and key personnel,
we may
be unable to successfully
grow our business.
Our success
depends
in part
on our continued
ability
to attract,
retain
and motivate
highly
qualified
management, clinical
and other
personnel.
We are
highly
dependent
upon our senior
management,
particularly
our President and Chief
Executive
Officer,
our management
team
and other
key personnel.
The loss
of services
of any of these individuals
could
delay
or prevent
enhancement
of the
ARTAS
®
System,
the
expansion
of the
ARTAS
®
System
to new indications,
or the
development
of any future
products.
Although we have entered
into
employment agreements
with our senior
management
team,
these
agreements
do not provide
for
a fixed
term
of service.
Competition
for
qualified
personnel
in the
medical
device
field
is
intense
due to the
limited
number
of individuals
who possess
the
skills
and experience
required
by our industry.
We will
need to hire
additional personnel
and we may
not be able
to attract
and retain
quality
personnel
on acceptable
terms,
or at
all.
In addition,
to the
extent
we hire
personnel
from
competitors,
we may
be subject
to allegations
that
they
have been improperly
solicited
or that
they
have divulged
proprietary
or other
confidential
information,
or that
their
former employers
own their
research
output.
Because
we have opted
to take
advantage
of the JOBS
Act provision
which allows
us to delay
implementing new accounting
standards,
our consolidated
financial
statements
may
not be directly
comparable
to other public
companies.
Pursuant
to the
Jumpstart
Our Business
Startups
Act of 2012, or the
JOBS
Act, emerging
growth companies
can delay
adopting
new or revised
accounting
standards
issued
after the
enactment
of the
JOBS
Act until those
standards
apply
to private
companies.
We have elected
to use this
extended
transition
period for
complying
with new or revised
accounting
standards
that
have different
effective
dates
for
public
and private companies
until
the
earlier
of the
date
we (i)
are
no longer
an emerging
growth company
or (ii)
affirmatively
and irrevocably
opt out of the
extended
transition
period
provided
in the
JOBS
Act. Because
we have elected
to take advantage
of this
provision
of the
JOBS
Act, our consolidated
financial
statements
and the
reported
results
of operations
contained
therein
may
not be directly
comparable
to other
public
companies.
We incur significant
costs
because of operating
as a public
company,
and our management
devotes substantial
time
to new compliance
initiatives.
We may
fail
to comply
with the rules
that
apply
to public companies,
including
Section
404 of the Sarbanes-Oxley
Act of 2002, which could result
in sanctions
or other penalties
that
would harm our business.
We
incur
significant
legal,
accounting
and other
expenses
as a public
company,
including
costs
resulting from
public
company
reporting
obligations
under
the
Securities
Exchange Act of 1934, as amended,
and regulations
regarding
corporate
governance
practices.
The listing
requirements
of The Nasdaq
Global
Market and the
rules
of the
Securities
and Exchange Commission,
or SEC,
require
that
we satisfy
certain
corporate governance
requirements
relating
to director
independence,
filing
annual
and interim
reports,
40
stockholder meetings,
approvals
and voting,
soliciting
proxies,
conflicts
of interest
and a code of conduct.
Our management and other
personnel devote
a substantial
amount
of time
to ensure
that
we comply
with all
of these requirements.
Moreover,
the
reporting
requirements,
rules
and regulations
will continue to
increase
our legal
and financial compliance
costs
and will
make
some
activities
more
time-consuming
and costly.
Any changes
we make
to comply
with
these
obligations
may
not be sufficient
to allow
us to satisfy
our obligations
as a public
company
on a timely
basis,
or at
all.
These reporting
requirements,
rules
and regulations,
coupled
with the
increase
in potential
litigation
exposure
associated
wit
h being
a public
company,
could
also
make
it
more
difficult
for
us to attract
and retain
qualified
persons
to serve
on our board
of directors
or board
committees
or to serve
as executive
officers,
or to obtain
certain
types
of insurance,
including
directors'
and officers'
insurance,
on acceptable
terms.
We are
subject
to Section
404 of The Sarbanes-Oxley
Act of 2002, or Section
404, and the related
rules
of the
SEC,
which generally
require
our management
and independent
registered
public
accounting firm
to report
on the
effectiveness
of our internal
control
over
financial
reporting.
Beginning
with the
second annual
report
that
we will
be required
to file
with the
SEC,
Section
404 requires
an annual
management assessment
of the
effectiveness
of our internal
control
over
financial
reporting.
However, for
so long as we remain
an emerging
growth company
as defined
in the
JOBS
Act, we intend
to take
advantage
of certain exemptions
from
various
reporting
requirements
that
are
applicable
to public
companies
that
are
not emerging growth companies,
including,
but not limited
to, not being
required
to comply
with the
auditor
attestation requirements
of Section
404. Once we are
no longer
an emerging
growth company
or, if
prior
to such date,
we opt to no longer
take
advantage
of the
applicable
exemption,
our independent
registered
public
accounting
firm will
be engaged
to provide
an attestation
report
on the
effectiveness
of our internal
control
over
financial reporting.
We will
remain
an emerging
growth company
until
the
earlier
of (1)
the
last
day of the
fiscal
year (a)
following
the
fifth
anniversary
of our initial public
offering,
(b)
in which we have total
annual
gross revenue
of at
least
$1.07 billion,
or (c)
in which we are
deemed
to be a large
accelerated
filer,
which means
the market
value
of our common
stock
that
is
held
by non-affiliates
exceeds
$700.0 million
as of the
prior
September 30th, and (2)
the
date
on which we have issued
more
than
$1.0 billion
in non-convertible
debt
during
the
prior
three- year
period.
To date,
we have never
conducted
a review
of our internal
control
for
the
purpose
of providing
the
reports required
by these
rules.
During the
course
of our review
and testing,
we may
identify
deficiencies
and be unable to remediate
them
before
we must
provide
the
required
reports.
Furthermore,
if
we have a material
weakness
in our internal
controls
over
financial
reporting,
we may
not detect
errors
on a timely
basis
and our consolidated financial
statements
may
be materially
misstated.
We or our independent
registered
public
accounting
firm
may not be able
to conclude
on an ongoing basis
that
we have effective
internal
control
over
financial
reporting, which could
harm
our operating
results,
cause
investors
to lose
confidence
in our reported
financial
information and cause
the
market
price
of our stock
to decline.
In addition,
as a public
company
we are required
to file accurate
and timely
quarterly
and annual
reports
with the
SEC
under
the
Securities
Exchange Act of 1934, as amended.
Any failure
to report
our financial
results
on an accurate
and timely
basis
could
result
in sanctions, lawsuits,
delisting
of our shares
from
The Nasdaq
Global
Market
or other
adverse
consequences
that
would materially
harm
to our business
and cause
the
market
price
of our common
stock
to decline.
Unfavorable
global
economic
conditions
could adversely
affect
our business,
financial
condition
or results
of operations.
Our results
of operations
could
be adversely
affected
by general
conditions
in the
global
economy
and in the global
financial
markets.
Furthermore,
the
market
for
aesthetic
medical
procedures
may
be particularly vulnerable
to unfavorable
economic
conditions.
In particular,
the
ARTAS
procedures
will
not receive
coverage and reimbursement
and, as a result,
demand
for
this
product
will
be tied
to discretionary
spending
levels
of our targeted
patient
population.
The recent
global
financial
crisis
caused
extreme
volatility
and disruptions
in the capital
and credit
markets.
A severe
or prolonged
economic
downturn, such as the
recent
global
financial
crisis, could
result
in a variety
of risks
to our business,
including
weakened demand
for
the
ARTAS
®
System,
ARTAS procedures
or any future
products,
if
approved,
and our ability
to raise
additional
capital
when needed
on acceptable
terms,
if
at
all.
A weak or declining
economy
could
also
strain
our manufacturers
or suppliers, possibly
resulting
in supply
disruption,
or cause
our customers
to delay
making
payments
for
our services.
Any of the
foregoing
could
harm
our business
and we cannot
anticipate
all the
ways in which the
economic
climate and financial
market
conditions
could
adversely
impact
our business.
We or the third
parties
upon whom we depend may
be adversely
affected
by earthquakes
or other
natural disasters
and our business
continuity
and disaster
recovery
plans may
not adequately
protect
us from
a serious disaster.
Our corporate
headquarters
and other
facilities
are
located
in San Jose,
California,
which in the
past
has experienced
both severe
earthquakes
and floods.
We do not carry
earthquake
or flood
insurance.
Earthquakes
or other
natural
disasters
could
severely
disrupt
our operations,
and have a material
adverse
effect
on our business, results
of operations,
financial
condition
and prospects.
41
If
a natural
disaster,
power outage
or other
event
occurred
that
prevented
us from
using
all
or a significant
portion of our headquarters,
that
damaged
critical
infrastructure,
such as our ARTAS
enterprise
system,
enterprise financial
syste
ms
and records,
manufacturing
resource
planning
and enterprise
quality
systems,
or that
otherwise disrup
t
ed operations,
it
may
be difficult
or, in certain
cases,
impossible,
for
us to continue
our business
for
a substantial
period
of time.
The disaster
recovery
and business
continuity
plans
we have in place
are
limited
and are
unlikely
to prove
adequate
in the
event
of a serious
disaster
or similar
event.
We may
incur
substantial expenses
because of the
limited
nature
of our disaster
recovery
and
business
continuity
plans,
which, particularly
when taken
together
with our lack
of earthquake
or flood
insurance,
could
have a material
adverse effect
on our business.
Furthermore,
integral
parties
in our supply
chain
are
similarly
vulnerable
to natural
disasters
or other
sudden, unforeseen
and severe
adverse
events.
If
such an event
were to affect
our supply
chain,
it
could
have a material adverse
effect
on our business.
Significant
disruptions
of information
technology
systems
or breaches
of data security
could materially adversely
affect
our business,
results
of operations
and financial
condition.
We collect
and maintain
information
in digital
form
that
is
necessary
to conduct
our business,
and we are increasingly
dependent
on information
technology
systems
and infrastructure
to operate
our business.
In the ordinary
course
of our business,
we collect,
store
and transmit
large
amounts
of confidential
information, including
intellectual
property,
proprietary
business
information
and personal
information.
It
is
critical
that
we do so in a secure
manner
to maintain
the
confidentiality
and integrity
of such confidential
information.
We have established
physical,
electronic,
and organizational
measures
to safeguard
and secure
our systems
to prevent
a data
compromise,
and rely
on commercially
available
systems,
software,
tools,
and monitoring
to provide
security
for
our information
technology
systems
and the
processing,
transmission
and storage
of digital information.
We have also
outsourced
elements
of our information
technology
infrastructure,
and as a result
a few third-party
vendors
may
or could
have access
to our confidential
information.
Our internal
information technology
systems
and infrastructure,
and those
of our current
and any future
collaborators,
contractors
and consultants
and other
third
parties
on which we rely,
are
vulnerable
to damage
from
computer
viruses,
malware, natural
disasters,
terrorism,
war, telecommunication
and electrical
failures,
cyber-attacks
or cyber-intrusions
over the
Internet,
attachments
to emails,
persons
inside
our organization,
or persons
with access
to systems
inside
our organization.
The risk
of a security
breach
or disruption,
particularly
through
cyber-attacks
or cyber
intrusion, including
by computer
hackers,
foreign
governments,
and cyber
terrorists,
has generally
increased
as the
number, intensity
and sophistication
of attempted
attacks
and intrusions
from
around
the
world have increased.
In addition,
the
prevalent
use of mobile
devices
that
access
confidential
information
increases
the
risk
of data security
breaches,
which could
lead
to the
loss
of confidential
information
or other
intellectual
property.
The costs
to us to mitigate
network
security
problems,
bugs, viruses,
worms,
malicious
software
programs
and security
vulnerabilities
could
be significant,
and while
we have implemented
security
measures
to protect
our data
security
and information
technology
systems,
our efforts
to address
these
problems
may
not be successful, and these
problems
could
result
in unexpected
interruptions,
delays,
cessation
of service
and other
harm
to our business
and our competitive
position.
If
such an event
were to occur
and cause
interruptions
in our operations,
it could
result
in a material
disruption
of our product
development
programs.
Moreover,
if
a computer
security breach
affects
our systems
or results
in the
unauthorized
release
of personally
identifiable
information,
our reputation
could
be materially
damaged.
In addition,
such a breach
may
require
notification
to governmental agencies,
the
media
or individuals
pursuant
to various
federal
and state
privacy
and security
laws, if
applicable, including
the
Health
Insurance
Portability
and Accountability
Act of 1996, or HIPAA,
as amended
by the
Health Information
Technology
for
Clinical
Health
Act of 2009, or HITECH,
and its
implementing
rules
and regulations,
as well
as regulations
promulgated
by the
Federal
Trade
Commission and state
breach
notification laws. We would also
be exposed
to a risk
of loss
or litigation
and potential
liability,
which could
materially adversely
affect
our business,
results
of operations
and financial
condition.
Our employees
and independent
contractors,
including
consultants,
manufacturers,
distributors,
commercial collaborators,
service
providers
and other
vendors
may
engage in misconduct
or other
improper
activities, including
noncompliance
with regulatory
standards
and requirements,
which could have an adverse
effect
on our results
of operations.
We are
exposed
to the
risk
that
our employees
and independent
contractors,
including
consultants, manufacturers,
distributors,
commercial
collaborators,
service
providers
and other
vendors
may
engage
in misconduct
or other
illegal
activity.
Misconduct
by these
parties
could
include
intentional,
reckless
and/or negligent
conduct
or other
unauthorized
activities
that
violate
the
laws and regulations
of the
FDA
and other similar
regulatory
bodies,
including
those
laws that
require
the
reporting
of true,
complete
and accurate information
to such regulatory
bodies;
manufacturing
standards;
U.S.
federal
and state
healthcare
fraud
and abuse,
data
privacy
laws and other
similar
non-U.S. laws;
or laws that
require
the
true,
complete
and accurate reporting
of financial
information
or data.
Activities
subject
to these
laws also
involve
the
improper
use or misrepresentation
of information
obtained
in the
course
of clinical
trials,
the
creation
of fraudulent
data
in our nonclinical
studies
or clinical
trials,
or illegal
misappropriation
of product,
which could
result
in regulatory sanctions
and cause
serious
harm
to our reputation.
It
is
not always
possible
to identify
and deter
misconduct
by employees
and other
third-parties,
and the
precautions
we take
to detect
and prevent
this
activity
may
not be effective
in controlling
unknown or unmanaged
risks
or losses
or in protecting
us from
governmental investigations
or other
actions
or lawsuits
stemming
from
a failure
to be in compliance
with such laws or regulations.
In addition,
we are
subject
to the
risk
that
a person
or
42
government
could
allege
such fraud
or other misconduct,
even if
none occurred.
If
any such actions
are
instituted
against
us, and we are
not successful
in defending
ourselves
or asserting
our rights,
those
actions
could
have a si
gnificant
impact
on our business
and financial
results,
including,
without
limitation,
the
imposition
of significant
civil,
criminal
and administrative penalties,
damages,
monetary
fines,
disgorgements,
individual
imprisonment,
other
sanctions,
contractual
damages,
reputational
harm,
diminished
profits
and future
earnings
and curtailment
of our operations,
any of which could
adversely
affect
our ability
to operate
our business
and our results
of operations.
Risks Related
to Intellectual
Property
We may
in the future
become
involved
in lawsuits
to defend
ourselves
against
intellectual
property
disputes, which could be expensive
and time
consuming,
and ultimately
unsuccessful,
and could result
in the diversion of significant
resources,
and hinder our ability
to commercialize
our existing
or future
products.
Our success
depends
in part
on not infringing
the
patents
or violating
the
other
proprietary
rights
of others. Intellectual
property
disputes
can be costly
to defend
and may
cause
our business,
operating
results
and financial condition
to suffer.
Significant
litigation
regarding
patent
rights
occurs
in the
medical
industry.
Whether
merited or not, it
is
possible
that
U.S.
and foreign
patents
and pending
patent
applications
controlled
by third
parties
may be alleged
to cover
our products.
We may
also
face
allegations
that
our employees
have misappropriated
the intellectual
property
rights
of their
former
employers
or other
third
parties.
Our competitors
in both the
U.S.
and abroad,
many
of which have substantially
greater
resources
and have made
substantial
investments
in patent portfolios
and competing
technologies,
may
have applied
for
or obtained
or may
in the
future
apply
for
and obtain,
patents
that
will
prevent,
limit,
or otherwise
interfere
with our ability
to make,
use, sell,
and/or
export
our products.
Our competitors
may
have one or more
patents
for
which they
can threaten
and/or
initiate
patent infringement
actions
against
us and/or
any of our third-party
suppliers.
Our ability
to defend
ourselves
and/or
our third-party
suppliers
may
be limited
by our financial
and human
resources,
the
availability
of reasonable defenses,
and the
ultimate
acceptance
of our defenses
by the
courts
or juries.
Furthermore,
if
such patents
are successfully
asserted
against
us, this
may
result
in an adverse
impact
on our business,
including
injunctions, damages,
and/or
attorneys'
fees.
From
time
to time
and in the
ordinary
course
of business,
we may
develop noninfringement
and/or
invalidity
positions
with respect
to third-party
patents,
which may
or not be ultimately adjudicated
as successful
by a judge
or jury
if
such patents
were asserted
against
us.
We may
receive
in the
future,
particularly
as a public
company,
communications
from
patent
holders,
including non-practicing
entities,
alleging
infringement
of patents
or other
intellectual
property
rights
or misappropriation of trade
secrets,
or offering
licenses
to such intellectual
property.
Any claims
that
we assert
against
perceived infringers
could
also
provoke
these
parties
to assert
counterclaims
against
us alleging
that
we infringe
their intellectual
property
rights.
At any given
time,
we may
be involved
as either
a plaintiff
or a defendant
in several patent
infringement
actions,
the
outcomes
of which may
not be known for
prolonged
periods
of time.
The large
number
of patents,
the
rapid
rate
of new patent
applications
and issuances,
the
complexities
of the technologies
involved,
and the
uncertainty
of litigation
significantly
increase
the
risks
related
to any patent litigation.
Any potential
intellectual
property
litigation
also
could
force
us to do one or more
of the
following:
•
stop
selling,
making,
using,
or exporting
products
that
use the
disputed
intellectual
property;
•
obtain
a license
from
the
intellectual
property
owner to continue
selling,
making,
exporting,
or using products,
which license
may
require
substantial
royalty
payments
and may
not be available
on reasonable
terms,
or at
all;
•
incur
significant
legal
expenses;
•
pay substantial
damages
or royalties
to the
party
whose intellectual
property
rights
we may
be found to be infringing,
potentially
including
treble
damages
if
the
court
finds
that
the
infringement
was willful;
•
if
a license
is
available
from
a third-party,
we may
have to pay substantial
royalties,
upfront
fees
or grant
cross-licenses
to intellectual
property
rights
for
our products
and services;
•
pay the
attorney
fees
and costs
of litigation
to the
party
whose intellectual
property
rights
we may
be found to be infringing;
•
find
non-infringing
substitute
products,
which could
be costly
and create
significant
delay
due to the need for
FDA
regulatory
clearance;
•
find
alternative
supplies
for
infringing
products
or processes,
which could
be costly
and create significant
delay
due to the
need for
FDA
regulatory
clearance;
and/or
•
redesign
those
products
or processes
that
infringe
any third-party
intellectual
property,
which could
be costly,
disruptive,
and/or
infeasible.
43
From
time
to time,
we may
be subject
to legal
proceedings
and
claims
in the
ordinary
course
of business
with respect
to intellectual
property.
Even if
resolved
in our favor,
litigation
or other
legal
proceedings
relating
to intellectual
property
claims
may
cause
us to incur
significant
expenses and could
distract
our
technical
and management
personnel
from
their
normal
responsibilities.
In addition,
there
could
be public
announcements
of the
results
of hearings,
motions
or other
interim
proceedings
or developments,
and if
securities
analysts
or investors
perceive
these
results
to be negative,
it
could
have a material
adverse
effect
on the
price
of our common stock.
Finally,
any uncertainties
resulting
from
the
initiation
and continuation
of any litigation
could
have a material
adverse
effect
on our ability
to raise
the
funds
necessary
to continue
our operations.
If
any of the
foregoing
occurs,
we may
have to withdraw
existing
products
from
the
market
or may
be unable
to commercialize
one or more
of our products,
all
of which could
have a material
adverse
effect
on our business, results
of operations
and financial
condition.
Any litigation
or claim
against
us, even those
without
merit,
may cause
us to incur
substantial
costs,
and could
place
a significant
strain
on our financial
resources,
divert
the attention
of management
from
our core
business
and harm
our reputation.
Furthermore,
as the
number
of participants
in the
robotic
hair
restoration
surgery
market
grows, the
possibility
of intellectual
property infringement
claims
against
us increases.
In addition,
we may
indemnify
our customers,
suppliers
and international
distributors
against
claims
relating
to the
infringement
of the
intellectual
property
rights
of third
parties
relating
to our products,
methods,
and/or manufacturing
processes.
Third
parties
may
assert
infringement
claims
against
our customers,
suppliers,
or distributors.
These claims
may
require
us to initiate
or defend
protracted
and costly
litigation
on behalf
of our customers,
suppliers
or distributors,
regardless
of the
merits
of these
claims.
If
any of these
claims
succeed,
we may
be forced
to pay damages
on behalf
of our customers,
suppliers,
or distributors
or may
be required
to obtain licenses
for
the
products
they
use. If
we cannot
obtain
all
necessary
licenses
on commercially
reasonable
terms, our customers
may
be forced
to stop
using
our products,
or our suppliers
may
be forced
to stop
providing
us with products.
Similarly,
interference
or derivation
proceedings
provoked
by third
parties
or brought
by the
United
Stated
Patent and Trademark
Office,
or USPTO,
or any foreign
patent
authority
may
be necessary
to determine
the
priority
of inventions
or other
matters
of inventorship
with respect
to our patents
or patent
applications.
We may
also become
involved
in other
proceedings,
such as re-examination
or opposition
proceedings,
before
the
USPTO
or its
foreign
counterparts
relating
to our intellectual
property
or the
intellectual
property
rights
of others.
An unfavorable
outcome
in any such proceedings
could
require
us to cease
using
the
related
technology
or to attempt to license
rights
to it
from
the
prevailing
party or could
cause
us to lose
valuable
intellectual
property
rights.
Our business
could
be harmed
if
the
prevailing
party
does not offer
us a license
on commercially
reasonable
terms,
if any license
is
offered
at
all.
Litigation
or other
proceedings
may
fail
and, even if
successful,
may
result
in substantial
costs
and distract
our management
and other
employees.
We may
also
become
involved
in disputes with others
regarding
the
ownership
of intellectual
property
rights.
For example,
we jointly
develop
intellectual property
with certain
parties,
and disagreements
may
therefore
arise
as to the
ownership
of the
intellectual property
developed
pursuant
to these
relationships.
If
we are
unable
to resolve
these
disputes,
we could
lose valuable
intellectual
property
rights.
Changes in patent
law could diminish
the value
of patents
in general,
thereby
impairing
our ability
to protect our existing
and future
products.
Recent
patent
reform
legislation
could
increase
the
uncertainties
and costs
surrounding
the
prosecution
of our patent
applications
and the
enforcement
or defense
of our issued
patents.
On September
16, 2011, the
Leahy- Smith
America
Invents
Act, or the
Leahy-Smith
Act, was signed
into
law. The Leahy-Smith
Act includes
a number
of significant
changes
to U.S.
patent
law. These include
provisions
that
affect
the
way patent
applications are
prosecuted,
redefine
prior
art,
may
affect
patent
litigation,
and switched
the
U.S.
patent
system
from
a "first- to-invent"
system
to a "first-to-file"
system.
Under a "first-to-file"
system,
assuming
the
other
requirements
for patentability
are
met,
the
first
inventor
to file
a patent
application
generally
will
be entitled
to the
patent
on an invention
regardless
of whether
another
inventor
had made
the
invention
earlier.
The USPTO
recently
developed new regulations
and procedures
to govern
administration
of the
Leahy-Smith
Act, and many
of the
substantive changes
to patent
law associated
with the
Leahy-Smith
Act, in particular,
the
first-to-file
provisions,
only became effective
on March
16, 2013. Accordingly,
it
is
not clear
what, if
any, impact
the
Leahy-Smith
Act will
have on the
operation
of our business.
The Leahy-Smith
Act and its
implementation
could
increase
the
uncertainties
and costs
surrounding
the
prosecution
of our patent
applications
and the
enforcement
or defense
of our issued
patents, all
of which could
have a material
adverse
effect
on our business
and financial
condition.
In
addition,
patent
reform
legislation
may
pass
in
the
future
that
could
lead
to
additional
uncertainties
and
increased costs
surrounding
the
prosecution,
enforcement
and
defense
of
our
patents
and
applications.
Furthermore,
the
U.S. Supreme
Court
and
the
U.S.
Court
of
Appeals
for
the
Federal
Circuit
have
made,
and
will
likely
continue
to
make, changes
in
how
the
patent
laws
of
the
U.S.
are
interpreted.
For
example,
the
U.S.
Supreme
Court
has
ruled
on several
patent
cases
in
recent
years,
such
as
Associatio
n
fo
r
Molecula
r
Patholog
y
v
.
Myria
d
Genetics
,
Inc
.
(Myriad I),
May
o
Collaborativ
e
Service
s
v
.
Prometheu
s
Laboratories
,
Inc.
,
and
Alic
e
Corporatio
n
Pty
.
Ltd
.
v
.
CL
S
Bank International
,
either
narrowing
the
scope
of
patent
protection
available
in
certain
circumstances
or
weakening
the rights
of
patent
owners
in
certain
situations.
Similarly,
foreign
courts
have
made,
and
will
likely
continue
to
make, changes
in
how
the
patent
laws
in
their
respective
jurisdictions
are
interpreted.
We
cannot
predict
future
changes
in the
interpretation
of
patent
laws
or
changes
to
patent
laws
that
might
be
enacted
into
law
by
U.S.
and
foreign legislative
bodies.
Those
changes
may
materially
affect
our
patents
or
patent
applications
and
our
ability
to
obtain additional
patent
protection
in
the
future.
44
Obtaining and maintaining
patent
protection
depends on compliance
with various
procedural,
document submission,
fee
payment
and other
requirements
imposed
by governmental
patent
agencies,
and our patent protection
could be reduce
d
or eliminated
for
non-compliance
with these
requirements.
The USPTO
and various
foreign
governmental
patent
agencies
require
compliance
with a number
of procedural, documentary,
fee
payment,
and other
similar
provisions
during
the
patent
application
process.
In addition, periodic
maintenance
fees
on issued
patents
often
must
be paid
to the
USPTO
and foreign
patent
agencies
over the
lifetime
of the
patent.
While
an unintentional
lapse
can in many
cases
be cured
by payment
of a late
fee
or by other
means
in accordance
with the
applicable
rules,
there
are
situations
in which noncompliance
can result
in abandonment
or lapse
of the
patent
or patent
application,
resulting
in partial
or complete
loss
of patent
rights
in the
relevant
jurisdiction.
Non-compliance
events
that
could
result
in abandonment
or lapse
of a patent
or patent application
include,
but are
not limited
to, failure
to respond
to official
actions
within
prescribed
time
limits,
non- payment
of fees
and failure
to properly
legalize
and submit
formal
documents.
If
we fail
to maintain
the
patents and patent
applications
covering
our products
or procedures,
we may
not be able
to stop
a competitor
from marketing
products
that
are
the
same
as or like our own, which would have a material
adverse
effect
on our business.
We may
not be able
to adequately
protect
our intellectual
property
rights
throughout the world.
Filing,
prosecuting
and defending
patents
on our products
in all
countries
throughout
the
world would be prohibitively
expensive.
The requirements
for
patentability
may
differ
in certain
countries,
particularly developing
countries,
and the
breadth
of patent
claims
allowed
can be inconsistent.
In addition,
the
laws of some foreign
countries
may
not protect
our intellectual
property
rights
to the
same
extent
as laws in the
U.S. Consequently,
we may
not be able
to prevent
third
parties
from
practicing
our inventions
in all
countries
outside the
U.S. Competitors
may
use our technologies
in jurisdictions
where we have not obtained
patent
protection
to develop
their
own products
and, furthermore,
may
export
otherwise
infringing
products
to territories
in which we have patent
protection
that
may
not be sufficient
to terminate
infringing
activities.
We do not have patent
rights
in certain
foreign
countries
in which a market
may
exist.
Moreover,
in foreign jurisdictions
where we do have patent
rights,
proceedings
to enforce
such rights
could
result
in substantial
costs and divert
our efforts
and attention
from
other
aspects
of our business,
could
put our patents
at
risk
of being invalidated
or interpreted
narrowly,
and our patent
applications
at
risk
of not issuing.
Additionally,
such proceedings
could
provoke
third
parties
to assert
claims
against
us. We may
not prevail
in any lawsuits
that
we initiate,
and the
damages
or other
remedies
awarded,
if
any, may
not be commercially
meaningful.
Thus, we may not be able
to stop
a competitor
from
marketing
and selling
in foreign
countries
products
that
are
the
same
as or like our products,
and our competitive
position
in the
international
market
would be harmed.
We depend on certain
technologies
that
are licensed
to us. We do not control
these
technologies
and any loss of our rights
to them
could prevent
us from
selling
our products.
We are
dependent
on licenses
from
HSC
Development
LLC
and James
A. Harris,
M.D. for
some
of our key technologies.
We do not own the
patents
that
underlie
these
licenses.
Our rights
to use the
technology
we license are
subject
to the
negotiation
of, continuation
of and compliance
with the
terms
of those
licenses.
In some
cases, we do not control
the
prosecution,
maintenance,
or filing
of the
patents
to which we hold licenses,
or the enforcement
of these
patents
against
third
parties.
These patents
and patent
applications
are
not written
by us or our attorneys,
and we did not have control
over
the
drafting
and prosecution.
Our licensors
might
not have given the
same
attention
to the
drafting
and prosecution
of these
patents
and applications
as we would have if
we had been the
owners of the
patents
and applications
and had control
over
the
drafting
and prosecution.
We cannot
be certain
that
drafting
and/or
prosecution
of the
licensed
patents
and patent
applications
by the
licensors
have been or will
be conducted
in compliance
with applicable
laws and regulations
or will
result
in valid
and enforceable patents
and other
intellectual
property
rights.
Our intellectual
property
agreements
with third
parties
may
be subject
to disagreements
over
contract interpretation,
which could narrow the scope
of our rights
to the relevant
intellectual
property
or technology or increase
our financial
or other
obligations
to our licensors.
Certain
provisions
in our intellectual
property
agreements
may
be susceptible
to multiple
interpretations.
The resolution
of any contract
interpretation
disagreement
that
may
arise
could
affect
the
scope
of our rights
to the relevant
intellectual
property
or technology or affect
financial
or other
obligations
under
the
relevant
agreement, either
of which could
have a material
adverse
effect
on our business,
financial
condition,
results
of operations and prospects.
In addition,
while
it
is
our policy
to require
our employees
and contractors
who may
be involved
in the conception
or development
of intellectual
property
to execute
agreements
assigning
such intellectual
property
to us, we may
be unsuccessful
in executing
such an agreement
with each
party
who in fact
conceives
or develops intellectual
property
that
we regard
as our own. Our assignment
agreements
may
not be self-executing
or may
be breached,
and we may
be forced
to bring
claims
against
third
parties,
or defend
claims
they
may
bring
against
us, to determine
the
ownership
of what we regard
as our intellectual
property.
45
We
may
be subject
to damages
resulting
from
claims
that
we or our employees
have wrongfully
used or disclosed
alleged
trade
secrets
of our competitors
or are in breach of non-competition
or non-solicitation agreements
with our competitors.
We could
in the
future
be subject
to claims
that
we or our employees
have inadvertently
or otherwise
used or disclosed
alleged
trade
secrets
or other
proprietary
information
of former
employers
or competitors.
Although we have procedures
in place
that
seek
to prevent
our employees
and consultants
from
using
the
intellectual
property, proprietary
information,
know-how or trade
secrets
of others
in their
work for
us, we may
in the
future
be subject to claims
that
we caused
an employee
to breach
the
terms
of his
or her
non-competition
or non-solicitation agreement,
or that
we or these
individuals
have, inadvertently
or otherwise,
used or disclosed
the
alleged
trade secrets
or other
proprietary
information
of a former
employer
or competitor.
Litigation
may
be necessary
to defend
against
these
claims.
Even if
we are
successful
in defending
against
these
claims,
litigation
could
result
in substantial
costs
and could
be a distraction
to management.
If
our defense
to those
claims
fails,
in addition
to paying
monetary
damages,
a court
could
prohibit
us from
using
technologies
or functionalities
that
are
essential to our products,
if
such technologies
or functionalities
are
found to incorporate
or be derived
from
the
trade secrets
or other
proprietary
information
of the
former
employers.
An inability
to incorporate
technologies
or functionalities
that
are
important
or essential
to our products
would have a material
adverse
effect
on our business and may
prevent
us from
selling
our products
or from
practicing
our processes.
In addition,
we may lose
valuable
intellectual
property
rights
or personnel.
Moreover,
any such litigation
or the
threat
thereof
may adversely
affect
our ability
to hire
employees
or contract
with independent
sales
representatives.
A loss
of key personnel
or their
work product
could
hamper
or prevent
our ability
to commercialize
our products,
which could have an adverse
effect
on our business,
results
of operations
and financial
condition.
If
our trademarks
and trade
names
are not adequately
protected,
then we may
not be able
to build
name recognition
in our markets
of interest
and our business
may
be adversely
affected.
We hold various
trademarks
for
our products
and services.
Many of these
trademarks
are
registered
with the USPTO
and corresponding
government
agencies
in numerous
other
countries,
and we hold trademark applications
for
these
marks
in a number
of foreign
countries,
although
the
laws of many
countries
may
not protect
our trademark
rights
to the
same
extent
as the
laws of the
U.S. Actions
taken
by us to establish
and protect
our trademarks
might
not prevent
imitation
of our products
or services,
infringement
of our trademark rights
by unauthorized
parties
or other
challenges
to our ownership
or validity
of our trademarks.
If
any of these events
occur,
we may
not be able
to protect
and enforce
our rights
in these
trademarks,
which we need in order
to build
name
recognition
with potential
partners
or customers
in our markets
of interest.
In addition,
unauthorized third-parties
may
have registered
trademarks
similar
and identical
to our trademarks
in foreign
jurisdictions
or may
in the
future
file
for
registration
of such trademarks.
If
they
succeed
in registering
or developing
common law rights
in such trademarks,
and if
we were not successful
in challenging
such third-party
rights,
we may
not be able
to use such trademarks
to market
our products
and services
in those
countries.
If
we are
unable
to register our trademarks,
enforce
our trademarks,
or bar
a third-party
from
registering
or using
a trademark,
our ability
to establish
name
recognition
based
on our trademarks
and compete
effectively
in our markets
of interest
may
be adversely
affected.
If
we are unable to protect
the confidentiality
of our trade
secrets,
our business
and competitive
position
may be harmed.
In addition
to patent
and trademark
protection,
we also
rely
on trade
secrets,
including
unpatented
know-how, technology
and other
proprietary
information,
to maintain
our competitive
position.
We seek
to protect
our trade secrets,
in part,
by entering
into
non-disclosure
and confidentiality
agreements
with parties
who have access
to them,
such as our consultants
and vendors,
or our former
or current
employees.
We also
enter
into
confidentiality and invention
or patent
assignment
agreements
with our employees
and consultants.
Despite
these
efforts, however, any of these
parties
may
breach
the
agreements
and disclose
our trade
secrets
and other
unpatented
or unregistered
proprietary
information,
and once disclosed,
we are
likely
to lose
trade
secret
protection.
Monitoring unauthorized
uses
and disclosures
of our intellectual
property
is
difficult,
and we do not know whether
the
steps we have taken
to protect
our intellectual
property
will
be effective.
In addition,
we may
not be able
to obtain adequate
remedies
for
any such breaches.
Enforcing
a claim
that
a party
illegally
disclosed
or misappropriated
a trade
secret
is
difficult,
expensive
and time-consuming,
and the
outcome
is
unpredictable.
In addition,
some courts
inside
and outside
the
U.S.
are
less
willing
or unwilling
to enforce
trade
secret
protection.
Furthermore,
our
competitors
may
independently
develop
knowledge,
methods
and
know-how
similar,
equivalent, or
superior
to
our
proprietary
technology.
Competitors
could
purchase
our
products
and
attempt
to
replicate
some
or all
of
the
competitive
advantages
we
derive
from
our
development
efforts,
willfully
infringe
our
intellectual property
rights,
design
around
our
protected
technology,
or
develop
their
own
competitive
technologies
that
fall outside
of
our
intellectual
property
rights.
In
addition,
our
key
employees,
consultants,
suppliers
or
other
individuals with
access
to
our
proprietary
technology
and
know-how
may
incorporate
that
technology
and
know-how
into projects
and
inventions
developed
independently
or
with
third
parties.
As
a
result,
disputes
may
arise
regarding
the ownership
of
the
proprietary
rights
to
such
technology
or
know-how,
and
any
such
dispute
may
not
be
resolved
in our
favor.
If
any
of
our
trade
secrets
were
to
be
lawfully
obtained
or
independently
developed
by
a
competitor,
we would
have
no
right
to
prevent
them,
or
those
to
whom
they
communicate
it,
from
using
that
technology
or information
to
compete
with
us
and
our
competitive
position
could
be
adversely
affected.
If
our
intellectual
property is
not
adequately
protected
so
as
to
protect
our
market
against
competitors'
products
and
methods,
our
competitive position
could
be
adversely
affected,
as
could
our
business.
46
Risks Related
to Government
Regulation
The ARTAS
®
System
and our operations
are subject
to extensive
government
regulation
and oversight
both in the U.S.
and abroad, and our failure
to comply
with applicable
requirements
could harm our business.
The ARTAS
®
System
and related
products
and services
are
regulated
as medical
devices
subject
to extensive regulation
in the
U.S.
and elsewhere,
including
by the
FDA
and its
foreign
counterparts.
The FDA
and foreign regulatory
agencies
regulate,
among
other
things,
with respect
to medical
devices:
•
design,
development
and manufacturing;
•
testing,
labeling,
content
and language
of instructions
for
use and storage;
•
clinical
trials;
•
product
safety;
•
marketing,
sales
and distribution;
•
premarket
clearance
and approval;
•
record
keeping
procedures;
•
advertising
and promotion;
•
recalls
and field
safety
corrective
actions;
•
post-market
surveillance,
including
reporting
of deaths
or serious
injuries
and malfunctions
that,
if
they were to recur,
could
lead
to death
or serious
injury;
•
post-market
approval
studies;
and
•
product
import
and export.
The regulations
to which we are
subject
are
complex
and have tended
to become
more
stringent
over
time. Regulatory
changes
could
result
in restrictions
on our ability
to carry
on or expand our operations,
higher
than anticipated
costs
or lower
than
anticipated
sales.
In the
U.S., before
we can market
a new medical
device,
or a new use of, new claim
for
or significant modification
to an existing
product,
we must
first
receive
either
clearance
under
Section
510(k)
of the
FDCA
or approval
of a PMA application
from
the
FDA,
unless
an exemption
applies.
In the
510(k)
clearance
process, before
a device
may
be marketed,
the
FDA
must
determine
that
a proposed
device
is
"substantially
equivalent"
to a legally-marketed
"predicate"
device,
which includes
a device
that
has been previously
cleared
through
the 510(k)
process,
a device
that
was legally
marketed
prior
to May 28, 1976 (preamendments
device),
a device
that was originally
on the
U.S.
market
pursuant
to an approved
premarket
approval,
or PMA, application
and later downclassified,
or a 510(k)-exempt
device.
To be "substantially
equivalent,"
the
proposed
device
must
have the same
intended
use as the
predicate
device,
and either
have the
same
technological
characteristics
as the
predicate device
or have different
technological
characteristics
and not raise
different
questions
of safety
or effectiveness than
the
predicate
device.
Clinical
data
are
sometimes
required
to support
substantial
equivalence.
In the
PMA process,
the
FDA
must
determine
that
a proposed
device
is
safe
and effective
for
its
intended
use based,
in part, on extensive
data,
including,
but not limited
to, technical,
pre-clinical,
clinical
trial,
manufacturing
and labeling data.
The PMA process
is
typically
required
for
devices
that
are
deemed
to pose the
greatest
risk,
such as life- sustaining,
life-supporting
or implantable
devices.
Modifications
to products
that
are
approved
through
a PMA application
generally
require
FDA
approval. Similarly,
certain
modifications
made
to products
cleared
through
a 510(k)
may
require
a new 510(k)
clearance.
Both the
PMA approval
and the
510(k)
-clearance
process
can be expensive,
lengthy
and uncertain.
The FDA's
510(k)
clearance
process
usually
takes
from
three
to 12 months but can last
longer.
The process
of obtaining
a PMA is
much
more
costly
and uncertain
than
the
510(k)
-clearance
process
and generally
takes
from
one to three years,
or even longer,
from
the
time
the
application
is
filed
with the
FDA.
In addition,
a PMA generally
requires, and the
510(k)
-clearance
process
sometimes
requires,
the
performance
of one or more
clinical
trials.
Despite
the time,
effort
and cost,
we cannot
assure
you that
any particular
device
will
be approved
or cleared
by the
FDA. Any delay
or failure
to obtain
necessary
regulatory
approvals
could
harm
our business.
47
In the
U.S., we have obtained
510(k)
premarket
clearance
from
the
FDA
to market
the
ARTAS
®
System
for harvesting
hair
follicles
from
the
scalp
in men
diagnosed
with AGA
who
have black
or brown straight
hair.
An element
of our strategy
is
to continue
to add new functionalities
and enhance
existing
functionalities
to the ARTAS
®
System.
We expect
that
certain
modifications
we may
make
to the
ARTAS
®
System
may
require
new 510(k)
clearanc
e
; however, future
modifications
may
be subject
to the
substantially
more
costly,
time-consuming and uncertain
PMA process.
If
the
FDA
requires
us to go through
a lengthier,
more
rigorous
examination
for future
products
or modifications
to existing
products
than
we had expected,
product
introductions
or modifications
could
be delayed
or canceled,
which could
cause
our sales
to decline.
The FDA
can delay,
limit
or deny clearance
or approval
of a device
for
many
reasons,
including:
•
we may
not be able
to demonstrate
to the
FDA's satisfaction
that
the
product
or modification
is substantially
equivalent
to the
proposed
predicate
device
or safe
and effective
for
its
intended
use;
•
the
data
from
our pre-clinical
studies
and clinical
trials
may
be insufficient
to support
clearance
or approval,
where required;
and
•
the
manufacturing
process
or facilities
we use may
not meet
applicable
requirements.
The FDA's and other
regulatory
authorities'
policies
may
change,
and additional
government
regulations
may
be enacted
that
could
prevent,
limit
or delay
regulatory
approval
of our products.
For example,
in December
2016, the
21st
Century
Cures Act, or Cures Act, was signed
into
law. The Cures Act, among
other
things,
is
intended
to modernize
the
regulation
of medical
devices
and spur
innovation,
but its
ultimate
implementation
remains unclear.
If
we are
slow or unable
to adapt
to changes
in existing
requirements
or the
adoption
of new requirements
or policies,
or if
we are
not able
to maintain
regulatory
compliance,
we may
fail
to obtain
any marketing
clearances
or approvals,
lose
any marketing
clearance
or approval
that
we may
have obtained,
and we may
not achieve
or sustain
profitability.
We
also
cannot
predict
the
likelihood,
nature
or
extent
of
government
regulation
that
may
arise
from
future legislation
or
administrative
action,
either
in
the
U.S.
or
abroad.
For
example,
certain
policies
of
the
Trump administration
may
impact
our
business
and
industry.
Namely,
the
Trump
administration
has
taken
several executive
actions,
including
the
issuance
of
several
Executive
Orders,
that
could
impose
significant
burdens on,
or
otherwise
materially
delay,
the
FDA's
ability
to
engage
in
routine
regulatory
and
oversight
activities
such
as implementing
statutes
through
rulemaking,
issuance
of
guidance,
and
review
and
approval
of
marketing applications.
Notably,
on
January
30,
2017,
President
Trump
issued
an
Executive
Order,
applicable
to
all
executive agencies
including
the
FDA,
requiring
that
for
each
notice
of
proposed
rulemaking
or
final
regulation
to
be
issued
in fiscal
year
2017,
the
agency
must
identify
at
least
two
existing
regulations
to
be
repealed,
unless
prohibited
by
law. These
requirements
are
referred
to
as
the
"two-for-one"
provisions.
This
Executive
Order
includes
a
budget neutrality
provision
that
requires
the
total
incremental
cost
of
all
new
regulations
in
the
2017
fiscal
year,
including repealed
regulations,
to
be
no
greater
than
zero,
except
in
limited
circumstances.
For
fiscal
years
2018
and
beyond, the
Executive
Order
requires
agencies
to
identify
regulations
to
offset
any
incremental
cost
of
a
new
regulation
and approximate
the
total
costs
or
savings
associated
with
each
new
regulation
or
repealed
regulation.
In
interim guidance
issued
by
the
Office
of
Information
and
Regulatory
Affairs
within
OMB
on
February
2,
2017,
the administration
indicates
that
the
"two-for-one"
provisions
may
apply
not
only
to
agency
regulations,
but
also
to significant
agency
guidance
documents.
In
addition,
on
February
24,
2017,
President
Trump
issued
an
executive order
directing
each
affected
agency
to
designate
an
agency
official
as
a
"Regulatory
Reform
Officer"
and
establish a
"Regulatory
Reform
Task
Force"
to
implement
the
two-for-one
provisions
and
other
previously
issued
executive orders
relating
to
the
review
of
federal
regulations,
however
it
is
difficult
to
predict
how
these
requirements
will
be implemented,
and
the
extent
to
which
they
will
impact
the
FDA's
ability
to
exercise
its
regulatory
authority.
If
these executive
actions
impose
constraints
on
FDA's
ability
to
engage
in
oversight
and
implementation
activities
in
the normal
course,
our
business
may
be
negatively
impacted.
Even after
we have obtained
the
proper
regulatory
clearance
or approval
to market
a product,
we have ongoing responsibilities
under
FDA
regulations.
The failure
to comply
with applicable
regulations
could
jeopardize
our ability
to sell
the
ARTAS
®
System
and result
in enforcement
actions
such as:
•
warning
letters;
•
fines;
•
injunctions;
•
civil
penalties;
•
termination
of distribution;
•
recalls
or seizures
of products;
•
delays
in the
introduction
of products
into
the
market;
48
•
total
or partial
suspension
of production;
•
refusal
to grant
future
clearances
or approvals;
•
withdrawals
or suspensions
of current
clearances
or approvals,
resulting
in prohibitions
on sales
of our product
or products;
and
•
in the
most
serious
cases,
criminal
penalties.
Any of these
sanctions
could
result
in higher
than
anticipated
costs
or lower
than
anticipated
sales
and harm
our reputation,
business,
financial
condition
and results
of operations.
We are subject
to extensive
governmental
regulation
in foreign
jurisdictions,
such as Europe, and our failure to comply
with applicable
requirements
could cause our business
to suffer.
We must
maintain
regulatory
approval
in foreign
jurisdictions
in which we plan
to market
and sell
the
ARTAS
®
System.
In the
European
Economic
Area or EEA,
manufacturers
of medical
devices
need to comply
with the
Essential Requirements
laid
down in Annex II
to the
EU
Medical
Devices
Directive
(Council
Directive
93/42/EEC). Compliance
with these
requirements
is
a prerequisite
to be able
to affix
the
CE
mark
to medical
devices,
without which they
cannot
be marketed
or sold
in the
EEA.
To demonstrate
compliance
with the
Essential
Requirements and obtain
the
right
to affix
the
CE
Mark,
manufacturers
of medical
devices
must
undergo
a conformity assessment
procedure,
which varies
according
to the
type
of medical
device
and its
classification.
Except
for
low risk
medical
devices
(Class
I with no measuring
function
and which are
not sterile),
where the
manufacturer
can issue
an EC
Declaration
of Conformity
based
on a self-assessment
of the
conformity
of its
products
with the Essential
Requirements,
a conformity
assessment
procedure
requires
the
intervention
of a Notified
Body, which is
an organization
designated
by a competent
authority
of an EEA
country
to conduct
conformity
assessments. Depending on the
relevant
conformity
assessment
procedure,
the
Notified
Body would audit
and examine
the Technical
File
and the
quality
system
for
the
manufacture,
design
and final
inspection
of our devices.
The Notified
Body issues
a CE
Certificate
of Conformity
following
successful
completion
of a conformity
assessment procedure
conducted
in relation
to the
medical
device
and its
manufacturer
and their
conformity
with the Essential
Requirements.
This Certificate
entitles
the
manufacturer
to affix
the
CE
mark
to its
medical
devices after
having
prepared
and signed
a related
EC
Declaration
of Conformity.
As a rule,
demonstration
of conformity
of medical
devices
and their
manufacturers
with the
Essential Requirements
must
be based,
among
other
things,
on the
evaluation
of clinical
data
supporting
the
safety
and performance
of the
products
during
normal
conditions
of use. Specifically,
a manufacturer
must
demonstrate
that the
device
achieves
its
intended
performance
during
normal
conditions
of use and that
the
known and foreseeable risks,
and any adverse
events,
are
minimized
and acceptable
when weighed against
the
benefits
of its
intended performance,
and that
any claims
made
about
the
performance
and safety
of the
device
(e.g.,
product
labeling
and instructions
for
use)
are
supported
by suitable
evidence.
This assessment
must
be based
on clinical
data,
which can be obtained
from
(1)
clinical
studies
conducted
on the
devices
being
assessed,
(2)
scientific
literature
from similar
devices
whose equivalence
with the
assessed
device
can be demonstrated
or (3)
both clinical
studies
and scientific
literature.
With
respect
to active
implantable
medical
devices
or Class
III
devices,
the
manufacturer must
conduct
clinical
studies
to obtain
the
required
clinical
data,
unless
reliance
on existing
clinical
data
from equivalent
devices
can be justified.
The conduct
of clinical
studies
in the
EEA
is
governed
by detailed
regulatory obligations.
These may
include
the
requirement
of prior
authorization
by the
competent
authorities
of the
country in which the
study
takes
place
and the
requirement
to obtain
a positive
opinion
from
a competent
Ethics Committee.
This process
can be expensive
and time-consuming.
On April
5, 2017, the
European
Parliament
passed
the
Medical
Devices
Regulation,
which repeals
and replaces the
EU
Medical
Devices
Directive.
Unlike
directives,
which must
be implemented
into
the
national
laws of the EEA
member
States,
the
regulations
would be directly
applicable,
i.e.,
without
the
need for
adoption
of EEA member
State
laws implementing
them,
in all
EEA
member
States
and are
intended
to eliminate
current differences
in the
regulation
of medical
devices
among
EEA
member
States.
The Medical
Devices
Regulation, among
other
things,
is
intended
to establish
a uniform,
transparent,
predictable
and sustainable
regulatory framework
across
the
EEA
for
medical
devices
and in vitro
diagnostic
devices
and ensure
a high level
of safety and health
while
supporting
innovation.
The Medical
Devices
Regulation
will
however only become
applicable
three
years
after
publication.
Once applicable,
the
new regulations
will
among
other
things:
•
strengthen
the
rules
on placing
devices
on the
market
and reinforce
surveillance
once they
are available;
•
establish
explicit
provisions
on manufacturers'
responsibilities
for
the
follow-up
of the
quality, performance
and safety
of devices
placed
on the
market;
49
•
improve
the
traceability
of medical
devices
throughout
the
supply
chain
to the
end-user
or patient through
a unique
identification
number;
•
set
up a central
database
to provide
patients,
healthcare
professionals
and the
public
with comprehensive
information
on products
available
in the
EU; and
•
strengthen
rules
for
the
assessment
of certain
high-risk
devices,
such as implants,
which may
have to undergo
an additional
check
by experts
before
they
are
placed
on the
market.
These modifications
may
have an impact
on the
way we conduct
our business
in the
EEA.
We are subject to governmental regulation and other legal obligations, particularly related to privacy, data protection and information security. Our actual or perceived failure to comply with such obligations could harm our business.
We are subject to diverse laws and regulations relating to data privacy and security, including, in the United States, the federal Heal
th Insurance Portability and Accountability Act of 1996, or HIPAA, and, in the European Union (EU) and shortly in the European Economic Area (EEA), Regulation 2016/679, known as the General Data Protection Regulation, or GDPR. New global privacy rules are being enacted and existing ones are being updated and strengthened
. Complying with these numerous, complex and often changing regulations is expensive and difficult, and failure to comply with any privacy laws or data security laws or any security incident or breach involving the misappropriation, loss or other unauthorized use or disclosure of sensitive or confidential patient or consumer information, whether by us, one of our business associates or another third-party, could have a material adverse effect on our business, reputation, financial condition and results of operations, including but not limited to: material fines and penalties; damages; litigation; consent orders; and injunctive relief.
Furthermore, these rules are constantly changing; for exam
ple, the GDPR came into effect in May this year reforming the European regime. The GDPR implements more stringent operational requirements than its predecessor legislation. For example, the GDPR requires us to make more detailed disclosures to data subjects, requires disclosure of the legal basis on which we can process personal data, makes it harder for us to obtain valid consent for processing, provides more robust rights for data subjects, introduces mandatory data breach notification through the EU, imp
oses additional obligations on
us when contracting
with service providers and requires us to adopt appropriate privacy governance including policies, procedures, training
and data audit
. If we do not comply with our obligations under the GDPR, we could be
exposed to fines of up to the higher of
20,000,000 Euros or up to 4% of our
total worldwide annual turnover in the event of a significant breach. In addition, we may be the subject of litigation and/or adverse publicity, which could have material adverse effect on our reputation and business.
We are also subject to evolving European laws on data export and electronic marketing. The rules on data export will apply when we transfer personal data to group companies or third parties outside of the EEA. For example, in 2015, the
Court of Justice of the EU
ruled that the U.S.-EU
Safe Harbor framework, one compliance method by which companies could transfer personal data regarding citizens of the EU
to the United States, was invalid and could no longer be relied up
on. The U.S.-EU Safe Harbor framework was replaced with the U.S.-EU Privacy Shield framework, which is now under review and there is currently litigation challenging another EU mechanism for adequate data transfers, the standard contractual clauses. It is uncertain whether the Privacy Shield framework and/or the standard contractual clauses will be similarly invalidated by the European courts
. These changes may require us
to find alternative bases for the compliant transfer of personal data from the EEA to
the U.S and we are monitoring developments in this area. The EU is also in the process of replacing the e-Privacy Directive with a new set of rules taking the form of a regulation, which will be directly implemented in the laws of each European member state, without the need for further enactment. The current draft of the e-Privacy Regulation retains strict op-in for electronic marketing and the penalties for contravention have significantly increased with fining powers to the same levels as GDPR (i.e. the greater of 20,000,000 Euros or 4% of total global annual revenue).
50
Modifications
to the ARTAS
®
System
and any future
products
that
receive
510(k)
clearances
may
require
new 510(k)
clearances
or PMA approvals,
and if
we make
such modifications
without
seeking
new clearances
or approvals,
the FDA
may
require
us to cease
marketing
or recall
the modified
products
until
clearances
or approvals
are obtained.
The ARTAS
®
System
has received
510(k)
clearances
from
the
FDA.
Any modification
to a 510(k)-cleared
device that
could
significantly
affect
its
safety
or effectiveness,
or that
would constitute
a major
change
in its
intended use, design
or manufacture,
requires
a new 510(k)
clearance
or, possibly,
approval
of a PMA. The FDA
requires every
manufacturer
to make
this
determination
in the
first
instance,
but the
FDA
may
review
any manufacturer's decision.
The FDA
may
not agree
with our decisions
regarding
whether
new clearances
or approvals
are necessary.
We have made
modifications
to the
ARTAS
®
System
in the
past
and have determined
based
on our review
of the
applicable
FDA
regulations
and guidance
that
in certain
instances
new 510(k)
clearances
or PMA approvals
were not required.
We may
make
similar
modifications
or add additional
functionalities
in the
future that
we believe
do not require
a new 510(k)
clearance
or approval
of a PMA. The FDA
has issued
a guidance document
intended
to assist
manufacturers
in determining
whether
modifications
to cleared
devices
require
the submission
of a new 510(k),
and such guidance
has come
under
scrutiny
in recent
years,
the
practical
impact
of which is
unclear.
If
the
FDA
disagrees
with our determination
and requires
us to submit
new 510(k)
notifications or PMA applications
for
modifications
to our previously
cleared
products
for
which we have concluded
that
new clearances
or approvals
are
unnecessary,
we may
be required
to cease
marketing
or to recall
the
modified
product until
we obtain
clearance
or approval,
which could
require
us to redesign
our products,
conduct
clinical
trials
to support
any modifications,
and pay significant
regulatory
fines
or penalties.
In addition,
the
FDA
may
not approve
or clear
our products
for
the
indications
that
are
necessary
or desirable
for
successful
commercialization or could
require
clinical
trials
to support
any modifications.
Any delay
or failure
in obtaining
required
clearances or approvals
would adversely
affect
our ability
to introduce
new or enhanced
products
in a timely
manner,
which in turn
would harm
our future
growth. Any of these
actions
would harm
our operating
results.
We are subject
to restrictions
on the indications
for
which we are permitted
to market
our products,
and any violation
of those
restrictions,
or marketing
of the ARTAS
®
System
for
off-label
uses, could subject
us to regulatory
enforcement
action.
The FDA's 510(k)
clearance
for
the
ARTAS
®
System
specifies
the
cleared
indication
for
use of the
product
is disse
c
ting
hair
follicles
from
the
scalp
in men
diagnosed
with AGA
who have black
or brown straight
hair.
The ARTAS
®
System
is
intended
to assist
physicians
in identifying
and extracting
hair
follicular
units
from
the
scalp during
hair
transplantation.
We train
our marketing
and direct
sales
force
to not promote
the
ARTAS
®
System
for
uses
outside
of the
FDA- cleared
indications
for
use, known as "off-label
uses."
We cannot,
however, prevent
a physician
from
using
the ARTAS
®
System
off-label
when, in the
physician's
independent
professional
medical
judgment,
he or she deems it
appropriate.
There
may
be increased
risk
of injury
to patients
if
physicians
attempt
to use the
ARTAS
®
System off-label.
Furthermore,
the
use of the
ARTAS
®
System
for
indications
other
than
those
cleared
by the
FDA
or approved
by any foreign
regulatory
body may
not effectively
treat
such conditions,
which could
harm
our reputation
in the
marketplace
among
physicians
and patients.
If
the
FDA
or any foreign
regulatory
body determines
that
our promotional
materials
or training
constitute promotion
of an off-label
use, it
could
request
that
we modify
our training
or promotional
materials
or subject
us to regulatory
or enforcement
actions,
including,
among
other
things,
the
issuance
or imposition
of an untitled letter,
a warning
letter,
injunction,
seizure,
refusal
to issue
new 510(k)s
or PMAs, withdrawal
of existing
510(k)s or PMAs, refusal
to grant
export
approvals,
and civil
fines
or criminal
penalties.
It
is
also
possible
that
other federal,
state
or foreign
enforcement
authorities
might
take
action
under
other
regulatory
authority,
such as false claims
laws, if
they
consider
our business
activities
to constitute
promotion
of an off-label
use, which could result
in significant
penalties,
including,
but not limited
to, criminal,
civil
and administrative
penalties,
damages, fines,
disgorgement,
exclusion
from
participation
in government
healthcare
programs
and the
curtailment
of our operations.
The ARTAS
®
System
may
cause or contribute
to adverse
medical
events
that
we are required
to report
to the FDA,
and if
we fail
to do so, we would be subject
to sanctions
that
could harm our reputation,
business, financial
condition
and results
of operations.
The discovery
of serious
safety
issues
with the ARTAS
®
System, or a recall
of the ARTAS
®
System
either
voluntarily
or at the direction
of the FDA
or another governmental authority,
could have a negative
impact
on us.
We are
subject
to the
FDA's medical
device
reporting
regulations
and similar
foreign
regulations.
The FDA's medical
device
reporting
regulations
require
us to report
to the
FDA
when we receive
or become
aware
of information
that
reasonably
suggests
that
the
ARTAS
®
System
may
have caused
or contributed
to a death
or serious
injury
or malfunctioned
in a way that,
if
the
malfunction
were to recur,
it
could
cause
or contribute
to a death
or serious
injury.
The timing
of our obligation
to report
is
triggered
by the
date
we become
aware
of the adverse
event
as well
as the
nature
of the
event.
We may
fail
to report
adverse
events
of which we become
aware within
the
prescribed
timeframe.
We may
also
fail
to recognize
that
we have become
aware
of a reportable adverse
event,
especially
if
it
is
not reported
to us as an adverse
event
or if
it
is
an adverse
event
that
is unexpected
or removed
in time
from
the
use of the
ARTAS
®
System.
If
we fail
to comply
with our reporting obligations,
the
FDA
could
act,
including
warning
letters,
untitled
letters,
administrative
actions,
criminal prosecution,
imposition
of civil
monetary
penalties,
revocation
of our device
clearance,
seizure
of our products
or delay
in clearance
of future
products.
51
The FDA
and foreign
regulatory
bodies
have the
authority
to require
the
recall
of commercialized
products
in the event
of material
deficiencies
or defects
in design
or manufacture
of a product
or if
a product
poses an unacceptable
risk
to health.
The FDA's authority
to require
a recall
must
be based
on a finding
that
there
is reasonable
probability
that
the
device
could
cause
serious
injury
or death.
We may
also
choose
to voluntarily recall
a
product
if
any material
deficiency
is
found. A government-mandated
or voluntary
recall
by us could occur
because of an unacceptable
risk
to health,
component
failures,
malfunctions,
manufacturing
defects, labeling
or design
deficiencies,
packaging
defects
or other
deficiencies
or failures
to comply
with applicable regulations.
We cannot
assure
you that
product
defects
or other
errors
will
not occur
in the
future.
Recalls involving
the
ARTAS
®
System
could
be particularly
harmful
to our business,
financial
condition
and results
of operations
because
it
is
our only product.
Companies
are
required
to
maintain
certain
records
of
recalls
and
corrections,
even
if
they
are
not
reportable
to
the FDA.
We
may
initiate
voluntary
withdrawals
or
corrections
for
the
ARTAS
®
System
in
the
future
that
we
determine do
not
require
notification
of
the
FDA.
If
the
FDA
disagrees
with
our
determinations,
it
could
require
us
to
report those
actions
as
recalls
and
we
may
be
subject
to
enforcement
action.
A
future
recall
announcement
could
harm
our reputation
with
customers,
potentially
lead
to
product
liability
claims
against
us
and
negatively
affect
our
sales.
If
we or our distributors
do not obtain
and maintain
international
regulatory
registrations
or approvals
for
the ARTAS
®
System,
our ability
to market
and sell
the ARTAS
®
System
outside
of the U.S.
will
be diminished.
Sale
of the
ARTAS
®
System
outside
the
U.S.
are
subject
to foreign
regulatory
requirements
that
vary
widely
from country
to country.
In addition,
the
FDA
regulates
exports
of medical
devices
from
the
U.S. While
the regulations
of some
countries
may
not impose
barriers
to marketing
and selling
the
ARTAS
®
System
or only require
notification,
others
require
that
we or our distributors
obtain
the
approval
of a specified
regulatory
body. Complying
with foreign
regulatory
requirements,
including
obtaining
registrations
or approvals,
can be expensive
and time-consuming,
and we cannot
be certain
that
we or our distributors
will
receive
regulatory approvals
in each
country
in which we plan
to market
the
ARTAS
®
System
or that
we will
be able
to do so on a timely
basis.
The time
required
to obtain
registrations
or approvals,
if
required
by other
countries,
may
be longer than
that
required
for
FDA
clearance,
and requirements
for
such registrations,
clearances,
or approvals
may significantly
differ
from
FDA
requirements.
If
we modify
the
ARTAS
®
System,
we or our distributors
may
need to apply
for
additional
regulatory
approvals
or other
authorizations
before
we are
permitted
to sell
the
modified product.
In addition,
we may
not continue
to meet
the
quality
and safety
standards
required
to maintain
the authorizations
that
we or our distributors
have received.
If
we or our distributors
are
unable
to maintain
our authorizations
in a particular
country,
we will
no longer
be able
to sell
the
applicable
product
in that
country, which could
harm
our business.
Regulatory
clearance
or approval
by the
FDA
does not ensure
clearance
or approval
by regulatory
authorities
in other
countries,
and clearance
or approval
by one or more
foreign
regulatory
authorities
does not ensure clearance
or approval
by regulatory
authorities
in other
foreign
countries
or by the
FDA.
However, a failure
or delay
in obtaining
regulatory
clearance
or approval
in one country
may
have a negative
effect
on the
regulatory process
in others.
We must
manufacture
our products
in accordance
with federal
and state
regulations,
and we could be forced to recall
our installed
systems
or terminate
production
if
we fail
to comply
with these
regulations.
The methods used in, and the facilities used for, the manufacture of the ARTAS
®
System and related products must comply with the FDA's Quality System Regulation, or QSR, which is a complex regulatory scheme that covers the procedures and documentation of the design, testing, production, process controls, quality assurance, labeling, packaging, handling, storage, distribution, installation, servicing and shipping of medical devices. Furthermore, we are required to verify that our suppliers maintain facilities, procedures and operations that comply with our quality and applicable regulatory requirements. The FDA enforces the QSR through periodic announced or unannounced inspections of medical device manufacturing facilities, which may include the facilities of subcontractors. The ARTAS
®
System is also subject to similar state regulations and various laws and regulations of foreign countries governing manufacturing.
We cannot
guarantee
that
we or any subcontractors
will
take
the
necessary
steps
to comply
with applicable regulations,
which could
cause
delays
in the
delivery
of the
ARTAS
®
System.
In addition,
failure
to comply
with applicable
FDA
requirements
or later
discovery
of previously
unknown problems
with the
ARTAS
®
System
or manufacturing
processes
could
result
in, among
other
things:
•
warning
letters
or untitled
letters;
•
fines,
injunctions
or civil
penalties;
•
suspension
or withdrawal
of approvals
or clearances;
•
seizures
or recalls
of our products;
•
total
or partial
suspension
of production
or distribution;
52
•
administrative
or judicially
imposed
sanctions;
•
the
FDA's refusal
to grant
pending
or future
clearances
or approvals
for
our products;
•
clinical
holds;
•
refusal
to permit
the
import
or export
of our products;
and
•
criminal
prosecution
to us or our employees.
Any of these actions could significantly and negatively impact supply of our products. If any of these events occurs, our reputation could be harmed, we could be exposed to product liability claims and we could lose customers and suffer reduced revenue and increased costs.
We may
be subject
to various
federal
and state
laws pertaining
to healthcare
fraud and abuse, and any violations
by us of such laws could result
in fines
or other
penalties.
While
procedures
utilizing
the
ARTAS
®
System
are
not currently
covered
or reimbursed
by any third-party
payor, our commercial,
research
and other
financial
relationships
with healthcare
providers
and others
may
be subject
to various
federal
and state
laws intended
to prevent
healthcare
fraud
and abuse.
Such laws include
the
U.S.
federal Anti-Kickback
Statute
and similar
laws that
apply
to state
healthcare
programs,
private
payors
and self-pay patients;
the
U.S.
federal
civil
and criminal
false
claims
laws, such as the
civil
False
Claims
Act, and civil monetary
penalties
laws;
state
and federal
data
privacy
and security
laws and regulations;
state
and federal physician
payment
transparency
laws;
and state
and federal
consumer
protection
and unfair
competition
laws. Further,
these
laws may
impact
any sales,
marketing
and education
programs
we currently
have or may
develop in the
future
and the
way we implement
any of those
programs.
Penalties
for
violations
of these
laws can include
exclusion
from
federal
healthcare
programs
and substantial
civil
and criminal
penalties.
Recently
enacted
and future
legislation
may
increase
the difficulty
and cost
for
us to sell
our products.
In the
U.S.
and some
non-U.S. jurisdictions,
there
have been, and we expect
there
will
continue
to be, several legislative
and regulatory
changes
and proposed
changes
regarding
the
healthcare
system
that
could,
among other
things,
restrict
or regulate
post-approval
activities
and affect
our ability
to profitably
sell
our products.
For example,
in March
2010, the
Patient
Protection
and Affordable
Care Act, as amended
by the
Health
Care and Education
Reconciliation
Act, collectively
the
Affordable
Care Act, was enacted.
The Affordable
Care Act, imposed,
among
other
things,
an annual
excise
tax
of 2.3% on any entity
that
manufactures
or imports
medical devices
offered
for
sale
in the
U.S.,
which, due to subsequent
legislative
amendments,
has been suspended
from January
1, 2016 to December
31, 2017, and, absent
further
legislative
action,
will
be reinstated
starting
January
1, 2018. It
is
uncertain
the
extent
to which any challenges,
amendments
and attempts
to repeal
and replace
the Affordable
Care Act in the
future
may
impact
our business
or financial
condition.
We expect
that
the
Affordable Care Act, as well
as other
healthcare
reform
measures
that
may
be adopted
in the
future,
may
potentially
increase our costs
to sell
our product
and decrease
our profitability.
Recent U.S. tax legislation and future changes to applicable U.S. or foreign tax laws and regulations may have a material adverse effect on our business, financial condition and results of operations.
We are subject to income and other taxes in the U.S. and foreign jurisdictions. Changes in laws and policy relating to taxes or trade may have an adverse effect on our business, financial condition and results of operations. For example, the U.S. government recently enacted significant tax reform, and certain provisions of the new law may adversely affect us. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a more generally territorial system, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. The legislation is unclear in many respects and could be subject to potential amendments and technical corrections and will be subject to interpretations and implementing regulations by the Treasury and Internal Revenue Service, any of which could mitigate or increase certain adverse effects of the legislation. In addition, it is unclear how these U.S. federal income tax changes will affect state and local taxation. Generally, future changes in applicable U.S. or foreign tax laws and regulations, or their interpretation and application could have an adverse effect on our business, financial conditions and results of operations.
53
Risks Related
to Our Common Stock
Our stock
price
may
be volatile,
and you may
not be able
to resell
shares
of our common
stock
at or above the price
you paid.
The market
price
of our common
stock
could
be highly
volatile
and could
be subject
to wide fluctuations
in response
to various
factors,
some
of which are
beyond our control.
These factors
include those
discussed
in this
"Risk Factors"
section
and others
such as:
•
the
continued
growth in demand
for
the
ARTAS
®
System
and ARTAS
procedures;
•
our commercialization,
marketing
and manufacturing
prospects;
•
the
continuing
productivity
and effectiveness
of our commercial
infrastructure
and salesforce;
•
our financial
performance;
•
our intentions
and our ability
to establish
collaborations
and/or
partnerships;
•
the timing or likelihood of regulatory filings and approvals for the ARTAS
®
System for expanded indications and functionality;
•
our commercialization,
marketing
and manufacturing
capabilities;
•
our expectations
regarding
the
potential
market
size
and the
size
of the
patient
populations
for
the ARTAS
®
System;
•
the
effective
pricing
of the
ARTAS
®
System,
services
and procedures;
•
the
implementation
of our business
model
and strategic
plans
for
our business
and technology;
•
the
scope
of protection
we can establish
and maintain
for
intellectual
property
rights
covering the
ARTAS
®
System,
along
with any product
enhancements;
•
estimates
of our expenses,
future
revenue,
capital
requirements,
our needs
for
additional
financing
and our ability
to obtain
additional
capital;
•
our financial
performance;
and
•
developments
and projections
relating
to our competitors
and our industry,
including
competing therapies
and procedures.
In addition,
the
stock
markets
in general,
and the
markets
for
medical
device
and aesthetic
stocks
in particular, have experienced
extreme
volatility
that
may
have been unrelated
to the
operating
performance
of the
issuer. These broad
market
fluctuations
may
adversely
affect
the
market
price
or liquidity
of our common
stock.
In the past,
when the
market
price
of a stock
has been volatile,
holders
of that
stock
have sometimes
instituted
securities class
action
litigation
against
the
issuer.
Recently, several securities class action complaints have been filed against us, certain of our current and former executive officers and directors, certain of our investors and certain underwriters in our initial public offering. These complaints allege violations of Sections 11, 12(a)(2) and 15 of the Securities Act due to allegedly false and misleading statements made in connection with our initial public offering. While we believe that these lawsuits are without merit and we intend to vigorously defend against these claims, we could incur substantial costs in defending these lawsuits and the attention of our management could be diverted from the operation of our business. Further, if more of our stockholders were to bring additional lawsuits on similar or unrelated grounds, we could incur substantial costs defending these additional lawsuits and the attention of our management would be further diverted from the operation of our business.
An
active
market
for
our common
stock
may
not be maintained.
Prior
to our initial public
offering,
there had been no public
market
for
shares
of our common
stock
. Our stock only recently began trading on The Nasdaq Global Market, but we can provide no assurance that we will be able to maintain an active trading market on The Nasdaq Global Market or any other exchange in the future. If an active market for our common stock does not develop or is not maintained, it may be difficult for our stockholders to sell shares without depressing the market price for the shares or at all.
An inactive
market may
also
impair
our ability
to raise
capital
by selling
shares
and may
impair
our ability
to acquire
other businesses,
applications,
or technologies
using
our shares
as consideration.
If
securities
or industry
analysts
issue
an adverse
or misleading
opinion regarding
our stock,
our stock
price
and trading
volume
could decline.
The trading
market
for
our common
stock
is influenced
by the
research
and reports
that
industry
or securities
analysts
publish
about
us or our business.
We currently have very limited research
coverage
by securities
and industry
analysts.
If
no additional securities
or industry
analysts
commence
coverage
of us, the
market price or trading volume
of
our stock
could be negatively
impacted.
If
any of the
analysts
who cover
us issue
an adverse
or misleading
opinion
regarding
us, our business
model,
our intellectual
property
or our stock
performance,
or if
our operating
results
fail
to meet
the
expectations
of analysts, our stock
price
would likely
decline.
If
one or more
of these
analysts
cease
coverage
of us or fail
to publish reports
on us regularly,
we could
lose
visibility
in the
financial
markets,
which in turn
could
cause
our stock
price or trading
volume
to decline.
54
We are an "emerging
growth company"
and because of the reduced
disclosure
and governance requirements
applicable
to emerging
growth companies,
our common
stock
may
be less
attractive
to investors.
We are
an "emerging
growth company,"
as defined
in the
JOBS
Act, and we intend
to take
advantage
of certain exemptions
from
various
reporting
requirements
that
are
applicable
to other
public
companies
that
are
not emerging
growth companies
including,
but not limited
to, not being
required
to comply
with the
auditor attestation
requirements
of Section
404, reduced
disclosure
obligations
regarding
executive
compensation
in our periodic
reports
and proxy statements,
and exemptions
from
the
requirements
of holding
a nonbinding
advisory vote
on executive
compensation,
stockholder
approval
of any golden
parachute
payments
not previously approved
and delayed
adoption
of new or revised
accounting
standards
issued
subsequent
to the
enactment
of the JOBS
Act until
such time
as those
standards
apply
to private
companies.
We cannot
predict
if
investors
will
find our common
stock
less
attractive
because
we will
rely
on these
exemptions.
If
some
investors
find
our common stock
less
attractive
as a result,
there
may
be a less
active
trading
market
for
our common
stock
and our stock price
may
be more
volatile.
We may
take
advantage
of these
reporting
exemptions
until
we are
no longer
an emerging
growth company.
We will
remain
an emerging
growth company
until
the
earlier
of (1)
the
last
day of the
fiscal
year
(a)
following
the
fifth
anniversary
of the
completion
of our initial public offering,
(b)
in which we have total annual
gross
revenue
of at
least
$1.07 billion,
or (c)
in which we are
deemed
to be a large
accelerated
filer,
which means
the
market
value
of our common
stock
that
is
held
by non-affiliates
exceeds
$700.0 million
as of the
prior September 30th, and (2)
the
date
on which we have issued
more
than
$1.0 billion
in non-convertible
debt
during
the prior
three-year
period.
If
we sell
shares
of our common
stock
in future
financings,
stockholders
may
experience
immediate
dilution and, as a result,
our stock
price
may
decline.
We may
from
time
to time
issue
additional
shares
of common
stock
at
a discount
from
the
current
market
price
of our common
stock.
As a result,
our stockholders
would experience
immediate
dilution
upon the
purchase
of any shares
of our common
stock
sold
at
such discount.
In addition,
as opportunities
present
themselves,
we may
enter into
financing
or similar
arrangements
in the
future,
including
the
issuance
of debt
securities,
preferred
stock
or common
stock.
If
we issue
common
stock
or securities
convertible
into
common
stock,
our common
stockholders would experience
additional
dilution
and, as a result,
our stock
price
may
decline.
Our principal
stockholders
and management
own
a significant
percentage
of our stock
and will
be able
to exert
significant
control
over
matters
subject
to stockholder
approval.
Based on the number of shares outstanding as of June 30, 2018, as adjusted for the consummation of our initial public offering in October 2017, our executive
officers,
directors,
holders
of 5% or more
of our capital stock
and their
respective
affiliates
beneficially
owned approximately
37.8% of our voting
stock. These
stockholders
will
have the
ability
to influence
us through
this
ownership position.
These stockholders
may
be able
to determine
all
matters
requiring
stockholder
approval.
For example, these
stockholders
may
be able
to control
elections
of directors,
amendments
of our organizational
documents,
or approval
of any merger,
sale
of assets,
or other
major
corporate
transaction.
This may
prevent
or discourage unsolicited
acquisition
proposals
or offers
for
our common
stock
that
you may
feel
are
in your best
interest
as one of our stockholders.
Our ability
to use our net operating
loss
carryforwards
and certain
other
tax attributes
may
be limited.
We have incurred
substantial
losses
during
our history
and do not expect
to become
profitable
in the
near
future, and we may
never
achieve
profitability.
To the
extent
that
we continue
to generate
taxable
losses,
unused losses will
carry
forward
to offset
future
taxable
income,
if
any, until
such unused losses
expire.
Under Sections
382 and 383 of the
Internal
Revenue Code of 1986, as amended,
if
a corporation
undergoes
an "ownership
change," generally
defined
as a greater
than
50 percentage
point
change
(by value)
in its
equity
ownership
by certain stockholders
over
a three-year
period,
the
corporation's
ability
to use its
pre-change
net
operating
loss carryforwards,
or NOLs,
and other
pre-change
tax
attributes
(such
as research
and development
tax
credits)
to offset
its
post-change
income
or taxes
may
be limited.
We may
have experienced
ownership
changes
in the
past and may
experience
ownership
changes
in the
future
and/or
subsequent
shifts
in our stock
ownership
(some
of which shifts
are
outside
our control).
As a result,
if
we earn
net
taxable
income,
our ability
to use our pre-change
NOLs
to offset
such taxable
income
could
be subject
to limitations.
Similar provisions
of state
tax
law may
also
apply.
As a result,
even if
we attain
profitability,
we may
be unable
to use a material
portion
of our NOLs
and other
tax
attributes.
Provisions
in our charter
documents
and under Delaware law could discourage
a takeover
that
stockholders may
consider
favorable
and may
lead
to entrenchment
of management.
Our amended
and restated
certificate
of incorporation
and amended
and restated
bylaws contain
provisions
that
could
delay
or prevent changes
in control
or changes
in our management
without
the
consent
of our board
of directors.
These provisions will
include
the
following:
•
a classified
board
of directors
with three-year
staggered
terms,
which may
delay
the
ability
of stockholders
to change
the
membership
of a majority
of our board
of directors;
•
no cumulative
voting
in the
election
of directors,
which limits
the
ability
of minority
stockholders
to elect
director
candidates;
55
•
the
exclusive
right
of our board
of directors
to elect
a director
to fill
a vacancy
created
by the
expansion of the
board
of directors
or the
resignation,
death
or removal
of a director,
which prevents
stockholders from
being
able
to fill
vacancies
on our board
of directors;
•
the
ability
of our board
of directors
to authorize
the
issuance
of shares
of preferred
stock
and to determine
the
price
and other
terms
of those
shares,
including
preferences
and voting
rights,
without stockholder
approval,
which could
be used to significantly
dilute
the
ownership
of a hostile
acquirer;
•
the
ability
of our board
of directors
to alter
our bylaws without
obtaining
stockholder
approval;
•
the
required
approval
of at
least
66 2/3%
of the
shares
entitled
to vote
at
an election
of directors
to adopt,
amend
or repeal
our bylaws or repeal
the
provisions
of our amended
and restated
certificate
of incorporation
regarding
the
election
and removal
of directors;
•
a prohibition
on stockholder
action
by written
consent,
which forces
stockholder
action
to be taken
at an annual
or special
meeting
of our stockholders;
•
the
requirement
that
a special
meeting
of stockholders
may
be called
only by the
chairman
of the
board of directors,
the
chief
executive
officer,
the
president
or the
board
of directors,
which may
delay
the ability
of our stockholders
to force
consideration
of a proposal
or to act,
including
the
removal of directors;
and
•
advance notice procedures that stockholders must comply with in order to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders' meeting, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to obtain control of us.
In addition,
these
provisions
would apply
even if
we were to receive
an offer
that
some
stockholders
may consider
beneficial.
We are
also
subject
to the
anti-takeover
provisions
contained
in Section
203 of the
Delaware
General Corporation
Law. Under Section
203, a corporation
may
not, in general,
engage
in a business
combination
with any holder
of 15% or more
of its
capital
stock
unless
the
holder
has held
the
stock
for
three
years
or, among
other exceptions,
the
board
of directors
has approved
the
transaction.
Claims
for
indemnification
by our directors
and officers
may
reduce
our available
funds to satisfy
successful third-party
claims
against
us and may
reduce
the amount of money
available
to us.
Our amended
and restated
certificate
of incorporation
and amended
and restated
bylaws provide
that
we will indemnify
our directors
and officers,
in each
case
to the
fullest
extent
permitted
by Delaware
law.
In addition,
as permitted
by Section
145 of the
Delaware
General
Corporation
Law, our amended
and restated bylaws and our indemnification
agreements that
we have entered
into
with our directors
and officers
provide
that:
•
we will
indemnify
our directors
and officers
for
serving
us in those
capacities
or for
serving
other business
enterprises
at
our request,
to the
fullest
extent
permitted
by Delaware
law. Delaware
law provides
that
a corporation
may
indemnify
such person
if
such person
acted
in good faith
and in a manner
such person
reasonably
believed
to be in or not opposed to the
best
interests
of the
registrant and, with respect
to any criminal
proceeding,
had no reasonable
cause
to believe
such person's
conduct was unlawful;
•
we may,
in our discretion,
indemnify
employees
and agents
in those
circumstances
where indemnification
is
permitted
by applicable
law;
•
we are
required
to advance
expenses,
as incurred,
to our directors
and officers
in connection
with defending
a proceeding,
except
that
such directors
or officers
shall
undertake
to repay
such advances
if it
is
ultimately
determined
that
such person
is
not entitled
to indemnification;
•
we will
not be obligated
pursuant
to our amended
and restated
bylaws to indemnify
a person
with respect
to proceedings
initiated
by that
person
against
us or our other
indemnitees,
except
with respect to proceedings
authorized
by our board
of directors
or brought
to enforce
a right
to indemnification;
•
the
rights
conferred
in our amended
and restated
bylaws are
not exclusive,
and we are
authorized
to enter
into
indemnification
agreements
with our directors,
officers,
employees
and agents
and to obtain insurance
to indemnify
such persons;
and
•
we may
not retroactively
amend
our amended
and restated
bylaw provisions
to reduce
our indemnification
obligations
to directors,
officers,
employees
and agents.
56
Our certificate
of incorporation
provides
that
the Court
of Chancery of the State
of Delaware will
be the exclusive
forum
for
substantially
all
disputes
between us and our stockholders,
which could limit
our stockholders'
ability
to obtain
a favorable
judicial
forum
for
disputes
with us or our directors,
officers
or employees.
Our amended and restated certificate
of incorporation
provides
that
the
Court of Chancery
of the
State
of Delaware
is
the
exclusive forum
for
any derivative
action
or proceeding
brought
on our behalf,
any action
asserting
a breach
of fiduciary duty, any action
asserting
a claim
against
us arising
pursuant
to the
Delaware
General
Corporation
Law, our certificate
of incorporation
or our bylaws, any action
to interpret,
apply,
enforce,
or determine
the
validity
of our certificate
of incorporation
or bylaws, or any action
asserting
a claim
against
us that
is
governed
by the
internal affairs
doctrine.
The choice
of forum
provision
may
limit
a stockholder's
ability
to bring
a claim
in a judicial forum
that
it
finds
favorable
for
disputes
with us or our directors,
officers
or other
employees,
which may discourage
such lawsuits
against
us and our directors,
officers
and other
employees.
Alternatively,
if
a court
were to find
the
choice
of forum
provision
contained
in our certificate
of incorporation
to be inapplicable
or unenforceable
in an action,
we may
incur
additional
costs
associated
with resolving
such action
in other jurisdictions,
which could
adversely
affect
our business
and financial
condition.
We do not intend
to pay dividends
on our common
stock,
and, consequently,
our stockholders' ability
to achieve
a return
on their investment
will
depend on appreciation
in the price
of our common
stock.
We do not intend
to pay any cash
dividends
on our common
stock
for
the
foreseeable
future.
We intend
to invest our future
earnings,
if
any, to fund our growth. Furthermore,
pursuant
to the
loan
and the
security
agreement between
us and Solar, we are
not permitted
to pay cash
dividends
more than $150,000 in aggregate
per
fiscal year
without
its
prior
written
consent.
Therefore,
our stockholders are
not likely
to receive
any dividends
on their common stock
for
the
foreseeable
future.
Since
we do not intend
to pay dividends,
our stockholders' ability
to receive
a return
on their investment
will
depend on any future
appreciation
in the
market
value
of our common
stock.
There
is
no guarantee
that
our common
stock
will
appreciate
or even maintain
the
price
at
which our stockholders
have purchased it.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Unregistered Sales of Equity Securities
There were no unregistered securities issued and sold during the quarter ended June 30, 2018.
Use of Proceeds
On October 11, 2017, the Company's Registration Statement on Form S-1 (File No. 333-220303) relating to the IPO of its common stock was declared effective by the SEC. Pursuant to such Registration Statement, the Company completed its initial public offering of 3,897,910 shares of its common stock (inclusive of 322,910 shares of common stock from the subsequent exercise of the over-allotment option granted to the underwriters) at a price of $7.00 per share for aggregate cash proceeds of approximately $22.1 million after deducting offering costs and commissions of $5.2 million. There has been no material change in the expected use of the net proceeds from our IPO, as described in our final prospectus dated October 11, 2017 and filed with the SEC on October 13, 2017 pursuant to Rule 424(b) under the Securities Act of 1933, as amended.
There has been no material change in the expected use of the net proceeds from our initial public offering as described in our final prospectus filed with the SEC on October 13, 2017 pursuant to Rule 424(b).
Issuer Purchases of Equity Securities
None.
ITEM 3. DEFAULTS
UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not Applicable.
ITEM 5. OTHER INFORMATION
None.
57
ITEM 6.
EXHIBITS
See the Exhibit Index following the signature page to this Quarterly Report on Form 10-Q for a list of exhibits filed or furnished with this report, which Exhibit Index is incorporated herein by reference.
Exhibit
Number
Description
Form
Date
Number
Filed
Herewith
3.1
Amended and Restated Certificate of Incorporation
8-K
10-17-17
3.1
3.2
Amended and Restated Bylaws
8-K
10-17-17
3.2
4.1
Reference is made to exhibits
3.1
through
3.2
.
4.2
Form of Common Stock Certificate
S-1/A
9-18-17
4.2
10.1
†
Loan and Security Agreement dated May 10, 2018
8-K
5-15-18
10.1
31.1
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
X
31.2
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
X
32.1*
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
X
32.2*
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
X
101.INS
XBRL Instance Document
101.SCH
XBRL Taxonomy Extension Schema Document
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
XBRL Taxonomy Extension Label Linkbase Document
101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document
*
The certification attached as Exhibit 32.1 and Exhibit 32.2 that accompanies this Quarterly Report on Form 10-Q is not deemed filed with the SEC and is not to be incorporated by reference into any filing of Restoration Robotics, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing.
†
Portions of this exhibit (indicated by asterisks) are omitted pursuant to a request for confidential treatment that will be filed separately with the Securities and Exchange Commission.
58
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.
Company Name
Date: July 30, 2018
By:
/s/ RYAN RHODES
Ryan Rhodes
President, Chief Executive Officer
Date: July 30, 2018
By:
/s/ MARK L. HAIR
Mark L. Hair
Chief Financial Officer
59