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<p id="PARA3" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman, Times, serif"><b>UNITED STATES</b></font></p>
<p id="PARA4" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman, Times, serif"><b>SECURITIES AND EXCHANGE COMMISSION</b></font></p>
<p id="PARA5" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Washington, D.C. 20549</b></font></p>
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<p id="PARA6" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA7" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman, Times, serif"><b>FORM 10-Q</b></font></p>
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<p id="PARA9" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA10" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, Times, serif"><b>QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)</b></font></p>
<p id="PARA12" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, Times, serif"><b>OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></p>
<p id="PARA14" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA13" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>For the quarterly period ended </b><b>September 30</b><b>, 2016 </b></font></p>
<p id="PARA16" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA15" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Commission File Number </b><b>001-37525</b></font></p>
<p id="PARA17" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<p id="PARA18" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA20" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(Exact name of Registrant as specified in its charter)</b></font></p>
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<p id="PARA22" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<p id="PARA23" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Delaware</b></font></p></td>
<td style="WIDTH: 2.7%; VERTICAL-ALIGN: bottom">&nbsp; </td>
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<p id="PARA24" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>30-0513847</b></font></p></td></tr>
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<p id="PARA25" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(State of</b></font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Incorporation)</b></font></p></td>
<td style="WIDTH: 2.7%; VERTICAL-ALIGN: bottom">&nbsp; </td>
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<p id="PARA27" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(I.R.S. Employer</b></font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Identification No.)</b></font></p></td></tr></table>
<p id="PARA31" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA30" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>5830 Granite Parkway</b><b>, </b><b>Suite 1100</b></font></p>
<p id="PARA32" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Plano, Texas 75024</b></font></p>
<p id="PARA33" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(Address of principal executive offices)</b></font></p>
<p id="PARA35" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA34" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(</b><b>214</b><b>) </b><b>474</b><b>-</b><b>3103</b></font></p>
<p id="PARA36" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(Registrant&#8217;s telephone number, including area code)</b></font></p>
<p id="PARA37" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
<p id="PARA38" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA40" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 22.5pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Indicate by check mark whether the registrant (1)&nbsp;has filed all reports required to be filed by Section&nbsp;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)&nbsp;has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;&#9746;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&#9744;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p id="PARA42" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA41" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 24pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Indicate by checkmark whether the registrant has submitted electronically and posted on its corporate website, 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).&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;&#9746;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&#9744;</font></p>
<p id="PARA44" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA43" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 24pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#8220;large accelerated filer,&#8221; &#8220;accelerated filer&#8221; and &#8220;smaller reporting company&#8221; in Rule 12b-2 of the Exchange Act. (Check one):</font></p>
<p id="PARA45" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<p id="PARA46" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Large&nbsp;accelerated&nbsp;filer</font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: top">
<p id="PARA47" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&#9744;</font></p></td>
<td style="WIDTH: 24.3%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 36.6%; VERTICAL-ALIGN: bottom">
<p id="PARA48" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Accelerated&nbsp;filer</font></p></td>
<td style="WIDTH: 5.3%; VERTICAL-ALIGN: bottom">
<p id="PARA49" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&#9744;</font></p></td></tr>
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<td style="WIDTH: 28.7%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 61%; VERTICAL-ALIGN: bottom" colspan="2">&nbsp; </td>
<td style="WIDTH: 5.3%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
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<p id="PARA50" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Non-accelerated filer</font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom">
<p id="PARA51" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&#9744;</font></p></td>
<td style="WIDTH: 24.3%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 36.6%; VERTICAL-ALIGN: bottom">
<p id="PARA52" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Smaller&nbsp;reporting&nbsp;company</font></p></td>
<td style="WIDTH: 5.3%; VERTICAL-ALIGN: bottom">
<p id="PARA53" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&#9746;</font></p></td></tr></table>
<p id="PARA56" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA55" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 24pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange</font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;&#9744;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&#9746;</font></p>
<p id="PARA60" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA59" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As of November 1, 2016, shares outstanding of the Company&#8217;s common stock, $0.001 par value per share, totaled 10,309,065.</font></p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25">&nbsp;</p>
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<p id="PARA61" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nuvectra Corporation</b></font></p>
<p id="PARA62" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Table of Contents for Form 10-Q</b></font></p>
<p id="PARA63" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>As of and for the Quarterly Period Ended </b><b>September 30</b><b>, 201</b><b>6</b></font></p>
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<p id="PARA66" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Page No.</b></font></p></td></tr>
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<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center; BACKGROUND-COLOR: #cceeff"><u><b>PART I&#8212;FINANCIAL INFORMATION</b></u></td>
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<p id="PARA68" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 1.</font></p></td>
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<p id="PARA69" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Condensed Consolidated F</u><u>inancial Statements</u></font></p></td>
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<p id="PARA70" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>3</u></font></p></td></tr>
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<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
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<p id="PARA71" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Condensed Consolidated Balance Sheets&#8212;Unaudited</u></font></p></td>
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<p id="PARA72" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>3</u></font></p></td></tr>
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<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
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<p id="PARA73" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Condensed Consolidated Statements of Operations and Comprehensive </u><u>Loss</u><u>&#8212;Unaudited</u></font></p></td>
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<p id="PARA74" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>4</u></font></p></td></tr>
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<p id="PARA75" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Condensed Consolidated Statements of Cash Flows&#8212;Unaudited</u></font></p></td>
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<p id="PARA76" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>5</u></font></p></td></tr>
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<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
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<p id="PARA77" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Condensed Consolidated Statement of Stockholders' Equity&#8212;Unaudited</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA78" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>6</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA79" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Notes to Condensed Consolidated Financial Statements&#8212;Unaudited</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA80" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>7</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: top; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA81" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 2.</font></p></td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA82" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: top; BACKGROUND-COLOR: #cceeff">
<p id="PARA83" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>23</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA84" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 3.</font></p></td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA85" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Quantitative and Qualitative Disclosures About Market Risk</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA86" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>31</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA87" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 4.</font></p></td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA88" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Controls and Procedures</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA89" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>31</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center; BACKGROUND-COLOR: #cceeff"><u><b>PART II&#8212;OTHER INFORMATION</b></u></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA91" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 1.</font></p></td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA92" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Legal Proceedings</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA93" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>33</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA94" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 1A.</font></p></td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA95" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Risk Factors</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA96" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>33</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA97" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 2.</font></p></td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA98" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Unregistered Sales of Equity Securities and Use of Proceeds</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA99" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>33</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA100" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 3.</font></p></td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA101" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Defaults Upon Senior Securities</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA102" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>33</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA103" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 4.</font></p></td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA104" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Mine Safety Disclosures</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA105" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>33</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: top; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA106" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 5.</font></p></td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA107" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Other Information</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA108" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>33</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA109" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">ITEM 6.</font></p></td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA110" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Exhibits</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA111" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>34</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff" colspan="2">
<p id="PARA112" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>SIGNATURES</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA113" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>35</u></font></p></td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 86%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp; </td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff" colspan="2">
<p id="PARA114" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>EXHIBIT INDEX</u></font></p></td>
<td style="WIDTH: 5%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA115" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>36</u></font></p></td></tr></table>
<p id="PARA118" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
<p id="PARA2450.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2450" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2450" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2450" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-2-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2450" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2450.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA119" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>PART I&#8212;FINANCIAL INFORMATION</b></font></p>
<p id="PARA120" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
<p id="PARA121" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM 1. </b><b>CONDENSED CONSOLIDATED </b><b>FINANCIAL STATEMENTS</b></font></p>
<p id="PARA122" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA123" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA124" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>CONDENSED CONSOLIDATED BALANCE SHEETS&#8212;Unaudited</b></font></p>
<p id="PARA125" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(in thousands except share and per share data)</b></font></p>
<p id="PARA126" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-statement-type="balance-sheet" data-td-taggable-table="">
<table id="TBL216" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL216.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL216.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td id="TBL216.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="6">
<p id="PARA127" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>As of</b></font></p></td>
<td id="TBL216.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px">&nbsp;</td></tr>
<tr id="TBL216.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL216.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td id="TBL216.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA128" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30</b><b>, 2016</b></font></p></td>
<td id="TBL216.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px">&nbsp;</td>
<td id="TBL216.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td id="TBL216.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA129" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>January 1, 2016</b></font></p></td>
<td id="TBL216.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px">&nbsp;</td></tr>
<tr id="TBL216.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 70%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA130" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><u><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Assets</b></font></u></p></td>
<td id="TBL216.finRow.3.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.3.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.3.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.3.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.3.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.3.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.3.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.3.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td></tr>
<tr id="TBL216.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA131" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Current assets:</font></p></td>
<td id="TBL216.finRow.4.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.4.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.4.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.4.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.4.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.4.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.4.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.4.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td></tr>
<tr id="TBL216.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA132" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Cash and cash equivalents</font></p></td>
<td id="TBL216.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL216.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">75,623</td>
<td id="TBL216.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL216.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">202</td>
<td id="TBL216.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA137" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Trade accounts receivable, net of allowance for doubtful accounts of $8 in fiscal 2016 and $56 in fiscal 2015</font></p></td>
<td id="TBL216.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">2,142</td>
<td id="TBL216.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">417</td>
<td id="TBL216.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.7" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA140" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Prepaid expenses and other current assets</font></p></td>
<td id="TBL216.finRow.7.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.7.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.7.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,976</td>
<td id="TBL216.finRow.7.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.7.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.7.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.7.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">145</td>
<td id="TBL216.finRow.7.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.8" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA143" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total current assets</font></p></td>
<td id="TBL216.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">79,741</td>
<td id="TBL216.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.8.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.8.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.8.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">764</td>
<td id="TBL216.finRow.8.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.9" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA146" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Property, plant and equipment, net</font></p></td>
<td id="TBL216.finRow.9.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.9.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.9.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">6,564</td>
<td id="TBL216.finRow.9.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.9.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.9.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.9.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">4,469</td>
<td id="TBL216.finRow.9.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.10" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA149" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Intangible assets, net</font></p></td>
<td id="TBL216.finRow.10.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.10.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.10.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,786</td>
<td id="TBL216.finRow.10.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.10.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.10.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.10.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,983</td>
<td id="TBL216.finRow.10.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.11" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA152" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Goodwill</font></p></td>
<td id="TBL216.finRow.11.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.11.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.11.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">38,182</td>
<td id="TBL216.finRow.11.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.11.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.11.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.11.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">38,182</td>
<td id="TBL216.finRow.11.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.12" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA155" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other long-term assets</font></p></td>
<td id="TBL216.finRow.12.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.12.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.12.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">526</td>
<td id="TBL216.finRow.12.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.12.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.12.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.12.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL216.finRow.12.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.13" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA158" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total assets</font></p></td>
<td id="TBL216.finRow.13.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.13.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL216.finRow.13.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">126,799</td>
<td id="TBL216.finRow.13.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.13.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.13.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL216.finRow.13.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">45,398</td>
<td id="TBL216.finRow.13.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.14" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA163" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><u><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Liabilities and Stockholders&#8217; Equity</b></font></u></p></td>
<td id="TBL216.finRow.14.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.14.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.14.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.14.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.14.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.14.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.14.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL216.finRow.14.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td></tr>
<tr id="TBL216.finRow.15" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA164" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Current liabilities:</font></p></td>
<td id="TBL216.finRow.15.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.15.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.15.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.15.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.15.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.15.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.15.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.15.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL216.finRow.16" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA165" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Accounts payable and other current liabilities</font></p></td>
<td id="TBL216.finRow.16.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.16.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL216.finRow.16.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">8,448</td>
<td id="TBL216.finRow.16.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.16.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.16.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL216.finRow.16.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">18</td>
<td id="TBL216.finRow.16.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.17" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA170" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Amount due to non-controlling interests</font></p></td>
<td id="TBL216.finRow.17.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.17.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.17.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL216.finRow.17.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.17.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.17.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.17.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">6,818</td>
<td id="TBL216.finRow.17.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.18" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA173" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Deferred revenue</font></p></td>
<td id="TBL216.finRow.18.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.18.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.18.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">547</td>
<td id="TBL216.finRow.18.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.18.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.18.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.18.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL216.finRow.18.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.19" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA176" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other accrued compensation</font></p></td>
<td id="TBL216.finRow.19.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.19.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.19.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,459</td>
<td id="TBL216.finRow.19.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.19.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.19.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.19.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">524</td>
<td id="TBL216.finRow.19.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.20" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA179" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Accrued bonuses</font></p></td>
<td id="TBL216.finRow.20.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.20.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.20.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">434</td>
<td id="TBL216.finRow.20.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.20.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.20.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.20.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">198</td>
<td id="TBL216.finRow.20.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.21" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA182" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total current liabilities</font></p></td>
<td id="TBL216.finRow.21.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.21.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.21.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,888</td>
<td id="TBL216.finRow.21.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.21.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.21.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.21.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">7,558</td>
<td id="TBL216.finRow.21.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.22" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA185" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other long-term liabilities</font></p></td>
<td id="TBL216.finRow.22.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.22.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.22.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,360</td>
<td id="TBL216.finRow.22.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.22.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.22.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.22.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL216.finRow.22.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.23" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA188" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Long-term debt, net</font></p></td>
<td id="TBL216.finRow.23.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.23.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.23.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">13,583</td>
<td id="TBL216.finRow.23.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.23.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.23.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.23.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL216.finRow.23.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.24" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA191" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total liabilities</font></p></td>
<td id="TBL216.finRow.24.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.24.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.24.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">25,831</td>
<td id="TBL216.finRow.24.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.24.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.24.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.24.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">7,558</td>
<td id="TBL216.finRow.24.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.25" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA194" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Commitments and contingencies (Note 7)</font></p></td>
<td id="TBL216.finRow.25.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.25.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.25.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.25.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.25.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.25.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.25.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.25.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL216.finRow.26" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA195" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Stockholders&#8217; equity:</font></p></td>
<td id="TBL216.finRow.26.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.26.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.26.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.26.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.26.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.26.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.26.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.26.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td></tr>
<tr id="TBL216.finRow.27" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA196" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Common stock, $0.001 par value, 100,000,000 shares authorized; </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">10,288,856 and 0 shares issued and outstanding in fiscal 2016 and fiscal 2015, respectively</font></p></td>
<td id="TBL216.finRow.27.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.27.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.27.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10</td>
<td id="TBL216.finRow.27.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.27.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.27.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.27.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL216.finRow.27.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.28" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA199" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Additional paid-in capital</font></p></td>
<td id="TBL216.finRow.28.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.28.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.28.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">121,119</td>
<td id="TBL216.finRow.28.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.28.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.28.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.28.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL216.finRow.28.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.29" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA202" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Accumulated deficit</font></p></td>
<td id="TBL216.finRow.29.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.29.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.29.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(20,161</td>
<td id="TBL216.finRow.29.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL216.finRow.29.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.29.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.29.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(125,094</td>
<td id="TBL216.finRow.29.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td></tr>
<tr id="TBL216.finRow.30" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA205" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Greatbatch&#8217;s net investment</font></p></td>
<td id="TBL216.finRow.30.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.30.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.30.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL216.finRow.30.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.30.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.30.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.30.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">162,934</td>
<td id="TBL216.finRow.30.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.31" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA208" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total stockholders&#8217; equity</font></p></td>
<td id="TBL216.finRow.31.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.31.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.31.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">100,968</td>
<td id="TBL216.finRow.31.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.31.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.31.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL216.finRow.31.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">37,840</td>
<td id="TBL216.finRow.31.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL216.finRow.32" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA211" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total liabilities and stockholders&#8217; equity</font></p></td>
<td id="TBL216.finRow.32.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.32.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL216.finRow.32.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">126,799</td>
<td id="TBL216.finRow.32.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL216.finRow.32.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL216.finRow.32.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL216.finRow.32.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">45,398</td>
<td id="TBL216.finRow.32.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA218" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA217" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The accompanying notes are an integral part of these condensed consolidated financial statements.</font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25">&nbsp;</p>
<p id="PARA2451.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2451" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2451" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2451" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-3-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2451" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2451.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA219" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA220" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</b></font></p>
<p id="PARA221" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>AND COMPREHENSIVE LOSS &#8212; Unaudited</b></font></p>
<p id="PARA222" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(in thousands except per share data)</b></font></p>
<p id="PARA223" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-statement-type="income" data-td-taggable-table="">
<table id="TBL341" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL341.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL341.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL341.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA227" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p></td>
<td id="TBL341.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL341.finRow.1.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL341.finRow.1.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA229" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p></td>
<td id="TBL341.finRow.1.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL341.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL341.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL341.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA231" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, 2016</b></font></p></td>
<td id="TBL341.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL341.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL341.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA233" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, 2015</b></font></p></td>
<td id="TBL341.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL341.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL341.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA235" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, 2016</b></font></p></td>
<td id="TBL341.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL341.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL341.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA237" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, 2015</b></font></p></td>
<td id="TBL341.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL341.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 52%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA238" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Sales:</font></p></td>
<td id="TBL341.finRow.3.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.3.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL341.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA239" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Product</font></p></td>
<td id="TBL341.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">2,603 </td>
<td id="TBL341.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,271</td>
<td id="TBL341.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">6,044 </td>
<td id="TBL341.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.4.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.4.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.4.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">3,942</td>
<td id="TBL341.finRow.4.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA244" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Service</font></p></td>
<td id="TBL341.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,163</td>
<td id="TBL341.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL341.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">2,338</td>
<td id="TBL341.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL341.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 18pt; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA249" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total sales</font></p></td>
<td id="TBL341.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">3,766</td>
<td id="TBL341.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,271</td>
<td id="TBL341.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.6.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.6.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.6.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">8,382</td>
<td id="TBL341.finRow.6.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.6.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.6.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.6.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">3,942</td>
<td id="TBL341.finRow.6.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.7" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA254" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Cost of sales:</font></p></td>
<td id="TBL341.finRow.7.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.7.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL341.finRow.8" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA255" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Product</font></p></td>
<td id="TBL341.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,144</td>
<td id="TBL341.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.8.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.8.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.8.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">538</td>
<td id="TBL341.finRow.8.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.8.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.8.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.8.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">2,872</td>
<td id="TBL341.finRow.8.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.8.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.8.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.8.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">2,475</td>
<td id="TBL341.finRow.8.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.9" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA260" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Service</font></p></td>
<td id="TBL341.finRow.9.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.9.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.9.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">484</td>
<td id="TBL341.finRow.9.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.9.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.9.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.9.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL341.finRow.9.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.9.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.9.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.9.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,074</td>
<td id="TBL341.finRow.9.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.9.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.9.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.9.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL341.finRow.9.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.10" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 18pt; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA265" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total cost of sales</font></p></td>
<td id="TBL341.finRow.10.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.10.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.10.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,628</td>
<td id="TBL341.finRow.10.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.10.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.10.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.10.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">538</td>
<td id="TBL341.finRow.10.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.10.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.10.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.10.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">3,946</td>
<td id="TBL341.finRow.10.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.10.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.10.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.10.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">2,475</td>
<td id="TBL341.finRow.10.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.11" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA270" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Gross profit</font></p></td>
<td id="TBL341.finRow.11.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.11.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.11.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">2,138</td>
<td id="TBL341.finRow.11.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.11.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.11.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.11.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">733</td>
<td id="TBL341.finRow.11.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.11.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.11.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.11.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">4,436</td>
<td id="TBL341.finRow.11.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.11.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.11.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.11.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,467</td>
<td id="TBL341.finRow.11.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.12" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA275" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Operating expenses:</font></p></td>
<td id="TBL341.finRow.12.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.12.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td></tr>
<tr id="TBL341.finRow.13" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA276" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Selling, general and administrative expenses</font></p></td>
<td id="TBL341.finRow.13.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.13.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.13.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">8,006</td>
<td id="TBL341.finRow.13.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.13.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.13.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.13.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">3,914</td>
<td id="TBL341.finRow.13.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.13.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.13.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.13.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">18,185</td>
<td id="TBL341.finRow.13.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.13.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.13.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.13.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">8,190</td>
<td id="TBL341.finRow.13.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.14" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA281" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Research, development and engineering costs, net</font></p></td>
<td id="TBL341.finRow.14.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.14.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.14.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">3,114</td>
<td id="TBL341.finRow.14.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.14.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.14.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.14.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">4,051</td>
<td id="TBL341.finRow.14.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.14.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.14.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.14.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">10,097</td>
<td id="TBL341.finRow.14.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.14.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.14.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.14.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">11,742</td>
<td id="TBL341.finRow.14.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.15" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA286" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other operating expenses (income)</font></p></td>
<td id="TBL341.finRow.15.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.15.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.15.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">7</td>
<td id="TBL341.finRow.15.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.15.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.15.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.15.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(198</td>
<td id="TBL341.finRow.15.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL341.finRow.15.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.15.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.15.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">476</td>
<td id="TBL341.finRow.15.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.15.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.15.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.15.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">260</td>
<td id="TBL341.finRow.15.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.16" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 18pt; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA291" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total operating expenses</font></p></td>
<td id="TBL341.finRow.16.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.16.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.16.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">11,127</td>
<td id="TBL341.finRow.16.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.16.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.16.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.16.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">7,767</td>
<td id="TBL341.finRow.16.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.16.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.16.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.16.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">28,758</td>
<td id="TBL341.finRow.16.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.16.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.16.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.16.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">20,192</td>
<td id="TBL341.finRow.16.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.17" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 18pt; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA296" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Operating loss</font></p></td>
<td id="TBL341.finRow.17.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.17.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.17.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(8,989</td>
<td id="TBL341.finRow.17.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL341.finRow.17.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.17.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.17.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(7,034</td>
<td id="TBL341.finRow.17.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL341.finRow.17.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.17.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.17.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(24,322</td>
<td id="TBL341.finRow.17.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL341.finRow.17.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.17.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.17.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(18,725</td>
<td id="TBL341.finRow.17.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td></tr>
<tr id="TBL341.finRow.18" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA301" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Interest expense</font></p></td>
<td id="TBL341.finRow.18.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.18.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.18.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">455</td>
<td id="TBL341.finRow.18.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.18.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.18.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.18.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL341.finRow.18.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.18.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.18.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.18.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">978</td>
<td id="TBL341.finRow.18.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.18.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.18.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.18.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL341.finRow.18.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.19" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA306" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other expense, net</font></p></td>
<td id="TBL341.finRow.19.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.19.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.19.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">6</td>
<td id="TBL341.finRow.19.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.19.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.19.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.19.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL341.finRow.19.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.19.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.19.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.19.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">53</td>
<td id="TBL341.finRow.19.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.19.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.19.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.19.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL341.finRow.19.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.20" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA311" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Loss before provision for income taxes</font></p></td>
<td id="TBL341.finRow.20.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.20.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.20.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(9,450</td>
<td id="TBL341.finRow.20.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL341.finRow.20.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.20.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.20.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(7,034</td>
<td id="TBL341.finRow.20.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL341.finRow.20.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.20.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.20.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(25,353</td>
<td id="TBL341.finRow.20.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL341.finRow.20.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.20.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.20.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(18,725</td>
<td id="TBL341.finRow.20.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td></tr>
<tr id="TBL341.finRow.21" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA316" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Provision for income taxes</font></p></td>
<td id="TBL341.finRow.21.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.21.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.21.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL341.finRow.21.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.21.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.21.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.21.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL341.finRow.21.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.21.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.21.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.21.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL341.finRow.21.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.21.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.21.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.21.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL341.finRow.21.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL341.finRow.22" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 18pt; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA321" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net loss</font></p></td>
<td id="TBL341.finRow.22.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.22.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.22.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(9,450</td>
<td id="TBL341.finRow.22.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL341.finRow.22.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.22.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.22.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(7,034</td>
<td id="TBL341.finRow.22.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL341.finRow.22.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.22.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.22.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(25,353</td>
<td id="TBL341.finRow.22.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL341.finRow.22.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.22.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.22.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(18,725</td>
<td id="TBL341.finRow.22.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td></tr>
<tr id="TBL341.finRow.23" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA326" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Comprehensive loss</font></p></td>
<td id="TBL341.finRow.23.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.23.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL341.finRow.23.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(9,450</td>
<td id="TBL341.finRow.23.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL341.finRow.23.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.23.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL341.finRow.23.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(7,034</td>
<td id="TBL341.finRow.23.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL341.finRow.23.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.23.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL341.finRow.23.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(25,353</td>
<td id="TBL341.finRow.23.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL341.finRow.23.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.23.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL341.finRow.23.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(18,725</td>
<td id="TBL341.finRow.23.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td></tr>
<tr id="TBL341.finRow.24" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA331" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Basic and diluted net loss per share</font></p></td>
<td id="TBL341.finRow.24.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.24.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.24.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(0.92</td>
<td id="TBL341.finRow.24.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL341.finRow.24.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.24.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.24.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(0.69</td>
<td id="TBL341.finRow.24.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL341.finRow.24.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.24.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.24.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(2.47</td>
<td id="TBL341.finRow.24.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL341.finRow.24.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL341.finRow.24.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL341.finRow.24.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(1.83</td>
<td id="TBL341.finRow.24.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td></tr>
<tr id="TBL341.finRow.25" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA336" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Basic and diluted weighted average shares outstanding</font></p></td>
<td id="TBL341.finRow.25.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.25.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.25.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">10,279</td>
<td id="TBL341.finRow.25.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.25.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.25.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.25.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">10,258</td>
<td id="TBL341.finRow.25.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.25.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.25.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.25.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">10,268</td>
<td id="TBL341.finRow.25.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL341.finRow.25.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.25.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL341.finRow.25.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">10,258</td>
<td id="TBL341.finRow.25.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA342" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA344" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The accompanying notes are an integral part of these condensed consolidated financial statements.</font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25">&nbsp;</p>
<p id="PARA2452.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2452" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2452" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2452" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-4-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2452" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2452.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
<p id="PARA346" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA347" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS&#8212;Unaudited</b></font></p>
<p id="PARA348" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(in thousands)</b></font></p>
<p id="PARA349" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-statement-type="cash-flows" data-td-taggable-table="">
<table id="TBL442" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL442.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL442.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td id="TBL442.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="6">
<p id="PARA350" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p></td>
<td id="TBL442.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px">&nbsp;</td></tr>
<tr id="TBL442.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL442.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td id="TBL442.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA351" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center; MARGIN-LEFT: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, 2016</b></font></p></td>
<td id="TBL442.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px">&nbsp;</td>
<td id="TBL442.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td id="TBL442.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA352" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, 2015</b></font></p></td>
<td id="TBL442.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px">&nbsp;</td></tr>
<tr id="TBL442.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 70%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA353" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><u><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Cash flows from operating activities:</b></font></u></p></td>
<td id="TBL442.finRow.3.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.3.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.3.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.3.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.3.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.3.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.3.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.3.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td></tr>
<tr id="TBL442.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA354" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net loss</font></p></td>
<td id="TBL442.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL442.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(25,353</td>
<td id="TBL442.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL442.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL442.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(18,725</td>
<td id="TBL442.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td></tr>
<tr id="TBL442.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA359" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Adjustments to reconcile net loss to net cash used in operating activities:</font></p></td>
<td id="TBL442.finRow.5.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.5.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.5.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.5.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.5.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.5.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.5.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.5.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL442.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA360" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Depreciation and amortization</font></p></td>
<td id="TBL442.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,570</td>
<td id="TBL442.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">437</td>
<td id="TBL442.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.7" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA363" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Debt related amortization included in interest expense</font></p></td>
<td id="TBL442.finRow.7.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.7.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.7.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">349</td>
<td id="TBL442.finRow.7.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.7.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.7.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.7.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL442.finRow.7.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.8" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA366" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Stock-based compensation</font></p></td>
<td id="TBL442.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,799</td>
<td id="TBL442.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.8.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.8.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.8.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">702</td>
<td id="TBL442.finRow.8.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.9" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA369" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Loss on disposal of property, plant and equipment</font></p></td>
<td id="TBL442.finRow.9.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.9.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.9.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">28</td>
<td id="TBL442.finRow.9.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.9.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.9.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.9.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL442.finRow.9.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.10" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA372" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other non-cash losses, net</font></p></td>
<td id="TBL442.finRow.10.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.10.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.10.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL442.finRow.10.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.10.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.10.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.10.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">235</td>
<td id="TBL442.finRow.10.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.11" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA375" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Changes in operating assets and liabilities:</font></p></td>
<td id="TBL442.finRow.11.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.11.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.11.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.11.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.11.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.11.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.11.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.11.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL442.finRow.12" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA376" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Accounts receivable</font></p></td>
<td id="TBL442.finRow.12.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.12.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.12.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(1,725</td>
<td id="TBL442.finRow.12.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL442.finRow.12.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.12.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.12.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">174</td>
<td id="TBL442.finRow.12.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.13" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA379" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Prepaid expenses and other current assets</font></p></td>
<td id="TBL442.finRow.13.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.13.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.13.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(1,831</td>
<td id="TBL442.finRow.13.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL442.finRow.13.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.13.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.13.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">140</td>
<td id="TBL442.finRow.13.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.14" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA382" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other long-term assets</font></p></td>
<td id="TBL442.finRow.14.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.14.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.14.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(526</td>
<td id="TBL442.finRow.14.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL442.finRow.14.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.14.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.14.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL442.finRow.14.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.15" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA385" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Accounts payable and other current liabilities</font></p></td>
<td id="TBL442.finRow.15.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.15.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.15.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">9,719</td>
<td id="TBL442.finRow.15.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.15.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.15.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.15.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(238</td>
<td id="TBL442.finRow.15.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">
<p id="PARA388" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td></tr>
<tr id="TBL442.finRow.16" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA389" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Accrued bonuses</font></p></td>
<td id="TBL442.finRow.16.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.16.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.16.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">236</td>
<td id="TBL442.finRow.16.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.16.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.16.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.16.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,724</td>
<td id="TBL442.finRow.16.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.17" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA392" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other long-term liabilities</font></p></td>
<td id="TBL442.finRow.17.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.17.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.17.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,360</td>
<td id="TBL442.finRow.17.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.17.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.17.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.17.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL442.finRow.17.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.18" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA395" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net cash used in operating activities</font></p></td>
<td id="TBL442.finRow.18.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.18.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.18.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(14,374</td>
<td id="TBL442.finRow.18.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL442.finRow.18.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.18.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.18.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(15,551</td>
<td id="TBL442.finRow.18.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">
<p id="PARA398" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td></tr>
<tr id="TBL442.finRow.19" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA399" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><u><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Cash flows from investing activities:</b></font></u></p></td>
<td id="TBL442.finRow.19.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.19.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.19.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.19.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.19.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.19.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.19.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.19.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td></tr>
<tr id="TBL442.finRow.20" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA400" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Acquisition of property, plant and equipment</font></p></td>
<td id="TBL442.finRow.20.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.20.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.20.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(3,413</td>
<td id="TBL442.finRow.20.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL442.finRow.20.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.20.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.20.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(463</td>
<td id="TBL442.finRow.20.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">
<p id="PARA403" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td></tr>
<tr id="TBL442.finRow.21" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA404" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net cash used in investing activities</font></p></td>
<td id="TBL442.finRow.21.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.21.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.21.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(3,413</td>
<td id="TBL442.finRow.21.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">
<p id="PARA406" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">) </font></p></td>
<td id="TBL442.finRow.21.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.21.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.21.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(463</td>
<td id="TBL442.finRow.21.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">
<p id="PARA408" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td></tr>
<tr id="TBL442.finRow.22" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA409" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><u><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Cash flows from financing activities:</b></font></u></p></td>
<td id="TBL442.finRow.22.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.22.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.22.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.22.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.22.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.22.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.22.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td>
<td id="TBL442.finRow.22.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; BACKGROUND-COLOR: #ffffff"><b>&nbsp;</b></td></tr>
<tr id="TBL442.finRow.23" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA410" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Borrowings under credit facility</font></p></td>
<td id="TBL442.finRow.23.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.23.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.23.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">15,000</td>
<td id="TBL442.finRow.23.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.23.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.23.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.23.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL442.finRow.23.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.24" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA413" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Purchase of non-controlling interests</font></p></td>
<td id="TBL442.finRow.24.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.24.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.24.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(6,818</td>
<td id="TBL442.finRow.24.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL442.finRow.24.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.24.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.24.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL442.finRow.24.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.25" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA416" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net funding and capital contribution provided by Greatbatch</font></p></td>
<td id="TBL442.finRow.25.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.25.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.25.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">86,421</td>
<td id="TBL442.finRow.25.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.25.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.25.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.25.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">16,028</td>
<td id="TBL442.finRow.25.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.26" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA419" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Proceeds from the exercise of stock options</font></p></td>
<td id="TBL442.finRow.26.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.26.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.26.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">133</td>
<td id="TBL442.finRow.26.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.26.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.26.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.26.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL442.finRow.26.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.27" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA422" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Payment of debt issuance costs</font></p></td>
<td id="TBL442.finRow.27.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.27.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.27.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(1,528</td>
<td id="TBL442.finRow.27.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL442.finRow.27.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.27.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.27.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL442.finRow.27.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.28" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA425" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net cash provided by financing activities</font></p></td>
<td id="TBL442.finRow.28.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.28.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.28.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">93,208</td>
<td id="TBL442.finRow.28.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.28.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.28.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.28.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">16,028</td>
<td id="TBL442.finRow.28.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.29" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA428" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net increase in cash and cash equivalents</font></p></td>
<td id="TBL442.finRow.29.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.29.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.29.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">75,421</td>
<td id="TBL442.finRow.29.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.29.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.29.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.29.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">14</td>
<td id="TBL442.finRow.29.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.30" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA431" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Cash and cash equivalents, beginning of period</font></p></td>
<td id="TBL442.finRow.30.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.30.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.30.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">202</td>
<td id="TBL442.finRow.30.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.30.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.30.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.30.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">418</td>
<td id="TBL442.finRow.30.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.31" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA434" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Cash and cash equivalents, end of period</font></p></td>
<td id="TBL442.finRow.31.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.31.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL442.finRow.31.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">75,623</td>
<td id="TBL442.finRow.31.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL442.finRow.31.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.31.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL442.finRow.31.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">432</td>
<td id="TBL442.finRow.31.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL442.finRow.32" style="BACKGROUND-COLOR: #ffffff">
<td style="BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.32.lead.B2" style="BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.32.symb.B2" style="BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.32.amt.B2" style="BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.32.trail.B2" style="BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.32.lead.B3" style="BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.32.symb.B3" style="BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.32.amt.B3" style="BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.32.trail.B3" style="BACKGROUND-COLOR: #ffffff">&nbsp;</td></tr>
<tr id="TBL442.finRow.33" style="BACKGROUND-COLOR: #cceeff">
<td style="BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.33.lead.B2" style="BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.33.symb.B2" style="BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.33.amt.B2" style="BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.33.trail.B2" style="BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.33.lead.B3" style="BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.33.symb.B3" style="BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.33.amt.B3" style="BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.33.trail.B3" style="BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL442.finRow.34" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA440" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Supplemental Disclosure of Cash Flow Information:</font></p></td>
<td id="TBL442.finRow.34.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.34.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.34.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.34.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.34.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.34.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.34.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL442.finRow.34.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td></tr>
<tr id="TBL442.finRow.35" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff; TEXT-INDENT: -9pt">
<p id="PARA441" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">During the nine months ended September 30, 2016, Nuvectra acquired $3.6 million of property, plant and equipment, of which $0.2 million was accrued and $3.4 million was paid.</font></p></td>
<td id="TBL442.finRow.35.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.35.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.35.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.35.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.35.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.35.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.35.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL442.finRow.35.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr></table></div>
<p id="PARA444" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA443" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The accompanying notes are an integral part of these condensed consolidated financial statements.</font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25">&nbsp;</p>
<p id="PARA2453.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2453" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2453" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2453" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-5-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2453" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2453.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
<p id="PARA446" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA447" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS&#8217; EQUITY &#8212; Unaudited</b></font></p>
<p id="PARA448" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>(in thousands)</b></font></p>
<p id="PARA449" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="" data-td-statement-type="stockholders-equity"><table id="TBL190" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL190.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA96" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Additional</b></font></p></td>
<td id="TBL190.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.lead.B6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.symb.B6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.amt.B6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.trail.B6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.lead.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.2.amt.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA97" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Total</b></font></p></td>
<td id="TBL190.finRow.2.trail.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td></tr>
<tr id="TBL190.finRow.3">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.3.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.3.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="6">
<p id="PARA98" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Common Stock</b></font></p></td>
<td id="TBL190.finRow.3.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px"><b>&nbsp;</b></td>
<td id="TBL190.finRow.3.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.3.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA99" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Paid-In</b></font></p></td>
<td id="TBL190.finRow.3.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px"><b>&nbsp;</b></td>
<td id="TBL190.finRow.3.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.3.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA100" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Accumulated</b></font></p></td>
<td id="TBL190.finRow.3.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px"><b>&nbsp;</b></td>
<td id="TBL190.finRow.3.lead.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.3.amt.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA101" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Greatbatch</b></font></p></td>
<td id="TBL190.finRow.3.trail.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px"><b>&nbsp;</b></td>
<td id="TBL190.finRow.3.lead.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.3.amt.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA102" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Stockholders&#8217;</b></font></p></td>
<td id="TBL190.finRow.3.trail.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px"><b>&nbsp;</b></td></tr>
<tr id="TBL190.finRow.4">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA103" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Shares</b></font></p></td>
<td id="TBL190.finRow.4.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA104" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Amount</b></font></p></td>
<td id="TBL190.finRow.4.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA105" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Capital</b></font></p></td>
<td id="TBL190.finRow.4.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA106" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Deficit</b></font></p></td>
<td id="TBL190.finRow.4.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.lead.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.amt.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA107" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Net Investment</b></font></p></td>
<td id="TBL190.finRow.4.trail.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.lead.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL190.finRow.4.amt.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA108" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Equity</b></font></p></td>
<td id="TBL190.finRow.4.trail.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL190.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA109" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">At January 1, 2016</font></p></td>
<td id="TBL190.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL190.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL190.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL190.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(125,094</td>
<td id="TBL190.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">)</td>
<td id="TBL190.finRow.5.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.5.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL190.finRow.5.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">162,934</td>
<td id="TBL190.finRow.5.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.5.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.5.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL190.finRow.5.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">37,840</td>
<td id="TBL190.finRow.5.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td></tr>
<tr id="TBL190.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="MARGIN-BOTTOM: 0px; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ffffff">
<p id="PARA121" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Issuance of common stock</font></p></td>
<td id="TBL190.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">10,258</td>
<td id="TBL190.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">10</td>
<td id="TBL190.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.6.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">119,624</td>
<td id="TBL190.finRow.6.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.6.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">125,094</td>
<td id="TBL190.finRow.6.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.6.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(244,728</td>
<td id="TBL190.finRow.6.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">)</td>
<td id="TBL190.finRow.6.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.6.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.6.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td></tr>
<tr id="TBL190.finRow.7" style="BACKGROUND-COLOR: #cceeff">
<td style="MARGIN-BOTTOM: 0px; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; MARGIN-TOP: 0px; BACKGROUND-COLOR: #cceeff; TEXT-INDENT: -9pt">
<p id="PARA128" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Issuance of common stock warrants</font></p></td>
<td id="TBL190.finRow.7.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.7.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.7.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.7.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.7.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">238</td>
<td id="TBL190.finRow.7.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.7.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.7.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.7.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.7.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.7.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.7.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">238</td>
<td id="TBL190.finRow.7.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td></tr>
<tr id="TBL190.finRow.8" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA135" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Option exercises</font></p></td>
<td id="TBL190.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">26</td>
<td id="TBL190.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.8.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.8.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.8.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">133</td>
<td id="TBL190.finRow.8.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.8.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.8.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.8.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.8.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.8.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.8.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">133</td>
<td id="TBL190.finRow.8.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td></tr>
<tr id="TBL190.finRow.9" style="BACKGROUND-COLOR: #cceeff">
<td style="MARGIN-BOTTOM: 0px; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; MARGIN-TOP: 0px; BACKGROUND-COLOR: #cceeff; TEXT-INDENT: -9pt">
<p id="PARA142" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Restricted stock issued, </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">net of stock forfeited</font></p></td>
<td id="TBL190.finRow.9.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">5</td>
<td id="TBL190.finRow.9.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.9.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.9.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.9.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.9.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.9.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.9.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.9.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.9.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.9.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.9.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.9.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td></tr>
<tr id="TBL190.finRow.10" style="BACKGROUND-COLOR: #ffffff">
<td style="MARGIN-BOTTOM: 0px; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ffffff; TEXT-INDENT: -9pt">
<p id="PARA150" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Stock-based compensation</font></p></td>
<td id="TBL190.finRow.10.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.10.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.10.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.10.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.10.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,124</td>
<td id="TBL190.finRow.10.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.10.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.10.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.10.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">675</td>
<td id="TBL190.finRow.10.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.10.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.10.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,799</td>
<td id="TBL190.finRow.10.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td></tr>
<tr id="TBL190.finRow.11" style="BACKGROUND-COLOR: #cceeff">
<td style="MARGIN-BOTTOM: 0px; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; MARGIN-TOP: 0px; BACKGROUND-COLOR: #cceeff; TEXT-INDENT: -9pt">
<p id="PARA157" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Capital contribution from Greatbatch</font></p></td>
<td id="TBL190.finRow.11.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.11.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.11.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.11.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.11.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.11.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.11.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.11.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.11.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">75,000</td>
<td id="TBL190.finRow.11.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.11.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.11.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">75,000</td>
<td id="TBL190.finRow.11.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td></tr>
<tr id="TBL190.finRow.12" style="BACKGROUND-COLOR: #ffffff">
<td style="MARGIN-BOTTOM: 0px; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ffffff; TEXT-INDENT: -9pt">
<p id="PARA164" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net funding provided by Greatbatch</font></p></td>
<td id="TBL190.finRow.12.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.12.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.12.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.12.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.12.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.12.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.12.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.12.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.12.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">11,311</td>
<td id="TBL190.finRow.12.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.12.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.12.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">11,311</td>
<td id="TBL190.finRow.12.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td></tr>
<tr id="TBL190.finRow.13" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA171" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net loss</font></p></td>
<td id="TBL190.finRow.13.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.13.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.13.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.13.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.13.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL190.finRow.13.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.13.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(20,161</td>
<td id="TBL190.finRow.13.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">)</td>
<td id="TBL190.finRow.13.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(5,192</td>
<td id="TBL190.finRow.13.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">)</td>
<td id="TBL190.finRow.13.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL190.finRow.13.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(25,353</td>
<td id="TBL190.finRow.13.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="true">)</td></tr>
<tr id="TBL190.finRow.14" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 28%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA178" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">At September 30, 2016</font></p></td>
<td id="TBL190.finRow.14.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.14.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.14.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">10,289</td>
<td id="TBL190.finRow.14.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.14.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.14.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL190.finRow.14.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">10</td>
<td id="TBL190.finRow.14.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.14.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.14.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL190.finRow.14.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">121,119</td>
<td id="TBL190.finRow.14.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.14.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.14.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL190.finRow.14.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(20,161</td>
<td id="TBL190.finRow.14.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">)</td>
<td id="TBL190.finRow.14.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.14.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL190.finRow.14.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL190.finRow.14.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td>
<td id="TBL190.finRow.14.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL190.finRow.14.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL190.finRow.14.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">100,968</td>
<td id="TBL190.finRow.14.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="true">&nbsp;</td></tr></table></div>
<p id="PARA537" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font>&nbsp;</p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The accompanying notes are an integral part of these condensed consolidated financial statements.</font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25">&nbsp;</p>
<p id="PARA2454.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2454" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2454" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2454" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-6-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2454" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2454.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA539" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
<div data-td-statement-type="note">
<table id="MTAB541" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA542" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>1.</b></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA543" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></font></p></td></tr></table>
<p id="PARA544" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
<p id="PARA545" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Background</i></b> &#8211; QiG Group, LLC (&#8220;QiG&#8221;) was a wholly-owned subsidiary of Integer<sup style="vertical-align: baseline; position: relative; bottom:.33em;">TM</sup> Holdings Corporation (NYSE: ITGR), formerly known as Greatbatch,<b> </b>Inc., (&#8220;Greatbatch&#8221;). On July 30, 2015, Greatbatch announced that it intended to spin-off QiG and its neuromodulation medical device<b> </b>business from the remainder of its business through a distribution of all of the issued and outstanding shares of common stock of QiG to the<b> </b>stockholders of Greatbatch on a pro rata basis (the &#8220;Spin-off&#8221;). Immediately prior to completion of the Spin-off on March 14, 2016, QiG was converted into a<b> </b>corporation and changed its name to Nuvectra Corporation. Upon completion of the Spin-off, the Company became<b> </b>an independent publicly-traded company and Greatbatch does not own any shares of Nuvectra common stock. </font></p>
<p id="PARA546" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA547" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Nature of Operations</i></b> &#8211; Nuvectra Corporation, together with its wholly-owned subsidiaries (i) Algostim, LLC (&#8220;Algostim&#8221;), (ii) PelviStim LLC (&#8220;PelviStim&#8221;), and (iii) NeuroNexus Technologies, Inc. (&#8220;NeuroNexus&#8221;) (collectively &#8220;Nuvectra&#8221; or the &#8220;Company&#8221;), is a neurostimulation company committed to helping physicians improve the lives of people with chronic neurological conditions. The Algovita&#174; Spinal Cord Stimulation (&#8220;SCS&#8221;) System (&#8220;Algovita&#8221;) is the Company&#8217;s first commercial offering and is Conformit&#233; Europ&#233;ene (&#8220;CE&#8221;) marked and United States Food &amp; Drug Administration (&#8220;FDA&#8221;) approved for the treatment of chronic pain of the trunk and/or limbs. Nuvectra&#8217;s innovative technology platform also has capabilities under development to support other neurological indications such as sacral nerve stimulation (&#8220;SNS&#8221;) and deep brain stimulation (&#8220;DBS&#8221;). In addition, the Company&#8217;s NeuroNexus subsidiary designs, manufactures and markets leading-edge neural-interface technologies for the neuroscience clinical research market.</font></p>
<p id="PARA548" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA549" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Basis of Presentation</i></b> &#8211; The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information (Accounting Standards Codification (&#8220;ASC&#8221;) 270, <i>Interim Reporting</i>) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;). Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Nuvectra for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates. The January&nbsp;1, 2016 condensed consolidated balance sheet data was derived from audited combined financial statements but does not include all disclosures required by GAAP. For further information, refer to the combined financial statements and notes included in the Company&#8217;s Registration Statement on Form 10-12B/A, dated as of February 24, 2016 (the &#8220;Registration Statement on Form 10&#8221;).</font></p>
<p id="PARA550" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA551" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">QiG historically operated as part of Greatbatch and not as a separate stand-alone entity. Prior to March 14, 2016, the financial statements of QiG were prepared on a &#8220;combined&#8221; basis from the consolidated financial statements of Greatbatch to represent the financial<b> </b>position and performance of QiG as if it had existed on a stand-alone basis in conformity with GAAP. Those Combined Financial Statements included the assets and liabilities that had historically been held at Greatbatch but which were specifically<b> </b>identifiable or attributable to the Company or were transferred to the Company in connection with the Spin-off. All intercompany transactions and<b> </b>accounts within the Company have been eliminated. All transactions between the Company and Greatbatch were considered to be effectively settled in<b> </b>the Combined Financial Statements at the time the transaction was recorded. The total net effect of the settlement of these intercompany transactions was<b> </b>reflected in the Combined Cash Flow Statements as a financing activity and in the Combined Balance Sheets as Greatbatch&#8217;s Net Investment.<b> </b></font></p>
<p id="PARA552" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2457.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2457" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2457" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2457" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-7-</div>
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<div id="PGHDR2457" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2457.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA553" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font>&nbsp;</p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">These Combined Financial Statements included an allocation of expenses related to certain Greatbatch corporate functions, including executive<b> </b>oversight, finance, legal, human resources, tax, information technology, product development, corporate procurement, and facilities. These expenses<b> </b>were charged to the Company on the basis of direct usage, when identifiable, with the remainder allocated primarily on a pro rata basis of<b> </b>estimated hours incurred, headcount, square footage, or other measures. The Company&#8217;s management considers the expense allocation methodology<b> </b>and results to be reasonable for all periods presented. However, these allocations are not indicative of the actual expenses that would have been<b> </b>incurred if the Company was an independent publicly-traded company or of the costs the Company will incur in the future. Following the Spin-off, Greatbatch has continued to provide many of these services on a transitional basis for a fee. See Note 11 &#8220;Related Party<b> </b>Transactions&#8221; for additional information.</font></p>
<p id="PARA554" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
<p id="PARA555" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Greatbatch maintains a number of employee benefit and stock-based compensation programs at a corporate level. Nuvectra&#8217;s employees historically<b> </b>participated in those programs, and as such, the Company was charged a portion of the expenses associated with these programs. Any benefit plan liabilities that are the Company&#8217;s direct obligation, such as certain performance-based bonus plans, are reflected in the Condensed Consolidated Balance Sheets, as well as within the Company&#8217;s operating expenses. See Note 3 &#8220;Employee Benefit Plans&#8221; for further description of these plans.</font></p>
<p id="PARA556" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA557" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Greatbatch&#8217;s Net Investment in these Financial Statements represented the excess of total assets over total liabilities prior to the Spin-off. Greatbatch&#8217;s Net Investment was primarily impacted by contributions from Greatbatch and net funding of Nuvectra&#8217;s expenses provided by Greatbatch. Greatbatch paid for substantially all transaction costs, other than deferred financing fees for the credit facility, associated with the Spin-off. The Company has incurred significant net losses and negative cash flows from operations since inception and expects to incur additional net losses for the foreseeable future. Immediately prior to completion of the Spin-off, Greatbatch made a cash capital contribution to Nuvectra of $75 million. This cash capital contribution, together with the Company&#8217;s cash on hand and borrowings under the credit facility, $25 million of which is subject to achieving trailing six month revenue milestones and compliance with specified conditions and covenants</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">, is an amount that the Company estimates will, based on its current plans and expectations, meet its cash needs for approximately two years after the completion of the Spin-off. The Company periodically evaluates its liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, the Company has in the past sought, and may in the future seek, to explore strategic alternatives to finance its business plan, including but not limited to, a public offering of its common stock, private equity or debt financings, or other sources, such as strategic partnerships.&nbsp; The Company is also focusing on increasing the sales of its products to generate cash flow to fund its operations. However, t</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">here can be no assurance that the Company will be successful in its plans described above or in attracting alternative debt or equity financing.</font></p>
<p id="PARA558" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA559" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Fiscal Year End</i></b> &#8211; The Company utilizes a fifty-two, fifty-three week fiscal year ending on the Friday nearest December 31. The third quarter and first nine month periods of 2016 and 2015 each contained 13 weeks and 39 weeks, respectively, and ended on September 30, and October 2, respectively.</font></p>
<p id="PARA560" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA561" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Impairment of Long-Lived Assets</i></b> &#8211; The Company assesses the impairment of definite-lived long-lived assets or asset groups when events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that are considered in deciding when to perform an impairment review include: a significant decrease in the market price of the asset or asset group; a significant change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition; a significant change in legal factors or in the business climate that could affect the value of a long-lived asset or asset group, including an action or assessment by a regulator; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group; or a current expectation that, more likely than not, a long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent.</font></p>
<p id="PARA562" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2458.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
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<div id="PGFTR2458" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2458" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-8-</div>
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<div id="PGHDR2458" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2458.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA563" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font>&nbsp;</p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Potential recoverability is measured by comparing the carrying amount of the asset or asset group to its related total future undiscounted cash flows. If the carrying value is not recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group&#8217;s carrying amount to its fair value. When it is determined that useful lives of assets are shorter than originally estimated, and no impairment is present, the rate of depreciation is accelerated in order to fully depreciate the assets over their new shorter useful lives.</font></p>
<p id="PARA564" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA565" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Goodwill is not amortized but is periodically tested for impairment. The Company assesses goodwill for impairment on the last day of each fiscal year, or more frequently if certain events occur as described above. Goodwill is evaluated for impairment through the comparison of the fair value of the Company&#8217;s reporting unit to its carrying value. When evaluating goodwill for impairment, the Company may first perform an assessment of qualitative factors to determine if the fair value of the reporting unit is more-likely-than-not greater than its carrying amount. This qualitative assessment is referred to as a &#8220;step zero&#8221; approach. If, based on the review of the qualitative factors, the Company determines it is more-likely-than-not that the fair value of its reporting unit is greater than its carrying value, the required two-step impairment test can be bypassed. If the Company does not perform a step zero assessment or if the fair value of the reporting unit is more-likely-than-not less than its carrying value, the Company must perform a two-step impairment test, and calculate the estimated fair value of the reporting unit. If, based upon the two-step impairment test, it is determined that the fair value of its reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the goodwill within the reporting unit is less than its carrying value. Under the two-step approach, the fair value for the Company&#8217;s reporting unit is determined based on</font></p>
<p id="PARA566" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">discounted cash flows and market multiples.</font></p>
<p id="PARA567" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA568" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company completed its annual goodwill impairment assessment for fiscal year 2015 by performing a step zero qualitative analysis. As part of this analysis, the Company evaluated factors including, but not limited to, macro-economic conditions, market and industry conditions, cost factors, the status of the development of its medical device initiatives, the status of regulatory approvals, the competitive environment, results of the last impairment test, and the operational stability and the overall financial performance of its reporting unit. After completing the analysis, the Company determined that it was more likely than not that its reporting unit&#8217;s fair value was greater than the reporting unit&#8217;s carrying value and the two-step impairment test was not necessary.</font></p>
<p id="PARA569" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA570" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Warranty Reserve</i></b> &#8211; The Company offers warranty on certain of its products and has established a warranty reserve, as a component of accounts payable and other current liabilities</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">, for any potential claims. The Company estimates its warranty reserve based upon an analysis of all identified or expected claims and an estimate of the cost to resolve those claims. Factors that affect the Company&#8217;s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and differences between actual and expected warranty costs per claim. The Company periodically assesses the adequacy of its warranty liabilities and adjusts the amounts as necessary.</font></p>
<p id="PARA571" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA572" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Inventories</i></b> &#8211; The value of inventories are stated at the lesser of market value or cost, determined using the first-in, first-out (&#8220;FIFO&#8221;) method. To value inventory, management must estimate excess or obsolete inventory, as well as inventory that is not of saleable quality. This valuation involves an inherent level of risk and uncertainty due to unpredictability of trends in the industry and customer demand for the Company&#8217;s products. In assessing the ultimate realization of inventories, management must make judgments as to future demand requirements and compare that with the current or committed inventory levels. Reserve requirements generally increase as demand decreases due to market conditions and technological and product life-cycle changes. Future events and variations in valuation methods or assumptions may cause significant fluctuations in this estimate and could have a material impact on the Company&#8217;s results. </font></p>
<p id="PARA573" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<div id="PGNUM2459" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-9-</div>
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<div id="PGHDR2459" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2459.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA574" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>&nbsp;</i></b></font></p>
<p id="PARA575" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Revenue Recognition</i></b> &#8211; The Company recognizes revenue when it is realized or realizable and earned. This occurs when persuasive evidence of an arrangement exists, delivery has occurred, the risk of loss is transferred, the price is fixed or determinable, the buyer is obligated to pay (i.e., not contingent on a future event), collectability is reasonably assured, and the amount of future returns can reasonably be estimated. In cases where the Company utilizes distributors or ships product directly to the end user, it generally recognizes revenue upon shipment provided all revenue recognition criteria have been met. When sales representatives deliver products at the point of implantation at hospitals or medical facilities, the Company recognizes revenue upon completion of the procedure and authorization.</font></p>
<p id="PARA576" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA577" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Service revenue is recognized as the services are performed. The Company&#8217;s development services are typically provided on a fixed-fee basis. The revenues for such longer duration projects are typically recognized using the proportional performance method. In using the proportional performance method, revenues are generally recorded based on the percentage of effort incurred to date on a contract relative to the estimated total expected contract effort. Significant judgment is required when estimating total contract effort and progress to completion on the arrangements as well as whether a loss is expected to be incurred on the contract. Management uses historical experience, project plans and an assessment of the risks and uncertainties inherent in the arrangements to establish these estimates. Various uncertainties may or may not be within the Company&#8217;s control. Deferred revenue consists primarily of service revenue not yet performed. </font></p>
<p id="PARA578" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p></div>
<p id="PARA578" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p>
<div data-td-statement-type="note">
<table id="MTAB580" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA581" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2. </b></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA582" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>INTANGIBLE ASSETS</b></font></p></td></tr></table>
<p id="PARA584" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA583" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Intangible assets are comprised of the following (in thousands):</font></p>
<p id="PARA585" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL638" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 90%; MARGIN-LEFT: 5%; MARGIN-RIGHT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL638.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL638.finRow.1.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL638.finRow.1.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA586" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Gross</b></font></p>
<p id="PARA587" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Carrying</b></font></p>
<p id="PARA588" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Amount</b></font></p></td>
<td id="TBL638.finRow.1.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL638.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL638.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA589" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Accumulated</b></font></p>
<p id="PARA590" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Amortization</b></font></p></td>
<td id="TBL638.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL638.finRow.1.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL638.finRow.1.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA591" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Net</b></font></p>
<p id="PARA592" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Carrying</b></font></p>
<p id="PARA593" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Amount</b></font></p></td>
<td id="TBL638.finRow.1.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL638.finRow.2" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 49%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA594" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>At September 30, 2016</b></font></p></td>
<td id="TBL638.finRow.2.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.2.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td></tr>
<tr id="TBL638.finRow.3" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA595" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Technology and patents</font></p></td>
<td id="TBL638.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,058</td>
<td id="TBL638.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL638.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(469</td>
<td id="TBL638.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">
<p id="PARA600" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td>
<td id="TBL638.finRow.3.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.3.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.3.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">589</td>
<td id="TBL638.finRow.3.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL638.finRow.4" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA603" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Customer lists</font></p></td>
<td id="TBL638.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,869</td>
<td id="TBL638.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL638.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(672</td>
<td id="TBL638.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">
<p id="PARA606" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td>
<td id="TBL638.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,197</td>
<td id="TBL638.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL638.finRow.5" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA608" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total intangible assets</font></p></td>
<td id="TBL638.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">2,927</td>
<td id="TBL638.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL638.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(1,141</td>
<td id="TBL638.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">
<p id="PARA613" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td>
<td id="TBL638.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,786</td>
<td id="TBL638.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL638.finRow.6" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA616" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>At January 1, 2016</b></font></p></td>
<td id="TBL638.finRow.6.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td>
<td id="TBL638.finRow.6.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff"><b>&nbsp;</b></td></tr>
<tr id="TBL638.finRow.7" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA617" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Technology and patents</font></p></td>
<td id="TBL638.finRow.7.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.7.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.7.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,058</td>
<td id="TBL638.finRow.7.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL638.finRow.7.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.7.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.7.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(388</td>
<td id="TBL638.finRow.7.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">
<p id="PARA622" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td>
<td id="TBL638.finRow.7.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.7.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.7.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">670</td>
<td id="TBL638.finRow.7.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL638.finRow.8" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA625" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Customer lists</font></p></td>
<td id="TBL638.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,869</td>
<td id="TBL638.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL638.finRow.8.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.8.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.8.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(556</td>
<td id="TBL638.finRow.8.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">
<p id="PARA628" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td>
<td id="TBL638.finRow.8.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.8.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL638.finRow.8.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,313</td>
<td id="TBL638.finRow.8.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL638.finRow.9" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; PADDING-LEFT: 9pt; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA630" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total intangible assets</font></p></td>
<td id="TBL638.finRow.9.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.9.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.9.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">2,927</td>
<td id="TBL638.finRow.9.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL638.finRow.9.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.9.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.9.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(944</td>
<td id="TBL638.finRow.9.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">
<p id="PARA635" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td>
<td id="TBL638.finRow.9.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL638.finRow.9.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL638.finRow.9.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,983</td>
<td id="TBL638.finRow.9.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA640" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA639" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Aggregate intangible asset amortization expense is classified as follows (in thousands):</font></p>
<p id="PARA641" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL697" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 95%; MARGIN-LEFT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL697.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL697.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL697.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA643" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p></td>
<td id="TBL697.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL697.finRow.1.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL697.finRow.1.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA645" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p></td>
<td id="TBL697.finRow.1.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL697.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL697.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL697.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA647" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, 2016</b></font></p></td>
<td id="TBL697.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL697.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL697.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA649" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, 2015</b></font></p></td>
<td id="TBL697.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL697.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL697.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA651" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, 2016</b></font></p></td>
<td id="TBL697.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL697.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL697.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA653" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, 2015</b></font></p></td>
<td id="TBL697.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL697.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 48%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA654" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Cost of sales</font></p></td>
<td id="TBL697.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL697.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL697.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">25</td>
<td id="TBL697.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL697.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL697.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL697.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">33</td>
<td id="TBL697.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL697.finRow.3.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL697.finRow.3.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL697.finRow.3.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">80</td>
<td id="TBL697.finRow.3.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL697.finRow.3.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL697.finRow.3.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL697.finRow.3.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">99</td>
<td id="TBL697.finRow.3.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL697.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA659" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Selling, general and administrative </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">expenses</font></p></td>
<td id="TBL697.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL697.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL697.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">37</td>
<td id="TBL697.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL697.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL697.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL697.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">40</td>
<td id="TBL697.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL697.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL697.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL697.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">117</td>
<td id="TBL697.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL697.finRow.4.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL697.finRow.4.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL697.finRow.4.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">118</td>
<td id="TBL697.finRow.4.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL697.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA676" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total intangible asset amortization </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">expense</font></p></td>
<td id="TBL697.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL697.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL697.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">62</td>
<td id="TBL697.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL697.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL697.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL697.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">73</td>
<td id="TBL697.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL697.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL697.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL697.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">197</td>
<td id="TBL697.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL697.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL697.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL697.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">217</td>
<td id="TBL697.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA699" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2460.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2460" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2460" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2460" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-10-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2460" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2460.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA698" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA705" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Estimated future intangible asset amortization expense based on the current carrying value is as follows (in thousands):</font></p>
<p id="PARA706" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL726" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 90%; MARGIN-LEFT: 5%; MARGIN-RIGHT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL726.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL726.finRow.1.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL726.finRow.1.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA707" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Estimated</b></font></p>
<p id="PARA708" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Amortization</b></font></p>
<p id="PARA709" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Expense</b></font></p></td>
<td id="TBL726.finRow.1.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL726.finRow.2" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 83%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA710" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Remainder of 2016</font></p></td>
<td id="TBL726.finRow.2.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL726.finRow.2.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL726.finRow.2.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">72</td>
<td id="TBL726.finRow.2.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL726.finRow.3" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA713" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">2017</font></p></td>
<td id="TBL726.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL726.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL726.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">286</td>
<td id="TBL726.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL726.finRow.4" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA715" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">2018</font></p></td>
<td id="TBL726.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL726.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL726.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">298</td>
<td id="TBL726.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL726.finRow.5" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA717" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">2019</font></p></td>
<td id="TBL726.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL726.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL726.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">293</td>
<td id="TBL726.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL726.finRow.6" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA719" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">2020</font></p></td>
<td id="TBL726.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL726.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL726.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">209</td>
<td id="TBL726.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL726.finRow.7" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA721" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Thereafter</font></p></td>
<td id="TBL726.finRow.7.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL726.finRow.7.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL726.finRow.7.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">628</td>
<td id="TBL726.finRow.7.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL726.finRow.8" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA723" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total estimated amortization expense</font></p></td>
<td id="TBL726.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL726.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL726.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,786</td>
<td id="TBL726.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA727" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25; TEXT-INDENT: -36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p></div>
<p id="PARA727" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25; TEXT-INDENT: -36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p>
<table id="MTAB729" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA730" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font></p></td></tr></table>
<div data-td-statement-type="note">
<table id="MTAB729" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA730" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>3. </b></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA731" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>EMPLOYEE BENEFIT PLANS</b></font></p></td></tr></table>
<p id="PARA733" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA732" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Nuvectra Corporation 2016 Equity Incentive Plan </i></b>&#8211; The Nuvectra Corporation 2016 Equity Incentive Plan (the &#8220;2016 Equity Plan&#8221;) was adopted by the Board of Managers of QiG Group, LLC and was subsequently ratified and approved by Nuvectra&#8217;s Board of Directors effective as of March 14, 2016. The 2016 Equity Plan provides that the Compensation and Organization Committee of the Board of Directors (the &#8220;Compensation Committee&#8221;) may award eligible participants, as it may determine from time to time, the following types of awards: stock options, stock appreciation rights, restricted stock, restricted stock units and stock bonuses. Subject to the adjustment clauses in the 2016 Equity Plan, the total number of shares of Nuvectra common stock reserved for issuance under the 2016 Equity Plan is 1,128,410.</font></p>
<p id="PARA735" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA734" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">During the nine months ended September 30, 2016 the Compensation Committee granted equity awards aggregating 796,026 shares of common stock under the 2016 Equity Plan in the form of both restricted stock units and non-qualified stock options to its directors and certain officers and key employees.</font></p>
<p id="PARA737" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA736" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Stock-Based Compensation</i></b> &#8211; Certain of the Company&#8217;s employees participated in the stock-based compensation programs of Greatbatch and prior to the Spin-off received awards of time-based stock options and time- and performance-based restricted stock units, which typically vest over a three year period and are settled in shares of Greatbatch common stock. The stock-based payment compensation expense includes the compensation expense directly attributable to Nuvectra employees from these Greatbatch equity incentives. In addition, certain incentive awards that were originally granted under a Greatbatch equity incentive award plan adjusted into an incentive award of Nuvectra common stock in accordance with the terms of the employee matters agreement (a &#8220;Spin-off Award&#8221;). </font></p>
<p id="PARA739" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA738" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The components and classification of stock-based compensation expense were as follows (in thousands):</font></p>
<p id="PARA740" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL795" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 95%; MARGIN-LEFT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL795.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL795.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL795.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA742" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p></td>
<td id="TBL795.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL795.finRow.1.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL795.finRow.1.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA744" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p></td>
<td id="TBL795.finRow.1.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL795.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL795.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL795.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA746" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL795.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL795.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL795.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA748" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL795.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL795.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL795.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA750" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL795.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL795.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL795.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA752" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL795.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL795.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 48%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA753" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Stock options</font></p></td>
<td id="TBL795.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL795.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL795.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">186</td>
<td id="TBL795.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL795.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL795.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL795.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">55</td>
<td id="TBL795.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL795.finRow.3.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL795.finRow.3.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL795.finRow.3.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">434</td>
<td id="TBL795.finRow.3.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL795.finRow.3.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL795.finRow.3.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL795.finRow.3.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">163</td>
<td id="TBL795.finRow.3.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL795.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA758" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Restricted stock and restricted stock units</font></p></td>
<td id="TBL795.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL795.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL795.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">362</td>
<td id="TBL795.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL795.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL795.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL795.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">212</td>
<td id="TBL795.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL795.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL795.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL795.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,365</td>
<td id="TBL795.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL795.finRow.4.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL795.finRow.4.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL795.finRow.4.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">539</td>
<td id="TBL795.finRow.4.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL795.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA774" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total stock-based compensation </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">expense</font></p></td>
<td id="TBL795.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL795.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL795.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">548</td>
<td id="TBL795.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL795.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL795.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL795.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">267</td>
<td id="TBL795.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL795.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL795.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL795.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,799</td>
<td id="TBL795.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL795.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL795.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL795.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">702</td>
<td id="TBL795.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA797" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA796" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2461" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2461" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2461" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-11-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2461" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2461.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA798" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL864" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 95%; MARGIN-LEFT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL864.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL864.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL864.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA804" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p></td>
<td id="TBL864.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL864.finRow.1.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL864.finRow.1.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA806" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p></td>
<td id="TBL864.finRow.1.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL864.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL864.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL864.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA808" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL864.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL864.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL864.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA810" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL864.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL864.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL864.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA812" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL864.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL864.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL864.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA814" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL864.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL864.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 48%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff; TEXT-INDENT: -9pt">
<p id="PARA815" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Selling, general and administrative </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">expense</font></p></td>
<td id="TBL864.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL864.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">462</td>
<td id="TBL864.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL864.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">190</td>
<td id="TBL864.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.3.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.3.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL864.finRow.3.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,081</td>
<td id="TBL864.finRow.3.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.3.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.3.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL864.finRow.3.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">471</td>
<td id="TBL864.finRow.3.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL864.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff; TEXT-INDENT: -9pt">
<p id="PARA821" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Research, development and </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">engineering costs, net</font></p></td>
<td id="TBL864.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">86</td>
<td id="TBL864.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">77</td>
<td id="TBL864.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">249</td>
<td id="TBL864.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.4.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.4.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.4.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">231</td>
<td id="TBL864.finRow.4.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL864.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff; TEXT-INDENT: -9pt">
<p id="PARA827" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other operating expenses</font></p></td>
<td id="TBL864.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL864.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL864.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">469</td>
<td id="TBL864.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL864.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL864.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL864.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff; TEXT-INDENT: -9pt">
<p id="PARA843" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total stock-based compensation </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">expense</font></p></td>
<td id="TBL864.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL864.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">548</td>
<td id="TBL864.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL864.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">267</td>
<td id="TBL864.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.6.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.6.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL864.finRow.6.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,799</td>
<td id="TBL864.finRow.6.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL864.finRow.6.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL864.finRow.6.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL864.finRow.6.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">702</td>
<td id="TBL864.finRow.6.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA866" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA865" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 39.6pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model with weighted-average assumptions based on the grant date. The weighted average fair value and assumptions used to value options granted under the </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">2016 Equity Plan are as follows:</font></p>
<p id="PARA868" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL891" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 90%; MARGIN-LEFT: 5%; MARGIN-RIGHT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL891.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL891.finRow.1.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL891.finRow.1.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA870" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p>
<p id="PARA871" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, 2016</b></font></p></td>
<td id="TBL891.finRow.1.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL891.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL891.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA873" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p>
<p id="PARA874" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, 2016</b></font></p></td>
<td id="TBL891.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL891.finRow.2" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 66%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA876" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Weighted average fair value</font></p></td>
<td id="TBL891.finRow.2.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL891.finRow.2.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL891.finRow.2.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">4.58</td>
<td id="TBL891.finRow.2.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL891.finRow.2.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL891.finRow.2.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL891.finRow.2.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">4.50</td>
<td id="TBL891.finRow.2.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL891.finRow.3" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA879" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Risk-free interest rate</font></p></td>
<td id="TBL891.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL891.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL891.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1.61</td>
<td id="TBL891.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td>
<td id="TBL891.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL891.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL891.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1.72</td>
<td id="TBL891.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td></tr>
<tr id="TBL891.finRow.4" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA882" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Expected volatility</font></p></td>
<td id="TBL891.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL891.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL891.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">55</td>
<td id="TBL891.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td>
<td id="TBL891.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL891.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL891.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">55</td>
<td id="TBL891.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td></tr>
<tr id="TBL891.finRow.5" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA885" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Expected life (in years)</font></p></td>
<td id="TBL891.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL891.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL891.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">10</td>
<td id="TBL891.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL891.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL891.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL891.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">10</td>
<td id="TBL891.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL891.finRow.6" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA888" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Expected dividend yield</font></p></td>
<td id="TBL891.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL891.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL891.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL891.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td>
<td id="TBL891.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL891.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL891.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL891.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td></tr></table></div>
<p id="PARA893" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA894" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 39.6pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The following table summarizes the stock option activity:</font></p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 39.6pt">&nbsp;</p>
<div data-td-taggable-table="">
<table id="TBL962" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 80%; MARGIN-LEFT: 10%; MARGIN-RIGHT: 10%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL962.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL962.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL962.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA904" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Number of</b></font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Time-Vested</b></font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Stock</b></font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Options</b></font></p></td>
<td id="TBL962.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL962.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL962.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA909" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Weighted</b></font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Average</b></font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Exercise</b></font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Price</b></font></p></td>
<td id="TBL962.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL962.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 62%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA913" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Outstanding at March 14, 2016</font></p></td>
<td id="TBL962.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL962.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL962.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">605,257</td>
<td id="TBL962.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL962.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL962.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL962.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">6.09</td>
<td id="TBL962.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL962.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA922" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Granted</font></p></td>
<td id="TBL962.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">357,021</td>
<td id="TBL962.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL962.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">7.23</td>
<td id="TBL962.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL962.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA930" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Exercised</font></p></td>
<td id="TBL962.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL962.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL962.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(25,504</td>
<td id="TBL962.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">
<p id="PARA932" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td>
<td id="TBL962.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL962.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL962.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">5.25</td>
<td id="TBL962.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL962.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA937" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Forfeited or expired</font></p></td>
<td id="TBL962.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(26,830</td>
<td id="TBL962.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">
<p id="PARA939" style="TEXT-ALIGN: left; MARGIN: 0pt 1.1pt 0pt 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td>
<td id="TBL962.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">9.45</td>
<td id="TBL962.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL962.finRow.7" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA944" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Outstanding at September 30, 2016</font></p></td>
<td id="TBL962.finRow.7.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL962.finRow.7.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL962.finRow.7.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">909,944</td>
<td id="TBL962.finRow.7.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL962.finRow.7.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL962.finRow.7.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL962.finRow.7.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">6.46</td>
<td id="TBL962.finRow.7.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL962.finRow.8" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA953" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Exercisable at September 30, 2016</font></p></td>
<td id="TBL962.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">470,718</td>
<td id="TBL962.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL962.finRow.8.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL962.finRow.8.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL962.finRow.8.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">5.19</td>
<td id="TBL962.finRow.8.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA964" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2462.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2462" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2462" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2462" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-12-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2462" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2462.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA963" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 39.6pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA975" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 39.6pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The following table summarizes the restricted stock and restricted stock unit activity:</font></p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 39.6pt; LINE-HEIGHT: 1.25">&nbsp;</p>
<div data-td-taggable-table="">
<table id="TBL1028" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 80%; MARGIN-LEFT: 10%; MARGIN-RIGHT: 10%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL1028.finRow.3">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1028.finRow.3.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1028.finRow.3.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA986" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Time-Vested</b></font> </p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Activity</b></font></p></td>
<td id="TBL1028.finRow.3.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1028.finRow.3.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1028.finRow.3.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA989" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Weighted</b></font> <font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Average </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Fair Value</b></font></p></td>
<td id="TBL1028.finRow.3.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1028.finRow.4" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 62%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA992" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Nonvested at March 14, 2016</font></p></td>
<td id="TBL1028.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1028.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1028.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">172,115</td>
<td id="TBL1028.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1028.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1028.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1028.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">6.97</td>
<td id="TBL1028.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1028.finRow.5" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1001" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Granted</font></p></td>
<td id="TBL1028.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1028.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1028.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">439,005</td>
<td id="TBL1028.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1028.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1028.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1028.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">6.93</td>
<td id="TBL1028.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1028.finRow.6" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA1007" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Vested</font></p></td>
<td id="TBL1028.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1028.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1028.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(9,297</td>
<td id="TBL1028.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL1028.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1028.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1028.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">7.26</td>
<td id="TBL1028.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1028.finRow.7" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1013" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Forfeited</font></p></td>
<td id="TBL1028.finRow.7.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1028.finRow.7.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1028.finRow.7.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(30,370</td>
<td id="TBL1028.finRow.7.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1028.finRow.7.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1028.finRow.7.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1028.finRow.7.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">6.76</td>
<td id="TBL1028.finRow.7.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1028.finRow.8" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1019" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Nonvested at September 30, 2016</font></p></td>
<td id="TBL1028.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1028.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1028.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">571,453</td>
<td id="TBL1028.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1028.finRow.8.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1028.finRow.8.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1028.finRow.8.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 16%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">6.93</td>
<td id="TBL1028.finRow.8.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA1029" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1030" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Nuvectra 2016 Bonus Plan </i></b>&#8211; Under the terms of the Nuvectra Corporation 2016 Bonus Plan (the &#8220;2016 Bonus Plan&#8221;) there is an annual discretionary defined contribution cash bonus and a performance-based bonus plan based upon Nuvectra&#8217;s company-wide performance measures and, for certain employees, individual performance measures that are set by Nuvectra executive management. Compensation cost related to the 2016 Bonus Plan for the first nine months of 2016 was approximately $0.4 million. </font></p>
<p id="PARA1033" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1032" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Algovita Bonus Plan </i></b>&#8211; Prior to the Spin-off certain employees of Nuvectra participated in a performance-based bonus plan based upon the ultimate commercialization value, as defined in the bonus plan, of Algovita (the &#8220;Algovita Bonus Plan&#8221;). Compensation costs related to the Algovita Bonus Plan for the third quarter and first nine months of 2015 were $1.7 million and $2.3 million, respectively. The Algovita Bonus Plan is no longer in effect and the Company will have no future liability under the Algovita Bonus Plan.</font></p>
<p id="PARA1034" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p></div>
<p id="PARA1034" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p>
<table id="TBL1035" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA2494"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font></p></td></tr></table>
<div data-td-statement-type="note">
<table id="TBL1035" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA2494"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>4.</b></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA2495"><b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">OTHER OPERATING EXPENSES<b> (INCOME)</b></font></b></p></td></tr></table>
<p id="PARA1036" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
<p id="PARA1037" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other Operating Expenses (Income) is comprised of the following (in thousands):</font></p>
<p id="PARA1038" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL1087" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 95%; MARGIN-LEFT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL1087.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA1040" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p></td>
<td id="TBL1087.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.1.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.1.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA1042" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p></td>
<td id="TBL1087.finRow.1.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1087.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1044" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL1087.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1046" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL1087.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1048" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL1087.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1087.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1050" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL1087.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1087.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 48%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1051" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Performance restricted stock expense</font></p></td>
<td id="TBL1087.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1087.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1087.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1087.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1087.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1087.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1087.finRow.3.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.3.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1087.finRow.3.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">469</td>
<td id="TBL1087.finRow.3.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1087.finRow.3.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.3.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1087.finRow.3.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1087.finRow.3.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1087.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA1056" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Cleveland facility shutdown</font></p></td>
<td id="TBL1087.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1087.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1087.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(198</td>
<td id="TBL1087.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1087.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1087.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1087.finRow.4.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.4.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.4.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">228</td>
<td id="TBL1087.finRow.4.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1087.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1061" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other expenses</font></p></td>
<td id="TBL1087.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">7</td>
<td id="TBL1087.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1087.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1087.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1087.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">7</td>
<td id="TBL1087.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1087.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1087.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">32</td>
<td id="TBL1087.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1087.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1066" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total other operating expense </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">(income) </font></p></td>
<td id="TBL1087.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1087.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">7</td>
<td id="TBL1087.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1087.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1087.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(198</td>
<td id="TBL1087.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1087.finRow.6.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.6.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1087.finRow.6.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">476</td>
<td id="TBL1087.finRow.6.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1087.finRow.6.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1087.finRow.6.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1087.finRow.6.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">260</td>
<td id="TBL1087.finRow.6.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA1089" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1088" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Performance Restricted Stock Expense </i></b>&#8211; As a result of the Spin-off, certain 2015 performance stock units for Nuvectra employees were effectively cancelled with no new issuance. Therefore, the remaining unvested expense as of March 14, 2016 was accelerated and expensed immediately.</font></p>
<p id="PARA1091" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1090" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Cleveland Facility Shutdown </i></b>&#8211; In 2014, the Company initiated a plan to transfer the design engineering responsibilities previously performed at its Cleveland, OH facility to the Company&#8217;s facility in Blaine, MN. This initiative was completed during 2015. Total restructuring charges incurred in connection with this initiative were $1.1 million. Expenses related to this initiative included the following:</font></p>
<p id="PARA1093" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<table id="MTAB1094" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 54pt">&nbsp;</td>
<td style="WIDTH: 18pt; VERTICAL-ALIGN: top">
<p id="PARA1095" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&#9679;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA1096" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Severance and retention: $0.4 million;</font></p></td></tr></table>
<p id="PARA1098" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<table id="MTAB1099" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 54pt">&nbsp;</td>
<td style="WIDTH: 18pt; VERTICAL-ALIGN: top">
<p id="PARA1100" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&#9679;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA1101" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Asset write-offs: $0.3 million; </font></p></td></tr></table>
<p id="PARA1103" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<table id="MTAB1104" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 54pt">&nbsp;</td>
<td style="WIDTH: 18pt; VERTICAL-ALIGN: top">
<p id="PARA1105" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&#9679;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA1106" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other: $0.4 million</font></p></td></tr></table>
<p id="PARA1108" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2463.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2463" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2463" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2463" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-13-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2463" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2463.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA1107" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font>&nbsp;</p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other costs primarily consist of costs to relocate certain equipment and personnel and the related travel expenditures. All expenses are cash expenditures, except asset write-offs.</font></p>
<p id="PARA1110" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1109" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Other Expenses </i></b>&#8211; During 2016 and 2015, the Company recorded charges in connection with various asset disposals.</font></p>
<p id="PARA1112" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p></div>
<p id="PARA1112" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p>
<div data-td-statement-type="note">
<table id="TBL1113" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA2492"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>5.</b></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA2493"><b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">DEBT</font></b></p></td></tr></table>
<p id="PARA1115" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1114" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Long-term debt is comprised of the following (in thousands):</font></p>
<p id="PARA1116" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL1136" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 90%; MARGIN-LEFT: 5%; MARGIN-RIGHT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL1136.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1136.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1136.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="6">
<p id="PARA1117" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>As of</b></font></p></td>
<td id="TBL1136.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1136.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1136.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1136.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA1118" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30</b><b>, 2016</b></font></p></td>
<td id="TBL1136.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1136.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1136.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA1119" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>January 1, 2016</b></font></p></td>
<td id="TBL1136.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1136.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 66%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1120" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Term loan</font></p></td>
<td id="TBL1136.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1136.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1136.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">16,163</td>
<td id="TBL1136.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1136.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1136.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1136.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1136.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1136.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA1125" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Deferred financing fees</font></p></td>
<td id="TBL1136.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1136.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1136.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(1,346</td>
<td id="TBL1136.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1136.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1136.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1136.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1136.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1136.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1128" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Discount on debt</font></p></td>
<td id="TBL1136.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1136.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1136.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(1,234</td>
<td id="TBL1136.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL1136.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1136.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1136.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1136.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1136.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1131" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total long-term debt</font></p></td>
<td id="TBL1136.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1136.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1136.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">13,583</td>
<td id="TBL1136.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1136.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1136.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1136.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1136.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA1138" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>&nbsp;</i></b></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1139" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Credit Facility</i></b> &#8211; The Company has a credit facility (the &#8220;Credit Facility&#8221;) that consists of (a) term loan facilities in an aggregate maximum principal amount of $40,000,000 comprised of (i) a $15,000,000 Term Loan A Commitment, which was funded in full on March 18, 2016, (ii) a $12,500,000 Term Loan B Commitment, which is available for draw December 31, 2016 through June 30, 2017, and (iii) a $12,500,000 Term Loan C Commitment, which is available for draw June 30, 2017 through December 31, 2017 (collectively, the &#8220;Term Loans&#8221;); and (b) a Revolving Line Commitment in a maximum principal amount of $5,000,000 (the &#8220;Revolving Loans&#8221; and collectively with the Term Loans, the &#8220;Loans&#8221;). Availability of the Term Loan B Commitment is subject to the Company achieving consolidated trailing six month revenues of at least $13,500,000, and the availability of the Term Loan C Commitment is subject to the Company achieving consolidated trailing six month revenues of at least $20,000,000. The Company has the right to draw on each Term Loan B and C Commitments within 60 days of achieving the applicable revenue threshold. The Revolving Line Commitment is subject to a borrowing base of 80% of the aggregate amount of eligible accounts receivable of the Company, which advance rate and eligibility criteria may be modified from time to time based on periodic collateral examinations.</font></p>
<p id="PARA1142" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1141" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Term Loans bear interest at a floating rate equal to the prime rate plus 4.15%, with a floor of 7.65%. At September 30, 2016 the interest rate on borrowings under the term loan was 7.65%. The Company pays monthly accrued interest only on the Term Loans through September 2017 (or March 2018 if the Term Loan B Commitment is funded), and thereafter the Company will pay monthly accrued interest on the Term Loans plus equal payments of principal for 36 months (or 30 months if the Term Loan B Commitment is funded). At the maturity of the Term Loans, on September 1, 2020, all principal on the Term Loans then outstanding, plus an additional 7.75% of the funded loan amounts (the &#8220;Final Payment&#8221;), will be due and payable. This Final Payment has been treated as an in substance discount and will be amortized using the&nbsp;straight-line interest method over the life of the loan. The Revolving Loans bear interest at a floating rate equal to the prime rate plus 3.45%, with a floor of 6.95%. The Company pays monthly accrued interest only on the Revolving Loans until maturity on March 18, 2018, at which time all principal on the Revolving Loans will be due and payable. There were no borrowings on the Revolving Loans as of September 30, 2016.</font></p>
<p id="PARA1144" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1143" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company paid an arrangement fee of $1.1 million, a commitment fee of $200,000 for all of the Term Loan A, B, and C Commitments, and one-half of a $25,000 commitment fee for the Revolving Loans, with the remaining one-half due and payable on the one year anniversary of the initial closing. The Term Loan B Commitment and the Term Loan C Commitment are subject to a non-use fee of 2% of the amount of such commitment if the commitment becomes available, but the Company declines to borrow the Term Loans thereunder. If any Term Loans are voluntarily prepaid prior to their scheduled maturity, the Company must pay, in addition to the Final Payment, a prepayment fee equal to 3% of the prepaid principal if paid in the first year after the initial closing, 2% of the prepaid principal if paid in the second year after the initial closing, and 1% of the prepaid principal if paid thereafter. </font></p>
<p id="PARA1146" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2464.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2464" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2464" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2464" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-14-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2464" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2464.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA1145" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font>&nbsp;</p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Loans are secured by a first priority lien on substantially all of the assets of the Company, including, without limitation, all cash, deposit accounts, accounts receivable, equipment, inventory, contract rights, and the Company&#8217;s real property located in Blaine, Minnesota, but excluding all intellectual property of the Company (other than accounts receivable and proceeds of intellectual property). The Company&#8217;s intellectual property is subject to a negative pledge. The Company must maintain its primary operating and investment accounts with Silicon Valley Bank, which accounts are subject to customary control agreements.</font></p>
<p id="PARA1148" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1147" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Credit Facility contains customary representations and warranties, reporting and other covenants for credit facilities of this kind including prohibitions on the payment of cash dividends on the Company&#8217;s capital stock and restrictions on mergers, sales of assets, investments, incurrence of liens, incurrence of indebtedness and transactions with affiliates</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">. If the lenders fund the Term Loan B Commitment, the Company will be subject to a quarterly financial covenant requiring the Company to achieve consolidated revenues of at least 75% of Nuvectra&#8217;s forecasts that have been previously approved by the lenders. The events of default in the Credit Facility are customary for credit facilities of this kind, and include failure to pay interest or principal, breaches of affirmative and negative covenants, a material adverse change occurring, and cross defaults to other material agreements of the Company.</font></p>
<p id="PARA1150" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1149" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As a condition to the lenders&#8217; funding the Loans under the Credit Facility, concurrently with the funding under the Term Loan A Commitment on March 18, 2016, (i) the Company issued to Oxford Finance LLC a warrant to purchase 56,533 shares of Nuvectra common stock at an exercise price of $5.97 per share, which warrant is exercisable until March 18, 2026 (the &#8220;Oxford Warrant&#8221;), and (ii) the Company issued to Silicon Valley Bank a warrant to purchase 56,533 shares of Nuvectra common stock at an exercise price of $5.97 per share, which warrant is exercisable until March 18, 2026 (the &#8220;Silicon Valley Warrant&#8221;). The fair value of the warrants on the date of grant totaled approximately $0.2 million and was recorded as a discount on long-term debt and as additional paid-in capital in the Condensed Consolidated Balance Sheets, as the warrants met the criteria under the relevant accounting standard for treatment as an equity instrument. The debt discount will be amortized over the term of the Term Loan A Commitment.</font></p>
<p id="PARA1152" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1151" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Upon the funding of each of the Term Loan B Commitment and the Term Loan C Commitment, as applicable, Oxford Finance LLC and Silicon Valley Bank will each be entitled to additional warrants for the purchase of Nuvectra common stock. The number of shares under each warrant will be equal to the amount of the Term Loan made by each lender multiplied by 4.50% and divided by the then current trading price of Nuvectra common shares. The exercise price of the warrants will be equal to the trading price of Nuvectra common shares on the date of funding. The fair value of these future warrants as of September 30, 2016 was approximately $0.6 million and is recorded in other long-term liabilities in the Condensed Consolidated Balance Sheet. As of April 1, 2016, these warrants were classified as a derivative liability because the Company did not meet the criteria under the relevant accounting standard for treatment as equity instruments. As a result, the derivative liability warrants will be remeasured to its fair value at the end of each reporting period until it meets the requirements for equity treatment or is cancelled.</font></p>
<p id="PARA1154" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1153" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Deferred Financing Fees</i></b> <b><i>&#8211;</i></b> The change in deferred financing fees is as follows (in thousands):</font></p>
<p id="PARA1155" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL1167" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 90%; MARGIN-LEFT: 5%; MARGIN-RIGHT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL1167.finRow.1" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 83%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1156" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">At January 1, 2016</font></p></td>
<td id="TBL1167.finRow.1.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1167.finRow.1.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1167.finRow.1.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1167.finRow.1.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1167.finRow.2" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA1159" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Additions during the period</font></p></td>
<td id="TBL1167.finRow.2.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1167.finRow.2.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1167.finRow.2.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,528</td>
<td id="TBL1167.finRow.2.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1167.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1161" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Amortization during the period</font></p></td>
<td id="TBL1167.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1167.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1167.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">(182</td>
<td id="TBL1167.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">
<p id="PARA1163" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">)</font></p></td></tr>
<tr id="TBL1167.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA1164" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">At September 30, 2016</font></p></td>
<td id="TBL1167.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1167.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1167.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,346</td>
<td id="TBL1167.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA1168" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1169" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In accordance with Financial Accounting Standards Board (&#8220;FASB&#8221;) Accounting Standards Update (&#8220;ASU&#8221;) 2015-03, &#8220;Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,&#8221; the Company has presented debt issuance costs as a direct deduction from Long-Term Debt in the Condensed Consolidated Balance Sheet.</font></p>
<p id="PARA1171" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p></div>
<p id="PARA1171" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p>
<p id="PARA2465.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2465" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2465" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2465" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-15-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2465" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2465.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><strong></strong>&nbsp;</p>
<table id="TBL1172" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA2496"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font></p></td></tr></table>
<div data-td-statement-type="note">
<table id="TBL1172" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA2496"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>6.&nbsp;&nbsp;</b></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA2497"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>INCOME TAXES</b></font></p></td></tr></table>
<p id="PARA1174" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1173" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws, business reorganizations and settlements with taxing authorities.</font></p>
<p id="PARA1176" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1175" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company records a valuation allowance when it is &#8220;more likely than not&#8221; that all or a portion of a deferred tax asset will not be realized. Management reviews all available positive and negative evidence, including the Company&#8217;s current and past performance, the market environment in which the Company operates, the utilization of past tax credits, length of carry back and carry forward periods, existing contracts or sales backlog that will result in future profits, as well as other factors. The Company maintains a full valuation allowance on all of the net deferred tax assets for the periods presented. Until an appropriate level of profitability is sustained, the Company expects to continue to record a full valuation allowance on future tax benefits. </font></p>
<p id="PARA1178" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1177" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Pursuant to the terms of the tax matters agreement with Greatbatch, for a period of two years following the date of the Spin-off, the Company will be prohibited from (i)&nbsp;causing or permitting to occur any transaction or series of transactions, subject to certain exceptions provided under the U.S. federal income tax rules, in connection with which one or more persons would (directly or indirectly) acquire an interest in its capital stock that, when combined with any other acquisition of an interest in its capital stock that occurs after the Spin-off, comprises 30% or more of the value or the total combined voting power of all interests that are treated as outstanding equity of Nuvectra for U.S. federal income tax purposes immediately after such transaction or, in the case of a series of related transactions, immediately after any transaction in such series; (ii) transferring, selling or otherwise disposing of 35% or more of its gross assets if such transfer, sale or other disposition would violate the IRS&#8217; rules and regulations; (iii)&nbsp;liquidating its business or (iv) ceasing to maintain its active business. If the Company takes any of these actions and such actions result in tax-related costs for Greatbatch, then the Company would generally be required to indemnify Greatbatch for such costs. If the Company is unable to raise or are prohibited under the terms of the tax matters agreement with Greatbatch from raising additional funds when needed, it may be required to delay, reduce, or terminate some or all of its development plans.</font></p>
<p id="PARA1179" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25; TEXT-INDENT: -36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p></div>
<p id="PARA1179" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25; TEXT-INDENT: -36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font></p>
<div data-td-statement-type="note">
<table id="MTAB1181" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA1182" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>7. </b></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA1183" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>COMMITMENTS AND CONTINGENCIES</b></font></p></td></tr></table>
<p id="PARA1185" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1184" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Litigation</i></b> <i>&#8211;</i> Periodically the Company is a party to various legal actions, both threatened and filed, arising in the normal course of business. While the Company does not expect that the ultimate resolution of any pending actions will have a material effect on its results of operations, financial position, or cash flows, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending or threatened legal action, which the Company currently believes to be immaterial, does not become material in the future.</font></p>
<p id="PARA1187" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1186" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Purchase Commitments</i></b> &#8211; Contractual obligations for purchase of goods or services are defined as agreements that are enforceable and legally binding on the Company and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. The Company&#8217;s purchase orders are normally based on its current manufacturing or other operational needs. As of September 30, 2016, the total contractual obligation related to inventory purchase orders with Greatbatch was approximately $5.5 million. As of September 30, 2016, the Company had no material commitments to purchase capital assets; however, planned capital expenditures for the remainder of 2016 are estimated at approximately $0.5 million and will primarily be financed by existing cash and cash equivalents, cash generated from operations, or the Credit Facility. The Company also enters into contracts for outsourced services; however, the obligations under these contracts were not significant and the contracts generally contain clauses allowing for cancellation without significant penalty. The Company&#8217;s significant long-term obligations are operating leases on its facilities. </font></p>
<p id="PARA1189" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p></div>
<p id="PARA1189" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p>
<p id="PARA2466.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2466" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2466" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2466" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-16-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2466" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2466.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA1188" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<table id="TBL1190" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA2498"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font></p></td></tr></table>
<div data-td-statement-type="note">
<table id="TBL1190" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA2498"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>8.</b></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA2499"><b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">EARNINGS <b>(LOSS) </b><b>PER SHARE (&#8220;EPS&#8221;)</b></font></b></p></td></tr></table>
<p id="PARA1192" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1191" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Basic net loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is equal to basic net loss per share as the Company had no potentially dilutive securities outstanding for any of the periods presented. Prior to the Spin-off, the Company operated as part of Greatbatch and not as a separate entity. As a result, the Company did not have any common shares outstanding prior to March 14, 2016. The calculation of basic and diluted net loss per share assumes that the 10,258,278 shares issued to Greatbatch shareholders in connection with the Spin-off have been outstanding for all prior periods presented.</font></p>
<p id="PARA1194" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1193" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The following table illustrates the calculation of Basic and Diluted EPS (in thousands, except per share amounts):</font></p>
<p id="PARA1195" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL1257" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL1257.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="6">
<p id="PARA1196" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p></td>
<td id="TBL1257.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.1.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.1.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="6">
<p id="PARA1197" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p></td>
<td id="TBL1257.finRow.1.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1257.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA1198" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL1257.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA1199" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL1257.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: top; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA1200" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL1257.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1257.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 0pt" colspan="2">
<p id="PARA1201" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL1257.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1257.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 52%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1202" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Basic net loss per share:</font></p></td>
<td id="TBL1257.finRow.3.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.3.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL1257.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1203" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net loss</font></p></td>
<td id="TBL1257.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(9,450</td>
<td id="TBL1257.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(7,034</td>
<td id="TBL1257.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(25,353</td>
<td id="TBL1257.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.4.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.4.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.4.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(18,725</td>
<td id="TBL1257.finRow.4.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td></tr>
<tr id="TBL1257.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA1210" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Weighted average common shares outstanding</font></p></td>
<td id="TBL1257.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,279</td>
<td id="TBL1257.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,258</td>
<td id="TBL1257.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,268</td>
<td id="TBL1257.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,258</td>
<td id="TBL1257.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1257.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1215" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Basic net loss per share</font></p></td>
<td id="TBL1257.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(0.92</td>
<td id="TBL1257.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(0.69</td>
<td id="TBL1257.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.6.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.6.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.6.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(2.47</td>
<td id="TBL1257.finRow.6.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.6.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.6.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.6.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(1.83</td>
<td id="TBL1257.finRow.6.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td></tr>
<tr id="TBL1257.finRow.7" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1222" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Diluted net loss per share:</font></p></td>
<td id="TBL1257.finRow.7.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.7.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL1257.finRow.8" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1223" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net loss</font></p></td>
<td id="TBL1257.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(9,450</td>
<td id="TBL1257.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.8.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.8.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.8.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(7,034</td>
<td id="TBL1257.finRow.8.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.8.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.8.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.8.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(25,353</td>
<td id="TBL1257.finRow.8.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.8.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.8.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.8.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(18,725</td>
<td id="TBL1257.finRow.8.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td></tr>
<tr id="TBL1257.finRow.9" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA1230" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Weighted average common shares outstanding</font></p></td>
<td id="TBL1257.finRow.9.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.9.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.9.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,279</td>
<td id="TBL1257.finRow.9.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.9.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.9.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.9.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,258</td>
<td id="TBL1257.finRow.9.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.9.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.9.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.9.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,268</td>
<td id="TBL1257.finRow.9.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.9.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.9.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.9.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,258</td>
<td id="TBL1257.finRow.9.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1257.finRow.10" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1235" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Dilutive stock options, restricted stock and restricted stock units</font></p></td>
<td id="TBL1257.finRow.10.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.10.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.10.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1257.finRow.10.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.10.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.10.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.10.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1257.finRow.10.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.10.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.10.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.10.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1257.finRow.10.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.10.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.10.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.10.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1257.finRow.10.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1257.finRow.11" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA1240" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Weighted average common shares outstanding &#8211; assuming dilution</font></p></td>
<td id="TBL1257.finRow.11.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.11.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.11.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,279</td>
<td id="TBL1257.finRow.11.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.11.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.11.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.11.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,258</td>
<td id="TBL1257.finRow.11.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.11.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.11.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.11.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,268</td>
<td id="TBL1257.finRow.11.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.11.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.11.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.11.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10,258</td>
<td id="TBL1257.finRow.11.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1257.finRow.12" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1245" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Diluted net loss per share</font></p></td>
<td id="TBL1257.finRow.12.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.12.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.12.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(0.92</td>
<td id="TBL1257.finRow.12.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.12.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.12.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.12.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(0.69</td>
<td id="TBL1257.finRow.12.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.12.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.12.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.12.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(2.47</td>
<td id="TBL1257.finRow.12.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL1257.finRow.12.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1257.finRow.12.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1257.finRow.12.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(1.83</td>
<td id="TBL1257.finRow.12.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td></tr>
<tr id="TBL1257.finRow.13" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff; TEXT-INDENT: -9pt">
<p id="PARA1252" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive</font></p></td>
<td id="TBL1257.finRow.13.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.13.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.13.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,594</td>
<td id="TBL1257.finRow.13.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.13.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.13.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.13.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,594</td>
<td id="TBL1257.finRow.13.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.13.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.13.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.13.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,594</td>
<td id="TBL1257.finRow.13.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1257.finRow.13.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.13.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1257.finRow.13.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,594</td>
<td id="TBL1257.finRow.13.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA1258" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25; TEXT-INDENT: -36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p></div>
<p id="PARA1258" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25; TEXT-INDENT: -36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font></p>
<table id="MTAB1260" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA1261" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font></p></td></tr></table>
<div data-td-statement-type="note">
<table id="MTAB1260" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA1261" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>9. </b></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA1262" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>FAIR VALUE MEASUREMENTS</b></font></p></td></tr></table>
<p id="PARA1264" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1263" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The carrying amounts of cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these items. As of September 30, 2016, the fair value of the Company&#8217;s variable rate long-term debt approximates its carrying value and is categorized in Level 2 of the fair value hierarchy.</font></p>
<p id="PARA1266" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1265" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u><i>Assets and Liabilities Measured at Fair Value on a Recurring Basis</i></u></b></font></p>
<p id="PARA1268" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1267" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). The Company has categorized its warrants measured at fair value on a recurring basis in Level 3 of the fair value hierarchy. The fair value of the warrants classified as liability awards was determined by utilizing a Monte Carlo simulation model, which projects the value of Nuvectra stock versus its peer group under numerous scenarios, and determines the value of the award based upon the present value of these projected outcomes. The estimated fair value of the warrants as of the date of issuance was approximately $0.5 million, which has been recorded as a liability in the Condensed Consolidated Balance Sheet. The estimated fair value of the warrant liability will be revalued on a quarterly basis and any resulting increases or decreases in the estimated fair value will be recorded as an adjustment to operating earnings. For the three and nine months ended September 30, 2016, the Company recorded approximately $40 thousand and $110 thousand in fair value adjustments, respectively. The estimated fair value of the warrants as of September 30, 2016 was approximately $0.6 million. </font></p>
<p id="PARA1270" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2467.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2467" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2467" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2467" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-17-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2467" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2467.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA1269" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>&nbsp;</i></b></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1271" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u><i>Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis</i></u></b></font></p>
<p id="PARA1274" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1273" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Fair value standards also apply to certain assets and liabilities that are measured at fair value on a nonrecurring basis. A summary of the valuation methodologies for assets and liabilities measured on a nonrecurring basis is as follows:</font></p>
<p id="PARA1276" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1275" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Long-lived Assets</i></b> &#8211; The Company reviews the carrying amount of its long-lived assets to be held and used, other than goodwill, for potential impairment whenever certain indicators are present. </font></p>
<p id="PARA1278" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1277" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Goodwill </i></b>&#8211; Goodwill recorded is not amortized but is periodically tested for impairment. The Company assesses goodwill for impairment on the last day of each fiscal year, or more frequently if certain events occur. </font></p>
<p id="PARA1280" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1279" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Warrants</i></b> &#8211; In order to determine the fair value of the warrants classified as equity awards, the Company used a Black-Scholes Option Pricing Model. The risk-free interest rate represents the 10-Year U.S. Treasury rate as of March 18, 2016. The expected volatility assumption is based on historical volatilities for publicly traded stock of comparable companies. </font></p>
<p id="PARA1282" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1281" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The following table summarizes the assumptions used for estimating the fair value of the warrants:</font></p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25">&nbsp;</p>
<div data-td-taggable-table="">
<table id="TBL1294" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 90%; MARGIN-LEFT: 5%; MARGIN-RIGHT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL1294.finRow.1" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 83%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1283" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Risk-free interest rate</font></p></td>
<td id="TBL1294.finRow.1.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1294.finRow.1.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1294.finRow.1.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1.88</td>
<td id="TBL1294.finRow.1.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">
<p id="PARA1285" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">%</font></p></td></tr>
<tr id="TBL1294.finRow.2" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA1286" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Expected volatility</font></p></td>
<td id="TBL1294.finRow.2.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1294.finRow.2.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1294.finRow.2.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">45.00</td>
<td id="TBL1294.finRow.2.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">
<p id="PARA1288" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">%</font></p></td></tr>
<tr id="TBL1294.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1289" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Expected term (in years)</font></p></td>
<td id="TBL1294.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1294.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1294.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">10</td>
<td id="TBL1294.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1294.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA1291" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Dividend yield</font></p></td>
<td id="TBL1294.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1294.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1294.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 14%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1294.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">
<p id="PARA1293" style="TEXT-ALIGN: right; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">%</font></p></td></tr></table></div>
<p id="PARA1296" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>&nbsp;</i></b></font></p></div>
<p id="PARA1296" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i></i></b></font></p>
<table id="MTAB1298" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA1299" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font></p></td></tr></table>
<div data-td-statement-type="note">
<table id="MTAB1298" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA1299" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>10. </b></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA1300" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION</b></font></p></td></tr></table>
<p id="PARA1302" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1301" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company operates as one reportable segment. Nuvectra&#8217;s revenue includes sales of neural interface technology, components and systems to the neuroscience and clinical markets, development and engineering service fees and sales from the limited release of Algovita in the United States and Europe. Future revenues of Nuvectra are expected to come primarily from sales of Algovita, particularly after expansion of its launch commercially in the United States, Virtis<sup style="vertical-align: baseline; position: relative; bottom:.33em;">TM</sup>, the second application of the Company&#8217;s neurostimulation technology platform and its first product for the SNS market, and, from time to time, may also include</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> technology licensing fees, development and engineering service fees, and royalty fees. </font></p>
<p id="PARA1304" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1303" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Product line sales for the Company were as follows (in thousands):</font></p>
<p id="PARA1306" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL1354" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 95%; MARGIN-LEFT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL1354.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA1308" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p></td>
<td id="TBL1354.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.1.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.1.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA1310" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine</b><b> Months Ended</b></font></p></td>
<td id="TBL1354.finRow.1.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1354.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1312" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL1354.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1314" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL1354.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1316" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL1354.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1354.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1318" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL1354.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1354.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 48%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1319" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Neural interface components and systems</font></p></td>
<td id="TBL1354.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1354.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,438</td>
<td id="TBL1354.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1354.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,156</td>
<td id="TBL1354.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.3.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.3.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1354.finRow.3.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">3,895</td>
<td id="TBL1354.finRow.3.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.3.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.3.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1354.finRow.3.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">2,910</td>
<td id="TBL1354.finRow.3.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1354.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA1324" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Algovita</font></p></td>
<td id="TBL1354.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,165</td>
<td id="TBL1354.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">115</td>
<td id="TBL1354.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">2,149</td>
<td id="TBL1354.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.4.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.4.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.4.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,032</td>
<td id="TBL1354.finRow.4.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1354.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1329" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Development and engineering service</font></p></td>
<td id="TBL1354.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,163</td>
<td id="TBL1354.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1354.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">2,338</td>
<td id="TBL1354.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1354.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1354.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1354.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1334" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total sales </font></p></td>
<td id="TBL1354.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1354.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">3,766</td>
<td id="TBL1354.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1354.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">1,271</td>
<td id="TBL1354.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.6.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.6.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1354.finRow.6.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">8,382</td>
<td id="TBL1354.finRow.6.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1354.finRow.6.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1354.finRow.6.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1354.finRow.6.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">3,942</td>
<td id="TBL1354.finRow.6.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA1356" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1358.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK1358" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR1358" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM1358" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-18-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR1358" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA1358.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA1359" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1360" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Sales by geographic area are presented by allocating sales from external customers based on where the products are shipped or services are rendered (in thousands):</font></p>
<p id="PARA1362" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL1417" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 95%; MARGIN-LEFT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL1417.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA1364" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p></td>
<td id="TBL1417.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.1.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.1.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA1366" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p></td>
<td id="TBL1417.finRow.1.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1417.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1368" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL1417.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1370" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL1417.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1372" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL1417.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1417.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1374" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL1417.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1417.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 48%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1375" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Sales by geographic area:</font></p></td>
<td id="TBL1417.finRow.3.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.3.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL1417.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1376" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">United States</font></p></td>
<td id="TBL1417.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1417.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,612</td>
<td id="TBL1417.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1417.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">743</td>
<td id="TBL1417.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1417.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">3,439</td>
<td id="TBL1417.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.4.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.4.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL1417.finRow.4.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,564</td>
<td id="TBL1417.finRow.4.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1417.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1381" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Non-Domestic locations:</font></p></td>
<td id="TBL1417.finRow.5.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.5.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr id="TBL1417.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1382" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Switzerland</font></p></td>
<td id="TBL1417.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,216</td>
<td id="TBL1417.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">24</td>
<td id="TBL1417.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.6.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.6.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.6.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">2,486</td>
<td id="TBL1417.finRow.6.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.6.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.6.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.6.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">43</td>
<td id="TBL1417.finRow.6.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1417.finRow.7" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA1387" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Germany</font></p></td>
<td id="TBL1417.finRow.7.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.7.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.7.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">433</td>
<td id="TBL1417.finRow.7.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.7.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.7.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.7.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">178</td>
<td id="TBL1417.finRow.7.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.7.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.7.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.7.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,298</td>
<td id="TBL1417.finRow.7.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.7.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.7.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.7.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,240</td>
<td id="TBL1417.finRow.7.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1417.finRow.8" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1392" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Rest of world</font></p></td>
<td id="TBL1417.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">505</td>
<td id="TBL1417.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.8.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.8.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.8.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">326</td>
<td id="TBL1417.finRow.8.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.8.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.8.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.8.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,159</td>
<td id="TBL1417.finRow.8.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.8.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.8.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1417.finRow.8.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,095</td>
<td id="TBL1417.finRow.8.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1417.finRow.9" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA1397" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total sales </font></p></td>
<td id="TBL1417.finRow.9.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.9.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1417.finRow.9.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">3,766</td>
<td id="TBL1417.finRow.9.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.9.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.9.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1417.finRow.9.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">1,271</td>
<td id="TBL1417.finRow.9.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.9.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.9.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1417.finRow.9.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">8,382</td>
<td id="TBL1417.finRow.9.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1417.finRow.9.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1417.finRow.9.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1417.finRow.9.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">3,942</td>
<td id="TBL1417.finRow.9.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA1419" style="MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 9pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1420" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">All of the Company&#8217;s long-lived tangible assets are located in the United States. The Company is dependent on Greatbatch to manufacture Algovita and its components. An inability to obtain a sufficient quantity of Algovita or its components could have a material adverse impact on the Company&#8217;s business, financial condition, and results of operations. See Note 11 &#8220;Related Party Transactions&#8221; for additional information regarding the Company&#8217;s relationship with Greatbatch.</font></p>
<p id="PARA1423" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p></div>
<p id="PARA1423" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p>
<table id="MTAB1425" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA1426" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font></p></td></tr></table>
<div data-td-statement-type="note">
<table id="MTAB1425" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 36pt; VERTICAL-ALIGN: top">
<p id="PARA1426" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>11. </b><font style="TEXT-TRANSFORM: uppercase"><b></b></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font></font></p></td>
<td style="VERTICAL-ALIGN: top">
<p id="PARA1427" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b><font style="TEXT-TRANSFORM: uppercase"><b>related party transactions</b></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b> </b></font></font></p></td></tr></table>
<p id="PARA1429" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1428" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Corporate Overhead Allocations from Greatbatch</i></b> &#8211; As discussed in Note 1 &#8220;Summary of Significant Accounting Policies,&#8221; the Company historically operated as part of Greatbatch and as a result shared many overhead functions and services performed by various Greatbatch corporate departments. Costs of these departments were allocated across the Greatbatch entities, including the Company, that benefited from those services during the periods presented herein. The indirect costs allocated included executive oversight, finance, legal, human resources, tax, information technology, product development, corporate procurement, and facilities. These expenses have been charged to the Company on a pro rata basis based upon estimated hours incurred, headcount, square footage, or other measures. The Company considers the expense allocation methodology and results to be reasonable for all periods presented. However, these allocations are not indicative of the actual expenses that would have been incurred if the Company was an independent publicly-traded company or of the costs the Company will incur in the future. At this time, the Company is unable to determine what its expenses would have been on a standalone basis if the Company had operated as an unaffiliated entity for each period in which a statement of operations is presented. Beginning in 2016 research, development and engineering costs were no longer allocated to the Company as it was not receiving a benefit from these services.</font></p>
<p id="PARA1431" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1430" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Corporate overhead allocations from Greatbatch were classified as follows (in thousands):</font></p>
<p id="PARA1432" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<div data-td-taggable-table="">
<table id="TBL1475" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 95%; MARGIN-LEFT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL1475.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA1434" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p></td>
<td id="TBL1475.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.1.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.1.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA1436" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p></td>
<td id="TBL1475.finRow.1.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1475.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1438" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL1475.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1440" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL1475.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1442" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL1475.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL1475.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1444" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL1475.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL1475.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 48%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1445" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Selling, general and administrative expenses</font></p></td>
<td id="TBL1475.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1475.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1475.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1475.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1475.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1475.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1475.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">251</td>
<td id="TBL1475.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1475.finRow.3.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1475.finRow.3.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1475.finRow.3.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">236</td>
<td id="TBL1475.finRow.3.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1475.finRow.3.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1475.finRow.3.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1475.finRow.3.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">768</td>
<td id="TBL1475.finRow.3.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1475.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA1450" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Research, development and engineering costs, net</font></p></td>
<td id="TBL1475.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1475.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1475.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1475.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1475.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1475.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1475.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">445</td>
<td id="TBL1475.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1475.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1475.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1475.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL1475.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL1475.finRow.4.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1475.finRow.4.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL1475.finRow.4.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,335</td>
<td id="TBL1475.finRow.4.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL1475.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA1455" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total </font></p></td>
<td id="TBL1475.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1475.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1475.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL1475.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1475.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1475.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1475.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">696</td>
<td id="TBL1475.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1475.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1475.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1475.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">236</td>
<td id="TBL1475.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL1475.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL1475.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL1475.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff">2,103</td>
<td id="TBL1475.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr></table></div>
<p id="PARA1477" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2468.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2468" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2468" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2468" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-19-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2468" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2468.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA1476" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1478" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company entered into, or amended, various agreements with Greatbatch to effect the Spin-off and to provide a framework for the Company&#8217;s relationship with Greatbatch going forward after the Spin-off including a supply agreement, license agreements, a separation and distribution agreement, a tax matters agreement, a transition services agreement and an employee matters agreement, which provided for the allocation between Nuvectra and Greatbatch of assets, employees, liabilities and obligations (including PP&amp;E, employee benefits, and tax-related assets and liabilities) attributable to the Company&#8217;s business for the period prior to, at, and after the Spin-off. Immediately prior to the completion of the Spin-off, Greatbatch made a cash capital contribution to Nuvectra of $75.0 million. This cash capital contribution, together with the Company&#8217;s cash on hand and borrowings under the Credit Facility, $25 million of which is subject to achieving trailing six month revenue milestones and compliance with specified conditions and covenants</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">, is an amount that the Company estimates will, based on its current plans and expectations, meet its cash needs for approximately two years after the completion of the Spin-off. The Company periodically evaluates its liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, the Company has in the past sought, and may in the future seek, to explore strategic alternatives to finance its business plan, including but not limited to, a public offering of its common stock, private equity or debt financings, or other sources, such as strategic partnerships.&nbsp; The Company is also focusing on increasing the sales of its products to generate cash flow to fund its operations. However, t</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">here can be no assurance that the Company will be successful in its plans described above or in attracting alternative debt or equity financing.</font></p>
<p id="PARA1481" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1480" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Employee Benefit Plans</i></b> &#8211; Certain of the Company&#8217;s employees historically participated in various Greatbatch defined contribution and stock-based compensation plans. Compensation expense allocated to Nuvectra for these plans from Greatbatch were based upon the costs directly attributable to Nuvectra employees. See Note 3 &#8220;Employee Benefit Plans&#8221; for additional information.</font></p>
<p id="PARA1483" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1482" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Insurance</i></b> &#8211; The Company has historically participated in Greatbatch&#8217;s various insurance programs, to insure for property and casualty risks, product liability, employee health care, workers&#8217; compensation and other casualty losses. Many of the potential losses were covered under conventional insurance programs with third-party carriers with high deductible limits. In other areas, Greatbatch was self-insured with stop-loss coverage. The Company was charged a fee from Greatbatch for these insurance programs based upon square footage, headcount, or a direct charge for those policies directly attributable to Nuvectra. As of March 14, 2016 the Company is covered by its own insurance policies and, since that time, no insurance fee has been allocated from Greatbatch.</font></p>
<p id="PARA1485" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1484" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Supply Agreement</i></b> &#8211; The Company has a supply agreement with Greatbatch pursuant to which Greatbatch manufactures Algovita and certain of its components. Total charges incurred under this supply agreement are included in cost of sales. For further information, refer to the combined financial statements and notes included in the Company&#8217;s Registration Statement on Form 10.</font></p>
<p id="PARA1487" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1486" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Purchase of Non-controlling Interests</i></b> &#8211; During the fourth quarter of 2015, the Company purchased the outstanding non-controlling interests of Algostim and PelviStim for $16.7 million, of which $9.9 million was paid in 2015 and $6.8 million was accrued at January 1, 2016 and paid by Greatbatch in January 2016 prior to the Spin-off. Included in the purchased amount was $6.9 million paid to Drees Holding LLC, which is a limited liability company of which Scott F. Drees, CEO of Nuvectra, is the principal owner and the sole managing director and approximately $848 thousand paid to Norbert Kaula, Executive Vice President of Research and Development of Nuvectra. Mr. Drees and Mr. Kaula each received their interests in Algostim and PelviStim in connection with entering into a long-term consulting agreement with Nuvectra and prior to being appointed to their current positions. The consulting agreements were terminated in connection with Mr. Drees and Mr. Kaula agreeing to serve in their current roles for Nuvectra. The buyout of the non-controlling interests was funded by a cash contribution from Greatbatch.</font></p>
<p id="PARA1488" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p></div>
<p id="PARA1488" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p>
<p id="PARA2469.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
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<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA1489" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<div data-td-statement-type="note">
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<p id="PARA2490"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>12.</b></font></p></td>
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<p id="PARA2491"><b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">RECENTLY ISSUED ACCOUNTING STANDARDS</font></b></p></td></tr></table>
<p id="PARA1495" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1494" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In the normal course of business, management evaluates all new accounting pronouncements issued by the FASB, Securities and Exchange Commission (&#8220;SEC&#8221;), Emerging Issues Task Force (&#8220;EITF&#8221;), and other authoritative accounting bodies to determine the potential impact they may have on the Company&#8217;s Condensed Consolidated Financial Statements. Based upon this review, except as noted below, management does not expect any of the recently issued accounting pronouncements, which have not already been adopted, to have a material impact on the Company&#8217;s Condensed Consolidated Financial Statements.</font></p>
<p id="PARA1497" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1496" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In August 2016, the FASB issued ASU 2016-15, &#8220;Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.&#8221; This update provides clarification regarding how certain cash receipts and cash payment are presented and classified in the statement of cash flows. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This update is effective for annual and interim periods beginning after December 15, 2017, which will require the Company to adopt these provisions in the first quarter of fiscal 2018 using a retrospective approach. Early adoption is permitted. The Company does not expect its pending adoption of ASU 2016-15 to have a material impact on its Condensed Consolidated Financial Statements.</font></p>
<p id="PARA1499" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1498" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In March 2016, the FASB issued ASU 2016-09, &#8220;Improvements to Employee Share-Based Payment Accounting,&#8221; which amends Accounting Standards Codification ("ASC") Topic 718, Compensation &#8211; Stock Compensation. ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its Condensed Consolidated Financial Statements.</font></p>
<p id="PARA1501" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1500" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In February 2016, the FASB issued ASU 2016-02, &#8220;Leases&#8221; in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its Condensed Consolidated Financial Statements.</font></p>
<p id="PARA1503" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1502" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In January 2016, the FASB issued ASU&nbsp;2016-01, &#8220;Recognition and Measurement of Financial Assets and Financial Liabilities</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">,&#8221; which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The standard is effective for interim and annual periods beginning after December 31, 2017, and early adoption is generally not permitted. </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company is currently in the process of evaluating the impact of adoption of the ASU on its Condensed Consolidated Financial Statements.</font></p>
<p id="PARA1505" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1504" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In July 2015, the FASB issued ASU 2015-11, &#8220;Inventory (Topic 330): Simplifying the Measurement of Inventory.&#8221; This update requires inventory within the scope of the standard to be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this update do not apply to inventory that is measured using last-in, first-out (&#8220;LIFO&#8221;) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using FIFO or average cost. This update is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, which will require the Company to adopt these provisions in the first quarter of fiscal 2017. Early adoption is permitted. The Company does not expect its pending adoption of ASU 2015-11 to have a material impact on its Condensed Consolidated Financial Statements.</font></p>
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<p id="PARA2470.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2455" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; TEXT-TRANSFORM: uppercase"><b>Nuvectra Corporation</b></font></p>
<p id="PARA2456" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS &#8211; Unaudited</b></font></p>
<p id="PARA1506" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1508" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In August 2014, the FASB issued ASU 2014-15, &#8220;Disclosure of Uncertainties about an Entity&#8217;s Ability to Continue as a Going Concern,&#8221; to provide guidance on management&#8217;s responsibility in evaluating whether there is substantial doubt about a company&#8217;s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 requires management to perform interim and annual assessments of an entity&#8217;s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity&#8217;s ability to continue as a going concern. This ASU is effective for annual periods ending after December 15, 2016, with early adoption permitted. The Company does not expect its pending adoption of ASU 2014-15 to have a material impact on its Condensed Consolidated Financial Statements.</font></p>
<p id="PARA1511" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1510" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In May 2014, the FASB issued ASU 2014-09, &#8220;Revenue from Contracts with Customers.&#8221; The core principle behind ASU 2014-09 is that an entity should recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for delivering goods and services. This model involves a five-step process that includes identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when the entity satisfies the performance obligations. This ASU allows two methods of adoption; a full retrospective approach where historical financial information is presented in accordance with the new standard, and a modified retrospective approach where this ASU is applied to the most current period presented in the financial statements. In August 2015, the FASB issued ASU 2015-14 &#8220;Revenue from Contracts with Customers: Deferral of the Effective Date,&#8221; which deferred the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, with earlier application permitted as of annual reporting periods beginning after December 15, 2016. In March 2016, the FASB issued ASU 2016-08, &#8220;Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),&#8221; which clarified the revenue recognition implementation guidance on principal versus agent considerations and is effective during the same period as ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, &#8220;Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,&#8221; </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">which clarified the revenue recognition guidance regarding the identification of performance obligations and the licensing implementation and is effective during the same period as ASU 2014-9. In May 2016, the FASB issued ASU 2016-11,&nbsp;&#8220;Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March&nbsp;3, 2016 EITF Meeting</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">.&#8221; The purpose of ASU 2016-11 is to rescind from the FASB Accounting Standards Codification certain SEC paragraphs as a result of two SEC Staff Announcements at the March 3, 2016 meeting. For public entities, the amendments in ASU 2016-11 related to Topic 605 are effective for interim and annual reporting periods beginning after December 15, 2017 and amendments related to Topic 815 are effective for interim and annual reporting periods beginning after December 15, 2015. </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In May 2016, the FASB also issued ASU 2016-12, &#8220;Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,&#8221;<i> </i></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition&nbsp;and </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">is effective during the same period as ASU 2014-9. The Company is currently assessing the financial impact of adopting these ASUs and the methods of adoption. Given the scope of the new standard, the Company is currently unable to provide a reasonable estimate regarding the financial impact or which method of adoption will be elected.</font></p>
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<p id="PARA1515" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>13. </b><font style="TEXT-TRANSFORM: uppercase"><b></b></font></font></p></td>
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<p id="PARA1516" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b><font style="TEXT-TRANSFORM: uppercase"><b>subsequent events</b></font></font></p></td></tr></table>
<p id="PARA1518" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1517" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 36pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Company evaluated subsequent events for recognition or disclosure through November 9, 2016, the date the Condensed Consolidated Financial Statements were available to be issued.</font></p>
<p id="PARA1519" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p></div>
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<p id="PARA1520" style="TEXT-ALIGN: left; MARGIN: 0pt 0pt 0pt 45pt; LINE-HEIGHT: 1.25; TEXT-INDENT: -45pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM 2. </b></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b></b></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</b></font></p>
<p id="PARA1522" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1521" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Forward-Looking Statements</u></b></font></p>
<p id="PARA1524" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1523" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">This report contains &#8220;forward-looking statements&#8221; within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Our actual results could differ materially from those discussed in the forward-looking statements. Forward-looking statements can be identified by the use of words such as, but not limited to: &#8220;anticipate,&#8221; &#8220;intend,&#8221; &#8220;plan,&#8221; &#8220;goal,&#8221; &#8220;seek,&#8221; &#8220;believe,&#8221; &#8220;project,&#8221; &#8220;target,&#8221; &#8220;estimate,&#8221; &#8220;expect,&#8221; &#8220;strategy,&#8221; &#8220;future,&#8221; &#8220;likely,&#8221; &#8220;may,&#8221; &#8220;can,&#8221; &#8220;continue,&#8221; &#8220;could,&#8221; &#8220;should,&#8221; &#8220;would,&#8221; &#8220;will,&#8221; and similar expressions or references to future periods. 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 important 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. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include: (i) our ability to successfully commercialize Algovita and to develop, complete and commercialize enhancements or improvements to Algovita; (ii) our ability to successfully compete with our current SCS competitors and the ability of our U.S. sales representatives to successfully establish market share and acceptance of Algovita, (iii) our ability to demonstrate the features, perceived benefits and capabilities of Algovita to physicians and patients in competition with similar products already well established and sold in the SCS market; (iv) our ability to anticipate and satisfy customer needs and preferences and to develop, introduce and commercialize new products or advancements and improvements to Algovita in order to successfully meet our customers&#8217; expectations; (v) the outcome of our development plans for our neurostimulation technology platform, including our ability to identify additional indications or conditions for which we may develop neurostimulation medical devices or therapies and seek regulatory approval thereof; (vi) our ability to identify business development and growth opportunities and to successfully execute on our strategy, including our ability to seek and develop strategic partnerships with third parties to, among other things, fund clinical and development costs for new product offerings; (vii) our ability to successfully build, attract and maintain an effective commercial infrastructure and qualified sales force in&nbsp;the United States; (viii) our compliance with all regulatory and legal requirements regarding implantable medical devices and interactions with healthcare professionals; (ix) any product recalls, or the receipt of any warning letters, mandatory corrections or fines from any governmental or regulatory agency; and (x) our ability to satisfy the conditions and covenants, including trailing six month revenue milestones, of our Credit Facility.&nbsp; Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section titled &#8220;Risk Factors&#8221; included under Part II, Item 1A below and the sections entitled &#8220;Cautionary Statement Concerning Forward-Looking Statements&#8221; and &#8220;Risk Factors&#8221; in Nuvectra&#8217;s Registration Statement on Form 10. Furthermore, such forward-looking statements speak only as of the date of this report. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise. </font></p>
<p id="PARA1526" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1525" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Spin-Off From Greatbatch</u></b></font></p>
<p id="PARA1528" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1527" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">On March 14, 2016, Greatbatch completed the Spin-off of Nuvectra from the remainder of its business. The Spin-off was accomplished by the distribution of all Nuvectra&#8217;s issued and outstanding shares of common stock to Greatbatch&#8217;s stockholders on the basis of one share of Nuvectra common stock for every three shares of Greatbatch common stock held on March 7, 2016, the record date of the distribution</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">. Immediately prior to completion of the Spin-off, QiG Group, LLC was converted from a limited liability company into Nuvectra Corporation, a Delaware corporation. At the time of the completion of the Spin-off, Greatbatch&#8217;s stockholders owned 100% of the outstanding common stock of both Greatbatch and Nuvectra.</font></p>
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<p id="PARA1529" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Our Business</u></b></font></p>
<p id="PARA1532" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1531" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We are a neurostimulation medical device company focused on the development and commercialization of our neurostimulation technology platform for treatment of various disorders through stimulation of tissues associated with the nervous system. We operate as a single reportable segment. Algovita is the first application of our neurostimulation technology platform and is indicated for the treatment of chronic pain of the trunk and limbs. We are in the process of developing additional applications for our neurostimulation technology platform including applications for the SNS and DBS markets. We have entered into a development agreement with Aleva Neurotherapeutics, a Swiss company, to develop our platform into a complete system for use in the DBS market for the treatment of Parkinson&#8217;s disease.</font></p>
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<p id="PARA1533" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We submitted a premarket approval application for Algovita to the FDA in December 2013. On November&nbsp;30, 2015, Greatbatch announced receipt of premarket approval for Algovita. We are currently in the initial stages of commercializing and introducing Algovita to the U.S. market. Algovita obtained CE mark approval on June&nbsp;17, 2014 through our notified body, T&#220;V S&#220;D America, and has been commercially available to patients in Germany and several other European countries since November 2014. Algovita was previously being commercialized through our Algostim subsidiary that is 100% owned by us as of January 1, 2016.</font></p>
<p id="PARA1536" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1535" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">One of our other subsidiaries, PelviStim, was also 100% owned by us as of January 1, 2016, and is focused on the commercialization of Virtis<sup style="vertical-align: baseline; position: relative; bottom:.33em;">TM</sup>, the second application of our neurostimulation technology platform and our first product for the SNS market.</font></p>
<p id="PARA1538" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1537" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Prior to the fourth quarter of 2015, we owned 89% of Algostim and PelviStim. Under the operating agreements governing Algostim and PelviStim, we funded 100% of the expenses incurred by Algostim or PelviStim, as applicable, and no distributions were to be made to non-controlling interest holders of Algostim or PelviStim, as applicable, until we were reimbursed for these expenses. During the fourth quarter of 2015, we purchased the outstanding non-controlling interests of Algostim and PelviStim for $16.7 million of which $9.9 million was paid in 2015 and $6.8 million was accrued at January 1, 2016 and paid </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">by Greatbatch in January 2016 prior to the Spin-off. Included in this amount was $6.9 million paid to Drees Holding LLC, which is a limited liability company of which Scott F. Drees, our Chief Executive Officer, is the principal owner and the sole managing director and approximately $848 thousand paid to Norbert Kaula, Executive Vice President of Research and Development of Nuvectra. Mr. Drees and Mr. Kaula each received their interests in Algostim and PelviStim in connection with entering into a long-term consulting agreement with us and prior to being appointed to their current positions. The consulting agreements were terminated in connection with Mr. Drees and Mr. Kaula agreeing to serve in their current roles for Nuvectra. The purchase of the outstanding non-controlling interests was funded by a cash contribution from Greatbatch.</font></p>
<p id="PARA1540" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1539" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Our results also include the operations of our subsidiary NeuroNexus, which was originally acquired by Greatbatch in February 2012, the shares of which were transferred to us in connection with the Spin-off. NeuroNexus offers high-value neural interface technology and devices across a wide range of functions including neuromonitoring and recording, electrical and optical stimulation, and targeted drug delivery applications that complement our existing neurostimulation technology platform. We intend to incorporate certain of NeuroNexus&#8217; technologies into our neurostimulation technology platform.</font></p>
<p id="PARA1542" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1541" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Our revenues include sales of neural interface technology, components and systems to the neuroscience and clinical markets, development and engineering service fees, and a limited release of Algovita in Europe and the United States. We expect that our future revenues will come primarily from sales of neurostimulation medical device products, including Algovita, particularly as we continue our launch commercially in the United States, Virtis<sup style="vertical-align: baseline; position: relative; bottom:.33em;">TM</sup>, the second application of our neurostimulation technology platform and our first product for the SNS market, and, from time to time, may also include</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> technology licensing fees, development and engineering service fees, and royalty fees.</font></p>
<p id="PARA1544" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1543" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Prior to the Spin-off, our expenses included an allocation of general corporate overhead expenses from Greatbatch relating to the following support functions provided for us by Greatbatch: executive oversight, finance, legal, human resources, tax, information technology, product development, corporate procurement, and facilities. These expenses were charged to us on the basis of direct usage, when identifiable, with the remainder allocated primarily on a pro rata basis of estimated hours incurred, headcount, square footage, or other measures. We consider the expense allocation methodology and results to be reasonable for all periods presented. However, these allocations are not indicative of the actual expenses that would have been incurred if we were an independent publicly-traded company or of the costs we will incur in the future. Following the Spin-off, Greatbatch has continued to provide services related to certain of these functions for us on a transitional basis for a fee pursuant to our transition services agreement. At this time, we are unable to determine what our expenses would have been on a standalone basis if we had operated as an unaffiliated entity for each period in which a statement of operations is presented.</font></p>
<p id="PARA1546" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1545" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Our Customers</u></b></font></p>
<p id="PARA1548" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1547" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Our customers include physicians, hospitals, surgery centers and other institutions, scientists or universities throughout the world who perform research for the neuroscience and clinical markets. Algovita was designed to provide pain management solutions to patients that have evolving requirements and needs. We are still developing our customer base for Algovita, which includes hospital and medical facilities served through a direct sales force and third-party distributors; therefore, the nature and extent of our selling relationships with each customer is different in terms of breadth of products purchased, purchased product volumes, length of contractual commitment, ordering patterns, inventory management, and selling prices. Additionally, our customers include a strategic development partner in the DBS market.</font></p>
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<p id="PARA1549" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Strategic and Financial Overview</u></b></font></p>
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<p id="PARA1551" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We are a neurostimulation medical device company formed in 2008 to design and develop our neurostimulation technology platform for use in multiple different indications. Since our inception, the majority of our resources have been spent designing and developing Algovita. SCS was chosen as the first sector of the neurostimulation market to pursue, as we believe that it is a high growth and established market, there is an established regulatory and reimbursement pathway, and we believe that there are significant unmet needs in the SCS market. We currently have four significant competitors in the United States who may be better capitalized and who offer similar SCS devices that are already established and accepted in the market. While the competitive landscape for SCS remains challenging and we may face barriers to market acceptance of our product, we believe Algovita has certain differentiating features from other existing SCS systems that offer our patients and customers a broad set of capabilities and treatment options. Our U.S. sales team, in conjunction with marketing, is in the process of communicating and demonstrating to potential customers the features, perceived benefits and capabilities of Algovita.</font></p>
<p id="PARA1554" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1553" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We have a history of significant net losses, and we expect to continue to incur net losses for the foreseeable future. We expect that future revenue growth will come largely from sales of Algovita in the United States market.</font></p>
<p id="PARA1556" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1555" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Since submitting our premarket approval application for Algovita, we have accelerated the process of leveraging our neurostimulation technology platform for other sectors of the neurostimulation market such as DBS, SNS, and are exploring other emerging indications.</font></p>
<p id="PARA1558" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1557" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We have entered into a development agreement with Aleva to develop our neurostimulation technology platform into a complete system for use in the DBS market for the treatment of Parkinson&#8217;s disease. Pursuant to the terms of the development agreement, Aleva is expected to pay us $6 million in the aggregate, which is to be paid in five installments with the final installment due during the third quarter of 2017 and $3.5 million of which is contingent upon Aleva&#8217;s receipt of sufficient financing from third-party sources and upon Nuvectra providing certain deliverables per the development agreement. In connection with this development agreement with Aleva, we entered into an exclusive license agreement with Aleva whereby we will license certain of our intellectual property rights to Aleva for use in the field of use consisting of DBS for the treatment of Parkinson&#8217;s disease in exchange for a royalty payment. In addition, in connection with the completion of the Spin-off, Greatbatch assigned to us, based upon its equity ownership interest in Aleva, the right to receive, contingent upon the occurrence of a sale, asset transfer, or other liquidity event with respect to Aleva: (i) a technology access success fee of up to CHF 7 million (which translated to approximately $7.2 million at September 30, 2016), with the actual amount to be received computed based upon the proceeds received by Aleva or its shareholders in the liquidity event; and (ii) the right to receive a payment, upon the occurrence of the liquidity event, in an amount equal to the difference between the liquidity event proceeds to be received by Greatbatch based upon its equity ownership interest in Aleva and 19.9%, 15.5%, or 10.0%, as may be applicable at such time based upon Greatbatch&#8217;s funding of future equity investments in Aleva, of the total amount of the proceeds received by Aleva or its shareholders upon the occurrence of the liquidity event.</font></p>
<p id="PARA1560" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1559" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We also intend to pursue other strategic partnerships to fund clinical and development costs of new products, expand our product distribution channels, supplement our product commercialization efforts, obtain assistance in designing and performing clinical studies and post market studies, add specialized clinical or regulatory expertise, or acquire or obtain access to complementary intellectual property.</font></p>
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<p id="PARA1561" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Our Financial Results</u></b></font></p>
<p id="PARA1564" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA1563" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We utilize a fifty-two, fifty-three week fiscal year ending on the Friday nearest December&nbsp;31. For 52-week years, each quarter contains 13 weeks. The third quarter and first nine month periods of 2016 and 2015 each contained 13 weeks and 39 weeks, respectively, and ended on September 30, and October 2, respectively. The discussion that follows should be read in conjunction with our Condensed Consolidated Financial Statements and related notes and with the Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations contained in our Registration Statement on Form 10. The following table presents certain selected financial information derived from our Condensed Consolidated Financial Statements for the periods presented (dollars in thousands, except per share data):</font></p>
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<td id="TBL2132.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1582" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2,</b></font></p></td>
<td id="TBL2132.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA1584" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Change</b></font></p></td>
<td id="TBL2132.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.2.lead.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.2.amt.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1586" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30,</b></font></p></td>
<td id="TBL2132.finRow.2.trail.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.2.lead.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.2.amt.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1588" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2,</b></font></p></td>
<td id="TBL2132.finRow.2.trail.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.2.lead.D9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.2.amt.D9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA1590" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Change</b></font></p></td>
<td id="TBL2132.finRow.2.trail.D9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1592" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL2132.finRow.3.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1594" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL2132.finRow.3.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center" colspan="2"><b></b><b>$</b></td>
<td id="TBL2132.finRow.3.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center" colspan="2"><b></b><b>% </b></td>
<td id="TBL2132.finRow.3.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.lead.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.amt.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1600" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL2132.finRow.3.trail.D6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.lead.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.amt.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA1602" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL2132.finRow.3.trail.D7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.lead.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.symb.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center" colspan="2"><b></b><b>$ </b></td>
<td id="TBL2132.finRow.3.trail.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.lead.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2132.finRow.3.symb.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center" colspan="2"><b></b><b>% </b></td>
<td id="TBL2132.finRow.3.trail.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1607" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Sales:</font></p></td>
<td id="TBL2132.finRow.4.lead.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.symb.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.amt.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.trail.B2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.lead.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.symb.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.amt.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.trail.B3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.lead.B6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.symb.B6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.amt.B6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.trail.B6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.lead.B7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.symb.B7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.amt.B7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.trail.B7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.lead.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.symb.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.amt.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.trail.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.lead.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.symb.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.amt.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: left; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.4.trail.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #ffffff; TEXT-INDENT: -9pt">
<p id="PARA1623" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Neural interface components and systems</font></p></td>
<td id="TBL2132.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,438</td>
<td id="TBL2132.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,156</td>
<td id="TBL2132.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">282</td>
<td id="TBL2132.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">24</td>
<td id="TBL2132.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td>
<td id="TBL2132.finRow.5.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.5.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.5.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">3,895</td>
<td id="TBL2132.finRow.5.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.5.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.5.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.5.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">2,910</td>
<td id="TBL2132.finRow.5.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.5.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.5.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.5.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">985</td>
<td id="TBL2132.finRow.5.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.5.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.5.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.5.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">34</td>
<td id="TBL2132.finRow.5.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA1657" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Algovita</font></p></td>
<td id="TBL2132.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,165</td>
<td id="TBL2132.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">115</td>
<td id="TBL2132.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.6.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,050</td>
<td id="TBL2132.finRow.6.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.6.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">913</td>
<td id="TBL2132.finRow.6.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td>
<td id="TBL2132.finRow.6.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">2,149</td>
<td id="TBL2132.finRow.6.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.6.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,032</td>
<td id="TBL2132.finRow.6.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.6.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,117</td>
<td id="TBL2132.finRow.6.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.6.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.6.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">108</td>
<td id="TBL2132.finRow.6.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #ffffff; TEXT-INDENT: -9pt">
<p id="PARA1685" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Development and engineering services</font></p></td>
<td id="TBL2132.finRow.7.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,163</td>
<td id="TBL2132.finRow.7.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.7.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">-</td>
<td id="TBL2132.finRow.7.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.7.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,163</td>
<td id="TBL2132.finRow.7.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.7.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">100</td>
<td id="TBL2132.finRow.7.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td>
<td id="TBL2132.finRow.7.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">2,338</td>
<td id="TBL2132.finRow.7.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.7.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">-</td>
<td id="TBL2132.finRow.7.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.7.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">2,338</td>
<td id="TBL2132.finRow.7.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.7.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.7.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">100</td>
<td id="TBL2132.finRow.7.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA1711" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total sales</font></p></td>
<td id="TBL2132.finRow.8.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">3,766</td>
<td id="TBL2132.finRow.8.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.8.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,271</td>
<td id="TBL2132.finRow.8.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.8.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">2,495</td>
<td id="TBL2132.finRow.8.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.8.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">196</td>
<td id="TBL2132.finRow.8.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td>
<td id="TBL2132.finRow.8.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">8,382</td>
<td id="TBL2132.finRow.8.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.8.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">3,942</td>
<td id="TBL2132.finRow.8.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.8.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">4,440</td>
<td id="TBL2132.finRow.8.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.8.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.8.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">113</td>
<td id="TBL2132.finRow.8.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA1739" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Cost of sales</font></p></td>
<td id="TBL2132.finRow.9.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,628</td>
<td id="TBL2132.finRow.9.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.9.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">538</td>
<td id="TBL2132.finRow.9.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.9.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,090</td>
<td id="TBL2132.finRow.9.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.9.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">203</td>
<td id="TBL2132.finRow.9.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td>
<td id="TBL2132.finRow.9.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">3,946</td>
<td id="TBL2132.finRow.9.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.9.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">2,475</td>
<td id="TBL2132.finRow.9.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.9.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">1,471</td>
<td id="TBL2132.finRow.9.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.9.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.9.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">59</td>
<td id="TBL2132.finRow.9.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #cceeff">
<p id="PARA1767" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Gross profit</font></p></td>
<td id="TBL2132.finRow.10.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">2,138</td>
<td id="TBL2132.finRow.10.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.10.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">733</td>
<td id="TBL2132.finRow.10.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.10.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,405</td>
<td id="TBL2132.finRow.10.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.10.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">192</td>
<td id="TBL2132.finRow.10.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td>
<td id="TBL2132.finRow.10.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">4,436</td>
<td id="TBL2132.finRow.10.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.10.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">1,467</td>
<td id="TBL2132.finRow.10.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.10.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">2,969</td>
<td id="TBL2132.finRow.10.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.10.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.10.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">202</td>
<td id="TBL2132.finRow.10.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff; TEXT-INDENT: -9pt">
<p id="PARA1793" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><i>Gross profit as a % of sales</i></font></p></td>
<td id="TBL2132.finRow.11.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>56.8</i></td>
<td id="TBL2132.finRow.11.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.11.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>57.7</i></td>
<td id="TBL2132.finRow.11.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.11.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>52.9</i></td>
<td id="TBL2132.finRow.11.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.11.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>37.2</i></td>
<td id="TBL2132.finRow.11.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.11.lead.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.symb.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.amt.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.trail.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.lead.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.symb.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.amt.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.11.trail.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff; TEXT-INDENT: -9pt">
<p id="PARA1813" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Selling, general and administrative expenses (SG&amp;A)</font></p></td>
<td id="TBL2132.finRow.12.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">8,006</td>
<td id="TBL2132.finRow.12.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.12.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">3,914</td>
<td id="TBL2132.finRow.12.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.12.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">4,092</td>
<td id="TBL2132.finRow.12.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.12.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">105</td>
<td id="TBL2132.finRow.12.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td>
<td id="TBL2132.finRow.12.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">18,185</td>
<td id="TBL2132.finRow.12.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.12.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">8,190</td>
<td id="TBL2132.finRow.12.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.12.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">9,995</td>
<td id="TBL2132.finRow.12.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.12.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.12.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">122</td>
<td id="TBL2132.finRow.12.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff; TEXT-INDENT: -9pt">
<p id="PARA1843" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><i>SG&amp;A as a % of total operating expenses</i></font></p></td>
<td id="TBL2132.finRow.13.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>72.0</i></td>
<td id="TBL2132.finRow.13.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.13.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>50.4</i></td>
<td id="TBL2132.finRow.13.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.13.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>63.2</i></td>
<td id="TBL2132.finRow.13.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.13.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>40.6</i></td>
<td id="TBL2132.finRow.13.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.13.lead.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.symb.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.amt.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.trail.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.lead.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.symb.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.amt.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.13.trail.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff; TEXT-INDENT: -9pt">
<p id="PARA1863" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Research, development and engineering costs, net (RD&amp;E)</font></p></td>
<td id="TBL2132.finRow.14.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">3,114</td>
<td id="TBL2132.finRow.14.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.14.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">4,051</td>
<td id="TBL2132.finRow.14.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.14.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(937</td>
<td id="TBL2132.finRow.14.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL2132.finRow.14.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(23</td>
<td id="TBL2132.finRow.14.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)%</td>
<td id="TBL2132.finRow.14.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">10,097</td>
<td id="TBL2132.finRow.14.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.14.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">11,742</td>
<td id="TBL2132.finRow.14.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.14.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(1,645</td>
<td id="TBL2132.finRow.14.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL2132.finRow.14.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.14.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(14</td>
<td id="TBL2132.finRow.14.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)%</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff; TEXT-INDENT: -9pt">
<p id="PARA1892" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><i>RD&amp;E as a % of total operating expenses</i></font></p></td>
<td id="TBL2132.finRow.15.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>28.0</i></td>
<td id="TBL2132.finRow.15.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.15.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>52.2</i></td>
<td id="TBL2132.finRow.15.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.15.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>35.1</i></td>
<td id="TBL2132.finRow.15.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.15.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>58.2</i></td>
<td id="TBL2132.finRow.15.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.15.lead.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.symb.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.amt.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.trail.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.lead.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.symb.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.amt.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.15.trail.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #cceeff; TEXT-INDENT: -9pt">
<p id="PARA1912" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other operating expenses (income), net</font></p></td>
<td id="TBL2132.finRow.16.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">7</td>
<td id="TBL2132.finRow.16.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.16.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(198</td>
<td id="TBL2132.finRow.16.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL2132.finRow.16.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">205</td>
<td id="TBL2132.finRow.16.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.16.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(104</td>
<td id="TBL2132.finRow.16.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)%</td>
<td id="TBL2132.finRow.16.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">476</td>
<td id="TBL2132.finRow.16.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.16.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">260</td>
<td id="TBL2132.finRow.16.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.16.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">216</td>
<td id="TBL2132.finRow.16.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.16.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.16.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">83</td>
<td id="TBL2132.finRow.16.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; PADDING-LEFT: 18pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA1942" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Operating loss</font></p></td>
<td id="TBL2132.finRow.17.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(8,989</td>
<td id="TBL2132.finRow.17.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.17.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(7,034</td>
<td id="TBL2132.finRow.17.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.17.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(1,955</td>
<td id="TBL2132.finRow.17.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.17.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">28</td>
<td id="TBL2132.finRow.17.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td>
<td id="TBL2132.finRow.17.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(24,322</td>
<td id="TBL2132.finRow.17.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.17.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(18,725</td>
<td id="TBL2132.finRow.17.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.17.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(5,597</td>
<td id="TBL2132.finRow.17.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.17.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.17.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">30</td>
<td id="TBL2132.finRow.17.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA1970" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Interest expense</font></p></td>
<td id="TBL2132.finRow.18.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">455</td>
<td id="TBL2132.finRow.18.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.18.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">-</td>
<td id="TBL2132.finRow.18.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.18.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">455</td>
<td id="TBL2132.finRow.18.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.18.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">100</td>
<td id="TBL2132.finRow.18.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td>
<td id="TBL2132.finRow.18.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">978</td>
<td id="TBL2132.finRow.18.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.18.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">-</td>
<td id="TBL2132.finRow.18.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.18.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">978</td>
<td id="TBL2132.finRow.18.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.18.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.18.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">100</td>
<td id="TBL2132.finRow.18.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA2000" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other expense, net</font></p></td>
<td id="TBL2132.finRow.19.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">6</td>
<td id="TBL2132.finRow.19.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.19.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">-</td>
<td id="TBL2132.finRow.19.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.19.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">6</td>
<td id="TBL2132.finRow.19.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.19.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">100</td>
<td id="TBL2132.finRow.19.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td>
<td id="TBL2132.finRow.19.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">53</td>
<td id="TBL2132.finRow.19.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.19.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">-</td>
<td id="TBL2132.finRow.19.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.19.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">53</td>
<td id="TBL2132.finRow.19.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.19.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.19.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">100</td>
<td id="TBL2132.finRow.19.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA2020" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Provision for income taxes</font></p></td>
<td id="TBL2132.finRow.20.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">-</td>
<td id="TBL2132.finRow.20.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.20.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">-</td>
<td id="TBL2132.finRow.20.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.20.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">-</td>
<td id="TBL2132.finRow.20.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.20.lead.5" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.symb.5" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.amt.5" style="WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff">-</td>
<td id="TBL2132.finRow.20.trail.5" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.20.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">-</td>
<td id="TBL2132.finRow.20.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.20.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">-</td>
<td id="TBL2132.finRow.20.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.20.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">-</td>
<td id="TBL2132.finRow.20.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2132.finRow.20.lead.9" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.symb.9" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.20.amt.9" style="WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #cceeff">-</td>
<td id="TBL2132.finRow.20.trail.9" style="WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA2044" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><i>Effective tax rate</i></font></p></td>
<td id="TBL2132.finRow.21.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>0.0</i></td>
<td id="TBL2132.finRow.21.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.21.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>0.0</i></td>
<td id="TBL2132.finRow.21.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.21.lead.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.symb.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.amt.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.trail.B4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.lead.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.symb.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.amt.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.trail.B5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>0.0</i></td>
<td id="TBL2132.finRow.21.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.21.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff"><i>0.0</i></td>
<td id="TBL2132.finRow.21.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap=""><i>%</i></td>
<td id="TBL2132.finRow.21.lead.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.symb.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.amt.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.trail.B8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.lead.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.symb.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.amt.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td>
<td id="TBL2132.finRow.21.trail.B9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 1px; BACKGROUND-COLOR: #ffffff"><i>&nbsp;</i></td></tr>
<tr style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA2064" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net loss</font></p></td>
<td id="TBL2132.finRow.22.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.22.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL2132.finRow.22.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(9,450</td>
<td id="TBL2132.finRow.22.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL2132.finRow.22.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.22.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL2132.finRow.22.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(7,034</td>
<td id="TBL2132.finRow.22.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL2132.finRow.22.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.22.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL2132.finRow.22.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(2,416</td>
<td id="TBL2132.finRow.22.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL2132.finRow.22.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.22.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.22.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">34</td>
<td id="TBL2132.finRow.22.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td>
<td id="TBL2132.finRow.22.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.22.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL2132.finRow.22.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(25,353</td>
<td id="TBL2132.finRow.22.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL2132.finRow.22.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.22.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL2132.finRow.22.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(18,725</td>
<td id="TBL2132.finRow.22.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL2132.finRow.22.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.22.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL2132.finRow.22.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">(6,628</td>
<td id="TBL2132.finRow.22.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">)</td>
<td id="TBL2132.finRow.22.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.22.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2132.finRow.22.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">35</td>
<td id="TBL2132.finRow.22.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">%</td></tr>
<tr style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 12%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA2098" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Diluted loss per share</font></p></td>
<td id="TBL2132.finRow.23.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.23.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.23.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(0.92</td>
<td id="TBL2132.finRow.23.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.23.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.23.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.23.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(0.69</td>
<td id="TBL2132.finRow.23.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.23.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.23.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.23.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(0.23</td>
<td id="TBL2132.finRow.23.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.23.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.23.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.23.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">34</td>
<td id="TBL2132.finRow.23.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td>
<td id="TBL2132.finRow.23.lead.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.23.symb.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.23.amt.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(2.47</td>
<td id="TBL2132.finRow.23.trail.6" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.23.lead.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.23.symb.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.23.amt.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(1.83</td>
<td id="TBL2132.finRow.23.trail.7" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.23.lead.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.23.symb.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2132.finRow.23.amt.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(0.64</td>
<td id="TBL2132.finRow.23.trail.8" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2132.finRow.23.lead.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.23.symb.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2132.finRow.23.amt.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 8%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">35</td>
<td id="TBL2132.finRow.23.trail.9" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">%</td></tr></table>
<p id="PARA2134" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>&nbsp;</i></b></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2135" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Sales</i></b></font></p>
<p id="PARA2138" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2137" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Neural Interface Components and Systems.</u> Neural interface components and systems consist of sales of neural interface technology, components, and systems to the neuroscience and clinical markets. The primary factor behind the 24% increase in sales from the third quarter of 2015 to the third quarter of 2016 and the 34% increase in sales from the first nine months of 2015 to the first nine months of 2016 was due to increased volume of component sales. Price fluctuations did not have a significant impact on sales for the periods presented. </font></p>
<p id="PARA2140" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2139" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Algovita</u>. The primary factor behind the 913% increase in sales from third quarter of 2015 to the third quarter of 2016 and the 108% increase in sales from the first nine months of 2015 to the first nine months of 2016 was due to increased sales in the United States as a result of the commercial launch of Algovita in the United States during the first quarter of 2016. We expect to continue to build our sales organization for Algovita, consisting of direct sales representatives and independent sales agents in the United States and a network of distributors and independent sales agents outside of the United States to support future growth. Additionally, we have expanded our sales management team in an effort to mitigate the challenges we continue to experience in gaining approvals from hospital and ambulatory surgery center purchasing departments.</font></p>
<p id="PARA2142" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2475.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2475" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2475" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2475" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-26-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2475" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2475.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2146" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2145" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><u>Development and Engineering Service</u>. We have entered into a development agreement with Aleva to develop our neurostimulation technology platform into a complete system for use in the DBS market for the treatment of Parkinson&#8217;s disease. Pursuant to the terms of the development agreement, Aleva is expected to pay us $6 million in the aggregate, which is to be paid in five installments with the final installment due during the third quarter of 2017 </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">and $3.5 million of which is contingent upon Aleva&#8217;s receipt of sufficient financing from third-party sources and upon Nuvectra providing certain deliverables per the development agreement. We recognized $1.2 million and $2.3 million of development and engineering services revenue during the third quarter and first nine months of 2016, respectively.</font></p>
<p id="PARA2148" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2147" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Cost of Sales </i></b></font></p>
<p id="PARA2150" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2149" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Cost of sales consists of the costs of materials, labor costs, amortization of technology intangibles, and plant and equipment depreciation and overhead. The primary driver behind the 203% increase in cost of sales from third quarter of 2015 to the third quarter of 2016 was the increased revenue from Algovita and our development and engineering services, as discussed above.</font></p>
<p id="PARA2152" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2151" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">From the third quarter of 2015 to the third quarter of 2016 our gross profit increased $1.4 million or 192%, however, our gross profit as a percentage of sales, or Gross Margin, decreased slightly to 56.8% in the third quarter of 2016 from 57.7% in the third quarter of 2015. The decrease in Gross Margin was due to a shift in mix toward lower margin products and services. </font></p>
<p id="PARA2154" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2153" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The primary factor behind the 59% increase in cost of sales from the first nine months of 2015 to the first nine months of 2016 was the increased revenue as discussed above. We expect that our cost of sales will continue to increase as our sales continue to grow.</font></p>
<p id="PARA2156" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2155" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">From the first nine months of 2015 to the first nine months of 2016 our gross profit increased $3.0 million or 202%. Additionally, our gross profit as a percentage of sales, or Gross Margin, increased to 52.9% in the first nine months of 2016 from 37.2% in the first nine months of 2015. These increases were primarily due to a shift in mix toward higher margin products and services, as well as pricing improvements under our supply agreement with Greatbatch for Algovita. The Algovita units sold in the first nine months of 2015 had negative gross profit as the cost of purchasing these units from Greatbatch was above their selling price given the initial production set-up costs and low volume of production. Purchase orders and our new supply agreement pricing now govern the current price paid to Greatbatch for each Algovita system. </font></p>
<p id="PARA2158" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2157" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Selling, General and Administrative Expenses</i></b></font></p>
<p id="PARA2160" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2159" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Selling, general and administrative (&#8220;SG&amp;A&#8221;) expenses consist primarily of personnel costs, including salary and employee benefits for our sales and marketing personnel and for personnel that support our general operations, such as information technology, executive management, financial accounting, and human resources personnel. SG&amp;A expenses increased $4.1 million, or 105%, from the third quarter of 2015 to the third quarter of 2016. This increase was primarily the result of increased salary and employee benefits as we have begun to build our sales organization and establish corporate support functions as an independent publicly-traded company. </font></p>
<p id="PARA2162" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2161" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">SG&amp;A expenses increased $10 million, or 122%, from the first nine months of 2015 to the first nine months of 2016. This increase was primarily the result of increased salary and employee benefits as we have begun to build our sales organization and establish corporate support functions as an independent publicly-traded company.</font></p>
<p id="PARA2164" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2163" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Going forward, we expect SG&amp;A expenses to continue to increase as we continue to build and expand our sales organization consisting of direct sales representatives and independent sales agents in the United States and a network of distributors and independent sales agents outside of the United States. We expect that this will require recruiting appropriate and qualified direct sales representatives and independent sales agents, establishing a commercial infrastructure in the United States and training our direct sales representatives and independent sales agents; which will require a significant investment by us. Thereafter, we expect that our sales representatives and independent sales agents will require lead time in the field to access and grow their network of accounts and produce sales results. We believe that successfully recruiting, training and retaining a sufficient number of productive sales representatives and independent sales agents is important in achieving our future growth objectives.</font></p>
<p id="PARA2166" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2165" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">After March 14, 2016, our SG&amp;A expenses no longer include an allocation of corporate expenses from Greatbatch but instead reflect fees paid to Greatbatch to provide certain corporate support functions on a transitional basis under the transition services agreement. These corporate allocations included charges for executive oversight, finance, legal, human resources, tax, information technology, product development, corporate procurement, and facilities that totaled $251 thousand and $768 thousand of SG&amp;A expenses for the three and nine months ended October 2, 2015, respectively, and $236 thousand for the nine months ended September 30, 2016. There were no such charges during the three months ended September 30, 2016. These expenses have been charged to us on a pro rata basis based upon estimated hours incurred, headcount, square footage, or other measures. We consider the expense allocation methodology and results to be reasonable for all periods presented. However, these allocations are not indicative of the actual expenses that would have been incurred if we operated as an independent publicly-traded company or of the costs we will incur in the future. At this time, we are unable to determine what our expenses would have been on a standalone basis if we had operated as an unaffiliated entity for each period in which a statement of operations is presented. </font></p>
<p id="PARA2168" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2476.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2476" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2476" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2476" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-27-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2476" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2476.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2167" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Research, Development and Engineering Costs, Net</i></b></font></p>
<p id="PARA2170" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2169" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Research, development and engineering (&#8220;RD&amp;E&#8221;) costs primarily include salary and employee benefits for our specialists in software engineering, mechanical engineering, electrical engineering, and graphical user interface design. Many of these specialists have considerable experience in neurostimulation-related products. Additionally, RD&amp;E includes design verification testing (&#8220;DVT&#8221;) expenses, which include salary and employee benefits for our engineers who test the design and materials used in our medical devices. </font></p>
<p id="PARA2172" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2171" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">RD&amp;E costs for the third quarter of 2016 decreased $0.9 million, or 23%, compared to the third quarter of 2015. This decrease was primarily due to decreased personnel-related expenses and no allocation of corporate expenses from Greatbatch. RD&amp;E costs decreased $1.6 million for the year-to-date period primarily due to receiving no allocation of corporate expenses from Greatbatch. As we must continually strive to anticipate and meet our customers&#8217; and patients&#8217; evolving needs and preferences, we expect to invest in product development, product enhancements and improvements and future clinical studies to further develop and update our existing technologies and to expand the features offered in Algovita. We also intend to continue to pursue strategic partnerships to fund clinical and development costs, in part or in full, of new products, expand our product distribution channels, improve our access to physicians and opinion leaders, supplement our product commercialization efforts, obtain assistance in performing clinical studies, add specialized clinical or regulatory expertise, or acquire or obtain access to complementary intellectual property.</font></p>
<p id="PARA2174" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2173" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Other Operating Expenses</i></b><b><i> (Income)</i></b></font></p>
<p id="PARA2176" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2175" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other operating expenses (income) were comprised of the following (in thousands):</font></p>
<p id="PARA2177" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<table id="TBL2226" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 95%; MARGIN-LEFT: 5%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr id="TBL2226.finRow.1">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.1.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.1.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA2179" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Three Months Ended</b></font></p></td>
<td id="TBL2226.finRow.1.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.1.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.1.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="6">
<p id="PARA2181" style="TEXT-ALIGN: center; MARGIN: 0pt 0pt 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>Nine Months Ended</b></font></p></td>
<td id="TBL2226.finRow.1.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL2226.finRow.2">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.2.lead.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.2.amt.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA2183" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL2226.finRow.2.trail.D2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.2.lead.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.2.amt.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA2185" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL2226.finRow.2.trail.D3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.2.lead.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.2.amt.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA2187" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>September 30, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2016</b></font></p></td>
<td id="TBL2226.finRow.2.trail.D4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.2.lead.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom"><b>&nbsp;</b></td>
<td id="TBL2226.finRow.2.amt.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; MARGIN-LEFT: 1.1pt" colspan="2">
<p id="PARA2189" style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>October 2, </b></font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt 1.1pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>2015</b></font></p></td>
<td id="TBL2226.finRow.2.trail.D5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px"><b>&nbsp;</b></td></tr>
<tr id="TBL2226.finRow.3" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 48%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA2190" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Performance restricted stock expense</font></p></td>
<td id="TBL2226.finRow.3.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.3.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL2226.finRow.3.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL2226.finRow.3.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2226.finRow.3.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.3.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL2226.finRow.3.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL2226.finRow.3.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2226.finRow.3.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.3.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL2226.finRow.3.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">469</td>
<td id="TBL2226.finRow.3.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2226.finRow.3.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.3.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">$</td>
<td id="TBL2226.finRow.3.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL2226.finRow.3.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL2226.finRow.4" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">
<p id="PARA2195" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Cleveland facility shutdown</font></p></td>
<td id="TBL2226.finRow.4.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.4.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.4.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL2226.finRow.4.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2226.finRow.4.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.4.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.4.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">(198</td>
<td id="TBL2226.finRow.4.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2226.finRow.4.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.4.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.4.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">&#8212;</td>
<td id="TBL2226.finRow.4.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2226.finRow.4.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.4.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.4.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #ffffff">228</td>
<td id="TBL2226.finRow.4.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr>
<tr id="TBL2226.finRow.5" style="BACKGROUND-COLOR: #cceeff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">
<p id="PARA2200" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other expenses</font></p></td>
<td id="TBL2226.finRow.5.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.5.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.5.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">7</td>
<td id="TBL2226.finRow.5.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2226.finRow.5.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.5.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.5.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">&#8212;</td>
<td id="TBL2226.finRow.5.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2226.finRow.5.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.5.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.5.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">7</td>
<td id="TBL2226.finRow.5.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td>
<td id="TBL2226.finRow.5.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.5.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; BACKGROUND-COLOR: #cceeff">&nbsp;</td>
<td id="TBL2226.finRow.5.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: right; MARGIN-LEFT: 1.1pt; BACKGROUND-COLOR: #cceeff">32</td>
<td id="TBL2226.finRow.5.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 1px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #cceeff" nowrap="">&nbsp;</td></tr>
<tr id="TBL2226.finRow.6" style="BACKGROUND-COLOR: #ffffff">
<td style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; VERTICAL-ALIGN: bottom; PADDING-LEFT: 9pt; BACKGROUND-COLOR: #ffffff">
<p id="PARA2205" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Total other operating expense </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">(income) </font></p></td>
<td id="TBL2226.finRow.6.lead.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.6.symb.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2226.finRow.6.amt.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">7</td>
<td id="TBL2226.finRow.6.trail.2" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2226.finRow.6.lead.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.6.symb.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2226.finRow.6.amt.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">(198</td>
<td id="TBL2226.finRow.6.trail.3" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">)</td>
<td id="TBL2226.finRow.6.lead.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.6.symb.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2226.finRow.6.amt.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">476</td>
<td id="TBL2226.finRow.6.trail.4" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td>
<td id="TBL2226.finRow.6.lead.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BACKGROUND-COLOR: #ffffff">&nbsp;</td>
<td id="TBL2226.finRow.6.symb.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">$</td>
<td id="TBL2226.finRow.6.amt.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 10%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff">260</td>
<td id="TBL2226.finRow.6.trail.5" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 1%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 3px; MARGIN-LEFT: 0pt; BACKGROUND-COLOR: #ffffff" nowrap="">&nbsp;</td></tr></table>
<p id="PARA2228" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>&nbsp;</i></b></font></p>
<p id="PARA2229" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">For additional information, see Note 4 &#8220;Other Operating Expenses (Income)&#8221; of the notes to our Condensed Consolidated Financial Statements.</font></p>
<p id="PARA2231" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2230" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Interest Expense</i></b></font></p>
<p id="PARA2233" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2232" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Interest expense for the third quarter and first nine months of 2016 was $455 thousand and $978 thousand, respectively. Interest expense is related to the Term Loan A Commitment that was funded on March 18, 2016 and amortization of deferred financing fees and discounts on debt. For additional information, see Note 5 &#8220;Debt&#8221; of the notes to our Condensed Consolidated Financial Statements. </font></p>
<p id="PARA2235" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2234" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Provision for Income Taxes</i></b></font></p>
<p id="PARA2237" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2236" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">During the third quarters of 2016 and 2015, we recorded a valuation allowance for the amount of the deferred tax asset that was generated from our net losses and federal research and development tax credit earned and Section 754 election to the extent they exceeded any deferred tax liability, as it was more likely than not that the deferred tax asset generated from those activities will not be realized. Accordingly, our provision for income taxes for the third quarter and first nine months of both 2016 and 2015 was $0.</font></p>
<p id="PARA2239" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2477.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
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<div id="PGFTR2477" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2477" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-28-</div>
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<div id="PGHDR2477" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2477.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2238" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Historically, the net operating losses and federal research and development tax credits generated by Nuvectra have been utilized by Greatbatch, which files a consolidated federal income tax return. See Note 6 &#8220;Income Taxes&#8221; of the notes to our Condensed Consolidated Financial Statements for disclosures related to our income taxes.</font></p>
<p id="PARA2241" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2240" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Liquidity and Capital Resources</u></b></font></p>
<p id="PARA2242" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2243" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Background</i></b></font></p>
<p id="PARA2245" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2244" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Greatbatch uses a centralized approach to cash management and financing of operations. We were previously a party to Greatbatch&#8217;s cash pooling arrangements with several financial institutions to maximize the availability of cash for general operating and investing purposes. Under these cash pooling arrangements, cash was provided by Greatbatch to meet our financial obligations, which resulted in an increase in Greatbatch&#8217;s net investment in us. Furthermore, </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Greatbatch has paid for substantially all transaction costs, other than deferred financing fees for the credit facility, associated with the Spin-off. This financing and cash pooling arrangement with Greatbatch ended in connection with the completion of the Spin-off.</font></p>
<p id="PARA2247" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2246" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Because we were not the legal obligor of the debt obligation and Greatbatch&#8217;s outstanding borrowings were not directly attributable to our operations, Greatbatch&#8217;s outstanding indebtedness owed to third parties and the related interest expense have not been allocated to us for any of the periods presented in our Condensed Consolidated Financial Statements.</font></p>
<p id="PARA2249" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2248" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We have incurred significant net losses and negative cash flows from operations since our inception and we expect to continue to incur additional net losses for the foreseeable future.</font></p>
<p id="PARA2251" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2250" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Immediately prior to the completion of the Spin-off, Greatbatch made a cash capital contribution of $75.0&nbsp;million to us, which we will use for the development and commercialization of Algovita and general corporate purposes. This cash capital contribution, together with our cash on hand and borrowings under the Credit Facility, $25 million of which is subject to achieving trailing six month revenue milestones and compliance with specified conditions and covenants, is in an amount that we estimate will, based on our current plans and expectations, meet our cash needs for approximately two years after the completion of the Spin-off.&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We periodically evaluate our liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, we have in the past sought, and may in the future seek, to explore strategic alternatives to finance our business plan, including but not limited to, a public offering of our common stock, private equity or debt financings, or other sources, such as strategic partnerships.&nbsp; We are also focusing on increasing the sales of our products to generate cash flow to fund our operations. However, t</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">here can be no assurance that we will be successful in our plans described above or in attracting alternative debt or equity financing. Pursuant to the terms of the tax matters agreement with Greatbatch, for a period of two years following the date of the Spin-off, we will be prohibited from (i)&nbsp;causing or permitting to occur any transaction or series of transactions, subject to certain exceptions provided under the U.S. federal income tax rules, in connection with which one or more persons would (directly or indirectly) acquire an interest in our capital stock that, when combined with any other acquisition of an interest in our capital stock that occurs after the Spin-off, comprises 30% or more of the value or the total combined voting power of all interests that are treated as outstanding equity of Nuvectra for U.S. federal income tax purposes immediately after such transaction or, in the case of a series of related transactions, immediately after any transaction in such series; (ii) transferring, selling or otherwise disposing of 35% or more of our gross assets if such transfer, sale or other disposition would violate the IRS&#8217; rules and regulations; (iii)&nbsp;liquidating our business or (iv) ceasing to maintain our active business. If we take any of these actions and such actions result in tax-related costs for Greatbatch, then we would generally be required to indemnify Greatbatch for such costs. If we are unable to raise or are prohibited under the terms of the tax matters agreement with Greatbatch from raising additional funds when needed, we may be required to delay, reduce, or terminate some or all of our development plans.</font></p>
<p id="PARA2253" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2252" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Currently, we expect our research, development and engineering costs for fiscal year 2016 to be between approximately $14&nbsp;million and $16&nbsp;million. These expenditures are primarily to continue and expand our research and development program to enhance and improve Algovita and to develop our neurostimulation technology platform for uses in indications outside of SCS. We expect to finance our expenditures using the cash on-hand from the Greatbatch capital contribution or from internally generated funds. We may increase, decrease or re-allocate our anticipated expenditures during any period based on industry conditions, the availability of capital, or other factors. We believe that nearly all of our anticipated research and development expenditures are discretionary.</font></p>
<p id="PARA2255" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2478.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
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<div id="PGFTR2478" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2478" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-29-</div>
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<div id="PGHDR2478" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2478.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2254" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Consolidated Cash Flows</i></b></font></p>
<p id="PARA2257" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2256" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net cash used in operating activities was $14.4&nbsp;million for the first nine months of 2016 compared to $15.6 million for the first nine months of 2015. The primary components driving the change in cash used in operating activities was the increase in our net loss from operations (adjusted to exclude non-cash charges) and changes in working capital accounts.</font></p>
<p id="PARA2259" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2258" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net cash used in investing activities was $3.4 million for the first nine months of 2016 compared to $0.5 million for the first nine months of 2015. Cash used in investing activities related to the purchases of property, plant, and equipment (&#8220;PP&amp;E&#8221;). During fiscal year 2015, Greatbatch contributed a building and certain fixed assets located in Blaine, Minnesota to us for use in our operations, which had a net book value of $1.8 million, and these assets are now being fully utilized by Nuvectra. Previously, these assets were shared by various Greatbatch entities, and Greatbatch allocated costs to each entity. Additionally, during fiscal year 2015, we transferred certain machinery and equipment with a net book value of $2.0&nbsp;million, which previously had been used for DVT, to Greatbatch to utilize in the production of Algovita. These transfers were treated as non-cash transactions in the Condensed Consolidated Cash Flows. </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">As of September 30, 2016, we had no material commitments to purchase capital assets; however, planned capital expenditures for the remainder of 2016 are estimated at approximately $0.5 million and will primarily be financed by existing cash and cash equivalents, cash generated from operations, or the Credit Facility.</font></p>
<p id="PARA2261" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2260" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Net cash provided by financing activities was $93.2 million for the first nine months of 2016 compared to $16.0 million for the first nine months of 2015. Cash provided by financing activities was primarily composed of the investment provided by Greatbatch that was partially offset by the repurchase of non-controlling interests in Algostim and PelviStim, which was funded by a cash contribution from Greatbatch, and $15 million of borrowings under our credit facility</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> partially offset by $1.5 million of debt issuance costs.</font></p>
<p id="PARA2263" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2262" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Credit Facility</i></b></font></p>
<p id="PARA2265" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2264" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">On March 18, 2016, we entered into a Loan and Security Agreement (the &#8220;Credit Facility&#8221;), consisting of </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">(a) term loan facilities in an aggregate maximum principal amount of $40 million comprised of (i) a $15 million Term Loan A Commitment, which was funded in full on March 18, 2016, (ii) a $12.5 million Term Loan B Commitment, which is available for draw December 31, 2016 through June 30, 2017, and (iii) a $12.5 million Term Loan C Commitment, which is available for draw June 30, 2017 through December 31, 2017; and (b) a Revolving Line Commitment in a maximum principal amount of $5 million. Availability of the Term Loan B Commitment is subject to us achieving consolidated trailing six month revenues of at least $13.5 million, and the availability of the Term Loan C Commitment is subject to us achieving consolidated trailing six month revenues of at least $20 million. We have the right to draw on each Term Loan B and C Commitments within 60 days of achieving the applicable revenue threshold. The term loan bears interest at the Wall Street Journal prime rate plus 4.15%, subject to an interest rate floor of 7.65%. </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">At September 30, 2016 the interest rate on borrowings under the term loan was 7.65%. The Credit Facility provides for interest-only payments on outstanding term loan borrowings for 18 months after the first borrowing, if the Term Loan B Commitment is not drawn, or 24 months after the first borrowing, if the Term Loan B Commitment is drawn, followed by 36 months, if the Term Loan B Commitment is not drawn, or 30 months, if the Term Loan B Commitment is drawn, of principal payments in equal amounts on outstanding term loan borrowings plus accrued interest payments.</font></p>
<p id="PARA2267" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2266" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In addition, under the terms of the Credit Facility, we have access to a $5 million revolving line of credit, subject to an advance rate equal to 80% of eligible accounts receivable. This revolving line of credit has a maturity date of March 18, 2018. The revolving line of credit bears interest at the Wall Street Journal prime rate plus 3.45%, subject to an interest rate floor of 6.95%. Interest on outstanding borrowings under the revolving line of credit is due monthly. Additionally, our outstanding accounts receivable will be processed through a cash collection account and lockbox at one of the lenders for the Credit Facility, with all amounts collected being applied to reduce the outstanding principal amount of the revolving line of credit on a daily basis.</font></p>
<p id="PARA2269" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2268" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Under the terms of the Credit Facility, we paid a commitment fee in an amount equal to 0.50% of the aggregate principal amount of the term loan and the revolving line of credit. In addition, we will pay a final payment fee in an amount equal to 7.75% of the funded amount of the term loan, which final payment fee is due at the time of the final principal payment for the Credit Facility or upon early termination of the Credit Facility. We must meet certain revenue thresholds and other conditions and covenants in order to draw on the Term Loan B and C Commitments. If we satisfy the conditions and covenants to allow for drawing on the Term Loan B and C Commitments but do not draw upon such commitment prior to the availability expiration date, we will pay a non-use fee of 2.00% of the unfunded amount of such commitment. </font></p>
<p id="PARA2271" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<div id="PGHDR2479" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2479.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2270" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">If available and we draw on the Term Loan B or C Commitments, we will issue warrants to the lenders to purchase a number of shares of our common stock with a notional value equal to 4.5% of the funded amount of such commitment, with all warrants issued at such time having an exercise price equal to the lower of the average closing price of our common stock for the ten previous days of trading or the closing price of our common stock on the day prior to such commitment funding. Each warrant is expected to be exercisable for ten years from the date of issuance.</font></p>
<p id="PARA2273" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2272" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In connection with arranging the Credit Facility, we paid Piper Jaffray an arrangement fee of $1,125,000, which equals 2.50% of the aggregate principal amount of the Credit Facility.</font></p>
<p id="PARA2275" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2274" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">The Credit Facility includes affirmative and negative covenants, including an affirmative covenant regarding minimum revenue requirements, prohibitions on the payment of cash dividends on our capital stock, and restrictions on mergers, sales of assets, investments, incurrence of liens, incurrence of indebtedness and transactions with affiliates. The Credit Facility includes a prepayment fee for the prepayment of the outstanding term loan balance prior to the maturity date in an amount equal to 3.00% of the prepaid term loan balance for a prepayment made during the first year after closing, 2.00% of the prepaid term loan balance for a prepayment made during the second year after closing and 1.00% of the prepaid term loan balance for a prepayment made thereafter. Our obligations under the Credit Facility are secured by substantially all of our assets, except for our intellectual property, which is subject to a negative pledge covenant.</font></p>
<p id="PARA2277" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2276" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Off-Balance Sheet Arrangements</u></b></font></p>
<p id="PARA2279" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2278" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We have no off-balance sheet arrangements within the meaning of Item&nbsp;303(a)(4) of Regulation S-K.</font></p>
<p id="PARA2281" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2280" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Recently Issued Accounting Standards</u></b></font></p>
<p id="PARA2283" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2282" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">In the normal course of business, we evaluate all new accounting pronouncements issued by the Financial Accounting Standards Board (&#8220;FASB&#8221;), Securities and Exchange Commission (&#8220;SEC&#8221;), Emerging Issues Task Force (&#8220;EITF&#8221;), or other authoritative accounting bodies to determine the potential impact they may have on our Condensed Consolidated Financial Statements. See Note 12 &#8220;Recently Issued Accounting Standards&#8221; of the notes to the Condensed Consolidated Financial Statements contained in Item&nbsp;1 of this report for additional information about these recently issued accounting standards and their potential impact on our financial condition or results of operations.</font></p>
<p id="PARA2285" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<p id="PARA2486"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM </b></font><b><b>3.</b></b></p></td>
<td style="WIDTH: 93%; VERTICAL-ALIGN: top">
<p id="PARA2487"><b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</font></b></p></td></tr></table>
<p id="PARA2287" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2286" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Foreign Currency Risk &#8211; </i></b>We are exposed to adverse movements in foreign currency exchange rates because we conduct business on a global basis.</font></p>
<p id="PARA2289" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2288" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Market Price Risk &#8211; </i></b>We had no hedge contracts outstanding as of September 30, 2016 or January 1, 2016.</font></p>
<p id="PARA2291" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2290" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><i>Interest Rate Risk &#8211;</i></b> The interest rate on any outstanding balance under the term loan of our Credit Facility is based upon the Wall Street Journal prime rate plus 4.15%, subject to an interest rate floor of 7.65%,</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"> thus subjecting us to interest rate risk. At September 30, 2016 our interest rate on the $15 million outstanding balance was 7.65%. A hypothetical 50 basis point increase in the interest rate would have increased annual interest expense on this credit facility by approximately $75,000. </font></p>
<p id="PARA2293" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<p id="PARA2488"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM 4.</b></font></p></td>
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<p id="PARA2489"><b><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">CONTROLS AND PROCEDURES</font></b></p></td></tr></table>
<p id="PARA2295" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2294" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Evaluation of Disclosure Controls and Procedures</u></b></font></p>
<p id="PARA2297" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2296" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Our management, under the supervision of our principal executive officer and principal financial officer, evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) related to the recording, processing, summarization, and reporting of information in our reports that we file with the Securities and Exchange Commission as of the end of the period covered by this quarterly report. These disclosure controls and procedures are designed to provide reasonable assurance that material information relating to us, including our subsidiaries, is made known to our management, including these officers, by our employees, and that this information is recorded, processed, summarized, evaluated, and reported, as applicable, within the time periods specified in the Securities and Exchange Commission&#8217;s rules and forms. Based on their evaluation, as of September 30, 2016, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are effective. </font></p>
<p id="PARA2299" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<p id="PARA2480.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2298" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b><u>Changes in Internal Control Over Financial Reporting</u></b></font></p>
<p id="PARA2301" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2300" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">We maintain a system of internal controls that are designed to provide reasonable assurance that our books and records accurately reflect, in all material respects, the transactions of the Company and that we meet and achieve our control objectives. From time to time, we may experience changes to our internal controls due, for example, to employee turnover, re-balancing of workloads, extended absences, and promotions of employees. There were no changes in our internal controls over financial reporting that occurred during the period covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.</font></p>
<p id="PARA2302" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
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<p id="PARA2303.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>&nbsp;</b></font></p>
<p id="PARA2305" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>PART II&#8212;OTHER INFORMATION</b></font></p>
<p id="PARA2306" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<p id="PARA2310" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM 1.</b></font></p></td>
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<p id="PARA2311" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>LEGAL PROCEEDINGS</b></font></p></td></tr></table>
<p id="PARA2313" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2312" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Periodically we are a party to various legal actions, both threatened and filed, arising in the normal course of business. While we do not expect that the ultimate resolution of any pending actions will have a material effect on our results of operations, financial position, or cash flows, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending or threatened legal action, which we currently believe to be immaterial, does not become material in the future.</font></p>
<p id="PARA2315" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<p id="PARA2319" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM 1A.</b></font></p></td>
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<p id="PARA2320" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>RISK FACTORS</b></font></p></td></tr></table>
<p id="PARA2322" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2321" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Other than as described herein and in our other periodic filings including our Quarterly Report on Form 10-Q for the quarter ended April 1, 2016 filed on May 11, 2016, our Quarterly Report on Form 10-Q for the quarter ended July 1, 2016 filed on August 10, 2016 and our Current Reports on Form 8-K filed on March 18, March 30, April 7, May 11, June 17, and August 1, 2016, there have been no material changes from the Company&#8217;s risk factors as previously disclosed in the Company&#8217;s Registration Statement on Form 10.</font></p>
<p id="PARA2324" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<p id="PARA2328" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM 2.</b></font></p></td>
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<p id="PARA2329" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</b></font></p></td></tr></table>
<p id="PARA2331" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2330" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">None.</font></p>
<p id="PARA2333" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
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<p id="PARA2337" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM 3.</b></font></p></td>
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<p id="PARA2338" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>DEFAULTS UPON SENIOR SECURITIES</b></font></p></td></tr></table>
<p id="PARA2340" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2339" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">None.</font></p>
<p id="PARA2342" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<table id="MTAB2345" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 7%; VERTICAL-ALIGN: top">
<p id="PARA2346" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM 4.</b></font></p></td>
<td style="WIDTH: 93%; VERTICAL-ALIGN: top">
<p id="PARA2347" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>MINE SAFETY DISCLOSURES</b></font></p></td></tr></table>
<p id="PARA2349" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2348" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Not applicable.</font></p>
<p id="PARA2351" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<table id="MTAB2354" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 7%; VERTICAL-ALIGN: top">
<p id="PARA2355" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM 5.</b></font></p></td>
<td style="WIDTH: 93%; VERTICAL-ALIGN: top">
<p id="PARA2356" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>OTHER INFORMATION</b></font></p></td></tr></table>
<p id="PARA2358" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2357" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">None.</font></p>
<p id="PARA2360" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2481.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2481" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2481" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2481" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-33-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2481" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2481.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<table id="MTAB2363" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 7%; VERTICAL-ALIGN: top">
<p id="PARA2364" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>ITEM 6.</b></font></p></td>
<td style="WIDTH: 93%; VERTICAL-ALIGN: top">
<p id="PARA2365" style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left; MARGIN-TOP: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>EXHIBITS</b></font></p></td></tr></table>
<table id="TBL2394" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top; TEXT-ALIGN: center"><u>Exhibit&nbsp;No.</u></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top"><u>Description</u></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2368" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">3.1</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2369" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Certificate of Incorporation (filed as Exhibit 3.1 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">&nbsp;</td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2370" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">3.2</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2371" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Bylaws of Nuvectra Corporation (filed as Exhibit 3.2 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2372" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">4.1</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2373" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Warrant to Purchase Common Stock, dated March 18, 2016, issued to Oxford Finance LLC (filed as Exhibit 4.1 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">&nbsp;</td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2374" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">4.2</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2375" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Warrant to Purchase Common Stock, dated March 18, 2016, issued to Silicon Valley Bank (filed as Exhibit 4.2 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">&nbsp;</td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2376" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">31.1</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2377" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2378" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">31.2</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2379" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2380" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">32.1</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2381" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2382" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.INS</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2383" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Instance Document*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2384" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.SCH</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2385" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Extension Schema Document*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2386" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.CAL</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2387" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Extension Calculation Linkbase Document*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2388" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.LAB</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2389" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Extension Label Linkbase Document*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2390" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.PRE</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2391" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Extension Presentation Linkbase Document*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2392" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.DEF</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2393" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Extension Definition Linkbase Document*</font></p></td></tr></table>
<p id="PARA2396" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2397" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">* Filed herewith.</font></p>
<p id="PARA2398" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">** Furnished herewith.</font></p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25">&nbsp;</p>
<p id="PARA2482.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2482" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2482" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2482" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-34-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2482" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2482.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2399" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>SIGNATURES</b></font></p>
<p id="PARA2401" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2400" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">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.</font></p>
<p id="PARA2403" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"></font></p>
<p id="PARA2404" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<table id="TBL2484" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td valign="top" width="50%">
<p id="PARA2484.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="38%" colspan="2">
<p id="PARA2484.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NUVECTRA CORPORATION</font></p></td>
<td valign="top" width="12%">
<p id="PARA2484.3" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td></tr>
<tr>
<td valign="top" width="50%">
<p id="PARA2484.4" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="3%">
<p id="PARA2484.5" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="35%">
<p id="PARA2484.6" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="12%">
<p id="PARA2484.7" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td></tr>
<tr>
<td valign="top" width="50%">
<p id="PARA2484.8" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="3%">
<p id="PARA2484.9" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="bottom" width="35%" nowrap="" align="left">
<p id="PARA2484.10" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="12%">
<p id="PARA2484.11" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td></tr>
<tr>
<td style="TEXT-ALIGN: left" valign="top" width="50%" align="left">
<p id="PARA2484.12" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></font>Date: November 9, 2016</p></td>
<td style="TEXT-ALIGN: left" valign="top" width="3%">&nbsp;</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="top" width="35%" nowrap="" align="left">
<p id="PARA2484.14" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&nbsp;</font>Scott F. Drees</p></td>
<td valign="top" width="12%">
<p id="PARA2484.15" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td></tr>
<tr>
<td valign="top" width="50%">
<p id="PARA2484.16" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="3%">
<p id="PARA2484.17" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="35%">
<p id="PARA2484.18" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></font>Scott F. Drees</p></td>
<td valign="top" width="12%">
<p id="PARA2484.19" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td></tr>
<tr>
<td valign="top" width="50%">
<p id="PARA2484.20" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="3%">
<p id="PARA2484.21" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="35%">
<p id="PARA2484.22" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></font>Chief Executive Officer</p></td>
<td valign="top" width="12%">
<p id="PARA2484.23" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td></tr>
<tr>
<td valign="top" width="50%">&nbsp;</td>
<td valign="top" width="3%">&nbsp;</td>
<td valign="top" width="35%">(Principal Executive Officer)</td>
<td valign="top" width="12%">&nbsp;</td></tr></table>
<p id="PARA2406" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 252pt">&nbsp;</p>
<p id="PARA2409" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<table id="TBL2485" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="TEXT-ALIGN: left" valign="top" width="50%" align="left">
<p id="PARA2485.12" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></font>Date: November 9, 2016</p></td>
<td style="TEXT-ALIGN: left" valign="top" width="3%">&nbsp;</td>
<td style="BORDER-BOTTOM: #000000 1px solid" valign="top" width="35%" nowrap="" align="left">
<p id="PARA2485.14" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&nbsp;</font>Walter Z. Berger</p></td>
<td valign="top" width="12%">
<p id="PARA2485.15" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td></tr>
<tr>
<td valign="top" width="50%">
<p id="PARA2485.16" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="3%">
<p id="PARA2485.17" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="35%">
<p id="PARA2485.18" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></font>Walter Z. Berger</p></td>
<td valign="top" width="12%">
<p id="PARA2485.19" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td></tr>
<tr>
<td valign="top" width="50%">
<p id="PARA2485.20" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="3%">
<p id="PARA2485.21" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td>
<td valign="top" width="35%">
<p id="PARA2485.22" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"></font>Chief Financial Officer</p></td>
<td valign="top" width="12%">
<p id="PARA2485.23" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p></td></tr>
<tr>
<td valign="top" width="50%">&nbsp;</td>
<td valign="top" width="3%">&nbsp;</td>
<td valign="top" width="35%">(Principal Financial and Accounting Officer)</td>
<td valign="top" width="12%">&nbsp;</td></tr></table>
<p id="PARA2410" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p id="PARA2483.1" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<div id="PGBK2483" style="WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div id="PGFTR2483" style="WIDTH: 100%; TEXT-ALIGN: center">&nbsp;</div>
<div id="PGNUM2483" style="FONT-SIZE: 10pt; WIDTH: 100%; TEXT-ALIGN: center">-35-</div>
<hr style="HEIGHT: 2px; WIDTH: 100%; PAGE-BREAK-AFTER: always; COLOR: #000000" noshade="">

<div id="PGHDR2483" style="WIDTH: 100%; TEXT-ALIGN: left">&nbsp;</div></div>
<p id="PARA2483.2" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&nbsp;</font></p>
<p id="PARA2414" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><b>EXHIBIT INDEX</b></font></p>
<p style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><strong></strong>&nbsp;</p>
<table id="TBL2443" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif; WIDTH: 100%; TEXT-INDENT: 0px" cellspacing="0" cellpadding="0" border="0">

<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top; TEXT-ALIGN: center"><u>Exhibit&nbsp;No.</u></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top"><u>Description</u></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">&nbsp;</td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2417" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">3.1&nbsp;</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2418" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Certificate of Incorporation (filed as Exhibit 3.1 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">&nbsp;</td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2419" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">3.2</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2420" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Bylaws of Nuvectra Corporation (filed as Exhibit 3.2 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2421" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">4.1</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2422" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Warrant to Purchase Common Stock, dated March 18, 2016, issued to Oxford Finance LLC (filed as Exhibit 4.1 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">&nbsp;</td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2423" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">4.2</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2424" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Warrant to Purchase Common Stock, dated March 18, 2016, issued to Silicon Valley Bank (filed as Exhibit 4.2 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">&nbsp;</td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2425" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">31.1</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2426" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2427" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">31.2</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2428" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2429" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">32.1</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2430" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2431" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.INS</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2432" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Instance Document*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2433" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.SCH</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2434" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Extension Schema Document*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2435" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.CAL</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2436" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Extension Calculation Linkbase Document*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2437" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.LAB</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2438" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Extension Label Linkbase Document*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2439" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.PRE</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2440" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Extension Presentation Linkbase Document*</font></p></td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: bottom">&nbsp; </td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: bottom">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: bottom">&nbsp; </td></tr>
<tr>
<td style="WIDTH: 8%; VERTICAL-ALIGN: top">
<p id="PARA2441" style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">100.DEF</font></p></td>
<td style="WIDTH: 1%; VERTICAL-ALIGN: top">&nbsp;</td>
<td style="WIDTH: 91%; VERTICAL-ALIGN: top">
<p id="PARA2442" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">XBRL Extension Definition Linkbase Document*</font></p></td></tr></table>
<p id="PARA2445" style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p id="PARA2446" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">* Filed herewith.</font></p>
<p id="PARA2447" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">** Furnished herewith.</font></p>
<p id="PARA2448" style="TEXT-ALIGN: left; MARGIN: 0pt; LINE-HEIGHT: 1.25"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</font></p>
<p style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25">-36-</p></body></html>
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nvtr20160830_10q.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
September 30
, 2016
Commission File Number
001-37525
Nuvectra Corporation
(Exact name of Registrant as specified in its charter)
Delaware
30-0513847
(State of
Incorporation)
(I.R.S. Employer
Identification No.)
5830 Granite Parkway
,
Suite 1100
Plano, Texas 75024
(Address of principal executive offices)
(
214
)
474
-
3103
(Registrant's telephone number, including area code)
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 checkmark whether the registrant has submitted electronically and posted on its corporate website, 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, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☒
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 November 1, 2016, shares outstanding of the Company's common stock, $0.001 par value per share, totaled 10,309,065.
Nuvectra Corporation
Table of Contents for Form 10-Q
As of and for the Quarterly Period Ended
September 30
, 201
6
Page No.
PART I—FINANCIAL INFORMATION
ITEM 1.
Condensed Consolidated F
inancial Statements
3
Condensed Consolidated Balance Sheets—Unaudited
3
Condensed Consolidated Statements of Operations and Comprehensive
Loss
—Unaudited
4
Condensed Consolidated Statements of Cash Flows—Unaudited
5
Condensed Consolidated Statement of Stockholders' Equity—Unaudited
6
Notes to Condensed Consolidated Financial Statements—Unaudited
7
ITEM 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
23
ITEM 3.
Quantitative and Qualitative Disclosures About Market Risk
31
ITEM 4.
Controls and Procedures
31
PART II—OTHER INFORMATION
ITEM 1.
Legal Proceedings
33
ITEM 1A.
Risk Factors
33
ITEM 2.
Unregistered Sales of Equity Securities and Use of Proceeds
33
ITEM 3.
Defaults Upon Senior Securities
33
ITEM 4.
Mine Safety Disclosures
33
ITEM 5.
Other Information
33
ITEM 6.
Exhibits
34
SIGNATURES
35
EXHIBIT INDEX
36
-2-
PART I—FINANCIAL INFORMATION
ITEM 1.
CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
Nuvectra Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS—Unaudited
(in thousands except share and per share data)
As of
September 30
, 2016
January 1, 2016
Assets
Current assets:
Cash and cash equivalents
$
75,623
$
202
Trade accounts receivable, net of allowance for doubtful accounts of $8 in fiscal 2016 and $56 in fiscal 2015
2,142
417
Prepaid expenses and other current assets
1,976
145
Total current assets
79,741
764
Property, plant and equipment, net
6,564
4,469
Intangible assets, net
1,786
1,983
Goodwill
38,182
38,182
Other long-term assets
526
—
Total assets
$
126,799
$
45,398
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and other current liabilities
$
8,448
$
18
Amount due to non-controlling interests
—
6,818
Deferred revenue
547
—
Other accrued compensation
1,459
524
Accrued bonuses
434
198
Total current liabilities
10,888
7,558
Other long-term liabilities
1,360
—
Long-term debt, net
13,583
—
Total liabilities
25,831
7,558
Commitments and contingencies (Note 7)
Stockholders' equity:
Common stock, $0.001 par value, 100,000,000 shares authorized;
10,288,856 and 0 shares issued and outstanding in fiscal 2016 and fiscal 2015, respectively
10
—
Additional paid-in capital
121,119
—
Accumulated deficit
(20,161
)
(125,094
)
Greatbatch's net investment
—
162,934
Total stockholders' equity
100,968
37,840
Total liabilities and stockholders' equity
$
126,799
$
45,398
The accompanying notes are an integral part of these condensed consolidated financial statements.
-3-
Nuvectra Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS — Unaudited
(in thousands except per share data)
Three Months Ended
Nine Months Ended
September 30, 2016
October 2, 2015
September 30, 2016
October 2, 2015
Sales:
Product
$
2,603
$
1,271
$
6,044
$
3,942
Service
1,163
—
2,338
—
Total sales
3,766
1,271
8,382
3,942
Cost of sales:
Product
1,144
538
2,872
2,475
Service
484
—
1,074
—
Total cost of sales
1,628
538
3,946
2,475
Gross profit
2,138
733
4,436
1,467
Operating expenses:
Selling, general and administrative expenses
8,006
3,914
18,185
8,190
Research, development and engineering costs, net
3,114
4,051
10,097
11,742
Other operating expenses (income)
7
(198
)
476
260
Total operating expenses
11,127
7,767
28,758
20,192
Operating loss
(8,989
)
(7,034
)
(24,322
)
(18,725
)
Interest expense
455
—
978
—
Other expense, net
6
—
53
—
Loss before provision for income taxes
(9,450
)
(7,034
)
(25,353
)
(18,725
)
Provision for income taxes
—
—
—
—
Net loss
$
(9,450
)
$
(7,034
)
$
(25,353
)
$
(18,725
)
Comprehensive loss
$
(9,450
)
$
(7,034
)
$
(25,353
)
$
(18,725
)
Basic and diluted net loss per share
$
(0.92
)
$
(0.69
)
$
(2.47
)
$
(1.83
)
Basic and diluted weighted average shares outstanding
10,279
10,258
10,268
10,258
The accompanying notes are an integral part of these condensed consolidated financial statements.
-4-
Nuvectra Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS—Unaudited
(in thousands)
Nine Months Ended
September 30, 2016
October 2, 2015
Cash flows from operating activities:
Net loss
$
(25,353
)
$
(18,725
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
1,570
437
Debt related amortization included in interest expense
349
—
Stock-based compensation
1,799
702
Loss on disposal of property, plant and equipment
28
—
Other non-cash losses, net
—
235
Changes in operating assets and liabilities:
Accounts receivable
(1,725
)
174
Prepaid expenses and other current assets
(1,831
)
140
Other long-term assets
(526
)
—
Accounts payable and other current liabilities
9,719
(238
)
Accrued bonuses
236
1,724
Other long-term liabilities
1,360
—
Net cash used in operating activities
(14,374
)
(15,551
)
Cash flows from investing activities:
Acquisition of property, plant and equipment
(3,413
)
(463
)
Net cash used in investing activities
(3,413
)
(463
)
Cash flows from financing activities:
Borrowings under credit facility
15,000
—
Purchase of non-controlling interests
(6,818
)
—
Net funding and capital contribution provided by Greatbatch
86,421
16,028
Proceeds from the exercise of stock options
133
—
Payment of debt issuance costs
(1,528
)
—
Net cash provided by financing activities
93,208
16,028
Net increase in cash and cash equivalents
75,421
14
Cash and cash equivalents, beginning of period
202
418
Cash and cash equivalents, end of period
$
75,623
$
432
Supplemental Disclosure of Cash Flow Information:
During the nine months ended September 30, 2016, Nuvectra acquired $3.6 million of property, plant and equipment, of which $0.2 million was accrued and $3.4 million was paid.
The accompanying notes are an integral part of these condensed consolidated financial statements.
-5-
Nuvectra Corporation
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY — Unaudited
(in thousands)
Additional
Total
Common Stock
Paid-In
Accumulated
Greatbatch
Stockholders'
Shares
Amount
Capital
Deficit
Net Investment
Equity
At January 1, 2016
—
$
—
$
—
$
(125,094
)
$
162,934
$
37,840
Issuance of common stock
10,258
10
119,624
125,094
(244,728
)
—
Issuance of common stock warrants
—
—
238
—
—
238
Option exercises
26
—
133
—
—
133
Restricted stock issued,
net of stock forfeited
5
—
—
—
—
—
Stock-based compensation
—
—
1,124
—
675
1,799
Capital contribution from Greatbatch
—
—
—
—
75,000
75,000
Net funding provided by Greatbatch
—
—
—
—
11,311
11,311
Net loss
—
—
—
(20,161
)
(5,192
)
(25,353
)
At September 30, 2016
10,289
$
10
$
121,119
$
(20,161
)
$
—
$
100,968
The accompanying notes are an integral part of these condensed consolidated financial statements.
-6-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Background
– QiG Group, LLC ("QiG") was a wholly-owned subsidiary of Integer
TM
Holdings Corporation (NYSE: ITGR), formerly known as Greatbatch,
Inc., ("Greatbatch"). On July 30, 2015, Greatbatch announced that it intended to spin-off QiG and its neuromodulation medical device
business from the remainder of its business through a distribution of all of the issued and outstanding shares of common stock of QiG to the
stockholders of Greatbatch on a pro rata basis (the "Spin-off"). Immediately prior to completion of the Spin-off on March 14, 2016, QiG was converted into a
corporation and changed its name to Nuvectra Corporation. Upon completion of the Spin-off, the Company became
an independent publicly-traded company and Greatbatch does not own any shares of Nuvectra common stock.
Nature of Operations
– Nuvectra Corporation, together with its wholly-owned subsidiaries (i) Algostim, LLC ("Algostim"), (ii) PelviStim LLC ("PelviStim"), and (iii) NeuroNexus Technologies, Inc. ("NeuroNexus") (collectively "Nuvectra" or the "Company"), is a neurostimulation company committed to helping physicians improve the lives of people with chronic neurological conditions. The Algovita® Spinal Cord Stimulation ("SCS") System ("Algovita") is the Company's first commercial offering and is Conformité Européene ("CE") marked and United States Food & Drug Administration ("FDA") approved for the treatment of chronic pain of the trunk and/or limbs. Nuvectra's innovative technology platform also has capabilities under development to support other neurological indications such as sacral nerve stimulation ("SNS") and deep brain stimulation ("DBS"). In addition, the Company's NeuroNexus subsidiary designs, manufactures and markets leading-edge neural-interface technologies for the neuroscience clinical research market.
Basis of Presentation
– The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information (Accounting Standards Codification ("ASC") 270,
Interim Reporting
) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Nuvectra for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates. The January 1, 2016 condensed consolidated balance sheet data was derived from audited combined financial statements but does not include all disclosures required by GAAP. For further information, refer to the combined financial statements and notes included in the Company's Registration Statement on Form 10-12B/A, dated as of February 24, 2016 (the "Registration Statement on Form 10").
QiG historically operated as part of Greatbatch and not as a separate stand-alone entity. Prior to March 14, 2016, the financial statements of QiG were prepared on a "combined" basis from the consolidated financial statements of Greatbatch to represent the financial
position and performance of QiG as if it had existed on a stand-alone basis in conformity with GAAP. Those Combined Financial Statements included the assets and liabilities that had historically been held at Greatbatch but which were specifically
identifiable or attributable to the Company or were transferred to the Company in connection with the Spin-off. All intercompany transactions and
accounts within the Company have been eliminated. All transactions between the Company and Greatbatch were considered to be effectively settled in
the Combined Financial Statements at the time the transaction was recorded. The total net effect of the settlement of these intercompany transactions was
reflected in the Combined Cash Flow Statements as a financing activity and in the Combined Balance Sheets as Greatbatch's Net Investment.
-7-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
These Combined Financial Statements included an allocation of expenses related to certain Greatbatch corporate functions, including executive
oversight, finance, legal, human resources, tax, information technology, product development, corporate procurement, and facilities. These expenses
were charged to the Company on the basis of direct usage, when identifiable, with the remainder allocated primarily on a pro rata basis of
estimated hours incurred, headcount, square footage, or other measures. The Company's management considers the expense allocation methodology
and results to be reasonable for all periods presented. However, these allocations are not indicative of the actual expenses that would have been
incurred if the Company was an independent publicly-traded company or of the costs the Company will incur in the future. Following the Spin-off, Greatbatch has continued to provide many of these services on a transitional basis for a fee. See Note 11 "Related Party
Transactions" for additional information.
Greatbatch maintains a number of employee benefit and stock-based compensation programs at a corporate level. Nuvectra's employees historically
participated in those programs, and as such, the Company was charged a portion of the expenses associated with these programs. Any benefit plan liabilities that are the Company's direct obligation, such as certain performance-based bonus plans, are reflected in the Condensed Consolidated Balance Sheets, as well as within the Company's operating expenses. See Note 3 "Employee Benefit Plans" for further description of these plans.
Greatbatch's Net Investment in these Financial Statements represented the excess of total assets over total liabilities prior to the Spin-off. Greatbatch's Net Investment was primarily impacted by contributions from Greatbatch and net funding of Nuvectra's expenses provided by Greatbatch. Greatbatch paid for substantially all transaction costs, other than deferred financing fees for the credit facility, associated with the Spin-off. The Company has incurred significant net losses and negative cash flows from operations since inception and expects to incur additional net losses for the foreseeable future. Immediately prior to completion of the Spin-off, Greatbatch made a cash capital contribution to Nuvectra of $75 million. This cash capital contribution, together with the Company's cash on hand and borrowings under the credit facility, $25 million of which is subject to achieving trailing six month revenue milestones and compliance with specified conditions and covenants
, is an amount that the Company estimates will, based on its current plans and expectations, meet its cash needs for approximately two years after the completion of the Spin-off. The Company periodically evaluates its liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, the Company has in the past sought, and may in the future seek, to explore strategic alternatives to finance its business plan, including but not limited to, a public offering of its common stock, private equity or debt financings, or other sources, such as strategic partnerships.  The Company is also focusing on increasing the sales of its products to generate cash flow to fund its operations. However, t
here can be no assurance that the Company will be successful in its plans described above or in attracting alternative debt or equity financing.
Fiscal Year End
– The Company utilizes a fifty-two, fifty-three week fiscal year ending on the Friday nearest December 31. The third quarter and first nine month periods of 2016 and 2015 each contained 13 weeks and 39 weeks, respectively, and ended on September 30, and October 2, respectively.
Impairment of Long-Lived Assets
– The Company assesses the impairment of definite-lived long-lived assets or asset groups when events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that are considered in deciding when to perform an impairment review include: a significant decrease in the market price of the asset or asset group; a significant change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition; a significant change in legal factors or in the business climate that could affect the value of a long-lived asset or asset group, including an action or assessment by a regulator; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group; or a current expectation that, more likely than not, a long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent.
-8-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
Potential recoverability is measured by comparing the carrying amount of the asset or asset group to its related total future undiscounted cash flows. If the carrying value is not recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group's carrying amount to its fair value. When it is determined that useful lives of assets are shorter than originally estimated, and no impairment is present, the rate of depreciation is accelerated in order to fully depreciate the assets over their new shorter useful lives.
Goodwill is not amortized but is periodically tested for impairment. The Company assesses goodwill for impairment on the last day of each fiscal year, or more frequently if certain events occur as described above. Goodwill is evaluated for impairment through the comparison of the fair value of the Company's reporting unit to its carrying value. When evaluating goodwill for impairment, the Company may first perform an assessment of qualitative factors to determine if the fair value of the reporting unit is more-likely-than-not greater than its carrying amount. This qualitative assessment is referred to as a "step zero" approach. If, based on the review of the qualitative factors, the Company determines it is more-likely-than-not that the fair value of its reporting unit is greater than its carrying value, the required two-step impairment test can be bypassed. If the Company does not perform a step zero assessment or if the fair value of the reporting unit is more-likely-than-not less than its carrying value, the Company must perform a two-step impairment test, and calculate the estimated fair value of the reporting unit. If, based upon the two-step impairment test, it is determined that the fair value of its reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the goodwill within the reporting unit is less than its carrying value. Under the two-step approach, the fair value for the Company's reporting unit is determined based on
discounted cash flows and market multiples.
The Company completed its annual goodwill impairment assessment for fiscal year 2015 by performing a step zero qualitative analysis. As part of this analysis, the Company evaluated factors including, but not limited to, macro-economic conditions, market and industry conditions, cost factors, the status of the development of its medical device initiatives, the status of regulatory approvals, the competitive environment, results of the last impairment test, and the operational stability and the overall financial performance of its reporting unit. After completing the analysis, the Company determined that it was more likely than not that its reporting unit's fair value was greater than the reporting unit's carrying value and the two-step impairment test was not necessary.
Warranty Reserve
– The Company offers warranty on certain of its products and has established a warranty reserve, as a component of accounts payable and other current liabilities
, for any potential claims. The Company estimates its warranty reserve based upon an analysis of all identified or expected claims and an estimate of the cost to resolve those claims. Factors that affect the Company's warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and differences between actual and expected warranty costs per claim. The Company periodically assesses the adequacy of its warranty liabilities and adjusts the amounts as necessary.
Inventories
– The value of inventories are stated at the lesser of market value or cost, determined using the first-in, first-out ("FIFO") method. To value inventory, management must estimate excess or obsolete inventory, as well as inventory that is not of saleable quality. This valuation involves an inherent level of risk and uncertainty due to unpredictability of trends in the industry and customer demand for the Company's products. In assessing the ultimate realization of inventories, management must make judgments as to future demand requirements and compare that with the current or committed inventory levels. Reserve requirements generally increase as demand decreases due to market conditions and technological and product life-cycle changes. Future events and variations in valuation methods or assumptions may cause significant fluctuations in this estimate and could have a material impact on the Company's results.
-9-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
Revenue Recognition
– The Company recognizes revenue when it is realized or realizable and earned. This occurs when persuasive evidence of an arrangement exists, delivery has occurred, the risk of loss is transferred, the price is fixed or determinable, the buyer is obligated to pay (i.e., not contingent on a future event), collectability is reasonably assured, and the amount of future returns can reasonably be estimated. In cases where the Company utilizes distributors or ships product directly to the end user, it generally recognizes revenue upon shipment provided all revenue recognition criteria have been met. When sales representatives deliver products at the point of implantation at hospitals or medical facilities, the Company recognizes revenue upon completion of the procedure and authorization.
Service revenue is recognized as the services are performed. The Company's development services are typically provided on a fixed-fee basis. The revenues for such longer duration projects are typically recognized using the proportional performance method. In using the proportional performance method, revenues are generally recorded based on the percentage of effort incurred to date on a contract relative to the estimated total expected contract effort. Significant judgment is required when estimating total contract effort and progress to completion on the arrangements as well as whether a loss is expected to be incurred on the contract. Management uses historical experience, project plans and an assessment of the risks and uncertainties inherent in the arrangements to establish these estimates. Various uncertainties may or may not be within the Company's control. Deferred revenue consists primarily of service revenue not yet performed.
2.
INTANGIBLE ASSETS
Intangible assets are comprised of the following (in thousands):
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
At September 30, 2016
Technology and patents
$
1,058
$
(469
)
$
589
Customer lists
1,869
(672
)
1,197
Total intangible assets
$
2,927
$
(1,141
)
$
1,786
At January 1, 2016
Technology and patents
$
1,058
$
(388
)
$
670
Customer lists
1,869
(556
)
1,313
Total intangible assets
$
2,927
$
(944
)
$
1,983
Aggregate intangible asset amortization expense is classified as follows (in thousands):
Three Months Ended
Nine Months Ended
September 30, 2016
October 2, 2015
September 30, 2016
October 2, 2015
Cost of sales
$
25
$
33
$
80
$
99
Selling, general and administrative
expenses
37
40
117
118
Total intangible asset amortization
expense
$
62
$
73
$
197
$
217
-10-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
Estimated future intangible asset amortization expense based on the current carrying value is as follows (in thousands):
Estimated
Amortization
Expense
Remainder of 2016
$
72
2017
286
2018
298
2019
293
2020
209
Thereafter
628
Total estimated amortization expense
$
1,786
3.
EMPLOYEE BENEFIT PLANS
Nuvectra Corporation 2016 Equity Incentive Plan
– The Nuvectra Corporation 2016 Equity Incentive Plan (the "2016 Equity Plan") was adopted by the Board of Managers of QiG Group, LLC and was subsequently ratified and approved by Nuvectra's Board of Directors effective as of March 14, 2016. The 2016 Equity Plan provides that the Compensation and Organization Committee of the Board of Directors (the "Compensation Committee") may award eligible participants, as it may determine from time to time, the following types of awards: stock options, stock appreciation rights, restricted stock, restricted stock units and stock bonuses. Subject to the adjustment clauses in the 2016 Equity Plan, the total number of shares of Nuvectra common stock reserved for issuance under the 2016 Equity Plan is 1,128,410.
During the nine months ended September 30, 2016 the Compensation Committee granted equity awards aggregating 796,026 shares of common stock under the 2016 Equity Plan in the form of both restricted stock units and non-qualified stock options to its directors and certain officers and key employees.
Stock-Based Compensation
– Certain of the Company's employees participated in the stock-based compensation programs of Greatbatch and prior to the Spin-off received awards of time-based stock options and time- and performance-based restricted stock units, which typically vest over a three year period and are settled in shares of Greatbatch common stock. The stock-based payment compensation expense includes the compensation expense directly attributable to Nuvectra employees from these Greatbatch equity incentives. In addition, certain incentive awards that were originally granted under a Greatbatch equity incentive award plan adjusted into an incentive award of Nuvectra common stock in accordance with the terms of the employee matters agreement (a "Spin-off Award").
The components and classification of stock-based compensation expense were as follows (in thousands):
Three Months Ended
Nine Months Ended
September 30,
2016
October 2,
2015
September 30,
2016
October 2,
2015
Stock options
$
186
$
55
$
434
$
163
Restricted stock and restricted stock units
362
212
1,365
539
Total stock-based compensation
expense
$
548
$
267
$
1,799
$
702
-11-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
Three Months Ended
Nine Months Ended
September 30,
2016
October 2,
2015
September 30,
2016
October 2,
2015
Selling, general and administrative
expense
$
462
$
190
$
1,081
$
471
Research, development and
engineering costs, net
86
77
249
231
Other operating expenses
—
—
469
—
Total stock-based compensation
expense
$
548
$
267
$
1,799
$
702
The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model with weighted-average assumptions based on the grant date. The weighted average fair value and assumptions used to value options granted under the
2016 Equity Plan are as follows:
Three Months Ended
September 30, 2016
Nine Months Ended
September 30, 2016
Weighted average fair value
$
4.58
$
4.50
Risk-free interest rate
1.61
%
1.72
%
Expected volatility
55
%
55
%
Expected life (in years)
10
10
Expected dividend yield
—
%
—
%
The following table summarizes the stock option activity:
Number of
Time-Vested
Stock
Options
Weighted
Average
Exercise
Price
Outstanding at March 14, 2016
605,257
$
6.09
Granted
357,021
7.23
Exercised
(25,504
)
5.25
Forfeited or expired
(26,830
)
9.45
Outstanding at September 30, 2016
909,944
$
6.46
Exercisable at September 30, 2016
470,718
$
5.19
-12-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
The following table summarizes the restricted stock and restricted stock unit activity:
Time-Vested
Activity
Weighted
Average
Fair Value
Nonvested at March 14, 2016
172,115
$
6.97
Granted
439,005
6.93
Vested
(9,297
)
7.26
Forfeited
(30,370
)
6.76
Nonvested at September 30, 2016
571,453
$
6.93
Nuvectra 2016 Bonus Plan
– Under the terms of the Nuvectra Corporation 2016 Bonus Plan (the "2016 Bonus Plan") there is an annual discretionary defined contribution cash bonus and a performance-based bonus plan based upon Nuvectra's company-wide performance measures and, for certain employees, individual performance measures that are set by Nuvectra executive management. Compensation cost related to the 2016 Bonus Plan for the first nine months of 2016 was approximately $0.4 million.
Algovita Bonus Plan
– Prior to the Spin-off certain employees of Nuvectra participated in a performance-based bonus plan based upon the ultimate commercialization value, as defined in the bonus plan, of Algovita (the "Algovita Bonus Plan"). Compensation costs related to the Algovita Bonus Plan for the third quarter and first nine months of 2015 were $1.7 million and $2.3 million, respectively. The Algovita Bonus Plan is no longer in effect and the Company will have no future liability under the Algovita Bonus Plan.
4.
OTHER OPERATING EXPENSES
(INCOME)
Other Operating Expenses (Income) is comprised of the following (in thousands):
Three Months Ended
Nine Months Ended
September 30,
2016
October 2,
2015
September 30,
2016
October 2,
2015
Performance restricted stock expense
$
—
$
—
$
469
$
—
Cleveland facility shutdown
—
(198
)
—
228
Other expenses
7
—
7
32
Total other operating expense
(income)
$
7
$
(198
)
$
476
$
260
Performance Restricted Stock Expense
– As a result of the Spin-off, certain 2015 performance stock units for Nuvectra employees were effectively cancelled with no new issuance. Therefore, the remaining unvested expense as of March 14, 2016 was accelerated and expensed immediately.
Cleveland Facility Shutdown
– In 2014, the Company initiated a plan to transfer the design engineering responsibilities previously performed at its Cleveland, OH facility to the Company's facility in Blaine, MN. This initiative was completed during 2015. Total restructuring charges incurred in connection with this initiative were $1.1 million. Expenses related to this initiative included the following:
●
Severance and retention: $0.4 million;
●
Asset write-offs: $0.3 million;
●
Other: $0.4 million
-13-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
Other costs primarily consist of costs to relocate certain equipment and personnel and the related travel expenditures. All expenses are cash expenditures, except asset write-offs.
Other Expenses
– During 2016 and 2015, the Company recorded charges in connection with various asset disposals.
5.
DEBT
Long-term debt is comprised of the following (in thousands):
As of
September 30
, 2016
January 1, 2016
Term loan
$
16,163
$
—
Deferred financing fees
(1,346
)
—
Discount on debt
(1,234
)
—
Total long-term debt
$
13,583
$
—
Credit Facility
– The Company has a credit facility (the "Credit Facility") that consists of (a) term loan facilities in an aggregate maximum principal amount of $40,000,000 comprised of (i) a $15,000,000 Term Loan A Commitment, which was funded in full on March 18, 2016, (ii) a $12,500,000 Term Loan B Commitment, which is available for draw December 31, 2016 through June 30, 2017, and (iii) a $12,500,000 Term Loan C Commitment, which is available for draw June 30, 2017 through December 31, 2017 (collectively, the "Term Loans"); and (b) a Revolving Line Commitment in a maximum principal amount of $5,000,000 (the "Revolving Loans" and collectively with the Term Loans, the "Loans"). Availability of the Term Loan B Commitment is subject to the Company achieving consolidated trailing six month revenues of at least $13,500,000, and the availability of the Term Loan C Commitment is subject to the Company achieving consolidated trailing six month revenues of at least $20,000,000. The Company has the right to draw on each Term Loan B and C Commitments within 60 days of achieving the applicable revenue threshold. The Revolving Line Commitment is subject to a borrowing base of 80% of the aggregate amount of eligible accounts receivable of the Company, which advance rate and eligibility criteria may be modified from time to time based on periodic collateral examinations.
The Term Loans bear interest at a floating rate equal to the prime rate plus 4.15%, with a floor of 7.65%. At September 30, 2016 the interest rate on borrowings under the term loan was 7.65%. The Company pays monthly accrued interest only on the Term Loans through September 2017 (or March 2018 if the Term Loan B Commitment is funded), and thereafter the Company will pay monthly accrued interest on the Term Loans plus equal payments of principal for 36 months (or 30 months if the Term Loan B Commitment is funded). At the maturity of the Term Loans, on September 1, 2020, all principal on the Term Loans then outstanding, plus an additional 7.75% of the funded loan amounts (the "Final Payment"), will be due and payable. This Final Payment has been treated as an in substance discount and will be amortized using the straight-line interest method over the life of the loan. The Revolving Loans bear interest at a floating rate equal to the prime rate plus 3.45%, with a floor of 6.95%. The Company pays monthly accrued interest only on the Revolving Loans until maturity on March 18, 2018, at which time all principal on the Revolving Loans will be due and payable. There were no borrowings on the Revolving Loans as of September 30, 2016.
The Company paid an arrangement fee of $1.1 million, a commitment fee of $200,000 for all of the Term Loan A, B, and C Commitments, and one-half of a $25,000 commitment fee for the Revolving Loans, with the remaining one-half due and payable on the one year anniversary of the initial closing. The Term Loan B Commitment and the Term Loan C Commitment are subject to a non-use fee of 2% of the amount of such commitment if the commitment becomes available, but the Company declines to borrow the Term Loans thereunder. If any Term Loans are voluntarily prepaid prior to their scheduled maturity, the Company must pay, in addition to the Final Payment, a prepayment fee equal to 3% of the prepaid principal if paid in the first year after the initial closing, 2% of the prepaid principal if paid in the second year after the initial closing, and 1% of the prepaid principal if paid thereafter.
-14-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
The Loans are secured by a first priority lien on substantially all of the assets of the Company, including, without limitation, all cash, deposit accounts, accounts receivable, equipment, inventory, contract rights, and the Company's real property located in Blaine, Minnesota, but excluding all intellectual property of the Company (other than accounts receivable and proceeds of intellectual property). The Company's intellectual property is subject to a negative pledge. The Company must maintain its primary operating and investment accounts with Silicon Valley Bank, which accounts are subject to customary control agreements.
The Credit Facility contains customary representations and warranties, reporting and other covenants for credit facilities of this kind including prohibitions on the payment of cash dividends on the Company's capital stock and restrictions on mergers, sales of assets, investments, incurrence of liens, incurrence of indebtedness and transactions with affiliates
. If the lenders fund the Term Loan B Commitment, the Company will be subject to a quarterly financial covenant requiring the Company to achieve consolidated revenues of at least 75% of Nuvectra's forecasts that have been previously approved by the lenders. The events of default in the Credit Facility are customary for credit facilities of this kind, and include failure to pay interest or principal, breaches of affirmative and negative covenants, a material adverse change occurring, and cross defaults to other material agreements of the Company.
As a condition to the lenders' funding the Loans under the Credit Facility, concurrently with the funding under the Term Loan A Commitment on March 18, 2016, (i) the Company issued to Oxford Finance LLC a warrant to purchase 56,533 shares of Nuvectra common stock at an exercise price of $5.97 per share, which warrant is exercisable until March 18, 2026 (the "Oxford Warrant"), and (ii) the Company issued to Silicon Valley Bank a warrant to purchase 56,533 shares of Nuvectra common stock at an exercise price of $5.97 per share, which warrant is exercisable until March 18, 2026 (the "Silicon Valley Warrant"). The fair value of the warrants on the date of grant totaled approximately $0.2 million and was recorded as a discount on long-term debt and as additional paid-in capital in the Condensed Consolidated Balance Sheets, as the warrants met the criteria under the relevant accounting standard for treatment as an equity instrument. The debt discount will be amortized over the term of the Term Loan A Commitment.
Upon the funding of each of the Term Loan B Commitment and the Term Loan C Commitment, as applicable, Oxford Finance LLC and Silicon Valley Bank will each be entitled to additional warrants for the purchase of Nuvectra common stock. The number of shares under each warrant will be equal to the amount of the Term Loan made by each lender multiplied by 4.50% and divided by the then current trading price of Nuvectra common shares. The exercise price of the warrants will be equal to the trading price of Nuvectra common shares on the date of funding. The fair value of these future warrants as of September 30, 2016 was approximately $0.6 million and is recorded in other long-term liabilities in the Condensed Consolidated Balance Sheet. As of April 1, 2016, these warrants were classified as a derivative liability because the Company did not meet the criteria under the relevant accounting standard for treatment as equity instruments. As a result, the derivative liability warrants will be remeasured to its fair value at the end of each reporting period until it meets the requirements for equity treatment or is cancelled.
Deferred Financing Fees
–
The change in deferred financing fees is as follows (in thousands):
At January 1, 2016
$
—
Additions during the period
1,528
Amortization during the period
(182
)
At September 30, 2016
$
1,346
In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," the Company has presented debt issuance costs as a direct deduction from Long-Term Debt in the Condensed Consolidated Balance Sheet.
-15-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
6.
INCOME TAXES
The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws, business reorganizations and settlements with taxing authorities.
The Company records a valuation allowance when it is "more likely than not" that all or a portion of a deferred tax asset will not be realized. Management reviews all available positive and negative evidence, including the Company's current and past performance, the market environment in which the Company operates, the utilization of past tax credits, length of carry back and carry forward periods, existing contracts or sales backlog that will result in future profits, as well as other factors. The Company maintains a full valuation allowance on all of the net deferred tax assets for the periods presented. Until an appropriate level of profitability is sustained, the Company expects to continue to record a full valuation allowance on future tax benefits.
Pursuant to the terms of the tax matters agreement with Greatbatch, for a period of two years following the date of the Spin-off, the Company will be prohibited from (i) causing or permitting to occur any transaction or series of transactions, subject to certain exceptions provided under the U.S. federal income tax rules, in connection with which one or more persons would (directly or indirectly) acquire an interest in its capital stock that, when combined with any other acquisition of an interest in its capital stock that occurs after the Spin-off, comprises 30% or more of the value or the total combined voting power of all interests that are treated as outstanding equity of Nuvectra for U.S. federal income tax purposes immediately after such transaction or, in the case of a series of related transactions, immediately after any transaction in such series; (ii) transferring, selling or otherwise disposing of 35% or more of its gross assets if such transfer, sale or other disposition would violate the IRS' rules and regulations; (iii) liquidating its business or (iv) ceasing to maintain its active business. If the Company takes any of these actions and such actions result in tax-related costs for Greatbatch, then the Company would generally be required to indemnify Greatbatch for such costs. If the Company is unable to raise or are prohibited under the terms of the tax matters agreement with Greatbatch from raising additional funds when needed, it may be required to delay, reduce, or terminate some or all of its development plans.
7.
COMMITMENTS AND CONTINGENCIES
Litigation
–
Periodically the Company is a party to various legal actions, both threatened and filed, arising in the normal course of business. While the Company does not expect that the ultimate resolution of any pending actions will have a material effect on its results of operations, financial position, or cash flows, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending or threatened legal action, which the Company currently believes to be immaterial, does not become material in the future.
Purchase Commitments
– Contractual obligations for purchase of goods or services are defined as agreements that are enforceable and legally binding on the Company and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. The Company's purchase orders are normally based on its current manufacturing or other operational needs. As of September 30, 2016, the total contractual obligation related to inventory purchase orders with Greatbatch was approximately $5.5 million. As of September 30, 2016, the Company had no material commitments to purchase capital assets; however, planned capital expenditures for the remainder of 2016 are estimated at approximately $0.5 million and will primarily be financed by existing cash and cash equivalents, cash generated from operations, or the Credit Facility. The Company also enters into contracts for outsourced services; however, the obligations under these contracts were not significant and the contracts generally contain clauses allowing for cancellation without significant penalty. The Company's significant long-term obligations are operating leases on its facilities.
-16-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
8.
EARNINGS
(LOSS)
PER SHARE ("EPS")
Basic net loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is equal to basic net loss per share as the Company had no potentially dilutive securities outstanding for any of the periods presented. Prior to the Spin-off, the Company operated as part of Greatbatch and not as a separate entity. As a result, the Company did not have any common shares outstanding prior to March 14, 2016. The calculation of basic and diluted net loss per share assumes that the 10,258,278 shares issued to Greatbatch shareholders in connection with the Spin-off have been outstanding for all prior periods presented.
The following table illustrates the calculation of Basic and Diluted EPS (in thousands, except per share amounts):
Three Months Ended
Nine Months Ended
September 30,
2016
October 2,
2015
September 30,
2016
October 2,
2015
Basic net loss per share:
Net loss
$
(9,450
)
$
(7,034
)
$
(25,353
)
$
(18,725
)
Weighted average common shares outstanding
10,279
10,258
10,268
10,258
Basic net loss per share
$
(0.92
)
$
(0.69
)
$
(2.47
)
$
(1.83
)
Diluted net loss per share:
Net loss
$
(9,450
)
$
(7,034
)
$
(25,353
)
$
(18,725
)
Weighted average common shares outstanding
10,279
10,258
10,268
10,258
Dilutive stock options, restricted stock and restricted stock units
—
—
—
—
Weighted average common shares outstanding – assuming dilution
10,279
10,258
10,268
10,258
Diluted net loss per share
$
(0.92
)
$
(0.69
)
$
(2.47
)
$
(1.83
)
Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive
1,594
1,594
1,594
1,594
9.
FAIR VALUE MEASUREMENTS
The carrying amounts of cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these items. As of September 30, 2016, the fair value of the Company's variable rate long-term debt approximates its carrying value and is categorized in Level 2 of the fair value hierarchy.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). The Company has categorized its warrants measured at fair value on a recurring basis in Level 3 of the fair value hierarchy. The fair value of the warrants classified as liability awards was determined by utilizing a Monte Carlo simulation model, which projects the value of Nuvectra stock versus its peer group under numerous scenarios, and determines the value of the award based upon the present value of these projected outcomes. The estimated fair value of the warrants as of the date of issuance was approximately $0.5 million, which has been recorded as a liability in the Condensed Consolidated Balance Sheet. The estimated fair value of the warrant liability will be revalued on a quarterly basis and any resulting increases or decreases in the estimated fair value will be recorded as an adjustment to operating earnings. For the three and nine months ended September 30, 2016, the Company recorded approximately $40 thousand and $110 thousand in fair value adjustments, respectively. The estimated fair value of the warrants as of September 30, 2016 was approximately $0.6 million.
-17-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Fair value standards also apply to certain assets and liabilities that are measured at fair value on a nonrecurring basis. A summary of the valuation methodologies for assets and liabilities measured on a nonrecurring basis is as follows:
Long-lived Assets
– The Company reviews the carrying amount of its long-lived assets to be held and used, other than goodwill, for potential impairment whenever certain indicators are present.
Goodwill
– Goodwill recorded is not amortized but is periodically tested for impairment. The Company assesses goodwill for impairment on the last day of each fiscal year, or more frequently if certain events occur.
Warrants
– In order to determine the fair value of the warrants classified as equity awards, the Company used a Black-Scholes Option Pricing Model. The risk-free interest rate represents the 10-Year U.S. Treasury rate as of March 18, 2016. The expected volatility assumption is based on historical volatilities for publicly traded stock of comparable companies.
The following table summarizes the assumptions used for estimating the fair value of the warrants:
Risk-free interest rate
1.88
%
Expected volatility
45.00
%
Expected term (in years)
10
Dividend yield
—
%
10.
BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION
The Company operates as one reportable segment. Nuvectra's revenue includes sales of neural interface technology, components and systems to the neuroscience and clinical markets, development and engineering service fees and sales from the limited release of Algovita in the United States and Europe. Future revenues of Nuvectra are expected to come primarily from sales of Algovita, particularly after expansion of its launch commercially in the United States, Virtis
TM
, the second application of the Company's neurostimulation technology platform and its first product for the SNS market, and, from time to time, may also include
technology licensing fees, development and engineering service fees, and royalty fees.
Product line sales for the Company were as follows (in thousands):
Three Months Ended
Nine
Months Ended
September 30,
2016
October 2,
2015
September 30,
2016
October 2,
2015
Neural interface components and systems
$
1,438
$
1,156
$
3,895
$
2,910
Algovita
1,165
115
2,149
1,032
Development and engineering service
1,163
—
2,338
—
Total sales
$
3,766
$
1,271
$
8,382
$
3,942
-18-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
Sales by geographic area are presented by allocating sales from external customers based on where the products are shipped or services are rendered (in thousands):
Three Months Ended
Nine Months Ended
September 30,
2016
October 2,
2015
September 30,
2016
October 2,
2015
Sales by geographic area:
United States
$
1,612
$
743
$
3,439
$
1,564
Non-Domestic locations:
Switzerland
1,216
24
2,486
43
Germany
433
178
1,298
1,240
Rest of world
505
326
1,159
1,095
Total sales
$
3,766
$
1,271
$
8,382
$
3,942
All of the Company's long-lived tangible assets are located in the United States. The Company is dependent on Greatbatch to manufacture Algovita and its components. An inability to obtain a sufficient quantity of Algovita or its components could have a material adverse impact on the Company's business, financial condition, and results of operations. See Note 11 "Related Party Transactions" for additional information regarding the Company's relationship with Greatbatch.
11.
related party transactions
Corporate Overhead Allocations from Greatbatch
– As discussed in Note 1 "Summary of Significant Accounting Policies," the Company historically operated as part of Greatbatch and as a result shared many overhead functions and services performed by various Greatbatch corporate departments. Costs of these departments were allocated across the Greatbatch entities, including the Company, that benefited from those services during the periods presented herein. The indirect costs allocated included executive oversight, finance, legal, human resources, tax, information technology, product development, corporate procurement, and facilities. These expenses have been charged to the Company on a pro rata basis based upon estimated hours incurred, headcount, square footage, or other measures. The Company considers the expense allocation methodology and results to be reasonable for all periods presented. However, these allocations are not indicative of the actual expenses that would have been incurred if the Company was an independent publicly-traded company or of the costs the Company will incur in the future. At this time, the Company is unable to determine what its expenses would have been on a standalone basis if the Company had operated as an unaffiliated entity for each period in which a statement of operations is presented. Beginning in 2016 research, development and engineering costs were no longer allocated to the Company as it was not receiving a benefit from these services.
Corporate overhead allocations from Greatbatch were classified as follows (in thousands):
Three Months Ended
Nine Months Ended
September 30,
2016
October 2,
2015
September 30,
2016
October 2,
2015
Selling, general and administrative expenses
$
—
$
251
$
236
$
768
Research, development and engineering costs, net
—
445
—
1,335
Total
$
—
$
696
$
236
$
2,103
-19-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
The Company entered into, or amended, various agreements with Greatbatch to effect the Spin-off and to provide a framework for the Company's relationship with Greatbatch going forward after the Spin-off including a supply agreement, license agreements, a separation and distribution agreement, a tax matters agreement, a transition services agreement and an employee matters agreement, which provided for the allocation between Nuvectra and Greatbatch of assets, employees, liabilities and obligations (including PP&E, employee benefits, and tax-related assets and liabilities) attributable to the Company's business for the period prior to, at, and after the Spin-off. Immediately prior to the completion of the Spin-off, Greatbatch made a cash capital contribution to Nuvectra of $75.0 million. This cash capital contribution, together with the Company's cash on hand and borrowings under the Credit Facility, $25 million of which is subject to achieving trailing six month revenue milestones and compliance with specified conditions and covenants
, is an amount that the Company estimates will, based on its current plans and expectations, meet its cash needs for approximately two years after the completion of the Spin-off. The Company periodically evaluates its liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, the Company has in the past sought, and may in the future seek, to explore strategic alternatives to finance its business plan, including but not limited to, a public offering of its common stock, private equity or debt financings, or other sources, such as strategic partnerships.  The Company is also focusing on increasing the sales of its products to generate cash flow to fund its operations. However, t
here can be no assurance that the Company will be successful in its plans described above or in attracting alternative debt or equity financing.
Employee Benefit Plans
– Certain of the Company's employees historically participated in various Greatbatch defined contribution and stock-based compensation plans. Compensation expense allocated to Nuvectra for these plans from Greatbatch were based upon the costs directly attributable to Nuvectra employees. See Note 3 "Employee Benefit Plans" for additional information.
Insurance
– The Company has historically participated in Greatbatch's various insurance programs, to insure for property and casualty risks, product liability, employee health care, workers' compensation and other casualty losses. Many of the potential losses were covered under conventional insurance programs with third-party carriers with high deductible limits. In other areas, Greatbatch was self-insured with stop-loss coverage. The Company was charged a fee from Greatbatch for these insurance programs based upon square footage, headcount, or a direct charge for those policies directly attributable to Nuvectra. As of March 14, 2016 the Company is covered by its own insurance policies and, since that time, no insurance fee has been allocated from Greatbatch.
Supply Agreement
– The Company has a supply agreement with Greatbatch pursuant to which Greatbatch manufactures Algovita and certain of its components. Total charges incurred under this supply agreement are included in cost of sales. For further information, refer to the combined financial statements and notes included in the Company's Registration Statement on Form 10.
Purchase of Non-controlling Interests
– During the fourth quarter of 2015, the Company purchased the outstanding non-controlling interests of Algostim and PelviStim for $16.7 million, of which $9.9 million was paid in 2015 and $6.8 million was accrued at January 1, 2016 and paid by Greatbatch in January 2016 prior to the Spin-off. Included in the purchased amount was $6.9 million paid to Drees Holding LLC, which is a limited liability company of which Scott F. Drees, CEO of Nuvectra, is the principal owner and the sole managing director and approximately $848 thousand paid to Norbert Kaula, Executive Vice President of Research and Development of Nuvectra. Mr. Drees and Mr. Kaula each received their interests in Algostim and PelviStim in connection with entering into a long-term consulting agreement with Nuvectra and prior to being appointed to their current positions. The consulting agreements were terminated in connection with Mr. Drees and Mr. Kaula agreeing to serve in their current roles for Nuvectra. The buyout of the non-controlling interests was funded by a cash contribution from Greatbatch.
-20-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
12.
RECENTLY ISSUED ACCOUNTING STANDARDS
In the normal course of business, management evaluates all new accounting pronouncements issued by the FASB, Securities and Exchange Commission ("SEC"), Emerging Issues Task Force ("EITF"), and other authoritative accounting bodies to determine the potential impact they may have on the Company's Condensed Consolidated Financial Statements. Based upon this review, except as noted below, management does not expect any of the recently issued accounting pronouncements, which have not already been adopted, to have a material impact on the Company's Condensed Consolidated Financial Statements.
In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." This update provides clarification regarding how certain cash receipts and cash payment are presented and classified in the statement of cash flows. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This update is effective for annual and interim periods beginning after December 15, 2017, which will require the Company to adopt these provisions in the first quarter of fiscal 2018 using a retrospective approach. Early adoption is permitted. The Company does not expect its pending adoption of ASU 2016-15 to have a material impact on its Condensed Consolidated Financial Statements.
In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which amends Accounting Standards Codification ("ASC") Topic 718, Compensation – Stock Compensation. ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its Condensed Consolidated Financial Statements.
In February 2016, the FASB issued ASU 2016-02, "Leases" in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its Condensed Consolidated Financial Statements.
In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities
," which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The standard is effective for interim and annual periods beginning after December 31, 2017, and early adoption is generally not permitted.
The Company is currently in the process of evaluating the impact of adoption of the ASU on its Condensed Consolidated Financial Statements.
In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This update requires inventory within the scope of the standard to be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this update do not apply to inventory that is measured using last-in, first-out ("LIFO") or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using FIFO or average cost. This update is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, which will require the Company to adopt these provisions in the first quarter of fiscal 2017. Early adoption is permitted. The Company does not expect its pending adoption of ASU 2015-11 to have a material impact on its Condensed Consolidated Financial Statements.
-21-
Nuvectra Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – Unaudited
In August 2014, the FASB issued ASU 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," to provide guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This ASU is effective for annual periods ending after December 15, 2016, with early adoption permitted. The Company does not expect its pending adoption of ASU 2014-15 to have a material impact on its Condensed Consolidated Financial Statements.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." The core principle behind ASU 2014-09 is that an entity should recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for delivering goods and services. This model involves a five-step process that includes identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when the entity satisfies the performance obligations. This ASU allows two methods of adoption; a full retrospective approach where historical financial information is presented in accordance with the new standard, and a modified retrospective approach where this ASU is applied to the most current period presented in the financial statements. In August 2015, the FASB issued ASU 2015-14 "Revenue from Contracts with Customers: Deferral of the Effective Date," which deferred the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, with earlier application permitted as of annual reporting periods beginning after December 15, 2016. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," which clarified the revenue recognition implementation guidance on principal versus agent considerations and is effective during the same period as ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing,"
which clarified the revenue recognition guidance regarding the identification of performance obligations and the licensing implementation and is effective during the same period as ASU 2014-9. In May 2016, the FASB issued ASU 2016-11, "Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting
." The purpose of ASU 2016-11 is to rescind from the FASB Accounting Standards Codification certain SEC paragraphs as a result of two SEC Staff Announcements at the March 3, 2016 meeting. For public entities, the amendments in ASU 2016-11 related to Topic 605 are effective for interim and annual reporting periods beginning after December 15, 2017 and amendments related to Topic 815 are effective for interim and annual reporting periods beginning after December 15, 2015.
In May 2016, the FASB also issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,"
which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition and
is effective during the same period as ASU 2014-9. The Company is currently assessing the financial impact of adopting these ASUs and the methods of adoption. Given the scope of the new standard, the Company is currently unable to provide a reasonable estimate regarding the financial impact or which method of adoption will be elected.
13.
subsequent events
The Company evaluated subsequent events for recognition or disclosure through November 9, 2016, the date the Condensed Consolidated Financial Statements were available to be issued.
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ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
This report contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Our actual results could differ materially from those discussed in the forward-looking statements. Forward-looking statements can be identified by the use of words such as, but not limited to: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "target," "estimate," "expect," "strategy," "future," "likely," "may," "can," "continue," "could," "should," "would," "will," and similar expressions or references to future periods. 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 important 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. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include: (i) our ability to successfully commercialize Algovita and to develop, complete and commercialize enhancements or improvements to Algovita; (ii) our ability to successfully compete with our current SCS competitors and the ability of our U.S. sales representatives to successfully establish market share and acceptance of Algovita, (iii) our ability to demonstrate the features, perceived benefits and capabilities of Algovita to physicians and patients in competition with similar products already well established and sold in the SCS market; (iv) our ability to anticipate and satisfy customer needs and preferences and to develop, introduce and commercialize new products or advancements and improvements to Algovita in order to successfully meet our customers' expectations; (v) the outcome of our development plans for our neurostimulation technology platform, including our ability to identify additional indications or conditions for which we may develop neurostimulation medical devices or therapies and seek regulatory approval thereof; (vi) our ability to identify business development and growth opportunities and to successfully execute on our strategy, including our ability to seek and develop strategic partnerships with third parties to, among other things, fund clinical and development costs for new product offerings; (vii) our ability to successfully build, attract and maintain an effective commercial infrastructure and qualified sales force in the United States; (viii) our compliance with all regulatory and legal requirements regarding implantable medical devices and interactions with healthcare professionals; (ix) any product recalls, or the receipt of any warning letters, mandatory corrections or fines from any governmental or regulatory agency; and (x) our ability to satisfy the conditions and covenants, including trailing six month revenue milestones, of our Credit Facility.  Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section titled "Risk Factors" included under Part II, Item 1A below and the sections entitled "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors" in Nuvectra's Registration Statement on Form 10. Furthermore, such forward-looking statements speak only as of the date of this report. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.
Spin-Off From Greatbatch
On March 14, 2016, Greatbatch completed the Spin-off of Nuvectra from the remainder of its business. The Spin-off was accomplished by the distribution of all Nuvectra's issued and outstanding shares of common stock to Greatbatch's stockholders on the basis of one share of Nuvectra common stock for every three shares of Greatbatch common stock held on March 7, 2016, the record date of the distribution
. Immediately prior to completion of the Spin-off, QiG Group, LLC was converted from a limited liability company into Nuvectra Corporation, a Delaware corporation. At the time of the completion of the Spin-off, Greatbatch's stockholders owned 100% of the outstanding common stock of both Greatbatch and Nuvectra.
Our Business
We are a neurostimulation medical device company focused on the development and commercialization of our neurostimulation technology platform for treatment of various disorders through stimulation of tissues associated with the nervous system. We operate as a single reportable segment. Algovita is the first application of our neurostimulation technology platform and is indicated for the treatment of chronic pain of the trunk and limbs. We are in the process of developing additional applications for our neurostimulation technology platform including applications for the SNS and DBS markets. We have entered into a development agreement with Aleva Neurotherapeutics, a Swiss company, to develop our platform into a complete system for use in the DBS market for the treatment of Parkinson's disease.
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We submitted a premarket approval application for Algovita to the FDA in December 2013. On November 30, 2015, Greatbatch announced receipt of premarket approval for Algovita. We are currently in the initial stages of commercializing and introducing Algovita to the U.S. market. Algovita obtained CE mark approval on June 17, 2014 through our notified body, TÜV SÜD America, and has been commercially available to patients in Germany and several other European countries since November 2014. Algovita was previously being commercialized through our Algostim subsidiary that is 100% owned by us as of January 1, 2016.
One of our other subsidiaries, PelviStim, was also 100% owned by us as of January 1, 2016, and is focused on the commercialization of Virtis
TM
, the second application of our neurostimulation technology platform and our first product for the SNS market.
Prior to the fourth quarter of 2015, we owned 89% of Algostim and PelviStim. Under the operating agreements governing Algostim and PelviStim, we funded 100% of the expenses incurred by Algostim or PelviStim, as applicable, and no distributions were to be made to non-controlling interest holders of Algostim or PelviStim, as applicable, until we were reimbursed for these expenses. During the fourth quarter of 2015, we purchased the outstanding non-controlling interests of Algostim and PelviStim for $16.7 million of which $9.9 million was paid in 2015 and $6.8 million was accrued at January 1, 2016 and paid
by Greatbatch in January 2016 prior to the Spin-off. Included in this amount was $6.9 million paid to Drees Holding LLC, which is a limited liability company of which Scott F. Drees, our Chief Executive Officer, is the principal owner and the sole managing director and approximately $848 thousand paid to Norbert Kaula, Executive Vice President of Research and Development of Nuvectra. Mr. Drees and Mr. Kaula each received their interests in Algostim and PelviStim in connection with entering into a long-term consulting agreement with us and prior to being appointed to their current positions. The consulting agreements were terminated in connection with Mr. Drees and Mr. Kaula agreeing to serve in their current roles for Nuvectra. The purchase of the outstanding non-controlling interests was funded by a cash contribution from Greatbatch.
Our results also include the operations of our subsidiary NeuroNexus, which was originally acquired by Greatbatch in February 2012, the shares of which were transferred to us in connection with the Spin-off. NeuroNexus offers high-value neural interface technology and devices across a wide range of functions including neuromonitoring and recording, electrical and optical stimulation, and targeted drug delivery applications that complement our existing neurostimulation technology platform. We intend to incorporate certain of NeuroNexus' technologies into our neurostimulation technology platform.
Our revenues include sales of neural interface technology, components and systems to the neuroscience and clinical markets, development and engineering service fees, and a limited release of Algovita in Europe and the United States. We expect that our future revenues will come primarily from sales of neurostimulation medical device products, including Algovita, particularly as we continue our launch commercially in the United States, Virtis
TM
, the second application of our neurostimulation technology platform and our first product for the SNS market, and, from time to time, may also include
technology licensing fees, development and engineering service fees, and royalty fees.
Prior to the Spin-off, our expenses included an allocation of general corporate overhead expenses from Greatbatch relating to the following support functions provided for us by Greatbatch: executive oversight, finance, legal, human resources, tax, information technology, product development, corporate procurement, and facilities. These expenses were charged to us on the basis of direct usage, when identifiable, with the remainder allocated primarily on a pro rata basis of estimated hours incurred, headcount, square footage, or other measures. We consider the expense allocation methodology and results to be reasonable for all periods presented. However, these allocations are not indicative of the actual expenses that would have been incurred if we were an independent publicly-traded company or of the costs we will incur in the future. Following the Spin-off, Greatbatch has continued to provide services related to certain of these functions for us on a transitional basis for a fee pursuant to our transition services agreement. At this time, we are unable to determine what our expenses would have been on a standalone basis if we had operated as an unaffiliated entity for each period in which a statement of operations is presented.
Our Customers
Our customers include physicians, hospitals, surgery centers and other institutions, scientists or universities throughout the world who perform research for the neuroscience and clinical markets. Algovita was designed to provide pain management solutions to patients that have evolving requirements and needs. We are still developing our customer base for Algovita, which includes hospital and medical facilities served through a direct sales force and third-party distributors; therefore, the nature and extent of our selling relationships with each customer is different in terms of breadth of products purchased, purchased product volumes, length of contractual commitment, ordering patterns, inventory management, and selling prices. Additionally, our customers include a strategic development partner in the DBS market.
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Strategic and Financial Overview
We are a neurostimulation medical device company formed in 2008 to design and develop our neurostimulation technology platform for use in multiple different indications. Since our inception, the majority of our resources have been spent designing and developing Algovita. SCS was chosen as the first sector of the neurostimulation market to pursue, as we believe that it is a high growth and established market, there is an established regulatory and reimbursement pathway, and we believe that there are significant unmet needs in the SCS market. We currently have four significant competitors in the United States who may be better capitalized and who offer similar SCS devices that are already established and accepted in the market. While the competitive landscape for SCS remains challenging and we may face barriers to market acceptance of our product, we believe Algovita has certain differentiating features from other existing SCS systems that offer our patients and customers a broad set of capabilities and treatment options. Our U.S. sales team, in conjunction with marketing, is in the process of communicating and demonstrating to potential customers the features, perceived benefits and capabilities of Algovita.
We have a history of significant net losses, and we expect to continue to incur net losses for the foreseeable future. We expect that future revenue growth will come largely from sales of Algovita in the United States market.
Since submitting our premarket approval application for Algovita, we have accelerated the process of leveraging our neurostimulation technology platform for other sectors of the neurostimulation market such as DBS, SNS, and are exploring other emerging indications.
We have entered into a development agreement with Aleva to develop our neurostimulation technology platform into a complete system for use in the DBS market for the treatment of Parkinson's disease. Pursuant to the terms of the development agreement, Aleva is expected to pay us $6 million in the aggregate, which is to be paid in five installments with the final installment due during the third quarter of 2017 and $3.5 million of which is contingent upon Aleva's receipt of sufficient financing from third-party sources and upon Nuvectra providing certain deliverables per the development agreement. In connection with this development agreement with Aleva, we entered into an exclusive license agreement with Aleva whereby we will license certain of our intellectual property rights to Aleva for use in the field of use consisting of DBS for the treatment of Parkinson's disease in exchange for a royalty payment. In addition, in connection with the completion of the Spin-off, Greatbatch assigned to us, based upon its equity ownership interest in Aleva, the right to receive, contingent upon the occurrence of a sale, asset transfer, or other liquidity event with respect to Aleva: (i) a technology access success fee of up to CHF 7 million (which translated to approximately $7.2 million at September 30, 2016), with the actual amount to be received computed based upon the proceeds received by Aleva or its shareholders in the liquidity event; and (ii) the right to receive a payment, upon the occurrence of the liquidity event, in an amount equal to the difference between the liquidity event proceeds to be received by Greatbatch based upon its equity ownership interest in Aleva and 19.9%, 15.5%, or 10.0%, as may be applicable at such time based upon Greatbatch's funding of future equity investments in Aleva, of the total amount of the proceeds received by Aleva or its shareholders upon the occurrence of the liquidity event.
We also intend to pursue other strategic partnerships to fund clinical and development costs of new products, expand our product distribution channels, supplement our product commercialization efforts, obtain assistance in designing and performing clinical studies and post market studies, add specialized clinical or regulatory expertise, or acquire or obtain access to complementary intellectual property.
-25-
Our Financial Results
We utilize a fifty-two, fifty-three week fiscal year ending on the Friday nearest December 31. For 52-week years, each quarter contains 13 weeks. The third quarter and first nine month periods of 2016 and 2015 each contained 13 weeks and 39 weeks, respectively, and ended on September 30, and October 2, respectively. The discussion that follows should be read in conjunction with our Condensed Consolidated Financial Statements and related notes and with the Management's Discussion and Analysis of Financial Condition and Results of Operations contained in our Registration Statement on Form 10. The following table presents certain selected financial information derived from our Condensed Consolidated Financial Statements for the periods presented (dollars in thousands, except per share data):
Three Months Ended
Nine Months Ended
September 30,
October 2,
Change
September 30,
October 2,
Change
2016
2015
$
%
2016
2015
$
%
Sales:
Neural interface components and systems
$
1,438
$
1,156
$
282
24
%
$
3,895
$
2,910
$
985
34
%
Algovita
1,165
115
1,050
913
%
2,149
1,032
1,117
108
%
Development and engineering services
1,163
-
1,163
100
%
2,338
-
2,338
100
%
Total sales
3,766
1,271
2,495
196
%
8,382
3,942
4,440
113
%
Cost of sales
1,628
538
1,090
203
%
3,946
2,475
1,471
59
%
Gross profit
2,138
733
1,405
192
%
4,436
1,467
2,969
202
%
Gross profit as a % of sales
56.8
%
57.7
%
52.9
%
37.2
%
Selling, general and administrative expenses (SG&A)
8,006
3,914
4,092
105
%
18,185
8,190
9,995
122
%
SG&A as a % of total operating expenses
72.0
%
50.4
%
63.2
%
40.6
%
Research, development and engineering costs, net (RD&E)
3,114
4,051
(937
)
(23
)%
10,097
11,742
(1,645
)
(14
)%
RD&E as a % of total operating expenses
28.0
%
52.2
%
35.1
%
58.2
%
Other operating expenses (income), net
7
(198
)
205
(104
)%
476
260
216
83
%
Operating loss
(8,989
)
(7,034
)
(1,955
)
28
%
(24,322
)
(18,725
)
(5,597
)
30
%
Interest expense
455
-
455
100
%
978
-
978
100
%
Other expense, net
6
-
6
100
%
53
-
53
100
%
Provision for income taxes
-
-
-
-
-
-
-
-
Effective tax rate
0.0
%
0.0
%
0.0
%
0.0
%
Net loss
$
(9,450
)
$
(7,034
)
$
(2,416
)
34
%
$
(25,353
)
$
(18,725
)
$
(6,628
)
35
%
Diluted loss per share
$
(0.92
)
$
(0.69
)
$
(0.23
)
34
%
$
(2.47
)
$
(1.83
)
$
(0.64
)
35
%
Sales
Neural Interface Components and Systems.
Neural interface components and systems consist of sales of neural interface technology, components, and systems to the neuroscience and clinical markets. The primary factor behind the 24% increase in sales from the third quarter of 2015 to the third quarter of 2016 and the 34% increase in sales from the first nine months of 2015 to the first nine months of 2016 was due to increased volume of component sales. Price fluctuations did not have a significant impact on sales for the periods presented.
Algovita
. The primary factor behind the 913% increase in sales from third quarter of 2015 to the third quarter of 2016 and the 108% increase in sales from the first nine months of 2015 to the first nine months of 2016 was due to increased sales in the United States as a result of the commercial launch of Algovita in the United States during the first quarter of 2016. We expect to continue to build our sales organization for Algovita, consisting of direct sales representatives and independent sales agents in the United States and a network of distributors and independent sales agents outside of the United States to support future growth. Additionally, we have expanded our sales management team in an effort to mitigate the challenges we continue to experience in gaining approvals from hospital and ambulatory surgery center purchasing departments.
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Development and Engineering Service
. We have entered into a development agreement with Aleva to develop our neurostimulation technology platform into a complete system for use in the DBS market for the treatment of Parkinson's disease. Pursuant to the terms of the development agreement, Aleva is expected to pay us $6 million in the aggregate, which is to be paid in five installments with the final installment due during the third quarter of 2017
and $3.5 million of which is contingent upon Aleva's receipt of sufficient financing from third-party sources and upon Nuvectra providing certain deliverables per the development agreement. We recognized $1.2 million and $2.3 million of development and engineering services revenue during the third quarter and first nine months of 2016, respectively.
Cost of Sales
Cost of sales consists of the costs of materials, labor costs, amortization of technology intangibles, and plant and equipment depreciation and overhead. The primary driver behind the 203% increase in cost of sales from third quarter of 2015 to the third quarter of 2016 was the increased revenue from Algovita and our development and engineering services, as discussed above.
From the third quarter of 2015 to the third quarter of 2016 our gross profit increased $1.4 million or 192%, however, our gross profit as a percentage of sales, or Gross Margin, decreased slightly to 56.8% in the third quarter of 2016 from 57.7% in the third quarter of 2015. The decrease in Gross Margin was due to a shift in mix toward lower margin products and services.
The primary factor behind the 59% increase in cost of sales from the first nine months of 2015 to the first nine months of 2016 was the increased revenue as discussed above. We expect that our cost of sales will continue to increase as our sales continue to grow.
From the first nine months of 2015 to the first nine months of 2016 our gross profit increased $3.0 million or 202%. Additionally, our gross profit as a percentage of sales, or Gross Margin, increased to 52.9% in the first nine months of 2016 from 37.2% in the first nine months of 2015. These increases were primarily due to a shift in mix toward higher margin products and services, as well as pricing improvements under our supply agreement with Greatbatch for Algovita. The Algovita units sold in the first nine months of 2015 had negative gross profit as the cost of purchasing these units from Greatbatch was above their selling price given the initial production set-up costs and low volume of production. Purchase orders and our new supply agreement pricing now govern the current price paid to Greatbatch for each Algovita system.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses consist primarily of personnel costs, including salary and employee benefits for our sales and marketing personnel and for personnel that support our general operations, such as information technology, executive management, financial accounting, and human resources personnel. SG&A expenses increased $4.1 million, or 105%, from the third quarter of 2015 to the third quarter of 2016. This increase was primarily the result of increased salary and employee benefits as we have begun to build our sales organization and establish corporate support functions as an independent publicly-traded company.
SG&A expenses increased $10 million, or 122%, from the first nine months of 2015 to the first nine months of 2016. This increase was primarily the result of increased salary and employee benefits as we have begun to build our sales organization and establish corporate support functions as an independent publicly-traded company.
Going forward, we expect SG&A expenses to continue to increase as we continue to build and expand our sales organization consisting of direct sales representatives and independent sales agents in the United States and a network of distributors and independent sales agents outside of the United States. We expect that this will require recruiting appropriate and qualified direct sales representatives and independent sales agents, establishing a commercial infrastructure in the United States and training our direct sales representatives and independent sales agents; which will require a significant investment by us. Thereafter, we expect that our sales representatives and independent sales agents will require lead time in the field to access and grow their network of accounts and produce sales results. We believe that successfully recruiting, training and retaining a sufficient number of productive sales representatives and independent sales agents is important in achieving our future growth objectives.
After March 14, 2016, our SG&A expenses no longer include an allocation of corporate expenses from Greatbatch but instead reflect fees paid to Greatbatch to provide certain corporate support functions on a transitional basis under the transition services agreement. These corporate allocations included charges for executive oversight, finance, legal, human resources, tax, information technology, product development, corporate procurement, and facilities that totaled $251 thousand and $768 thousand of SG&A expenses for the three and nine months ended October 2, 2015, respectively, and $236 thousand for the nine months ended September 30, 2016. There were no such charges during the three months ended September 30, 2016. These expenses have been charged to us on a pro rata basis based upon estimated hours incurred, headcount, square footage, or other measures. We consider the expense allocation methodology and results to be reasonable for all periods presented. However, these allocations are not indicative of the actual expenses that would have been incurred if we operated as an independent publicly-traded company or of the costs we will incur in the future. At this time, we are unable to determine what our expenses would have been on a standalone basis if we had operated as an unaffiliated entity for each period in which a statement of operations is presented.
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Research, Development and Engineering Costs, Net
Research, development and engineering ("RD&E") costs primarily include salary and employee benefits for our specialists in software engineering, mechanical engineering, electrical engineering, and graphical user interface design. Many of these specialists have considerable experience in neurostimulation-related products. Additionally, RD&E includes design verification testing ("DVT") expenses, which include salary and employee benefits for our engineers who test the design and materials used in our medical devices.
RD&E costs for the third quarter of 2016 decreased $0.9 million, or 23%, compared to the third quarter of 2015. This decrease was primarily due to decreased personnel-related expenses and no allocation of corporate expenses from Greatbatch. RD&E costs decreased $1.6 million for the year-to-date period primarily due to receiving no allocation of corporate expenses from Greatbatch. As we must continually strive to anticipate and meet our customers' and patients' evolving needs and preferences, we expect to invest in product development, product enhancements and improvements and future clinical studies to further develop and update our existing technologies and to expand the features offered in Algovita. We also intend to continue to pursue strategic partnerships to fund clinical and development costs, in part or in full, of new products, expand our product distribution channels, improve our access to physicians and opinion leaders, supplement our product commercialization efforts, obtain assistance in performing clinical studies, add specialized clinical or regulatory expertise, or acquire or obtain access to complementary intellectual property.
Other Operating Expenses
(Income)
Other operating expenses (income) were comprised of the following (in thousands):
Three Months Ended
Nine Months Ended
September 30,
2016
October 2,
2015
September 30,
2016
October 2,
2015
Performance restricted stock expense
$
—
$
—
$
469
$
—
Cleveland facility shutdown
—
(198
)
—
228
Other expenses
7
—
7
32
Total other operating expense
(income)
$
7
$
(198
)
$
476
$
260
For additional information, see Note 4 "Other Operating Expenses (Income)" of the notes to our Condensed Consolidated Financial Statements.
Interest Expense
Interest expense for the third quarter and first nine months of 2016 was $455 thousand and $978 thousand, respectively. Interest expense is related to the Term Loan A Commitment that was funded on March 18, 2016 and amortization of deferred financing fees and discounts on debt. For additional information, see Note 5 "Debt" of the notes to our Condensed Consolidated Financial Statements.
Provision for Income Taxes
During the third quarters of 2016 and 2015, we recorded a valuation allowance for the amount of the deferred tax asset that was generated from our net losses and federal research and development tax credit earned and Section 754 election to the extent they exceeded any deferred tax liability, as it was more likely than not that the deferred tax asset generated from those activities will not be realized. Accordingly, our provision for income taxes for the third quarter and first nine months of both 2016 and 2015 was $0.
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Historically, the net operating losses and federal research and development tax credits generated by Nuvectra have been utilized by Greatbatch, which files a consolidated federal income tax return. See Note 6 "Income Taxes" of the notes to our Condensed Consolidated Financial Statements for disclosures related to our income taxes.
Liquidity and Capital Resources
Background
Greatbatch uses a centralized approach to cash management and financing of operations. We were previously a party to Greatbatch's cash pooling arrangements with several financial institutions to maximize the availability of cash for general operating and investing purposes. Under these cash pooling arrangements, cash was provided by Greatbatch to meet our financial obligations, which resulted in an increase in Greatbatch's net investment in us. Furthermore,
Greatbatch has paid for substantially all transaction costs, other than deferred financing fees for the credit facility, associated with the Spin-off. This financing and cash pooling arrangement with Greatbatch ended in connection with the completion of the Spin-off.
Because we were not the legal obligor of the debt obligation and Greatbatch's outstanding borrowings were not directly attributable to our operations, Greatbatch's outstanding indebtedness owed to third parties and the related interest expense have not been allocated to us for any of the periods presented in our Condensed Consolidated Financial Statements.
We have incurred significant net losses and negative cash flows from operations since our inception and we expect to continue to incur additional net losses for the foreseeable future.
Immediately prior to the completion of the Spin-off, Greatbatch made a cash capital contribution of $75.0 million to us, which we will use for the development and commercialization of Algovita and general corporate purposes. This cash capital contribution, together with our cash on hand and borrowings under the Credit Facility, $25 million of which is subject to achieving trailing six month revenue milestones and compliance with specified conditions and covenants, is in an amount that we estimate will, based on our current plans and expectations, meet our cash needs for approximately two years after the completion of the Spin-off.
We periodically evaluate our liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, we have in the past sought, and may in the future seek, to explore strategic alternatives to finance our business plan, including but not limited to, a public offering of our common stock, private equity or debt financings, or other sources, such as strategic partnerships.  We are also focusing on increasing the sales of our products to generate cash flow to fund our operations. However, t
here can be no assurance that we will be successful in our plans described above or in attracting alternative debt or equity financing. Pursuant to the terms of the tax matters agreement with Greatbatch, for a period of two years following the date of the Spin-off, we will be prohibited from (i) causing or permitting to occur any transaction or series of transactions, subject to certain exceptions provided under the U.S. federal income tax rules, in connection with which one or more persons would (directly or indirectly) acquire an interest in our capital stock that, when combined with any other acquisition of an interest in our capital stock that occurs after the Spin-off, comprises 30% or more of the value or the total combined voting power of all interests that are treated as outstanding equity of Nuvectra for U.S. federal income tax purposes immediately after such transaction or, in the case of a series of related transactions, immediately after any transaction in such series; (ii) transferring, selling or otherwise disposing of 35% or more of our gross assets if such transfer, sale or other disposition would violate the IRS' rules and regulations; (iii) liquidating our business or (iv) ceasing to maintain our active business. If we take any of these actions and such actions result in tax-related costs for Greatbatch, then we would generally be required to indemnify Greatbatch for such costs. If we are unable to raise or are prohibited under the terms of the tax matters agreement with Greatbatch from raising additional funds when needed, we may be required to delay, reduce, or terminate some or all of our development plans.
Currently, we expect our research, development and engineering costs for fiscal year 2016 to be between approximately $14 million and $16 million. These expenditures are primarily to continue and expand our research and development program to enhance and improve Algovita and to develop our neurostimulation technology platform for uses in indications outside of SCS. We expect to finance our expenditures using the cash on-hand from the Greatbatch capital contribution or from internally generated funds. We may increase, decrease or re-allocate our anticipated expenditures during any period based on industry conditions, the availability of capital, or other factors. We believe that nearly all of our anticipated research and development expenditures are discretionary.
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Consolidated Cash Flows
Net cash used in operating activities was $14.4 million for the first nine months of 2016 compared to $15.6 million for the first nine months of 2015. The primary components driving the change in cash used in operating activities was the increase in our net loss from operations (adjusted to exclude non-cash charges) and changes in working capital accounts.
Net cash used in investing activities was $3.4 million for the first nine months of 2016 compared to $0.5 million for the first nine months of 2015. Cash used in investing activities related to the purchases of property, plant, and equipment ("PP&E"). During fiscal year 2015, Greatbatch contributed a building and certain fixed assets located in Blaine, Minnesota to us for use in our operations, which had a net book value of $1.8 million, and these assets are now being fully utilized by Nuvectra. Previously, these assets were shared by various Greatbatch entities, and Greatbatch allocated costs to each entity. Additionally, during fiscal year 2015, we transferred certain machinery and equipment with a net book value of $2.0 million, which previously had been used for DVT, to Greatbatch to utilize in the production of Algovita. These transfers were treated as non-cash transactions in the Condensed Consolidated Cash Flows.
As of September 30, 2016, we had no material commitments to purchase capital assets; however, planned capital expenditures for the remainder of 2016 are estimated at approximately $0.5 million and will primarily be financed by existing cash and cash equivalents, cash generated from operations, or the Credit Facility.
Net cash provided by financing activities was $93.2 million for the first nine months of 2016 compared to $16.0 million for the first nine months of 2015. Cash provided by financing activities was primarily composed of the investment provided by Greatbatch that was partially offset by the repurchase of non-controlling interests in Algostim and PelviStim, which was funded by a cash contribution from Greatbatch, and $15 million of borrowings under our credit facility
partially offset by $1.5 million of debt issuance costs.
Credit Facility
On March 18, 2016, we entered into a Loan and Security Agreement (the "Credit Facility"), consisting of
(a) term loan facilities in an aggregate maximum principal amount of $40 million comprised of (i) a $15 million Term Loan A Commitment, which was funded in full on March 18, 2016, (ii) a $12.5 million Term Loan B Commitment, which is available for draw December 31, 2016 through June 30, 2017, and (iii) a $12.5 million Term Loan C Commitment, which is available for draw June 30, 2017 through December 31, 2017; and (b) a Revolving Line Commitment in a maximum principal amount of $5 million. Availability of the Term Loan B Commitment is subject to us achieving consolidated trailing six month revenues of at least $13.5 million, and the availability of the Term Loan C Commitment is subject to us achieving consolidated trailing six month revenues of at least $20 million. We have the right to draw on each Term Loan B and C Commitments within 60 days of achieving the applicable revenue threshold. The term loan bears interest at the Wall Street Journal prime rate plus 4.15%, subject to an interest rate floor of 7.65%.
At September 30, 2016 the interest rate on borrowings under the term loan was 7.65%. The Credit Facility provides for interest-only payments on outstanding term loan borrowings for 18 months after the first borrowing, if the Term Loan B Commitment is not drawn, or 24 months after the first borrowing, if the Term Loan B Commitment is drawn, followed by 36 months, if the Term Loan B Commitment is not drawn, or 30 months, if the Term Loan B Commitment is drawn, of principal payments in equal amounts on outstanding term loan borrowings plus accrued interest payments.
In addition, under the terms of the Credit Facility, we have access to a $5 million revolving line of credit, subject to an advance rate equal to 80% of eligible accounts receivable. This revolving line of credit has a maturity date of March 18, 2018. The revolving line of credit bears interest at the Wall Street Journal prime rate plus 3.45%, subject to an interest rate floor of 6.95%. Interest on outstanding borrowings under the revolving line of credit is due monthly. Additionally, our outstanding accounts receivable will be processed through a cash collection account and lockbox at one of the lenders for the Credit Facility, with all amounts collected being applied to reduce the outstanding principal amount of the revolving line of credit on a daily basis.
Under the terms of the Credit Facility, we paid a commitment fee in an amount equal to 0.50% of the aggregate principal amount of the term loan and the revolving line of credit. In addition, we will pay a final payment fee in an amount equal to 7.75% of the funded amount of the term loan, which final payment fee is due at the time of the final principal payment for the Credit Facility or upon early termination of the Credit Facility. We must meet certain revenue thresholds and other conditions and covenants in order to draw on the Term Loan B and C Commitments. If we satisfy the conditions and covenants to allow for drawing on the Term Loan B and C Commitments but do not draw upon such commitment prior to the availability expiration date, we will pay a non-use fee of 2.00% of the unfunded amount of such commitment.
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If available and we draw on the Term Loan B or C Commitments, we will issue warrants to the lenders to purchase a number of shares of our common stock with a notional value equal to 4.5% of the funded amount of such commitment, with all warrants issued at such time having an exercise price equal to the lower of the average closing price of our common stock for the ten previous days of trading or the closing price of our common stock on the day prior to such commitment funding. Each warrant is expected to be exercisable for ten years from the date of issuance.
In connection with arranging the Credit Facility, we paid Piper Jaffray an arrangement fee of $1,125,000, which equals 2.50% of the aggregate principal amount of the Credit Facility.
The Credit Facility includes affirmative and negative covenants, including an affirmative covenant regarding minimum revenue requirements, prohibitions on the payment of cash dividends on our capital stock, and restrictions on mergers, sales of assets, investments, incurrence of liens, incurrence of indebtedness and transactions with affiliates. The Credit Facility includes a prepayment fee for the prepayment of the outstanding term loan balance prior to the maturity date in an amount equal to 3.00% of the prepaid term loan balance for a prepayment made during the first year after closing, 2.00% of the prepaid term loan balance for a prepayment made during the second year after closing and 1.00% of the prepaid term loan balance for a prepayment made thereafter. Our obligations under the Credit Facility are secured by substantially all of our assets, except for our intellectual property, which is subject to a negative pledge covenant.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements within the meaning of Item 303(a)(4) of Regulation S-K.
Recently Issued Accounting Standards
In the normal course of business, we evaluate all new accounting pronouncements issued by the Financial Accounting Standards Board ("FASB"), Securities and Exchange Commission ("SEC"), Emerging Issues Task Force ("EITF"), or other authoritative accounting bodies to determine the potential impact they may have on our Condensed Consolidated Financial Statements. See Note 12 "Recently Issued Accounting Standards" of the notes to the Condensed Consolidated Financial Statements contained in Item 1 of this report for additional information about these recently issued accounting standards and their potential impact on our financial condition or results of operations.
ITEM
3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Foreign Currency Risk –
We are exposed to adverse movements in foreign currency exchange rates because we conduct business on a global basis.
Market Price Risk –
We had no hedge contracts outstanding as of September 30, 2016 or January 1, 2016.
Interest Rate Risk –
The interest rate on any outstanding balance under the term loan of our Credit Facility is based upon the Wall Street Journal prime rate plus 4.15%, subject to an interest rate floor of 7.65%,
thus subjecting us to interest rate risk. At September 30, 2016 our interest rate on the $15 million outstanding balance was 7.65%. A hypothetical 50 basis point increase in the interest rate would have increased annual interest expense on this credit facility by approximately $75,000.
ITEM 4.
CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, under the supervision of our principal executive officer and principal financial officer, evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) related to the recording, processing, summarization, and reporting of information in our reports that we file with the Securities and Exchange Commission as of the end of the period covered by this quarterly report. These disclosure controls and procedures are designed to provide reasonable assurance that material information relating to us, including our subsidiaries, is made known to our management, including these officers, by our employees, and that this information is recorded, processed, summarized, evaluated, and reported, as applicable, within the time periods specified in the Securities and Exchange Commission's rules and forms. Based on their evaluation, as of September 30, 2016, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are effective.
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Changes in Internal Control Over Financial Reporting
We maintain a system of internal controls that are designed to provide reasonable assurance that our books and records accurately reflect, in all material respects, the transactions of the Company and that we meet and achieve our control objectives. From time to time, we may experience changes to our internal controls due, for example, to employee turnover, re-balancing of workloads, extended absences, and promotions of employees. There were no changes in our internal controls over financial reporting that occurred during the period covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.
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PART II—OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS
Periodically we are a party to various legal actions, both threatened and filed, arising in the normal course of business. While we do not expect that the ultimate resolution of any pending actions will have a material effect on our results of operations, financial position, or cash flows, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending or threatened legal action, which we currently believe to be immaterial, does not become material in the future.
ITEM 1A.
RISK FACTORS
Other than as described herein and in our other periodic filings including our Quarterly Report on Form 10-Q for the quarter ended April 1, 2016 filed on May 11, 2016, our Quarterly Report on Form 10-Q for the quarter ended July 1, 2016 filed on August 10, 2016 and our Current Reports on Form 8-K filed on March 18, March 30, April 7, May 11, June 17, and August 1, 2016, there have been no material changes from the Company's risk factors as previously disclosed in the Company's Registration Statement on Form 10.
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4.
MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5.
OTHER INFORMATION
None.
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ITEM 6.
EXHIBITS
Exhibit No.
Description
3.1
Certificate of Incorporation (filed as Exhibit 3.1 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)
3.2
Bylaws of Nuvectra Corporation (filed as Exhibit 3.2 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)
4.1
Warrant to Purchase Common Stock, dated March 18, 2016, issued to Oxford Finance LLC (filed as Exhibit 4.1 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)
4.2
Warrant to Purchase Common Stock, dated March 18, 2016, issued to Silicon Valley Bank (filed as Exhibit 4.2 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)
31.1
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act*
31.2
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act*
32.1
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
100.INS
XBRL Instance Document*
100.SCH
XBRL Extension Schema Document*
100.CAL
XBRL Extension Calculation Linkbase Document*
100.LAB
XBRL Extension Label Linkbase Document*
100.PRE
XBRL Extension Presentation Linkbase Document*
100.DEF
XBRL Extension Definition Linkbase Document*
* Filed herewith.
** Furnished herewith.
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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.
NUVECTRA CORPORATION
Date: November 9, 2016
/s/
Scott F. Drees
Scott F. Drees
Chief Executive Officer
(Principal Executive Officer)
Date: November 9, 2016
/s/
Walter Z. Berger
Walter Z. Berger
Chief Financial Officer
(Principal Financial and Accounting Officer)
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EXHIBIT INDEX
Exhibit No.
Description
3.1
Certificate of Incorporation (filed as Exhibit 3.1 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)
3.2
Bylaws of Nuvectra Corporation (filed as Exhibit 3.2 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)
4.1
Warrant to Purchase Common Stock, dated March 18, 2016, issued to Oxford Finance LLC (filed as Exhibit 4.1 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)
4.2
Warrant to Purchase Common Stock, dated March 18, 2016, issued to Silicon Valley Bank (filed as Exhibit 4.2 to our current report on Form 8-K on March 18, 2016, and incorporated herein by reference)
31.1
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act*
31.2
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act*
32.1
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
100.INS
XBRL Instance Document*
100.SCH
XBRL Extension Schema Document*
100.CAL
XBRL Extension Calculation Linkbase Document*
100.LAB
XBRL Extension Label Linkbase Document*
100.PRE
XBRL Extension Presentation Linkbase Document*
100.DEF
XBRL Extension Definition Linkbase Document*
* Filed herewith.
** Furnished herewith.
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