(

)

New Accounting Standards

Not

Yet Adopted

May 2014,

the FASB issued Accounting Standards Update

2014

09,

Revenue from Contracts with Customers

(“ASU

2014

09”

). ASU

2014

is a comprehensive new revenue recognition model that expands disclosure requirements and requires an entity to recognize revenue when promised goods or services are transferred to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In

August 2015,

the FASB issued Accounting Standards Update

2015

14,

Revenue from Contracts with Customers (Topic

606

): Deferral of the Effective Date

(“ASU

2015

14”

) which defers the effective date of the new revenue recognition standard by

one

year. Under ASU

2015

14,

the new revenue recognition standard is effective for the Company beginning in fiscal year

2019.

The FASB has also issued ASU

2016

08,

ASU

2016

10,

ASU

2016

11,

ASU

2016

12,

ASU

2016

and ASU

2017

all of which clarify certain implementation guidance within ASU

2014

09.

The Company is currently evaluating the potential impact of the adoption of this guidance, but does

not

anticipate that the adoption will significantly change the timing or amount of revenue recognized. Therefore, the Company believes the adoption will be limited to expanded disclosures with

material impact on its results of operations, financial position and liquidity.

February 2016,

the FASB issued Accounting Standards Update

2016

02,

Leases

(“ASU

2016

02”

). ASU

2016

requires the recognition of a separate lease liability representing the required lease payments over the lease term and a separate lease asset representing the right to use the underlying asset during the same lease term. Additionally, this ASU provides clarification regarding the identification of certain components of contracts that would represent a lease as well as requires additional disclosures to the notes to the financial statements. ASU

2016

is effective for fiscal years beginning after

December 15, 2018,

including interim periods within that reporting period with early adoption permitted. The Company is currently evaluating the provisions of ASU

2016

in order to determine the impact on its results of operations, financial position and liquidity and its related financial statement disclosures. In

July 2018,

the FASB issued ASU

2018

11,

Leases (Topic

842

), Targeted Improvements

, which provides an additional (and optional) transition method to adopt the new lease standard. Under the new transition method, an entity would initially apply the new lease requirements in the period of adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. The Company expects the adoption of this guidance

may

result in an increase to its long-term assets and liabilities on its consolidated balance sheet depending on the resulting impact of any decision by the Company to renew, extend or replace its

two

existing real estate leases, as the current leases expire; however, the Company does

not

expect the adoption to have a material impact on its results of operations, financial position and liquidity and its related financial statement disclosures.

August 2016,

the FASB issued Accounting Standards Update

2016

15,

Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments

(“ASU

2016

15”

). ASU

2016

provides guidance related to the classification of certain cash receipts and cash payments on the statement of cash flows. The pronouncement provides clarification guidance on

eight

specific cash flow presentation issues that have developed due to diversity in practice. ASU

2016

is effective for fiscal years beginning after

December 15, 2017,

including interim periods within that reporting period, with early adoption permitted. The adoption of ASU

2016

not

expected to have a material impact on the Company's results of operations, financial position or liquidity or its related financial statement disclosures.

October 2016,

the FASB issued Accounting Standards Update

2016

16,

Income Taxes (Topic

740

): Intra-Entity Transfers of Assets Other Than Inventory

(“ASU

2016

16”

). ASU

2016

requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset (with the exception of inventory) when the transfer occurs. Under current GAAP, entities are prohibited from recognizing current and deferred income taxes for an intra-entity transfer until the asset is sold to a

third

party. Examples of assets that would be affected by the new guidance are intellectual property and property, plant and equipment. ASU

2016

is effective for fiscal years beginning after

December 15, 2017,

including interim periods within that reporting period, with early adoption permitted. The adoption of ASU

2016

not

expected to have a material impact on the Company's results of operations, financial position or liquidity or its related financial statement disclosures.

June 2018,

the FASB issued Accounting Standards Update

2018

07,

Compensation – Stock Compensation (Topic

718

): Improvements to Nonemployee Share-Based Payment Accounting

(“ASU

2018

07”

). ASU

2018

expands the scope of Topic

718

to include share-based payment transactions for acquiring goods and services from nonemployees. ASU

2018

also clarifies that Topic

718

does

not

apply to share-based payments used to effectively provide (

) financing to the issuer or (

) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under

Revenue from Contracts with Customers

(Topic

606

). ASU

2018

is effective for fiscal years beginning after

December 15, 2018,

including interim periods within that reporting period, with early adoption permitted. The adoption of ASU

2018

not

expected to have a material impact on the Company's results of operations, financial position or liquidity or its related financial statement disclosures.

June 2018,

the FASB issued Accounting Standards Update

2018

08,

Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made

(“ASU

2018

08”

). ASU

2018

applies to entities that receive or make contributions, which primarily are

not

-for-profit entities but also affects business entities that make contributions. In the context of business entities that make contributions, the FASB clarified that a contribution is conditional if the arrangement includes both a barrier for the recipient to be entitled to the assets transferred and a right of return for the assets transferred (or a right of release of the business entity’s obligation to transfer assets). The recognition of contribution expense is deferred for conditional arrangements and is immediate for unconditional arrangements. ASU

2018

requires modified prospective transition to arrangements that have

not

been completed as of the effective date or that are entered into after the effective date, but full retrospective application to each period presented is permitted. ASU

2018

is effective for fiscal years beginning after

December 15, 2018,

including interim periods within that reporting period, with early adoption permitted. The adoption of ASU

2018

not

expected to have a material impact on the Company's results of operations, financial position or liquidity or its related financial statement disclosures.

There are

other new accounting standards issued, but

not

yet adopted by the Company, which are expected to materially impact the Company’s financial position, operating results or financial statement disclosures.