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   &lt;div align="left" style="font-family: 'Times New Roman',Times,serif"&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;2. RECENT ACCOUNTING PRONOUNCEMENTS&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;From time to time, new accounting pronouncements are issued by the Financial Accounting
   Standards Board (the FASB) which are adopted by the Company as of the specified effective date.
   Unless otherwise discussed, management believes that the impact of recently issued standards, which
   are not yet effective, will not have a material impact on the Company&amp;#8217;s consolidated financial
   statements upon adoption.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In October&amp;#160;2009, the FASB issued an accounting standards update that modified the accounting
   and disclosures for revenue recognition in a multiple-element arrangement. These amendments,
   effective for fiscal years beginning on or after June&amp;#160;15, 2010 (early adoption is permitted),
   modify the criteria for recognizing revenue in multiple- element arrangements and the scope of what
   constitutes a non-software deliverable. The Company has adopted this change, and it did not have a
   material impact on the Company&amp;#8217;s financial condition, results of operations, cash flows or
   disclosures contained in our notes to the condensed consolidated financial statements.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In December&amp;#160;2009, the FASB issued an accounting standards update which amends previously
   issued accounting guidance for the consolidation of variable interest entities (VIE&amp;#8217;s). These
   amendments require a qualitative approach to identifying a controlling financial interest in a VIE,
   and require ongoing assessment of whether an entity is a VIE and whether an interest in a VIE makes
   the holder the primary beneficiary of the VIE. These amendments are effective for annual reporting
   periods beginning after November&amp;#160;15, 2009. The adoption of these amendments did not have a material
   impact on our financial condition, results of operations, cash flows or disclosures contained in
   our notes to the condensed consolidated financial statements.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In January&amp;#160;2010, the FASB issued an accounting standards update which requires reporting
   entities to make new disclosures about recurring or nonrecurring fair value measurements including
   significant transfers into and out of Level 1 and Level 2 fair value measurements and information
   on purchases, sales, issuances, and settlements on a gross basis in the reconciliation of Level 3
   fair value measurements. These amendments are effective for annual reporting periods beginning
   after December&amp;#160;15, 2009, except for Level 3 reconciliation disclosures which are effective for
   annual periods beginning after December&amp;#160;15, 2010. The adoption of the amendments pertaining to
   Level 1 and Level 2 fair value measurements did not have a material impact on our financial
   condition, results of operations, cash flows or disclosures contained in our notes to the condensed
   consolidated financial statements. We do not expect the adoption of the amendments regarding Level
   3 fair value measurements to have a material impact on our financial condition, results of
   operations or cash flows.
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 -Publisher AICPA
 -Name Accounting Principles Board Opinion (APB)
 -Number 28
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
 -Publisher SEC
 -Name Regulation S-X (SX)
 -Number 210
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 -Paragraph b
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